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The Oregon Administrative Rules contain OARs filed through November 15, 2014
 
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HIGHER EDUCATION COORDINATING COMMISSION
OFFICE OF STUDENT ACCESS AND COMPLETION

 

DIVISION 72

OREGON NURSING LOAN PROGRAM 

575-072-0000

Definitions

For the purposes of the Oregon Nursing Loan Program the following definitions shall be used:

(1) "Commission" means the Oregon Student Assistance Commission.

(2) "Oregon Resident" means resident of the State of Oregon as defined in OAR chapter 575, division 31.

(3) "Oregon Institution" means an accredited institution of postsecondary education located and headquartered within the State of Oregon.

(4) "Satisfactory Performance" means satisfactory academic progress as determined by the institution attended.

(5) "Full-time Practice" means professional employment as a nurse for no less than 32 working hours per week and no less than 48 weeks in a year (12 consecutive months).

(6) "Part-time Practice" means professional employment as a nurse between 16 and 31 working hours per week and no less than 48 weeks in a year (12 consecutive months) or no less than 32 working hours per week during 24 to 47 weeks in a year (12 consecutive months).

Stat. Auth.: ORS 348
Stats. Implemented: SB 331, 2001 OLA
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92; OSAC 4-2001(Temp), f. & cert. ef. 10-12-01 thru 3-27-02; OSAC 4-2002, f. & cert. ef. 2-6-02

575-072-0010

Administration

The Commission shall administer the Oregon Nursing Loan Program, and shall make such rules as are required for the administration of the program.

Stat. Auth.: ORS 348.115 & ORS 348.117
Stats. Implemented: ORS 348.105 - ORS 348.117
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92

575-072-0020

Purpose

(1) This program is to provide student loans for Oregon residents attending Oregon institutions who are enrolled in programs leading to the following degrees:

(a) Associate Degree in Nursing;

(b) Bachelor of Science in Nursing; and

(c) Prelicensure Masters Program.

(2) Loans made to students under this program may be forgiven (cancelled), in part or in toto, upon fulfillment of the requirements related to the practice of nursing in the State of Oregon set forth in OAR 575-072-0070(8).

Stat. Auth.: ORS 348
Stats. Implemented: SB 331, 2001 OLA
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92; OSAC 4-2001(Temp), f. & cert. ef. 10-12-01 thru 3-27-02; OSAC 4-2002, f. & cert. ef. 2-6-02

575-072-0030

Student Eligibility Criteria

To receive financial aid from this program an applicant must:

(1) Be an Oregon resident as defined by the Commission in OAR chapter 575-030-0005;

(2) Be enrolled, or accepted for enrollment in a nursing program at an Oregon institution leading to the degree of Associate in Nursing; Bachelor of Science in Nursing; or Prelicensure Masters Program.

(3) Demonstrate academic achievement, ability, and motivation related to the practice of nursing; and

(4) Demonstrate financial need.

Stat. Auth.: ORS 348
Stats. Implemented: SB 331, 2001 OLA
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92; OSAC 4-2002, f. & cert. ef. 2-6-02

575-072-0040

Priority in Awarding

Among applicants who meet the basic eligibility criteria of this program priority in the selection process shall be given to:

(1) Students employed in the health care field at the time of application;

(2) Students who agree to seek employment as nurses in areas within Oregon where there is a critical shortage of nurses, as determined annually by the Oregon State Board of Nursing in consultation with the Office of Rural Health.

Stat. Auth.: ORS 348.115 & ORS 348.117
Stats. Implemented: ORS 348.105 - ORS 348.117
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92

575-072-0050

Maximum Awards

Annual awards made under this program shall not exceed 50 percent of the sum of tuition, fees, and room and board expenses for any participating student.

Stat. Auth.: ORS 348.115 & ORS 348.117
Stats. Implemented: ORS 348.105 - ORS 348.117
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92

575-072-0060

Renewal of Awards

Subject to available funding, awards made under this program are renewable in subsequent academic years provided that:

(1) The awardee makes timely application in the manner specified annually by the Commission;

(2) The awardee continues to be enrolled in an eligible program at an eligible institution;

(3) The awardee demonstrates satisfactory performance in his or her program of study;

(4) The awardee continues to demonstrate financial need.

Stat. Auth.: ORS 348.115 & ORS 348.117
Stats. Implemented: ORS 348.105 - ORS 348.117
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92

575-072-0070

Terms of Loans Made Under this Program

(1) Student borrowers under this program shall be required to pay at least seven percent interest per annum on the unpaid balance of their loans from the date of the loan, as provided in section (5) of this rule. The interest rate for new loans shall be set annually by the Commission.

(2) Repayment of the principal and accruing and deferred interest on loans shall be commenced not later than 12 months after the student's completion of the nursing program or other termination of the student's education.

(3) Repayment of loans shall be deferred upon application therefore for up to three years during which:

(a) The student borrower is enrolled as at least a half-time student in a subsequent nursing program leading to a nursing degree higher than that attained in the initial program;

(b) The student borrower is employed as a nurse in this state on at least a half-time basis; or

(c) The student borrower shows inability to locate suitable employment.

(4) The Commission may extend the beginning of the repayment period for students who qualify for deferment of repayment as described in section (3) of this rule.

(5) Repayment commences under the usual terms if the student borrower ceases to be employed as a nurse in this state before completing the practice requirements set forth in section (8) of this rule.

(6) Repayment shall:

(a) Be made in monthly installments of no less than $50 per month;

(b) Be completed in a maximum of 120 months from the time repayment is commenced.

(7) Nothing in section (6) of this rule is intended to prevent repayment without penalty at an earlier date than provided in that section, or to prohibit the Commission from extending the repayment period to a date other than specified by this section.

(8) A student who borrows under this program shall have 100 percent of principal and accrued interest on loans under this program cancelled when it can be documented to the satisfaction of the Commission that, within five years of graduation, the student has completed one calendar year of full-time employment or two calendar years of half-time employment as a nurse in the State of Oregon in a nursing shortage area as determined through OAR 575-072-0540 for each academic year in which a loan was received.

(9) A student who borrows under this program and completes at least one calendar year of the full-time practice obligation described in section (8) of this rule shall have the amount of principal and accrued interest on loans under this program cancelled for each calendar year of qualifying practice, as follows:

(a) For full-time practice, equal to the principal and accrued interest on the loan borrowed for the comparable academic year of award; or

(b) For half-time practice, equal to half of the principal and accrued interest on the loan borrowed for the comparable academic year of the award.

(10) Repayment of any remaining principal and interest shall be waived upon the death or total and permanent disability of the student borrower.

(11) If a borrower in repayment satisfies the criteria for loan cancellation set forth in section (8) of this rule, then all payment made by that borrower will be returned.

Stat. Auth.: ORS 348
Stats. Implemented: SB 331, 2001 OLA
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92; SSC 6-1994, f. & cert. ef. 1-25-94; OSAC 4-2001(Temp), f. & cert. ef. 10-12-01 thru 3-27-02; OSAC 4-2002, f. & cert. ef. 2-6-02

575-072-0080

Default

(1) A loan shall be judged to be in default when an installment is due and not paid within 120 days.

(2) The holder of a note may exercise the right of offset against any maker of defaulted loans under the conditions set for by the laws of the State of Oregon.

(3) The maker shall pay any charges for assistance in exercising the right of offset incurred by the holder of the note.

(4) The maker shall pay all charges incurred should the note(s) be referred to an outside collection agency and any other collection charges, including attorney's fees allowed by state law.

(5) The application of offsets to a defaulted loan shall not be credited to future payments nor be a substitute for regular monthly installments.

(6) The prepayment of a portion of a defaulted loan shall not be credited to future payment nor be a substitute for regular monthly installments.

Stat. Auth.: ORS 183.325 & ORS 348, OL 1993
Stats. Implemented: ORS 348.105 - ORS 348.117
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92; SSC 6-1994, f. & cert. ef. 1-25-94

 

575-072-0090

Conditions of Award

To receive disbursements of a loan made under the Oregon Nursing Loan Program a student must:

(1) Be enrolled in an eligible program of study at an eligible institution;

(2) Be making satisfactory academic progress as defined by the institution attended;

(3) Not be in default on any federal Title IV loan or owing a refund on federal Title IV funds previously disbursed.

Stat. Auth.: ORS 348.115 & ORS 348.117
Stats. Implemented: ORS 348.105 - ORS 348.117
Hist.: SSC 3-1992, f. & cert. ef. 2-28-92

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