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ORR # 2003-011 DEPARTMENT OF TREASURY
MICHIGAN HIGHER EDUCATION ASSISTANCE AUTHORITY BUREAU OF STUDENT FINANCIAL ASSISTANCE
NURSING SCHOLARSHIP RULES
Filed with the Secretary of State on
These rules take effect 7 days after filing with the Secretary of State
(By authority conferred on the Michigan Higher Education Assistance Authority by section 3 of 2002 PA 591, MCL 390.1183.)
R 390.901 Definitions.
Rule 1. (1) As used in these rules:
(a) “Act” means the Michigan nursing scholarship act, 2002 PA 591, MCL 390.1181 to 390.1189.
(b) “Eligible costs” means that term as defined in section 2 of the Michigan nursing scholarship act and includes any other student costs related to attendance as specified by the eligible institution.
(c) “Eligible program” means courses at an eligible institution that are applicable or transferable to a baccalaureate or lower degree or certificate in nursing.
(d) “Part-time employment” means employment that is less than 40 hours per week and averages 10 to 30 hours per week.
(e) “Part-time enrollment” means students enrolled at least half-time as determined on an enrollment count date that is established by each eligible institution.
(f) “Participating school” means an eligible postsecondary institution as defined in section 2 of the act that elects to participate in the scholarship program.
(g) “Satisfactory academic progress” means compliance with the standards of enrollment established by the eligible institution pursuant to the federal higher education act of 1965, as amended, regarding minimal criteria of academic progress needed to maintain eligibility for federal title IV student aid programs.
R 390.903 Statutorily defined terms used in the rules.
Rule 3. Except as otherwise provided in these rules, a term defined in the act has the same meaning when used in these rules.
R 390.905 Responsibilities of participating school.
Rule 5. A participating school is responsible for all of the following activities:
(a) Selecting eligible student recipients using institutional criteria in addition to the student eligibility requirements described in section 4 of the act.
(b) Awarding scholarships to eligible student recipients.
(c) Sending completed student recipient “scholarship agreement and promissory note” forms to the authority by program due date.
(d) Reporting scholarship expenditures and related data to the authority on a timely basis.
(e) Refunding unused scholarship program funds promptly at the end of each fiscal year.
R 390.907 Additional scholarship eligibility requirements.
Rule 7. The authority, in conjunction with a participating school, may award a scholarship to an individual determined to meet the requirements of section 4 of the act and all of the following requirements:
(a) Is making satisfactory academic progress as determined by the participating school.
(b) Is not in default on a federal student loan, a loan guaranteed by the authority, or a loan offered by the authority. Exceptions may be made if a defaulted borrower has made satisfactory repayment arrangements that result in the individual being eligible to again borrow under the federal title IV student loan programs.
(c) Is not prohibited from receiving federal student loans due to bankruptcy.
(d) Is not currently incarcerated in a correctional facility on either a full-time or part-time basis.
R 390.909 Scholarship awards.
Rule 9. (1) A student determined to be eligible for a scholarship who is enrolled fulltime at a participating school shall receive either a $4,000 scholarship for 1 academic year, or a scholarship in an amount equal to the student’s eligible costs minus any other grants or scholarships the student receives, whichever is less.
(2) A student determined to be eligible for a scholarship who is enrolled 3/4 time in a participating school shall receive either a $3,000 scholarship for 1 academic year, or a scholarship in an amount equal to the student’s eligible costs minus any other grants or scholarships the student receives, whichever is less.
(3) A student determined to be eligible for a scholarship who is enrolled 1/2 time in a participating school shall receive either a $2,000 scholarship for 1 academic year, or a scholarship in an amount equal to the student’s eligible costs minus any other grants or scholarships the student receives, whichever is less.
R 390.913 Interest rate for scholarship repayment.
Rule 13. If a scholarship recipient is determined to be in noncompliance with the program agreement and required to repay the scholarship award received, the interest rate charged by the authority shall be a fixed rate of 4%.
R 390.915 Repayment deferral.
Rule 15. (1) In addition to the reasons described in section 7(4) of the Act, a scholarship recipient’s repayment obligation is deferred during any period in which the recipient is doing any of the following:
(a) Pursuing a course of study related to the field of nursing at an eligible institution on at least a half- time status and is employed on a part-time basis.
(b) Enrolled at least half-time status in a degree program and is employed on a part-time basis.
(c) Unemployed and/or experiencing economic hardship due to low income for a period not to exceed 3 years.
(d) Unable to work or unable to work full-time and/or is experiencing economic hardship due to the care of a disabled spouse for a period not to exceed 3 years.
(e) In a circumstance that warrants the granting of a period of deferment as determined by the authority.
(2) A scholarship recipient is not in violation of the agreement entered into pursuant to section 7 of the act during any period described in subrule (1) of this rule.
