Administrative Code

Virginia Administrative Code
11/29/2022

Chapter 507. Nursing Scholarships and Loan Repayment Program Requiring Service in a Long-Term Care Facility

Part I
General Information

12VAC5-507-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings:

"Approved nurse education program" means an approved educational program pursuant to Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia.

"Board" or "Board of Health" means the State Board of Health.

"Certified nurse aide" or "CNA" means a person who is certified by the Board of Nursing under the provisions of Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia.

"Commercial loans" means loans made by banks, credit unions, savings and loan associations, insurance companies, schools, and either financial or credit institutions that are subject to examination and supervision in their capacity as lenders by an agency of the United States or of the state in which the lender has its principal place of business.

"Commissioner" means the State Health Commissioner.

"Department" means Virginia Department of Health.

"Full-time" means at least 32 hours per week for 45 weeks per year.

"Licensed practical nurse" or "LPN" means a person who is licensed or holds a multistate licensure privilege under the provisions of Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia to practice practical nursing as defined in § 54.1-3000 of the Code of Virginia.

"Long-term care facility" means a certified nursing facility or nursing home as defined in § 32.1-123 of the Code of Virginia.

"Participant" means an eligible registered nurse, a licensed practical nurse, or a certified nurse aide student or graduate who enters into a contract with the commissioner and participates in the scholarship or loan repayment program.

"Penalty" means twice the amount of all monetary payments to the scholarship or loan repayment participant, less any service obligation completed.

"Reasonable educational expenses" means the costs of education, exclusive of tuition, that are considered to be required by the school's degree program or an eligible program of study, such as fees for room, board, transportation and commuting costs, books, supplies, educational equipment and materials, and travel, that were a part of the estimated student budget of the school in which the participant is or was enrolled.

"Registered nurse" or "RN" means a person who is licensed or holds a multistate licensure privilege under the provisions of Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia to practice professional nursing as defined in § 54.1-3000 of the Code of Virginia.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-15. Nursing Scholarship Advisory Committee.

All scholarship and loan repayment awards shall be made by an Advisory Committee appointed pursuant to § 23-35.9 of the Code of Virginia.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

Part II
Administration of Nursing Scholarships

12VAC5-507-20. Eligibility for scholarships.

In order to be considered for a scholarship, an applicant shall:

1. Be a United States citizen, a United States national, or a qualified alien pursuant to 8 USC § 1621;

2. Be a bona fide resident of Virginia by being domiciled in the Commonwealth for at least one year as defined in § 23-74 of the Code of Virginia;

3. Be accepted for enrollment or enrolled in an approved nursing education program in the Commonwealth of Virginia preparing him for examination for licensure as a practical nurse or registered nurse or accepted for enrollment or enrolled in an approved nurse aide education program in the Commonwealth of Virginia preparing him for certification;

4. If already enrolled in an approved nursing education program in the Commonwealth of Virginia or an approved nurse aide education program in the Commonwealth of Virginia, have a cumulative grade point average of 2.5 in core nursing classes;

5. Submit a completed application form and appropriate grade transcript prior to the established deadline dates;

6. Demonstrate financial need, which is verified by the school's financial aid officer or authorized person as part of the application process; and

7. Not have an active military obligation.

An applicant who fails to meet all of these requirements shall be ineligible for a scholarship.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-30. Conditions of scholarships.

A. Prior to becoming a participant in the nursing scholarship program, the applicant shall enter into a contract with the commissioner agreeing to the terms and conditions upon which the scholarship is granted.

B. For each $2,000 of scholarship money received, the participant agrees to engage in the equivalent of one year of full-time nursing practice in a long-term care facility in the Commonwealth. The participant shall notify the department, within 180 days of being awarded a nursing diploma or degree, of the type of nursing practice to be performed and give the name and address of the employer for approval. Voluntary military service, even if stationed in Virginia, cannot be used to repay the service obligation required when a scholarship is awarded.

The participant may request approval of a change of practice site. Such requests shall be made in writing. The department in its discretion may approve such a request.

C. If a participant fails to complete his studies, the full amount of the scholarship or scholarships received, plus applicable interest charge, must be repaid.

D. If upon graduation a participant leaves the Commonwealth or fails to engage or ceases to engage in nursing practice in a long-term care facility in Virginia before all employment conditions of the scholarship award are fulfilled, the participant shall repay the award amount reduced by the proportion of obligated years served plus applicable interest and penalty.

E. If the participant is in default due to death or permanent disability so as not to be able to engage in nursing practice in a long-term care facility, the participant or his personal representative may be relieved of his obligation under the contract to engage in nursing practice upon repayment of the total amount of scholarship or loan repayment funds received plus applicable interest. For participants completing part of the nursing obligation prior to becoming permanently disabled or in the event of death, the total amount of scholarship or loan repayment funds owed shall be reduced by the proportion of obligated years served. The obligation to make restitution may be waived by the board upon application of the participant or the participant's personal representative to the board.

F. Individual cases may be considered by the board for a variance of payment or service, pursuant to § 32.1-12 of the Code of Virginia, if the board finds compliance with the applicable service requirements or default repayment would pose an undue hardship on the participant.

G. All default payments shall be made payable to the Commonwealth of Virginia.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-40. Number of applications per student.

Scholarships are awarded for single academic years. However, the same student may, after demonstrating satisfactory progress in his studies, which is demonstrated by a cumulative grade point average of 2.5 in core nursing classes, apply for and receive scholarship awards for a succeeding academic year or years. No student shall receive scholarships for more than a total of four years.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-50. Amounts of scholarships.

The number of scholarships awarded shall be dependent upon the amount of money appropriated by the General Assembly, the amount of the funds available within the Nursing Scholarship and Loan Repayment Fund administered by the Board of Nursing pursuant to § 54.1-3011.2 of the Code of Virginia, and the number of qualified applicants. Each participant shall receive an award of $2,000 per year.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-60. How to apply for a scholarship.

Eligible applicants shall submit a complete application on a form made available by the department on the department's website. A complete application shall include documentation of all eligibility requirements. The deadline for submission of the application shall be announced by the department on the department's website.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-70. Reporting requirements of scholarship participants.

Reporting requirements of the scholarship participant are as follows:

1. Each participant shall provide information as required by the department to verify compliance with the practice requirements of the nursing scholarship program (e.g., verification of employment in a long-term care facility by submitting a Verification of Employment form once every six months).

2. Each participant shall promptly notify the department in writing within 30 days if any of the following events occur:

a. Participant changes name;

b. Participant changes address;

c. Participant changes practice site (participant is required to request in writing and obtain prior approval of changes in practice site);

d. Participant no longer intends to or is unable to fulfill service obligation as a nurse in the Commonwealth in a long-term care facility;

e. Participant ceases to practice as a registered nurse, licensed practical nurse, or certified nurse aide; or

f. Participant ceases to or no longer intends to complete his nursing school program.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-80. [Reserved].

Historical Notes

Reserved Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

Part III
Administration of the Nursing Loan Repayment Program

12VAC5-507-90. Eligibility for the nursing loan repayment program.

An eligible applicant for the nursing loan repayment program shall:

1. Be a United States citizen, a United States national, or a qualified alien pursuant to 8 USC § 1621;

2. Be domiciled in Virginia for at least one year as defined in § 23-7.4 of the Code of Virginia;

3. Be a registered nurse, licensed practical nurse, or certified nurse aide;

4. Have graduated from an approved nurse education program pursuant to Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia;

5. Have a valid unrestricted Virginia license to practice nursing as an RN, LPN, or CNA, a copy of which shall be furnished to the nursing loan repayment program;

6. Have submitted a completed application to participate in the nursing loan repayment program;

7. Have no other contractual service obligation unless completely satisfied before the nursing loan repayment program contract has been signed;

8. Not have an active military obligation;

9. Be employed or have a contract for employment in a long-term care facility within a month of the application date;

10. Not have a history of failing to comply with, or inability to comply with, service or payment obligations;

11. Not have a history of noncompliance within any other state or federal scholarship or loan repayment program; and

12. Have an educational loan balance that can be verified.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-100. Application requirement.

The applicant shall submit a completed application, including documentation of eligibility requirements, to the nursing loan repayment program, and the application must be received in the department by the deadline date published on the department's website. The application form shall be available on the department's website.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-110. Selection criteria.

Applicants shall be competitively reviewed and selected by the Nursing Scholarship Advisory Committee for recommendation to the commissioner for participation in the nursing loan repayment program based upon the following criteria:

1. Qualifications. Decisions for determining loan repayment participants shall be based on an evaluation of an individual's qualifications and competency to practice. These qualifications may include attainment and maintenance of a Virginia nursing license or certification, additional certification in a specialty, professional achievements, and other indices of competency received from supervisors and program directors.

2. Virginia graduates. Preferential consideration shall be given to individuals who are graduates of Virginia nursing schools (verification will be obtained by the nursing loan repayment program).

3. Availability for service. Preferential consideration shall be given to individuals who are immediately eligible and available for service in a long-term care facility.

4. Length of proposed commitment. Preferential consideration shall be given to individuals who commit to longer periods of service in a long-term care facility.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-120. Loan repayment amount.

The applicant shall agree to provide full-time nursing services in a long-term care facility in the Commonwealth a minimum of one year for a loan repayment amount up to $2,000 with an option for renewal in the second, third, and fourth year upon submitting a new application, with a potential maximum award amount of $8,000. Renewals shall only be granted if an applicant can show a reduction in his educational loan balances. The loan repayment amount shall depend upon availability of funds and the applicant's indebtedness, but no amount shall exceed the total indebtedness.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-130. Loans qualifying for repayment.

A. Based on the availability of funds, the loan repayment program shall pay toward the outstanding principal and interest of verifiable federal, state, or local government loans and commercial loans obtained by the participant for the following:

1. Tuition expenses;

2. Other reasonable educational expenses, and

3. Reasonable living expenses as estimated by the school as part of the school's standard student budget and determined reasonable by the department.

B. All loan award payments shall be applied only to outstanding educational loans secured while attending an approved nurse education program that led to RN, LPN, or CNA licensure. Qualifying outstanding educational loans shall:

1. Have sufficient documentation verifying the educational use of the loans;

2. Not exceed the "reasonable" level as determined by the school's standard budget in the year the loan was made; and

3. Not include loans from friends and relatives.

C. The department shall be the final authority in determining qualifying educational loans.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-140. Release of information.

Applicants shall agree to execute a release of information to allow the board access to loan records, credit information, and information from lenders necessary to verify eligibility and to determine loan repayments. To facilitate the process, applicants shall submit payment statements from each lending institution.

Participants who have consolidated qualifying loans with other loans shall submit on request other documentation, such as copies of original loan applications, to verify the portion of the loan that qualifies for repayment.

The applicant shall submit all requested loan documentation prior to approval by the department.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-150. Effective date for start of service.

Applicants shall become participants in the loan repayment program only when the applicant and the commissioner or his designee have signed the loan repayment program contract. The effective start date of the obligated service under the contract shall begin on or after the date of the commissioner's signature.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-160. Repayment procedure.

Loan repayment shall be limited to qualified loans as determined by 12VAC5-507-130. Repayment of loans shall begin after the commissioner has received notification that the participant has officially accepted placement and has begun the required service obligation. Payment shall be a lump sum payment based on availability of funds. Payment shall be made to the participant. Verification of payment made to the lender shall be required and submitted to the department by the participant. It shall be the responsibility of the participant to negotiate with each lending institution the terms of the educational loan repayments.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-170. Compensation during service.

Each participant is responsible for negotiating his own compensation package directly with the site where he will provide nursing services in a long-term care facility.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-180. Monitoring during service.

Monitoring of the participant's service obligation shall be conducted on an ongoing basis by department staff. Service verification forms shall be submitted by the participant to the department semi-annually (every six months) and countersigned by a representative of the service site (e.g., the medical director, human resource coordinator, chief executive officer, etc.) certifying continuous full-time service by the participant.

The participant shall maintain practice records in a manner that will allow the department to readily determine if the individual has complied with or is complying with the terms and conditions of the contract.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-190. Terms of service.

The following are the terms of service for the loan repayment program:

1. The applicant shall agree to provide full-time nursing services in a long-term care facility in the Commonwealth for a minimum of one year with an option for renewal in the second, third, and fourth year upon submitting a new application, with a potential to serve up to four years. Additional years of loan repayment beyond the one-year commitment are dependent upon the availability of state funds for the nursing loan repayment program;

2. The participant shall provide full-time service; and

3. No period of advanced training shall count toward satisfying a period of obligated service under this loan repayment program.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-200. Loan repayment contract.

Prior to becoming a participant in the nursing loan repayment program, the applicant shall enter into a contract with the commissioner agreeing to the terms and conditions upon which the loan repayment is granted. The contract shall:

1. Include the terms and conditions to carry out the purposes and intent of this program;

2. Provide that the participant shall provide full-time nursing services as an RN, LPN, or CNA in a long-term care facility in the Commonwealth for a minimum period of one year;

3. Provide for repayment of all amounts paid by the board, plus interest and penalties, less any service time if the participant is found to be in breach of contract;

4. Be signed by the applicant;

5. Be signed by the commissioner or his designee; and

6. Include other provisions as the commissioner may deem appropriate.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-210. Breach of contract for loan repayment program.

The following may constitute breach of contract:

1. Participant's failure to begin or complete his term of obligated service in a long-term care facility under the terms and conditions of the nursing loan repayment contract;

2. Participant's falsification or misrepresentation of information on the program application or verification forms or other required documents;

3. Participant's employment is terminated for good cause as determined by the employer and confirmed by the department. If employment is terminated for reasons beyond the participant's control (e.g., closure of site), the participant shall transfer to another board-approved long-term care facility site in the Commonwealth within six months of termination. Failure of participant to transfer to another site shall be deemed to be a breach of the contract; and

4. Participant's failure to provide the required nursing service in a long-term care facility.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-220. Postponement or waiver of service for loan repayment program.

Participants have the obligation to complete full-time continuous service for the period of their entire commitment. Under unusual circumstances (e.g., illness), a participant may request that the board agree to a postponement of the service obligation. This postponement, if granted, shall not relieve the participant of the responsibility to complete the remaining portion of the obligation. Such postponement shall not be permitted as a matter of course, but may be allowed in cases of undue hardship.

The board may grant a variance to service requirements or default repayments upon participant request if it finds compliance with the applicable service requirements or default repayment would pose an undue hardship on the participant.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-230. Cash reimbursement and penalty for loan repayment program.

Participants who serve less than their obligated service shall make repayment, including interest and penalty, to the Commonwealth as stated in the contract, reduced by the proportion of obligated years served.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

12VAC5-507-240. Reporting requirements of loan repayment participants.

Reporting requirements of the loan repayment participant are as follows:

1. Each participant shall provide information as required by the department to verify compliance with the practice requirements of the nursing loan repayment program (e.g., verification of employment in a long-term care facility by submitting a Verification of Employment form once every six months).

2. Each participant shall promptly notify the department in writing within 30 days if any of the following events occur:

a. Participant changes name;

b. Participant changes address;

c. Participant changes practice site (participant is required to request and obtain in writing prior approval of changes in practice site);

d. Participant no longer intends to fulfill service obligation as a nurse in the Commonwealth in a long-term care facility; or

e. Participant ceases to practice as a registered nurse, licensed practical nurse, or certified nurse aide.

Statutory Authority

§§ 32.1-12, 32.1-122.6:01 and 54.1-3011.2 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 21, eff. July 13, 2016.

FORMS (12VAC5-507).

Long-Term Care Facility Nursing Scholarship Program Application Checklist and Requirements, LTC-SA-1 (rev. 5/2016)

Virginia Nurse Loan Repayment Program Application, LTC-NLRP-1 (rev. 5/2016)

Virginia Nurse Loan Repayment Program Practice Site Application, LTC-NLRP-2 (rev. 5/2016)

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

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