Application Process

1. The student must complete and submit a FAFSA form.

2. Based on program eligibility criteria, the school financial aid administrator recommends students who show eligibility for the Nursing Student Loan.

3. The school financial aid administrator provides HEAB, via e-mail, with information regarding the student. Information to be submitted to HEAB on behalf of eligible students includes:
   1. student name;
   2. student address;
   3. student social security number;
   4. student enrollment status;
   5. State of Wisconsin residency status;
   6. year in school;
   7. indicate the nursing program the student is enrolled in;
   8. specify the semesters for which the loan disbursements should be made;
   9. the student budget minus EFC and minus other need-based aid; and
   10. recommended dollar amount of loan.

4. Once HEAB has the information above, an approved loan amount is determined and a Nursing Student Loan Recipient Agreement (Appendix xx) is mailed to the student for his/her signature.

5. The student must return the signed agreement to HEAB within the time period indicated on the document.

6. Once the signed agreement is returned it will be reviewed by HEAB.

7. HEAB then vouchers a check and sends the check to the school for disbursement to the approved student. If the agreement is not approved, HEAB contacts the school financial aid office by e-mail and explains the denial.

8. The financial aid office must nominate separately for each of the years of possible eligibility for the student. The student must be recommended and must have an approved signed agreement for each of the years of eligibility.

HEA 15.01 Purpose. To define the various aspects of the Nursing Student Loan Program authorized by s. 39.393, Stats., as created by 2001 Wis. Act 16 as to the awarding of the loans; their forgiveness; or their repayment.

HEA 15.02 Definitions.

1. "Board" means the Higher Educational Aids Board

2. "Eligible institution" means a non-profit, private institution of higher education in Wisconsin, which is accredited by a national or state accrediting agency, and which provides:
   1. a program that confers an associate degree in nursing;

   2. a program that confers a bachelor's degree in nursing;

   3. a program that confers a 2nd degree that will make the borrower eligible to sit for examination under s. 441.04 or 441.10 or

   4. a program that confers a diploma in nursing.

3. "Forbearance" means an extension of time for making loan payments or the acceptance of smaller payments than were previously scheduled.

4. "Grace Period" means a six-month period following withdrawal or graduation during which the borrower is not responsible for interest or payment.

5. "Loan" means a loan made under the Nursing Student Loan Program.

HEA 15.03 Borrower Eligibility.

1. The borrower shall be a resident of the United States, either a citizen or an alien lawfully admitted for permanent residence by the Federal Immigration and Naturalization Service.

2. The borrower shall be a Wisconsin resident as determined by the board using the residency standards of s. 36.27, Stats.

3. The borrower shall be enrolled at least half-time in an eligible institution in a program as defined in HEA15.02 (2).

4. The borrower shall be required to show financial need.

5. To the extent possible, preference shall be given to persons who are enrolled in either the second year of a 2-year associate degree nursing program; the third year of a 3 year nursing diploma course; or in the junior or senior year of a bachelor degree program.

HEA 15.04 Terms of Loans.

1. Eligible borrowers shall receive a minimum annual award of $250. The maximum annual award shall not exceed $3,000. The exact amount of the award shall not exceed the borrower's cost of education, as determined by the eligible institution using recognized federal methodology, minus the need-based aid the borrower is offered. Loans for students that are need-based may be replaced in the package of aid by the Nursing Student Loan. The total the borrower receives under this program shall not exceed $15,000 in outstanding principal.

2. For the portion of the loans that are not forgiven but must be repaid, the interest rate shall not exceed 5% annually on the unpaid principal balance with accrual beginning upon the initial date of repayment. Interest shall not accrue during periods of at least half-time enrollment; grace period; employment that qualifies for forgiveness; or during board authorized periods of deferment from repayment. The interest rate shall be determined annually by the board.

3. The initial date of repayment shall be determined by the board in each instance beginning no sooner than six months after the borrower withdraws or graduates from the eligible institution. There shall be a six-month grace period that will start the day after the person withdraws or graduates from the eligible institution. The borrower shall not be required to make payment during the grace period.

HEA 15.05 Application Process.

1. A borrower seeking a loan shall contact the eligible institution's financial aid office.

2. The eligible institution's financial aid office shall determine the borrower's cost of education within the requirements set by the board, shall determine the borrower's financial need based on federal methodology and determine nursing loan student loan eligibility based on borrower eligibility under this program. The board shall decide if the borrower shall receive a loan under this program.

3. The eligible institution's financial aid office shall notify the board of the loan amount for the borrower. The board shall determine if the borrower shall receive a loan under this program. The board shall issue a check for the borrower's loan after the borrower's signed agreement form has been received by the board.

4. All borrower contact concerning forgiveness and repayment shall be with the board. After leaving school the borrower shall maintain written annual contact with the board until the loan is either forgiven or repaid. The borrower is required to forward all name, address and telephone number changes to the board.

HEA 15.06 Loan Forgiveness.

1. Loans shall be forgiven when the borrower is licensed and employed, at least half-time, in Wisconsin as a nurse. For the first academic year of full-time employment, 25% of the principal and accrued interest, if any, shall be forgiven, with the amount to be prorated in cases where less time has been worked. For the second academic year of full-time employment, 25% of the principal and accrued interest, if any, shall be forgiven, with the amount pro-rated in cases where less time has been worked. The borrower shall be given a maximum of 4 years to work the required 2 years for partial forgiveness.

2. The maximum of 4 years allowed for forgiveness shall be extended by the board for up to a total of 2 years for approved periods of deferment, as referenced in HEA 15.08. In no instance shall the term of forgiveness exceed 6 years including periods of deferments authorized by the board. The executive secretary may allow additional periods of deferment in exceptional situations.
3. Loan principal remaining unforgiven either because the forgiveness period as defined in subs. (1) and (2) is over, or because the borrower has not been employed for forgiveness as defined in sub. (1) or has moved out of state, shall be repaid to the state of Wisconsin with interest accrued from the date on which the forgiveness period ended.

4. Only borrowers holding a license in nursing shall be eligible for forgiveness.

5. No interest shall be charged the borrower during the forgiveness period.

HEA 15.07 Terms of Repayment.

1. Borrowers shall repay a loan if not employed, at least part-time, as a nurse in the state. Repayment shall be required of borrowers who are employed for periods of time but who do not complete their forgiveness within the time allowed.

2. Once the borrower has reached the expiration of the forgiveness period or the borrower has reached 50% forgiveness, the repayment period shall begin immediately.

3. The monthly payment shall be a minimum of $50 including principal and accrued interest. Accrued interest shall be paid first each month from the payment received. The board shall determine the monthly repayment schedule, although a borrower may request a schedule with a higher monthly payment.

4. A borrower shall repay the loan within a maximum of 13 years not counting periods of deferment granted by the board. Interest shall not accrue during periods of deferment authorized by the board.

5. Borrowers may prepay any or all of their loan account without penalty whether the borrower is in school, forgiveness, repayment or deferment.

6. If the borrower dies or becomes totally and permanently disabled, all obligation to make any further payment of principal and interest on the loan shall be canceled.

HEA 15.08 Deferment of Loan Repayment for Borrowers.

1. Borrowers who return to school on a full-time basis in any course of study at an accredited institution shall be deferred by the board from repayment for the period of enrollment.

2. Borrowers who are on active duty in the military shall be deferred by the board from repayment for the period of their active duty, not to exceed to 3 years.

3. Borrowers, who enter the Peace Corps or Volunteers in Service to America, shall be deferred by the board from repayment for the term of their active service, not to exceed 3 years. Employment with similar private agencies is eligible for deferment, as determined by the executive secretary, if the agency is federally tax exempt.

4. Borrowers who are unemployed shall be deferred from repayment by the board for up to 6 months at a time, up to a maximum of 24 months, as long as they provide proof, satisfactory to the board, of actively seeking employment.

5. Borrowers who become pregnant, give birth or legally adopt a child shall be deferred from repayment by the board for up to 12 months.

6. In order to receive a deferment, a borrower shall apply to the board. If the borrower submits written evidence, which verifies eligibility for the deferment, the board shall approve the deferment.

7. The board may grant forbearance from repayment for the benefit of the borrower. The board may grant forbearance whenever unemployment, health, other personal problems, or educational study that is ineligible for deferment temporarily affects the borrower's ability to make scheduled payments on the loan. Periods of forbearance may not exceed 6 months for each approved request, up to a maximum total of 24 months.

For the Academic Excellence Scholarship:

1. All incoming, first-time nominees for the Academic Excellence Scholarship (AES) will be manually reviewed to determine the gender of the nominee. This determination will be based on information supplied by the high school making the nomination.

2. If the nominee is female, no SSA check is required.

3. If the nominee is male, the nominee will be checked for SSA registration using the SSA website.

4. If the nominee is registered with the SSA and/or is temporarily exempt, the nominee will be cleared for further consideration.

5. If the nominee is not registered and is not temporarily exempt, the nomination approval process will be stopped.

6. The school and the nominee will be notified of the situation. It is the nominee's responsibility to provide acceptable documentation needed to make the nominee eligible for the AES. An example of acceptable documentation is a letter from the SSA showing either that the nominee is registered or is temporarily exempt.

7. When acceptable documentation is received, reviewed and approved, the nominee will be cleared for further consideration.

8. If acceptable documentation is not received, the nominee will be made ineligible for the AES.

9. If the nominee is temporarily exempt because he is not yet 18 at the time of nomination, the nominee will be placed on a list. This list will be checked before the start of the 2nd academic year of the award, to determine if the recipient has registered with SSA after his 18th birthday.

10. If the nominee has registered, he will remain eligible for the AES based on his continued eligibility under other criteria.

11. If the recipient has not registered, he will not be eligible to continue to receive the AES.

12. The recipient will be notified of this decision. It is the recipient's responsibility to provide acceptable documentation needed to make the recipient eligible for AES. An example of acceptable documentation is a letter from the SSA showing that the filer is registered.

13. When acceptable documentation is received, reviewed and approved, the recipient will regain eligibility for the AES based on his eligibility under other criteria.

For the Marquette University School of Dentistry and Medical College of Wisconsin Capitation Programs:

1. All incoming, first-time nominees for the capitation programs will be manually reviewed to determine the gender of the nominee. This determination will be made based on information supplied by the university and college.

2. If the nominee is female, no SSA check is required.

3. If the nominee is male, the nominee will be checked for SSA registration using the SSA website.

4. If the nominee is registered with the SSA, not required to register or is temporarily exempt, the nominee will be cleared for further consideration.

5. If the nominee is not registered or is not temporarily exempt, the nomination approval process will be stopped.

6. The school will be notified of the situation. It is the school's responsibility, in conjunction with the nominee, to provide acceptable documentation needed to make the nominee eligible for capitation. An example of acceptable documentation is a letter from the SSA showing either that the nominee is registered, not required to register or is temporarily exempt.

7. When acceptable documentation is received, reviewed and approved, the nominee will be cleared for further consideration.

8. If acceptable documentation is not received, the nominee will be ineligible for the capitation program.

For the Teacher Education Loan:

1. All incoming, first-time nominees for the Teacher Education Loan will be manually reviewed to determine the gender of the applicant. This determination will be made based on information supplied by the Milwaukee Teacher Education Center.

2. If the nominee is female, no SSA check is required.

3. If the nominee is male, the applicant will be checked for SSA registration using the SSA website.

4. If the nominee is registered with the SSA, not required to register or is temporarily exempt, the nominee will be cleared for further consideration.

5. If the nominee is not registered or is not temporarily exempt, the nomination process will be stopped.

6. The school and the nominee will be notified of the situation. It is the nominee's responsibility to provide acceptable documentation needed to make the nominee eligible for the loan. An example of acceptable documentation is a letter from the SSA showing either that the nominee is registered, not required to register or is temporarily exempt.

7. When acceptable documentation is received, reviewed and approved, the nominee will be cleared for further consideration.

8. If acceptable documentation is not received, the nominee will be ineligible for the Teacher Education Loan.

For the Minnesota/Wisconsin Tuition Reciprocity Program:

1. All incoming, first-time applicants for the Minnesota/Wisconsin Tuition Reciprocity Program will be manually reviewed to determine the gender of the nominee. This determination will be made based on information supplied by the applicant.

2. If the applicant is female, no SSA check is required.

3. If the applicant is male, the applicant will be checked for SSA registration using the SSA website.

4. If the applicant is registered with the SSA and/or is temporarily exempt, the applicant will be cleared for further consideration.

5. If the applicant is not registered and is not temporarily exempt, the application approval process will be stopped.

6. The applicant will be notified of the situation. It is the applicant's responsibility to provide acceptable documentation needed to make the applicant eligible for reciprocity. An example of acceptable documentation is a letter from the SSA showing either that the applicant is registered or is temporarily exempt.

7. When acceptable documentation is received, reviewed and approved, the applicant will be cleared for further consideration.

8. If acceptable documentation is not received, the applicant will be made ineligible for reciprocity.

9. If the applicant is temporarily exempt because he is not yet 18 at the time of application, the applicant will be placed on a list. This list will be checked before the start of the 2nd academic year of reciprocity, to determine if the recipient has registered with SSA after his 18th birthday.

10. If the applicant has registered, he will remain eligible for reciprocity based on his continued eligibility under other criteria.

11. If the applicant has not registered, he will not be eligible to continue to receive reciprocity.

12. The applicant will be notified of this decision. It is the applicant's responsibility to provide acceptable documentation needed to make the applicant eligible for reciprocity. An example of acceptable documentation is a letter from the SSA showing that the filer is registered.

13. When acceptable documentation is received, reviewed and approved, the applicant will regain eligibility for reciprocity based on his eligibility under other criteria.

For the Minority Teacher Loan Program:

1. All incoming, first-time nominees for the Minority Teacher Loan will be manually reviewed to determine the gender of the nominee. This determination will be made based on information supplied by the college or university.

2. If the nominee is female, no SSA check is required.

3. If the nominee is male, the school shall indicate that acceptable documentation of SSA is on file at the school with the other nomination information. This documentation should include:
   1. student's name
   2. student's social security number
   3. student's selective service status

4. If verification of acceptable documentation is received and approved by HEAB, the nomination pass to award calculation.

5. If verification of acceptable documentation is not received with the nomination, the process will stop. The school will be notified via e-mail that verification of acceptable documentation was not received with the nomination.

6. When verification of acceptable documentation is received and approved by HEAB, the nominee will continue through the awarding process.

7. If verification of acceptable documentation is not received, the nominee will remain ineligible to receive the Minority Teacher Loan.

For the Nursing Student Loan:

1. All incoming, first-time nominees for the Nursing Student Loan will be manually reviewed to determine the gender of the nominee. This determination will be made based on information supplied by the college or university.

2. If the nominee is female, no SSA check is required.

3. If the nominee is male, the school shall indicate that acceptable documentation of SSA is on file at the school with the other nomination information. This documentation should include:
   1. student's name
   2. student's social security number
   3. student's selective service status

4. If verification of acceptable documentation is received and approved by HEAB, the nomination pass to award calculation.

5. If verification of acceptable documentation is not received with the nomination, the process will stop. The school will be notified via e-mail that verification of acceptable documentation was not received with the nomination.

6. When verification of acceptable documentation is received and approved by HEAB, the nominee will continue through the awarding process.

7. If verification of acceptable documentation is not received, the nominee will remain ineligible to receive the Nursing Loan.

1. Every week HEAB receives a report from the BCS. This report is called the "Lien Docket". Each Federal Data File that is loaded on a daily basis is run against the most recent BCS report. If the student being loaded from the Federal Data File is on the BCS report, the student's record is loaded with a delinquency edit. This means the student is delinquent and cannot receive most types of HEAB assistance.

2. The school is informed of a student's delinquency on the Notification Report (Attachment #7). Field #8 is labeled "Child Suprt. If "DELQ" appears in this field the student is not eligible to receive state aid. If the pound sign (#) appears in field #8 the delinquency has been cleared.

3. It is the student's responsibility to clear the delinquency. This should be done by working with the Clerk of Courts Office in the county or counties where the delinquency has occurred. Two of the options available to the student are clearing the delinquency or entering into an Alternate Payment Plan (APP).

4. If the delinquency is cleared, the Clerk of Courts Office will report this information to the BCS. The BCS will then reflect this information in their next report to HEAB. HEAB will then notify the school via the Notification Report.

5. The APP is a payment plan the delinquent payer (student) enters into with the child support agency. The purpose of the plan is to prevent enforcement actions from being taken against the delinquent payer. Once an APP has been negotiated and signed, the Bureau of Child Support will notify HEAB.

6. Once HEAB receives this notification, it will manually override the delinquency status on the Notification Report. The "DELQ" status will be changed to the pound sign (#) and the student will then be eligible for vouchering.

7. If a school has any questions, it should call HEAB at (608) 267-2206 and ask for assistance.