Health Professions Loans, Scholarships, and ReportingEASFAA 2009 Annual ConferenceMay 19, 2009Scholarship and Loan Program ManagersHealth Resources and Services AdministrationBureau of Health ProfessionsDivision of Student Loans and ScholarshipsCampus Based Branch
Todays Presentation Agency/Bureau Overview Overview of Campus Based Branch ProgramsHealth Professions Student Loan (HPSL)Primary Care Loan (PCL)Loans for Disadvantaged Students (LDS)Scholarships for Disadvantaged Students (SDS)Nursing Student Loan (NSL)Nurse Faculty Loan Program (NFLP)Electronic HandbookAnnual Operating Report (AOR) Edit Errors
Bureau OverviewBHPr Mission:Increase the populations access to health care by providing national leadership in the development, distribution and retention of a diverse, culturally competent health workforce that can adapt to the populations changing healthcare needs and provide the highest quality of care for all.
New FacesMary K. Wakefield, PhD, RNAdministrator, HRSAMarcia K. Brand, PhDDeputy Administrator, HRSADiana EspinosaActing Associate Administrator, BHPrSarah L. RichardsDirector, DSLSMaureen J. WilliamsChief Operating Director, DSLS
Bureau of Health Professions2008 ReorganizationOffice of Shortage Designation
Primary Care LoanRequires:Medical and osteopathic students who receive these funds to practice primary health care.
Institutions to make a 1/9th contribution based on PCL draw down of Federal funds.
PCL -- Requirements
Not less than 50 percent of the schools designated graduates meet the criterion of either being in a primary health care residency training program or being engaged in the practice of primary health care; or
Not less than 25 percent of the schools designated graduates meet the above criterion, and this percentage is not less than 5 percentage points above the percentage of such criterion for the preceding one-year period; or
The school in in the top 25th percentile of participating PCL schools relative to the proportion of designated graduates who meet the above criterion.
Health Professions Student Loan ProgramEstablished to alleviate the shortage of health professionals and to assure that qualified students were not denied a health professions career due to lack of financial resources.
HPSL provides long-term, low interest loans to full time students with financial need pursuing a degree in health professions.
Health Professions Student Loan ProgramInitially funded through appropriations from Congress is now maintained through a revolving Federal Capital Contribution (FCC).
Institutions must make a 1/9th contribution of Federal funds awarded.
Loans for Disadvantaged StudentsProvides financial assistance for health professions students from disadvantaged backgrounds with financial need.
Funds are awarded to accredited schools of allopathic medicine, osteopathic medicine, dentistry, optometry, pharmacy, podiatric medicine, and veterinary medicine.
LDS Eligibility RequirementsEligibility requirements:
Recruit and retain disadvantaged students;
Recruit and retain minority faculty;
Provide adequate instruction regarding minority health issues;
LDS- Eligibility Requirements, ContinuedEstablish arrangements with clinics serving individuals from disadvantaged backgrounds;
Establish linkages with feeder schools; and
Offer mentoring programs to help individuals from disadvantaged backgrounds obtain health professions degrees.
Scholarships for Disadvantaged StudentsEstablished along with LDS to provide scholarships to full-time students from disadvantaged backgrounds that show financial need and are enrolled in health professions and nursing programs.
Schools are responsible for selecting scholarship recipients, making reasonable determinations of need, and providing scholarships that do not exceed the cost of attendance (tuition, reasonable educational and living expenses).
Eligible SDS DisciplinesAllopathic MedicineOsteopathic MedicineDentistryOptometryPodiatric MedicineVeterinary MedicineChiropractic MedicinePharmacy (Baccalaureate or Graduate)Public Health (Graduate)Dental Hygiene (Baccalaureate & Graduate)Medical Laboratory Technology (Baccalaureate)Speech Pathology (Baccalaureate & Graduate)Registered Dietician (Baccalaureate & Graduate)Radiologic Laboratory (Baccalaureate)Audiology (Baccalaureate & Graduate)
Eligible SDS Disciplines, ContinuedOccupational Therapy (Graduate)Physical Therapy (Graduate)Clinical Psychology (Graduate)Clinical Social Work (Graduate)Marriage and Family Counseling (Graduate)Rehabilitation Counseling (Graduate)Gerontology Counseling (Graduate)Mental Health Counseling (Graduate)Associate NursingBaccalaureate NursingGraduate NursingPhysician Assistant Training
SDS Performance-based Eligibility CriteriaSchools are eligible if they can demonstrate:
10% disadvantaged enrollment in Academic Year And
10% disadvantaged graduates in Academic Year.
In addition, must have economically disadvantaged students enrolled and graduated during the reporting year.
SDS Funding PrioritiesTo receive consideration for larger amounts of funding, schools must have at least:
50 percent of their graduates practicing in Primary Care,
10 percent of their graduates serving in Medically Underserved Communities, or
A percent of underrepresented minorities that is above the national average for the discipline for which the school is applying.
Nursing Student LoanEstablished to alleviate the shortage of nursing personnel and to assure that no qualified student was denied the pursuit of a nursing career due to lack of financial resources.
Provides long-term, low-interest loans to full-time and part-time students pursuing a course of study leading to a diploma, associate degree, bachelors degree, or graduate degree in nursing
Nursing Student LoanThe annual maximum amount a student may borrow is $2,500. For students enrolled in their last two years of study, the annual loan maximum is $4,000. The aggregate amount may not exceed $13,000 for all years of study.
Repayment of loan begins 9 months after leaving school.
NSL Programs High Default RatesIn accordance with the Campus Based Branch loan program statute and regulations, schools are required to:Meet a 5% default rate performance standard on June 30th of each year, andComplete an AOR Report each year.
Failure to maintain the default rate below the 5% rate results in probation, suspension, and finally termination from program participation.
ProbationDuring the PROBATION period there are no restrictions on the normal activities of the fund. Rather, PROBATION puts your school on notice that the program has a default rate over the 5% threshold and that the school should work with its guarantor to make reductions toward an acceptable default rate
The school is generally given until December 31st of the same year to achieve a 5% default rate or reduce its ending default rate by 50%. If this default rate is not met by December 31st, the schools status in the program will change from PROBATION to SUSPENSION, effective January 1st of the next year.
SuspensionPrograms placed in SUSPENSION are: Ineligible to receive new Federal Capital Contribution (FCC) awards;
Not authorized to draw down funds from the Payment Management System (PMS); and
Not authorized to make loan disbursements from the loan fund. Programs placed in SUSPENSION as of January 1st must reach a 5% default rate or reduce their default rate by 50% by June 30th of the new year.
TerminationPrograms in SUSPENSION, which fail to achieve the specified reductions, will automatically be TERMINATED on July 1st of the new year.
TERMINATED programs are barred from participation in the Federal Capital Contribution program.
The terminated program must remit funds back to the Federal government in accordance with the guidance procedures found in the Student Financial Aid Guidelines.
Nurse Faculty Loan Program (NFLP) - Strategic GoalsPromotes recruitment of nursing students to become nurse faculty;
Provides financial support for students enrolled in an advanced education nursing program to prepare qualified nurse faculty; and
Retains loan recipients as nurse faculty by providing loan cancellation over a consecutive four-year period.
Accredited collegiate school of nursing or another entity within that institution that offers a graduate-level nursing degree program preparing qualified nurse faculty.
NFLP- Eligible Entity
The NFLP fund may be used only:
For the deposit of the FCC and ICC, or
To make loans to students enrolled in a masters or doctoral nursing degree program with an education component that will prepare the student to teach.
NFLP Loan Fund
Student RequirementsNFLP students:
Must enroll for a minimum of two consecutive terms/semesters for each year of NFLP loan support; and
Must complete the specified education component to prepare qualified nurse faculty prior to graduating from the program.
NFLP Loan ProvisionsStudents may borrow a maximum of $30,000/year for no more than 5 years of support.
NFLP* loans may be used to cover full/partial tuition, fees, books, laboratory expenses, and other reasonable