Current through all regulations passed and filed through March 18, 2024
(A) Intent and authority
(1) It is the intent of the chancellor of the
department of higher education in promulgating this
rule to establish and administer a nurse education assistance loan program
which will provide financial assistance to eligible students while providing an
incentive for these students to engage in the practice of nursing in the state
of Ohio upon completion of their academic programs.
(2) This rule is adopted under the authority
conferred upon the chancellor by section
3333.28 of the Revised
Code.
(B) Definitions
For purposes of this rule:
(1) A "loan" means the total principal amount of
all nurse education assistance loan program funds awarded to a student plus
interest assessed by the chancellor.
(2) An "approved nurse education program"
means a prelicensure nurse education program offered
by an institution which is approved by the Ohio board of nursing under section
4723.06 of the Revised Code or a
postlicensure nurse education program approved by the chancellor under section
3333.04 of the Revised Code or
offered by an institution holding a certificate of authorization issued by the
chancellor under Chapter 1713. of the Revised Code.
(3) An "institution"
means a hospital school of nursing, or a private
college, university or vocational school which offers an approved nurse
education program.
(4) An "Ohio
resident" means any person who meets the requirements of rule
3333-1-10 of the Administrative
Code. Verification of Ohio residency for these purposes
is to be
provided by the institution in which the student is enrolled. Institutions
are to
provide students with a fair and adequate opportunity to present proof of their
Ohio residency.
(5) "Half-time
enrollment" means an academic course load which is at least
one-half of the normal full-time course load as determined by the institution
in which the student is enrolled.
(6) "Educational expenses"
means charges assessed by the student's institution
for instructional and general fees ("tuition"), laboratory fees, books and
supplies, room and board, transportation, and other miscellaneous expenses
as indicated in each student's institutional cost of
attendance.
(7) "Expected
family contribution" means the measure of a student's or a family's ability
to contribute to the cost of education from the student's or the family's
financial resources. An expected family contribution for these purposes
is to be
calculated by means of a federally approved need analysis formula designated by
the chancellor. The chancellor may use any federally
approved need analysis formula that is a successor to expected family
contribution.
(8) The "direct
clinical practice of nursing" means the equivalent of full-time
employment in an Ohio board of nursing licensed
occupation and in which the employee has to
apply the knowledge and skills gained in her or his nurse education
program.
(9) A "deferment" is an
agreement between the borrower and the chancellor which authorizes the borrower
to temporarily stop performance of the service obligation or repayment of the
loan during specified periods of time. No interest will accrue
during any deferment period.
(10)
"Total service obligation" means a period of time--four consecutive years for
those students completing a postlicensure program of study and five consecutive
years for those students completing a prelicensure program of study--following
completion of the approved nurse education program during which time the
borrower is employed in the clinical practice of nursing in the state of
Ohio.
(11) The "designated agency"
means a public agency or private firm which provides
services to the department of higher education, under a contractual
agreement, for the processing of loans which are in repayment, delinquent or in
default.
(12)
"Full-time employment" means employed at one or more
employers for an average of thirty-two hours a week utilizing nursing
degree.
(C)
Eligibility requirements
To be eligible to receive a nurse education assistance loan a
student is
to:
(1) Be an Ohio
resident;
(2) Be a
citizen, a national, or a permanent resident of the United States; or be in the
United States for other than a temporary purpose and intend to become a
permanent resident; or be a permanent resident of the Trust Territory of the
Pacific Islands or the Northern Mariana Islands;
(3) Be enrolled in or be accepted for
enrollment in an approved nurse education program for at least half-time study.
The chancellor may request documentary evidence of compliance with this
paragraph;
(4)
Provide an expected family contribution value, or
successor/equivalent, which has been determined in accordance with
paragraph (B)(7) of this rule;
(5)
Complete a promissory note stating an intention to
engage in the direct clinical practice of nursing in the state of Ohio upon
completion of her or his academic program; and
(6) Not owe a refund to, or be in default on,
any state educational loan program or any federal educational loan or grant
program covered under Title IV of the Higher Education Act, as
amended.
(D) Application
procedures
(1)
Interested applicants are
to complete the free application for federal student aid (FAFSA) prior to
completing the NEALP application. The completion of the FAFSA provides an
expected family contribution (EFC), or equivalent successor measurement, that
may be used to determine NEALP eligibility.
(2)
Applications are available
electronically on the NEALP website annually during the application period,
which will be posted on highered.ohio.gov/nealp.
(3)
Each applicant is to submit by the
stated close date the completed application, a signed promissory note, a signed
statement of students' rights, and a statement of intent if seeking a master's
of nurse educator's (MNE) degree.
(4) If an applicant is under the age of
eighteen, the applicant will need to have a co-signer
that is eighteen years or older on the promissory note.
(E)
Maximum awards
amounts
(1)
The
maximum annual loan amount will be the following:
(a)
Ten thousand
dollar for a student enrolled in an eligible postlicensure nurse education
program and who has stated an intent to practice as a faculty member or an
adjunct with the equivalent of full-time employment or a combination of
teaching and direct clinical practice of nursing that is equivalent of
full-time employment at a prelicensure or postlicensure program for nursing in
the state.
(b)
Three thousand dollars for a student enrolled in an
eligible prelicensure nurse education program leading to a registered nurse
license;
(c)
Three thousand dollars for a student enrolled in an
eligible postlicensure nurse education program;
(d)
One thousand five
hundred dollars for a student enrolled in an eligible prelicensure nurse
education program leading to a license in practical nursing.
The listed award amounts are the
maximum award a student may receive and each year the award amounts will be set
by the chancellor as set forth in paragraph (F) of this rule.
(2)
Loans may be awarded for a maximum of fifteen quarters
or ten semesters or the equivalent and may not exceed the total aggregate loan
amount of thirty thousand dollars.
(3)
Fund balance:
Annually, the chancellor will review the applications, the biennial
appropriations and consult with the board of nursing to determine the
percentage that will remain after awards for a particular year. However, the
money remaining in the fund will not be less than five per cent of the annual
appropriation.
(F) Awarding loans
(1)
Each year the chancellor will review the state's needs for
nurse educators, registered nurses and practitioners, and practical nurses and
review the total applications received in identified fields of need to
determine the number of loans to be awarded. The chancellor may determine the
number of loans which are available to be awarded based on available funds.
Available loans may be apportioned by professional category. Prior to a final
apportionment determination, the chancellor will consult with the board of
nursing. For purposes of this rule, consultation with the board of nursing may
include, but is not limited to, submission of recommendations, a report, or
findings by the board of nursing.
(2)
The total number of applications received and available
funds determines the maximum award in each nursing degree category and is
provided to the institutions electronically. The final eligibility number is
finalized by the institutions in the verification process. Institutions are
instructed to verify each applicant's enrollment and eligibility. The
institutions verification process includes but is not limited to; acceptance
and/or enrollment in a nursing program that does not include pre-requisite
courses; reporting the total cost of attendance for the year, the total
estimated financial aid, and the EFC (or successor/equivalent); and verifying
the applicant is not in student loan default with the U.S. department of
education. The verification process and deadline date will be posted on the
department of higher education website each year. Institutions submit this
information in a HEI file which is recorded in the NEALP system of the student
account. The institutions are electronically notified of the final per student
award amount and EFC (or successor/equivalent) cutoff if
applicable.
(3)
If sufficient funds are
available, as determined by the chancellor, loan assistance will be awarded to
all eligible applicants in programs identified as fields of
need.
(4)
If available funds are not
sufficient to award loans to all eligible applicants, as determined by the
chancellor, the chancellor will allocate the available funds among the
professional categories. All eligible applications received prior to the
established deadline will be ranked within each category on the basis of
relative financial need as evidenced by the expected family contribution (or
successor/equivalent), with preference given to the lowest expected family
contribution (or successor/equivalent), in the awarding of loans. The
chancellor may consider other factors in the ranking of
applications.
(5)
In determining the annual amount of
each loan, the chancellor will consider the student's educational expenses, the
expected family contribution (or successor/equivalent), and other financial aid
awarded to the student.
(G)
Loan disbursal
(1)
The chancellor will disburse the
funds to the verified borrower's institution to cover educational expenses in
equal portions over two or three terms of the academic year provided the
applicant is attending an approved nursing program.
(2) Loan benefits
will not
be disbursed during any term in which the borrower is not in good academic
standing as defined by her or his institution. A borrower who is not in good
academic standing needs to bring her or his academic record up to the
necessary standard within two academic terms or the
loan will go into repayment.
(3)
If a
student reduces his or her enrollment - either by dropping a class(es) or
withdrawing altogether after the institution's census date, but during the
institution's refund period, the percentage of the NEALP award refund will be
equivalent to the percentage refund of the student's actual educational expense
charges. If a student reduces his or her enrollment - either by dropping a
class(es) or withdrawing altogether after the institution's freeze date, and
after the institution's refund period, no NEALP award refund will be
necessary.
(H) Loan application
(1)
Loans are not
automatically renewed. Each year an applicant will have to reapply and be in
good standing on all previous NEALP loans. To qualify for loan renewal, the
borrower will need to continue to meet all eligibility requirements set forth
in paragraph (C) of this rule and maintain an academic record which places her
or him in good academic standing as defined by the institution.
(2) Completion of an application/promissory
note is necessary for each loan .
(I) Loan forgiveness
(1) After graduation from an approved nurse
education program, the borrower may be eligible for debt cancellation
as follows:
(a)
At a rate of
twenty-five per cent per year, for a maximum of four years, for students that
completed a postlicensure program of study for each year in which the borrower
is employed as a faculty member or an adjunct with the equivalent of full-time
employment or a combination of teaching and direct clinical practice of nursing
that is equivalent of full-time employment at a prelicensure or postlicensure
program for nursing in the state of Ohio.
(b)
At a rate of
twenty per cent per year, for a maximum of five years, for students who
completed a prelicensure program of study for each year in which the borrower
is employed in the direct clinical practice of nursing in the state of Ohio for
the equivalent of full-time employment.
(c)
At a rate of
twenty per cent per year, for a maximum of five years, for students who
completed a postlicensure program of study without the intent to teach for each
year in which the borrower is employed in the direct clinical practice of
nursing in the state of Ohio for the equivalent of full-time
employment.
(d)
At a rate of twenty per cent per year, for a maximum of
five years, for students who completed a prelicensure nurse education program
leading to a license in practical nursing for each year in which the borrower
is employed in the state of Ohio for the equivalent of full-time
employment.
(2) To
qualify for loan forgiveness the borrower needs to secure
the equivalent of full-time employment
as described in paragraph (B) of this
rule within a period not to exceed six months following graduation from
the approved nurse education program.
(3) While fulfilling the service obligation,
the borrower is to provide periodic evidence of
the equivalent of full-time employment as
requested by the chancellor.
(J) Repayment
(1) The chancellor has the
authority to enter into a contractual agreement with a public or private agency
for services needed to manage the repayment of nurse education assistance loans
and the collection of delinquent or defaulted loans who
may determine the interest rate and fees.
(2) Repayment of the
principal amount of the loan and interest will be deferred
during the following periods:
(a) While the
borrower is enrolled in an approved nurse education program, provided that the
borrower continues to meet all eligibility requirements;
(b) While the borrower is seeking employment
to fulfill the service obligation, during a period not to exceed six
months;
(c) While the borrower is
fulfilling the service obligation;
(d) During a period not to exceed one
calendar year, after which time a borrower has failed the state nursing
licensing examination for the first time. This deferment period
ends
thirty days after the borrower passes the state nursing licensing examination
on the second attempt. If the borrower fails to pass the state nursing
licensing examination on the second attempt, the loan plus interest
will go
into repayment immediately;
(e)
During an authorized deferment as granted by the
chancellor which may be granted for up to one year for any circumstances which
constitute an undue hardship, as judged by the chancellor. These circumstances
may include continued nursing education, serious illness, pregnancy,
disability, inability to secure employment or involuntary termination of
employment.
(f)
While the borrower is deployed on active duty service
outside the state.
(g)
While the borrower joins a spouse deployed on active
duty outside the state.
(3)
Repayment of the outstanding principal amount of the loan plus interest
will be
made to the department of higher education or the designated
agency and will begin on the occasion of one or more of the
following events:
(a) The borrower drops out
of school without an approved deferment;
(b) The borrower is not in good academic
standing for more than two consecutive terms;
(c) The borrower drops out of the approved
nurse education program;
(d) The
borrower fails to complete the total service obligation.
(4)
The terms of repayment, including the length of the repayment period and the
date on which the first payment is due, will be agreed
upon by the borrower and the chancellor or the designated agency and shall be
set forth in a disclosure statement. The disclosure statement
will
also include the total amount of interest owed on the loan.
(5)
The total repayment period will not exceed ten years.
(6) The minimum monthly
repayment amount will be determined by the chancellor or the office of
the Ohio attorney general or the designated agency, as applicable.
(K) Delinquency and default
(1) A borrower is delinquent when a loan
payment is a minimum of thirty days late. The chancellor or the designated
agency will use diligent efforts to collect on a delinquent
loan and may seek assistance from the office of the Ohio attorney
general.
(2) A loan is considered
to be in default when it is one hundred twenty days delinquent. A loan which is
in default will be declared due in full and the borrower
will be
disqualified from any debt cancellation benefits. The chancellor or the
designated agency will use diligent efforts to collect on a loan which
is in default and may seek assistance from the office of the Ohio attorney
general.
(L)
Cancellation
(1) The entire debt or service
obligation will be canceled if:
(a) The borrower dies, or
(b) The borrower becomes totally and
permanently disabled and the borrower provides a statement from a licensed
physician verifying this condition.
(M) Promoting the program
The chancellor will promote public awareness of the nurse education
assistance loan program by disseminating information to high school guidance
offices, college financial aid offices and community service agencies. In
addition, special efforts will be made to promote the program and the nursing
profession among groups who have been historically underrepresented in nursing
careers.
(N)
Influence on other awards
The receipt of a nurse education
assistance loan will not affect a student's eligibility for assistance, or the
amount of that assistance, granted under section
3333.122,
3333.26,
5910.03,
5910.032 or
5919.34 of the Revised
Code.