WASHINGTON – Health and Human Services Deputy Secretary Bill Corr has released $13.4 million for loan repayments to nurses who agree to practice in facilities with critical shortages and for nursing schools to provide loans to students who will become nurse faculty.

The funds were made available by the American Recovery and Reinvestment Act (ARRA). The awards come from two programs administered by HHS’ Health Resources and Services Administration (HRSA): the Nurse Education Loan Repayment Program and the Nurse Faculty Loan Program.

“The need for more nurses is great. Over the next decade, nurse retirements and an aging U.S. population, among other factors, will create the need for hundreds of thousands of new nurses,” said Corr. “The awards from these two HRSA programs will help us meet projected demand for their services.”

Approximately 50,000 individuals interested in going to nursing school are turned away each year due to insufficient capacity at the schools. The two main factors limiting the ability to train more nurses are a faculty shortage and insufficient clinical training sites.

Funding for the NELRP, awarded competitively, totals $8.1 million and will help 100 registered nurses pay their nursing education debts. The program repays 60 percent of the loan balance of registered nurses in exchange for two years of service at facilities with a critical shortage of nurses. Participants may be eligible to work a third year and receive additional repayment assistance.

Funds for the NFLP total $5.3 million and will go to nursing schools to support the training of 500 Masters and Doctoral nursing students who plan to become nurse faculty after completing their education. Following graduation, loan recipients may cancel up to 85 percent of the loan principal and interest in exchange for four years of service as a full-time member of the faculty at a nursing school.