[Federal Register Volume 62, Number 131 (Wednesday, July 9, 1997)]
[Notices]
[Pages 36837-36838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17895]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration


Availability of Funds for the Nursing Education Loan Repayment 
Program for Service in Certain Health Facilities

AGENCY: Health Resources and Services Administration, HHS.

ACTION: Notice of available funds.

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SUMMARY: The Health Resources and Services Administration (HRSA) 
announces that applications will be accepted for fiscal year (FY) 1997 
for awards under section 846 of the Public Health Service (PHS) Act to 
repay up to 85 percent of the nursing education loans of registered 
nurses who agree to serve for not less than 2 years as nurse employees 
in certain health facilities.
    The HRSA, through this notice, invites applications for 
participation in this loan repayment program. Approximately $2,197,000 
will be available, and with these funds, the HRSA estimates that 
approximately 195 loan repayment awards may be made.
    The PHS is committed to achieving the health promotion and disease 
prevention objectives of Healthy People 2000, a PHS-led national 
activity for setting health priorities. These programs will contribute 
to the Healthy People 2000 objectives by improving access to primary 
health care services through coordinated systems of care for medically 
underserved populations in both rural and urban areas. Potential 
applicants may obtain a copy of Healthy People 2000 (Full Report, Stock 
No. 017-001-00474-01) or Healthy People 2000 (Summary Report, Stock No. 
017-001-00473-01) through the Superintendent of Documents, Government 
Printing Office, Washington, D.C. 20402-9325 (telephone number: 202-
783-3238).
    The PHS strongly encourages all grant and contract recipients to 
provide a smoke-free workplace and promote the non-use of all tobacco 
products. In addition, Public Law 103-227, the Pro-Children Act of 
1994, prohibits smoking in certain facilities (or in some cases, any 
portion of a facility) in which regular or routine education, library, 
day care, health care, or early childhood development services are 
provided to children. This is consistent with the PHS mission to 
protect and advance the physical and mental health of the American 
people.

DATES: To receive consideration for funding, individuals must submit 
their applications by August 31, 1997. Applications shall be considered 
as meeting the deadline if they are either:
    (1) received on or before the deadline date; or
    (2) sent on or before the deadline and received in time for 
submission to the reviewing program official.

(Applicants should request a legibly dated U.S. Postal Service postmark 
or obtain a legibly dated receipt from a commercial carrier or U.S. 
Postal Service. Private metered postmarks shall not be acceptable as 
proof of timely mailing.)

    Late applications will not be considered for funding in FY 1997, 
but may be kept on file for consideration in FY 1998.

ADDRESSES: Application materials with a list of counties (parishes) 
with the greatest shortage of nurses may be obtained by calling or 
writing to: Sharley Chen, Chief, Loan Repayment Programs Branch, 
Division of Scholarships and Loan Repayments, Bureau of Primary Health 
Care, HRSA, 4350 East-West Highway, 10th Floor, Bethesda, MD 20814, 
(301-594-4400). The 24-hour toll-free phone number is 1-800-435-6464 
and the FAX number is (301) 594-4981. Completed applications should be 
mailed to the same address. The application form has been approved 
under Office of Management and Budget (OMB) Number 0915-0140.

FOR FURTHER INFORMATION CONTACT: For further program information and 
technical assistance, please contact the Branch Chief at the above 
address, phone or FAX number.

SUPPLEMENTARY INFORMATION: Section 846 of the PHS Act provides that the 
Secretary will repay a portion of an individual's educational loans 
incurred for nursing education costs if that individual enters into a 
contract with the Secretary to serve as a registered nurse for not less 
than 2 years in a variety of eligible health facilities or in a health 
facility determined by the Secretary to have a critical shortage of 
nurses. Due to funding limitations, the total outstanding educational 
loan balances eligible for loan repayment assistance will not exceed 
$30,000.00. For an individual who is selected to participate in this 
program, repayment shall be on the following basis:
    (1) By the completion of the first year of agreed service, the 
Secretary will

[[Page 36838]]

have paid 30 percent of the principal of, and interest on, the 
outstanding balance on each qualified loan as of the beginning date of 
service (not to exceed 30% of a total of $30,000);
    (2) By the completion of the second year of agreed service, the 
Secretary will have paid another 30 percent of the principal of, and 
interest on, the outstanding balance of each qualified loan as of the 
beginning date of service (not to exceed 30% of a total of $30,000); 
and
    (3) By the completion of a third year of agreed service, if 
applicable, the Secretary will have paid another 25 percent of the 
principal of, and interest on, the outstanding balance of each 
qualified loan as of the beginning date of service (not to exceed 25% 
of a total of $30,000). The option for third year of service is 
dependent on the availability of funds during that third year.
    No more than 85 percent of the principal balance of any qualified 
loan which was unpaid as of the beginning date of service will be paid 
under this program.
    Prior to entering a contract for repayment of loans, other than 
Nursing Student Loans, the Secretary will require that satisfactory 
evidence be provided of the existence and reasonableness of the 
educational loans.
    These loan repayment amounts are unrelated to any salary paid to 
the nursing education loan repayment recipient by the health facility 
by which he or she has been employed.
    To be eligible to participate in this program, an individual must:
    (1) Have received, prior to the start of service, a baccalaureate 
or associate degree in nursing, a diploma in nursing, or a graduate 
degree in nursing;
    (2) Have outstanding educational loans for the costs of his/her 
nursing education;
    (3) Agree to be employed full-time for not less than 2 years in any 
of the following types of eligible health facilities: (a) Indian Health 
Service health center; a Native Hawaiian health center; a public 
hospital (operated by a State, county, or local government); a health 
center funded under section 330 of the PHS Act (including migrant, 
homeless and public housing health centers); a rural health clinic 
(section 1861 (aa)(2) of the Social Security Act); or (b) public or 
nonprofit private health facility determined by the Secretary to have a 
critical shortage of nurses; and
    (4) Currently be employed or plan to begin employment as a 
registered nurse no later than August 31, 1997.

Funding Preferences

    Awards will be made the first week of May, July, and September of 
the fiscal year beginning October 1, 1997. As required under section 
846, the Secretary will give first preference to qualified applicants:
    (1) Who have the greatest financial need; and
    (2) Who agree to serve in the types of health facilities described 
in paragraph 3 (a) and (b) above, that are located in geographic areas 
determined by the Secretary to have a shortage of and need for nurses.
    The Secretary will give second preference to qualified applicants 
who agree to be employed by an eligible health facility described in 
paragraph 3 (a) above. If funds remain available after initial awards 
are made, further consideration will be given to applicants who meet 
eligibility requirements but do not meet the above funding preferences.

Breach of Contract

    Participants in this program who fail to provide health services 
for the period specified in their contract with the Secretary shall be 
liable to the Federal Government for payments made by the Secretary 
during the service period pursuant to such contract, plus interest on 
this amount at the maximum legal prevailing rate, payable within 3 
years from the date the contract with the Secretary is breached.

Waiver or Suspension of Liability

    A waiver or suspension of liability may be granted by the Secretary 
if compliance with the contract with the Secretary by the individual 
participant is impossible, or would involve extreme hardship to the 
individual, and if enforcement of the contract with respect to the 
individual would be unconscionable.

Other Award Information

    This program is not subject to the provisions of Executive Order 
12372, Intergovernmental Review of Federal Programs, since payments to 
individuals are not covered. In addition, this program is not subject 
to the submission of a Public Health System Impact Statement.

(The OMB Catalog of Federal Domestic Assistance number for this 
program is 93.908)

    Dated: July 2, 1997.
Claude Earl Fox,
Acting Administrator.
[FR Doc. 97-17895 Filed 7-8-97; 8:45 am]
BILLING CODE 4160-15-M