Vermont § 34 - Vermont Nursing Forgivable Loan Incentive Program

§ 34. Vermont Nursing Forgivable Loan Incentive Program

• (a) As used in this section: (1) “Corporation” means the Vermont Student Assistance Corporation established in 16 V.S.A. § 2821. (2) “Eligible individual” means an individual who satisfies the eligibility requirements
  under this section for a forgivable loan. (3) “Eligible school” means an approved postsecondary education institution, as defined
  under 16 V.S.A. § 2822. (4) “Forgivable loan” means a loan awarded under this section covering tuition, which
  may also cover room, board, and the cost of required books and supplies for up to
  full-time attendance at an eligible school. (5) “Program” means the Vermont Nursing Forgivable Loan Incentive Program created under
  this section. (b) The Vermont Nursing Forgivable Loan Incentive Program is created and shall be administered
  by the Department of Health in collaboration with the Corporation. The Program provides
  forgivable loans to students enrolled in an eligible school who commit to working
  as a nurse in this State and who meet the eligibility requirements in subsection (d)
  of this section. (c) The Corporation shall disburse forgivable loan funds under the Program on behalf of
  eligible individuals, subject to the appropriation of funds by the General Assembly
  for this purpose. (d) To be eligible for a forgivable loan under the Program, an individual, whether a resident
  or nonresident, shall satisfy all of the following requirements: (1) be enrolled at a nursing program at an eligible school; (2) maintain good standing at the eligible school at which the individual is enrolled; (3) agree to work as a nurse in Vermont employed directly by a Vermont health care provider
  for a minimum of one year following licensure for each year of forgivable loan awarded; (4) have executed a credit agreement or promissory note that will reduce the individual’s
  forgivable loan benefit, in whole or in part, pursuant to subsection (g) of this section,
  if the individual fails to complete the period of service required in this subsection; (5) have completed the Program’s application form and such financial aid forms as the
  Corporation deems necessary, in accordance with a schedule determined by the Corporation;
  and (6) have provided such other documentation as the Corporation may require. (e)(1) First priority for forgivable loan funds shall be given to students pursuing a practical
  nursing certificate who will be eligible to sit for the NCLEX-PN examination upon
  completion of the certificate. (2) Second priority for forgivable loan funds shall be given to students pursuing an associate’s
  degree in nursing who will be eligible to sit for the NCLEX-RN examination upon graduation. (3) Third priority for forgivable loan funds shall be given to students pursuing a bachelor
  of science degree in nursing. (4) Fourth priority shall be given to students pursuing graduate nursing education. (f) In addition to the priorities established in subsection (e) of this section, students
  attending an eligible school in Vermont shall receive first priority for forgivable
  loans. (g)(1) If an eligible individual fails to serve as a nurse in this State for a period that
  would entitle the individual to the full forgivable loan benefit received by the individual,
  other than for good cause as determined by the Corporation in consultation with the
  Vermont Department of Health, then the individual shall receive only partial loan
  forgiveness for a pro rata portion of the loan pursuant to the terms of the interest-free
  credit agreement or promissory note signed by the individual at the time of entering
  the Program. (2) Employment as a traveling nurse shall not be construed to satisfy the service commitment
  required for a forgivable loan under this section. (h) There shall be no deadline to apply for a forgivable loan under this section. Forgivable
  loans shall be awarded on a rolling basis as long as funds are available, and any
  funds remaining at the end of a fiscal year shall roll over and shall be available
  to the Department of Health and the Corporation in the following fiscal year to award
  additional forgivable loans as set forth in this section. (i) The Corporation shall adopt policies, procedures, and guidelines necessary to implement
  the provisions of this section, including maximum forgivable loan amounts. (j) Forgivable loans shall be awarded on a rolling basis, provided funds are available,
  and any funds remaining at the end of a fiscal year shall carry forward and shall
  be available to the Department of Health and the Corporation in the following fiscal
  year to award additional forgivable loans as set forth in this section. (Added 2021, No. 183 (Adj. Sess.), § 23, eff. July 1, 2022; amended 2023, No. 113 (Adj. Sess.), § E.311, eff. July 1, 2024.)