Veterans' Home Medical Provider Loan Repayment Program
CSFA Number: 691-00-1386
Agency Name
Illinois Student Assistance Commission (691)
Agency Identification
0006
Agency Contact
Scott Taylor
217-782-0503
scott.taylor@illinois.gov
Short Description
The Veterans’ Home Nurse Medical Provider Repayment Program is intended to pay eligible educational loans as an incentive for medical providers to pursue and continue their careers at State of Illinois Veterans’ Homes.
Subject Area
Education
Program Function
Education
Enabling Legislation
110 ILCS 972 and 110 ILCS 947/20(f)
Objectives and Goals
The program is intended to reward nurses for choosing a career in a veterans' home by assisting them with repayment of student loans.
Types of Assistance
Direct Payments for Specific Use
Uses and Restrictions
Recipients must be a U.S. citizen or eligible non-citizen, an Illinois resident, and meet licensing requirements. They must have completed the prescribed employment probationary period and be employed in good standing at an approved Illinois veterans' home.
Eligibility Requirements
a) A qualified applicant shall be:
1) a resident of Illinois;
2) a United States citizen or eligible noncitizen;
3) an individual who, for each year during which a grant is received, fulfills a separate 12 month period as a registered professional nurse or licensed practical nurse in a State of Illinois Veterans’ Home;
4) a borrower with an outstanding balance due on an eligible educational loan;
5) an individual who is not in default on a federally guaranteed educational loan and does not owe a refund on a grant or scholarship program administered by ISAC;
6) a nurse who meets licensing requirements of the Department of Financial and Professional Regulation; and
7) a nurse who has completed the prescribed employment probationary period and whose employment is in good standing as determined by the Department of Veterans’ Affairs.
Eligible Applicants
Individuals;
Application and Award Processing
a) Eligible educational loans include:
1) Stafford Loans;
2) Graduate PLUS Loans;
3) consolidation loans;
4) nursing student loans;
5) Supplemental Loans for Students;
6) alternative loans; and
7) other types of government and institutional loans used for nursing education expenses.
b) Non-eligible loans include:
1) credit card payments;
2) Parent PLUS Loans;
3) loans that have been paid in full;
4) loans not governed by State or federal regulations obtained for the purpose of lending from private institutions or family members;
5) any portion of a consolidated loan that cannot be directly attributed to the applicant; and
6) any student loans that can be forgiven by a state or federal agency or a lending institution through a comparable educational debt repayment or forgiveness program.
c) All applicants annually must complete an ISAC application for the loan repayment program.
1) Applications are available at all State of Illinois Veterans’ Homes, ISAC’s web site, and ISAC's Springfield, Deerfield and Chicago offices.
2) If the application is incomplete, ISAC will notify the applicant, who will have an opportunity to furnish the missing information. The application will only be considered for processing as of the date the application is complete and received at ISAC's Deerfield office.
3) Renewal applicants may be required to submit a history of prior awards in order to show program proceeds were used for eligible educational loans.
d) Grant assistance under this program may be received for up to 4 years.
e) ISAC shall select the recipients from among those who have submitted complete applications, including qualified new applicants and those who filed timely renewal applications and have supplied information required in subsection (c).
f) The total number of grants awarded in a given fiscal year is contingent upon available funding. If funding is insufficient to pay all eligible applicants, awarding will be based on the date the completed application is received in ISAC's Deerfield office. Preference may be given to renewal applicants provided that the recipient continues to meet the eligibility requirements.
g) The amount repaid by ISAC to the loan holder shall be no more than the borrower’s remaining balance on eligible educational loans and shall not exceed $5,000 per year.
h) Proceeds will be remitted directly to the holder of the loans to be repaid.
i) The recipient and loan holder shall submit information for eligible educational loans in sufficient time for ISAC to make payments for each year in which the funds are awarded.
j) If the loan holder receives an overpayment, the loan holder shall return the amount of the overage to ISAC. A supplemental request must be made by the recipient and processed by ISAC for any funds to be paid to another holder.
k) When multiple loans are held by a single lending institution, the loan holder shall distribute the payment to one loan until paid in full.
l) When possible, all loans held at a single lending institution shall be paid in full before monies are distributed to another loan holder.
Regulations, Guidelines, Literature
The Veterans' Home Nurse Loan Repayment Program is exempt from the Uniform Guidance (2 CFR 200) and the Grant Accountability and Transparency Act (30 ILCS 708) because loans are repaid on behalf of an individual beneficiary.
Funding By Fiscal Year
FY 2015 : $29,300
FY 2017 : $29,300
FY 2018 : $26,400
FY 2019 : $26,400
FY 2020 : $26,400
Federal Funding
None
Notice of Funding Opportunities
None
None