Nebraska Administrative Code
Topic - HEALTH AND HUMAN SERVICES SYSTEM
Title 183 - FINANCIAL ASSISTANCE
Chapter 5 - NURSING STUDENT LOAN PROGRAM
Section 183-5-008 - CONDITIONS REQUIRING REPAYMENT OF LOAN

Universal Citation: 183 NE Admin Rules and Regs ch 5 ยง 008

Current through September 17, 2024

The specific provisions for repayment of loans include inappropriate use of loan funds, discontinued enrollment, and discontinued full-time employment in nursing.

008.01 INAPPROPRIATE USE OF LOAN FUNDS. If the nursing program or Department determines that a recipient has inappropriately used loan funds based on Neb. Rev. Stat. § 71-17,105 and 183 NAC 5-006, the recipient must:

(A) Repay 100% of the outstanding loan principal with simple interest at a rate 1 point below the prime interest rate. Interest accrues beginning on the date the inappropriate use of funds first occurred:

(B) Commence repayment within 6 months after the date the inappropriate use first occurred: and

(C) Complete repayment within the number of years for which loans were awarded.

008.02 DISCONTINUED ENROLLMENT. Loan recipients must remain enrolled in the nursing program or repay the loan according to the terms in Neb. Rev. Stat. § 71-17,105(3).

008.02(A) VERIFICATION OF ENROLLMENT. To verify continued enrollment, the Department sends to each approved nursing program a quarterly request for verification of student status for each loan recipient. The program must respond to the request by verifying that each student:
(i) Remains currently enrolled;

(ii) Has completed the program and the date of completion; or,

(iii) Has discontinued enrollment and the date of discontinuance.

008.03 DISCONTINUED FULL-TIME NURSING PRACTICE. The loan recipient must engage in full-time nursing practice for 1 year or the equivalent for each year a loan was received, or repay the loan according to 183 NAC 5-008.03C.

008.03(A) VERIFICATION OF INITIAL PRACTICE. Upon initial engagement in nursing practice, the loan recipient must submit to the Department written verification signed by the employer or other qualified persons indicating the place of practice and that the recipient is engaged in full-time nursing practice in Nebraska. The recipient may have more than 1 employer or practice arrangement, but must engage in nursing practice a total of at least 36 hours per week. Verification of practice must be repeated each time the recipient changes or adds an employer or practice arrangement.

008.03(B) VERFICATION OF CONTINUED PRACTICE. The Department sends to each loan recipient a quarterly request for verification of practice status. The verification must be signed by the recipient's employer or other qualified persons and must indicate:
(i) That the recipient continues to be engaged in full-time nursing practice in Nebraska; and

(ii) The total number of hours of practice in the previous quarter; or

(iii) That the recipient has left practice and the last date of practice.

008.03(C) REPAYMENT TERMS. If the recipient discontinues full-time nursing practice in Nebraska, the recipient must:
(i) Repay 125% of the outstanding loan principal with simple interest at a rate 1 point below the prime interest rate. Interest accrues beginning upon completion of the nursing program;

(ii) Commence repayment within 6 months after the discontinuation of nursing practice; and

(iii) Complete repayment within the number of years for which loan(s) were awarded,

(iv) Once the recipient enters the repayment period, the loan is no longer eligible for forgiveness.

008.03(D) APPROVED LEAVE. Leave approved by an employer, such as sick leave, maternity leave, vacation leave, leave for military service, jury duty, or family medical leave, regardless of whether the leave is paid or unpaid, does not place the loan in repayment status. Time accrued during approved leave does not count toward the total number of practice hours required for loan forgiveness.

008.03(E) DEFERRMENT FOR ADVANCED STUDY. If a recipient discontinues full-time nursing practice and enrolls in an approved nursing program to pursue an additional degree in nursing, the practice requirement is deferred until the recipient completes the additional degree or discontinues enrollment. Enrollment is verified quarterlv as provided in 183 NAC 5-008.02(A). The number of practice hours completed prior to enrollment is retained on file by the Department for the purposes of loan forgiveness at the time the recipient returns to full-time nursing practice.

Disclaimer: These regulations may not be the most recent version. Nebraska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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