[Federal Register Volume 75, Number 122 (Friday, June 25, 2010)]
[Notices]
[Page 36426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15421]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration


Legislative Changes to Nursing Student Loan Program Authorized 
Under Title VIII of the Public Health Service Act

AGENCY: Health Resources and Services Administration, HHS.

ACTION: Notice.

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SUMMARY: On March 23, 2010, President Obama signed into law the Patient 
Protection and Affordable Care Act (ACA), Public Law (Pub. L.) 111-148. 
Section 5202 of the ACA changes the Nursing Student Loan (NSL) program 
by: (1) Increasing the limits of loan funds to students; (2) revising 
the date of enrollment to be considered eligible to receive NSL funds; 
and (3) revising the date of loans eligible for partial loan 
cancellation.

SUPPLEMENTARY INFORMATION: The Nursing Student Loan (NSL) program was 
authorized by the Nurse Training Act of 1964 (Pub. L. 88-581) 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. The NSL program provides long-term, low-
interest loans to full-time and half-time students to help meet the 
cost of education. Students are eligible to apply for the NSL program 
if pursuing a course of study leading to a diploma in nursing, an 
associate or bachelor's degree in nursing or an equivalent degree, or a 
graduate degree in nursing. Below are details on how the ACA changes 
Sections 836(a), 836(b)(1), and 836(b)(3) of the Public Health Service 
Act, respectively, regarding the administration of the NSL program.

Loan Funding Limits

    The ACA increases the maximum amount of NSL funding a student can 
receive. Previously, the total amount of NSL funds for any academic 
year could not exceed $2,500 in the case of any student except that, 
for the final 2 academic years of the program involved, such total 
could not exceed $4,000. With the legislative change, however, the new 
total amount of the loans for any academic year from NSL funds may not 
exceed $3,300 in the case of any student except that, for the final two 
academic years of the program involved, such total may not exceed 
$5,200.
    Prior to the ACA, the aggregate of the NSL loans for all years from 
such funds was a maximum of $13,000 in the case of any student. Now, 
the aggregate of the loans for all years from such funds may not exceed 
$17,000 in the case of any student during fiscal years 2010 and 2011. 
After fiscal year 2011, the amounts shall be adjusted to provide for a 
cost-of-attendance increase for the yearly loan rate and the aggregate 
of the loans. (Section 5202(a) of the ACA.)

Date of Enrollment

    The ACA changes the date a student of financial need must be 
enrolled in a nursing program in order to be eligible to receive NSL 
funds. Previously an NSL loan could be made to a student of financial 
need who was enrolled after June 30, 1986. Now, an NSL loan can be made 
to a student of financial need who was enrolled after June 30, 2000. 
(Section 5202(b)(1) of the ACA.)
    To be eligible, students are still also required to: (1) Pursue a 
full-time or half-time course of study at the school leading to a 
baccalaureate or associate degree in nursing or an equivalent degree, 
or a diploma in nursing, or a graduate degree in nursing and (2) be 
capable, in the opinion of the school, of maintaining good standing in 
such course of study.

Partial Loan Cancellation Date

    Prior to the ACA, students who received NSL loans before September 
29, 1979, could receive partial cancellation of their loans. Now, 
however, partial loan cancellation applies to loans received by 
students before September 29, 1995. (Section 5202(b)(2) of the ACA.)
    A student who received such an NSL before September 29, 1995, can 
have an amount up to 85 percent of that nursing student loan (plus 
interest thereon) cancelled for full-time employment as a professional 
nurse in any public or non-profit private agency, institution, or 
organization, at the rate of 15 percent of the amount of such loan 
(plus interest) unpaid on the first day of such service for each of the 
first, second, and third complete year of such service, and 20 percent 
of such amount (plus interest) for each complete fourth and fifth year 
of such service. Employment as a professional nurse may include 
teaching in any of the fields of nurse training and serving as an 
administrator, supervisor, or consultant in any of the fields of 
nursing. Nursing experience prior to March 23, 2010 will not be 
considered in determining loan cancellation.

    Dated: June 21, 2010.
Mary K. Wakefield,
Administrator.
[FR Doc. 2010-15421 Filed 6-24-10; 8:45 am]
BILLING CODE 4165-15-P