§297o Eligible individual student loan repayment

Summary

The Secretary, through the HRSA Administrator, can make deals to repay student loans for people who agree to become full-time nursing faculty. To get payments, the person must teach full time at an accredited nursing school for at least 4 years during a 6-year period that starts on the later of when they get a master’s or doctorate in nursing or when they sign the deal. Payments start no later than 10 months after that 6-year period begins, and only after they begin full-time teaching. Payments go toward the loan principal and interest for the degree. For master’s graduates, payments can be up to $10,000 per calendar year and up to $40,000 total in fiscal years 2010 and 2011 (amounts after 2011 are adjusted for cost increases). For doctorate graduates, payments can be up to $20,000 per year and up to $80,000 total in fiscal years 2010 and 2011 (also adjusted later). If someone does not meet the agreement, they must repay the total amount the government paid plus interest at the maximum legal rate, unless the Secretary waives or suspends that liability because meeting the agreement is impossible, would cause extreme hardship, or would be unfair. The government must be paid back within 3 years after it is entitled to repayment. Recovered money can be used for more loan repayments under this program. An “eligible individual” is a U.S. citizen, national, or lawful permanent resident who holds an active RN license and who has finished or is enrolled in a master’s or doctorate nursing program. Funding priority is given to loan programs that support doctoral nursing students.