U.S. Department of Health and Human Services s14

U.S. Department of Health and Human Services

Health Resources and Services Administration

Bureau of Health Professions (BHPr)

Division of Nursing

Nurse Faculty Loan Program (NFLP)

Announcement Type: NEW COMPETITION

Announcement Number: HRSA-10-142

Catalog of Federal Domestic Assistance (CFDA) No. 93.264

FUNDING OPPORTUNITY ANNOUNCEMENT

Fiscal Year 2010

Phase 1: Application Due Date in Grants.gov: May 5, 2010

Phase 2: Supplemental Information Due Date in EHB: May 19, 2010

Release Date: April 16, 2010

Date of Issuance: April 16, 2010

NOTE: The fiscal year 2010 NFLP Program Guidance will be used to award both the regular NFLP appropriations and the American Recovery and Reinvestment Act (ARRA) - NFLP funding. Applicants may apply to one or both of these funding requests using this single program guidance. The ARRA funding option will be addressed during Phase 2 of the application process.

Denise Thompson

Public Health Analyst

BHPr, Division of Nursing

Telephone: (301) 443-1399

Fax: (301) 443-0791

Nicolette Solan-Pegler

Public Health Analyst, American Recovery and Reinvestment Act (ARRA)

BHPr, Division of Nursing

Telephone: (301) 443-5729

Fax: (301) 443-0791

Authority: Title VIII of the Public Health Service Act, Section 846A (42 U.S.C. 297n-1), as amended by the Patient Protection and Affordable Care Act of 2010, Public Law 111-148, section 847(f); and the American Recovery and Reinvestment Act of 2009, Public Law 111-5.

HRSA-10-142 58

EXECUTIVE SUMMARY

For fiscal year (FY) 2010, the Health Resources and Services Administration’s (HRSA) Bureau of Health Professions (BHPR) announces the availability of approximately $25 million from the Nurse Faculty Loan Program (NFLP supplemented by approximately $6.6 million from the American Recovery and Reinvestment Act (ARRA). Applicants that apply for this 2010 NFLP funding opportunity have the option to apply for additional ARRA funding using this single application. The ARRA funding option will be addressed during Phase 2 of the application process.

The NFLP, implemented in FY 2003, provides funding to schools of nursing to increase the number of qualified nursing faculty. The program supports the establishment and operation of a distinct, interest-bearing NFLP loan fund. Participating schools of nursing make loans from the fund to assist registered nurses in completing their graduate education to become qualified nurse faculty. The program offers partial loan forgiveness for borrowers that graduate and serve as nursing faculty. Accredited collegiate schools of nursing are eligible to apply for funding. Eligible schools must offer an advanced education nursing degree program(s) that will prepare the graduate student to teach.

In FY 2009, ARRA funding was made available to the NFLP under the American Recovery and Reinvestment Act of 2009, Public Law 111-5, to augment the regularly appropriated NFLP funding level by providing additional resources to increase the number of qualified nursing faculty. The American Recovery and Reinvestment Act (ARRA) Nursing Faculty Loan Program funds (ARRA-NFLP) represent a significant increase in support of NFLP activities to meet the demand for nurse faculty and remove a major barrier to accepting as many qualified nursing students as possible, thus helping to alleviate the Nation’s nursing shortage. The NFLP program supported by Recovery Act funds has specific additional financial and performance reporting requirements associated with it. Recovery Act funds for the NFLP program will be awarded under CFDA number 93.408.

FUNDING FACTORS

Under the NFLP and ARRA-NFLP, a funding factor will be applied in determining the funding for approved applications that support doctoral nursing students. A funding factor is defined as a favorable adjustment of the formula that determines the amount of the grant award. Applicants that qualify for the funding factor will receive an increase in their grant award amount.

Statutory Funding Priority

As provided under Title VIII of the Public Health Service Act, Section 846A (42 U.S.C. 297n-1), as amended by the Patient Protection and Affordable Care Act of 2010, Public Law 111-148, section 847(f) a funding priority will be awarded to School of Nursing Student Loans that support doctoral nursing students.

The Department of Health and Human Services (DHHS), acting through the Health Resources and Services Administration (HRSA) makes an award and enters into an agreement with the school to establish and operate a distinct account for the NFLP loan fund. The award to the school, the Federal Capital Contribution (FCC), must be deposited into the NFLP loan fund. The school is required to deposit the Institutional Capital Contribution (ICC) that is equal to no less than one-ninth of the FCC. The account may only be used to make loans to graduate nursing students who agree to meet the requirements of the NFLP and for the costs associated with the collection of these funds.

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Guidance Table of Contents

I. Funding Opportunity Description 1

Purpose 1

Background 2

II. Award Information 4

1. Type of Award 4

2. Summary of Funding 4

III. Eligibility Information 5

1. Eligible Applicants 5

2. Cost Sharing/Matching 8

3. Other 8

IV. Application and Submission Information 10

1. Address to Request Application Package 10

2. Content and Form of Application Submission 11

I. Application Face Page 16

Ii. Table Of Contents 16

Iii. Application Checklist 16

Iv. Budget 16

V. Budget Justification 16

Vi. staffing plan and personnel requiremtns 16

VII. Assurances 17

ViiI. Certifications 17

Ix. Project Abstract 17

x. Program Narrative 18

XI. Program specific forms 18

xII. ATTAchments 21

3. Submission Dates and Times 21

4. Intergovernmental Review 22

5. Funding Restrictions 22

6. Other Submission Requirements 23

V. Application Review Information 24

1. Review Criteria 24

2. Review and Selection Process 24

3. Anticipated Announcement and Award Dates 24

VI. Award Administration Information 25

1. Award Notices 25

2. Administrative and National Policy Requirements 25

3. Reporting 26

VII. Agency Contacts 30

VIII. Other Information 31

APPENDIX A - HHS Standard Terms and Conditions American Recovery and Reinvestment Act of 2009 56

APPENDIX B - FY 2010 Agreement with HHS to Participate in the Nurse Faculty Loan Program 59

APPENDIX C - Truth in Lending Act (TILA), Regulation Z 63

EXHIBITS A - J 64

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I. Funding Opportunity Description

Purpose

The purpose of the Nurse Faculty Loan Program (NFLP), as authorized by Title VIII of the Public Health Service Act, Section 846A (42 U.S.C. 297n-1), as amended by the Patient Protection and Affordable Care Act of 2010, Public Law 111-148, section 847(f), is to increase the number of qualified nursing faculty. The NFLP provides funding to schools of nursing to support the establishment and operation of a distinct, interest-bearing NFLP loan fund. Participating schools of nursing make loans from the fund to assist registered nurses in completing their graduate education to become qualified nurse faculty. The program offers partial loan forgiveness for borrowers that graduate and serve as nursing faculty. Accredited collegiate schools of nursing are eligible to apply for funding. Eligible schools must offer an advanced education nursing degree program(s) that will prepare the graduate student to teach.

As part of this NFLP application guidance, the American Recovery and Reinvestment Act, authorized by Public Law 111-5 (hereafter referred to as “ARRA-NFLP”) makes funds available to augment the regularly appropriated NFLP funding level. The NFLP and ARRA-NFLP loan funds may only be used to make loans to graduate nursing students who agree to meet the requirements of the NFLP.

Applicants that apply for this 2010 NFLP funding opportunity have the option to apply for additional ARRA funding using this single application. The ARRA funding option will be addressed during Phase 2 of the application process.

FUNDING FACTORS

Statutory Funding Priority

Participating schools make NFLP or ARRA-NFLP loans from the loan fund to eligible graduate (master’s and doctoral) nursing students to complete the nursing education program. Students may receive NFLP or ARRA-NFLP loans up to $35,500 per year academic year for a maximum of five years to support the cost of tuition, fees, books, laboratory expenses and other reasonable education expenses. Following graduation from the nursing program, loan recipients may cancel up to 85 percent of the loan principal and interest in exchange for service as a full-time nursing faculty at a school of nursing for up to four years.

The loan cancellation over the four-year period is as follows: 20 percent of the principal and interest may be canceled upon completion of each of the first, second, and third years, totaling 60 percent, followed by 25 percent upon completion of the fourth year of full-time employment as a nursing faculty. Repayment on the remaining 15 percent of the loan balance is postponed during the cancellation period. The NFLP loans accrue interest at a rate of three percent per annum for loan recipients who establish employment as nurse faculty.

Background on American Recovery and Reinvestment Act

The American Recovery and Reinvestment Act of 2009 (ARRA or Recovery Act), signed into law on February 17, 2009, provides $500,000,000 to address health professions workforce shortages. Through the Recovery Act HRSA is making funds available to increase the Nation’s ability to address the shortages of health care practitioners.

The Recovery Act was enacted to:

- preserve and create jobs;

- promote economic recovery;

- help people most impacted by the recession;

- increase economic efficiency by investing in technological advances in science and health;

- promote long-term economic benefits by investing in transportation, environmental protection and other infrastructure; and

- preserve essential services of States and local governments.

Additional information on the Recovery Act can be found at http://www.recovery.gov. Information on activities related to the Recovery Act at the U.S. Department of Health and Human Services (HHS) can be accessed at http://www.hhs.gov/recovery.

Background on Bureau of Health Professions

The Bureau of Health Professions (BHPr) is administering these programs as a component of the Health Resources and Services Administration (HRSA), U.S. Department of Health and Human Services. For thirty years, BHPr has worked to support the recruitment and training of health professionals. The mission of the HRSA’s BHPr is to increase the population’s 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 population’s changing health care needs and provide the highest quality care for all. BHPr serves as a focal point for those interested in health professions and workforce issues. Additional information about the Bureau of Health Professions and its programs is available at http://bhpr.hrsa.gov/.

The objective of the Health Professions Programs as supported through ARRA is to address health professions workforce shortages. Programs funded promote training in nursing and public health, help educational institutions, and increase the diversity of the health professions workforce. These programs will also help disadvantaged individuals who might otherwise have to delay their entry into, or drop out of, training programs or teaching.

Several types of activities will be funded with ARRA dollars, including direct student support/training, loan repayment and the purchase of equipment. The grant programs funded under ARRA will help increase the diversity of students entering health professions programs, support the training of disadvantaged students, provide training in primary care disciplines where shortages exists, and improve training programs by providing better access to equipment. The awards for loan repayment will assist trained health professionals in the repayment of educational loans in exchange for serving in underserved areas or for serving as faculty in health professions training programs.

Background on Nurse Faculty Loan Program

The NFLP was authorized in 2003 to address the deficit in the supply of nursing faculty. The results of various surveys conducted by professional nursing organizations substantiate the need to increase the number of qualified nurse faculty to meet the demand.

The inability of schools of nursing to recruit and retain qualified nursing faculty directly contributes to the nursing shortage in the U.S. The nurse faculty shortage continues to inhibit nursing schools from educating the number of nurses needed to meet the demand. According to the American Association of Colleges of Nursing (AACN), almost 50,000 qualified applicants were turned away from baccalaureate and graduate nursing programs in 2008 primarily due to insufficient number of faculty. According to a Special Survey on Vacant Faculty Positions released by AACN in August 2009, a total of 803 faculty vacancies were identified in a survey of 554 nursing schools with baccalaureate and/or graduate programs across the country (70.2% response rate). Besides the vacancies, schools cited the need to create an additional 279 faculty positions to accommodate student demand. The data showed a national nurse faculty vacancy rate of 6.6%. Most of the vacancies (90.6%) were faculty positions requiring or preferring a doctoral degree. The top reasons cited by schools that have difficulty finding faculty were noncompetitive salaries compared to positions in the practice area (32.2%) and a limited pool of doctorally-prepared faculty (30.3%).