201 KAR 20:390. Nursing Incentive Scholarship Fund.


      RELATES TO: KRS 314.011, 314.025, 314.026, 314.027

      STATUTORY AUTHORITY: KRS 314.026(1), 314.131(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 314.025 through 314.027 authorize the Kentucky Nursing Incentive Scholarship Fund for Kentucky residents. KRS 314.026(1) requires the Board of Nursing to promulgate administrative regulations to implement and administer the scholarship fund. This administrative regulation implements the Kentucky Nursing Incentive Scholarship Fund Program and establishes the requirements relating to the program.


      Section 1. Definitions. (1) "Academic year" means:

      (a) For a registered nursing or graduate nursing program, a twelve (12) month period beginning with a fall session; and

      (b) For a practical nursing program, the completion of the required program.

      (2) "Board" is defined by KRS 314.011(1).

      (3) "Kentucky resident" is defined by 13 KAR 2:045, Section 1(10).

      (4) "Program of nursing" means a prelicensure, BSN completion, or graduate nursing program.

      (5) "Successful academic progression" means, except during the last academic year preceding graduation:

      (a) For a prelicensure or BSN completion nursing program, the completion of a minimum of fifteen (15) credit hours per academic year of published requirements for the program of nursing and maintenance of a minimum grade point average which would allow continuation in a program of nursing; or

      (b) For a graduate nursing program, the completion of a minimum of nine (9) credit hours per academic year of published requirements for the program of nursing and maintenance of a minimum grade point average which would allow continuation in the graduate program.


      Section 2. Application. (1) To be eligible for a nursing incentive scholarship, an applicant shall:

      (a) Be a Kentucky resident; and

      (b) Have been accepted for admission to a program of nursing.

      (2) An applicant shall submit a completed Nursing Incentive Scholarship Application by June 1 to apply for a scholarship for the following academic year.

      (3) An applicant shall attach to the Nursing Incentive Scholarship Application a copy of the Student Aid Report from the Free Application for Federal Student Aid (FAFSA) for the current year, if requesting preference for financial need.


      Section 3. Criteria for Awards. The board shall consider the following criteria in evaluating an application and shall award points as follows:

      (1) Preference categories as specified in KRS 314.025(2):

      (a) Licensed practical nurses, twenty-five (25) points;

      (b) Registered nurses pursuing graduate nursing education, twenty-five (25) points; and

      (c) Financially-needy Kentucky residents, twenty-five (25) points. Financial need shall be determined by the annual FAFSA Pell Grant Indicator of Eligibility for Financial Aid;

      (2) Potential for academic success, as follows: high school, vocational school, college, or university grade point average for whichever institution the applicant most recently attended:

      (a) Three and five-tenths (3.5) to four (4.0), twenty-five (25) points;

      (b) Three (3) to three and four-tenths (3.4), twenty (20) points; and

      (c) Two and five-tenths (2.5) to two and nine-tenths (2.9), fifteen (15) points;

      (3) Previous health care experience, either paid or volunteer, shall be equal to five (5) points for each year in which service is validated, to a maximum of twenty-five (25) points.


      Section 4. Amount of Award. (1) The board shall be notified by the board's fiscal officer as to the current fund balance prior to making an award.

      (2)(a) The board shall first make awards to those recipients who:

      1. Received an award in the previous year; and

      2. Remain eligible to receive an award pursuant to Section 6 of this administrative regulation in the current year.

      (b) If funds remain available after the awards are made pursuant to paragraph (a) of this subsection, the board shall make an award to other eligible applicants.


      Section 5. Procedure for Disbursement of Awards. (1) Disbursement of funds shall be made directly to the recipient.

      (2) Disbursement shall be made annually.

      (3) Each educational institution in which a student receiving a nursing incentive scholarship award is enrolled shall certify to the board no later than thirty (30) days from the beginning of each semester, that the recipient:

      (a) Has enrolled; and

      (b) Is in good standing in the nursing program.


      Section 6. Continuing Eligibility Criteria. (1) A recipient of a nursing incentive scholarship shall be eligible to continue to receive an award if the recipient:

      (a) Maintains successful academic progression through the program; and

      (b) Submits to the board a completed Nursing Incentive Scholarship Fund Application form by June 1.

      (2) The educational institution shall immediately notify the board of a change in a recipient's enrollment status.

      (3) An award recipient in a practical nursing program shall not be eligible for further awards from the Nursing Incentive Scholarship Fund while enrolled in that program.


      Section 7. Disbursement Contract. (1) Prior to disbursement of initial funds, the recipient shall sign a Nursing Incentive Scholarship Fund Contract.

      (2) The recipient shall sign a Nursing Incentive Scholarship Fund Promissory Note for each year in which funds are disbursed.


      Section 8. Repayment and Deferral. (1) A recipient shall immediately become liable to the board to pay the sum of all scholarships received and the accrued interest on the scholarships if the recipient fails to complete the:

      (a) Nursing program in which he or she is enrolled within the time specified by the program of nursing; or

      (b) Required employment as specified in the contract.

      (2) Written notification of demand for repayment shall be sent by the board to the scholarship recipient's last known address and shall be effective upon mailing.

      (a) The board may agree to accept repayment in installments in accordance with a schedule established by the board.

      (b) Payments shall first be applied to interest and then to principal on the earliest unpaid contracts.

      (3) Repayment may be deferred in the case of disability, major illness, or accident that prevents a recipient from completing a program of nursing or being employed as a nurse in Kentucky.

      (4) A student enrolled in a program of nursing may defer repayment if the student fails to achieve successful academic progression.

      (a) This deferment shall apply for one (1) academic year.

      (b) If the student fails to achieve successful academic progression after that time, repayment shall be due.

      (c) If the student achieves successful academic progression within the allotted time, he or she may apply for a continuation award pursuant to Section 6 of this administrative regulation.

      (5)(a) If a deferment is requested, the recipient shall submit the request to the board on a Nursing Incentive Scholarship Fund Request for Deferral form.

      (b) If the request for deferment is submitted pursuant to subsection (3) of this section, the Nursing Incentive Scholarship Fund Request for Deferral form shall be accompanied by a physician's statement.

      (6) If a recipient fails to pass the licensure examination within two (2) years of graduation, the sum of all nursing incentive scholarships received by the recipient, and the accrued interest, shall become due and payable.

      (7) If a court of competent jurisdiction determines that the recipient has defaulted and the funds are due and owing to the board, then the provisions of 201 KAR 20:370, Section 1(5), shall apply.

      (8) An individual who has defaulted on a scholarship shall not be eligible to receive another scholarship until the defaulted scholarship has been repaid.


      Section 9. Verification. (1) Verification of employment as a nurse in Kentucky pursuant to the contract shall be submitted to the board when the recipient's employment commitment begins and when it is completed. A termination of employment prior to completion shall be reported to the board within thirty (30) days by the employer and the recipient.

      (2) A recipient shall notify the board immediately of a change of name or address or enrollment status in school.


      Section 10. Incorporation by Reference. (1) The following forms are incorporated by reference:

      (a) "Nursing Incentive Scholarship Fund Application", 12/01;

      (b) "Nursing Incentive Scholarship Fund Request for Deferral", 10/96;

      (c) "Nursing Incentive Scholarship Fund Contract", 10/13; and

      (d) "Nursing Incentive Scholarship Fund Promissory Note", 10/13.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Board of Nursing, 312 Whittington Parkway, Suite 300, Louisville, Kentucky 40222, Monday through Friday, 8:30 a.m. to 4:30 p.m. (17 Ky.R. 2082; Am. 2428; eff. 2-7-1991; 18 Ky.R. 2874; eff. 5-1-1992; 20 Ky.R. 387; eff. 10-13-1993; 21 Ky.R. 484; 1028; eff. 9-21-1994; 23 Ky.R. 2534; 3006; eff. 2-19-1997; 24 Ky.R. 1116; 1502; eff. 1-12-1998; 26 Ky.R. 1411; 1680; eff. 2-16-2000; 27 Ky.R. 2554; eff. 5-14-2001; 1680; 2015; eff. 3-14-2002; 29 Ky.R. 1304; eff. 1-15-2003; 30 Ky.R. 389; eff. 10-15-2003; 32 Ky.R. 299; eff. 10-19-2005; 33 Ky.R. 2356; eff. 5-4-2007; 40 Ky.R. 1349; 1723; eff. 2-19-2014; 42 Ky.R. 499; 1145; eff. 11-6-2015.)