On August 18 the U.S. Department of Health and Human Services announced the availability of $13.4 million to support loan repayments for nurses who agree to practice in facilities with critical shortages. The funds for these efforts were made available by the American Recovery and Reinvestment Act (ARRA) signed by President Obama in February of this year.

These funds come from two programs under HHS’ Health Resources and Services Administration (HRSA): the Nurse Education Loan Repayment Program and the Nurse Faculty Loan Program.

• $8.1 million will go to the Nurse Education Loan Repayment Program (NELRP), which will help 100 registered nurses pay their debts accumulated during their nursing education. The program repays 60 percent of the loan balance for an individual in exchange for two years of service working in a facility with a critical shortage of nurses.
• $5.3 million goes to the Nurse Faculty Loan Program (NFLP), being awarded to schools of nursing to support 500 masters and doctoral nursing students planning to become nurse faculty after completing their schooling. Upon graduation, recipients may cancel up to 85 percent of the loan principal and interest in exchange for four years of service as a full-time nursing faculty at a school of nursing.

The program assisting with loan repayments for nurses practicing in facilities with critical shortages is similar to one pursued by Iowa Congressman Bruce Braley in June, called the Frontline Providers Loan Repayment Act. Braley’s bill sought loan repayment options for medical professionals working in areas that have a shortage of frontline care services.

For additional information about the Loan Repayment Program and other Recovery Act programs for health care professionals, see http://bhpr.hrsa.gov/recovery/