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Implement Regulations on Scholarships and Loans Requiring ...
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12VAC5-507

CHAPTER 507 ]

NURSING SCHOLARSHIP AND LOAN REPAYMENT PROGRAM REQUIRING SERVICE IN A LONG-TERM CARE FACILITY

12VAC5-507-10

Part I
Legislative Authority and ] General Information

12VAC5-507-10. Legislative authority and general information.

Sections 32.1-122.6:01 of the Code of Virginia provides the Board of Health the authority to award certain nursing scholarships and loan repayment funds. Fee requirements are specified in §§ 54.1-3011.1 and 54.1-3011.2 of the Code of Virginia to establish the nursing scholarship and loan repayment fund.

All scholarship and loan repayment award recommendations will be made by the Nursing Scholarship Advisory Committee appointed by the State Board of Health. The commissioner may act for the Board of Health when it is not in session. The committee shall consist of eight members: four deans or directors of schools of nursing, two former scholarship participants, and two members with experience in the administration of student financial aid programs. Committee appointments are for two-year terms and members may not serve for more than two successive terms.

The Virginia Department of Health serves as the staff element to the advisory committee and plays no role in the determination of scholarship or loan repayment participants.

After scholarships are awarded, depending upon availability of funds, nursing educational loans will be repaid for those registered nurses, licensed practical nurses, and certified nurse aides applying and meeting eligibility criteria as set forth in this chapter.

This chapter sets forth the criteria for eligibility for the scholarship and loan repayment program for registered nurses, licensed practical nurses, or certified nurse aides; the general terms and conditions applicable to the obligation of each scholarship and loan repayment participant to practice in a long-term-care facility in the Commonwealth; and penalties for a participant's failure to fulfill the practice requirements.

12VAC5-507-15 12VAC5-507-10 ]. Definitions.

The following words and terms when used in this chapter shall have the following meaningsunless the context clearly indicates otherwise ]:

Approved nurse education program" means an approved educational program pursuant to Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia. ]

"Board" or "Board of Health" means the State Board of Health.

"Certified nurse aide" or "CNA" meansan individual who has completed a nurse aide education program that is approved a person who is certified ] by the Board of Nursing, successfully passed the competency evaluation, and made application and been given certification by the Board of Nursing in the Commonwealth of Virginia under the provisions of Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia ].

"Commercial loans" means loans made by banks, credit unions, savings and loan associations, insurance companies, schools, and either financial or credit institutions that are subject to examination and supervision in their capacity as lenders by an agency of the United States or of the state in which the lender has its principal place of business.

"Commissioner" means the State Health Commissioner.

"Department" means Virginia Department of Health.

"Full-time" means at least 32 hours per week for 45 weeks per year.

"Licensed practical nurse" or "LPN" means anurse who has completed a practical nurse program and is licensed by the Commonwealth of Virginia to provide routine care under the supervision of a licensed medical practitioner, a professional nurse, registered nurse, registered professional nurse, or other licensed health professional authorized by regulations of the Board of Nursing person who is licensed or holds a multistate licensure privilege under the provisions of Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia to practice practical nursing as defined in § 54.1-3000 of the Code of Virginia ].

"Long-term care facility" means alicensed certified nursing ] facilityin the Commonwealth traditionally known as a nursing home, including both skilled nursing facilities and intermediate care facilities depending on the extent of nursing and related medical care provided or nursing home as defined in § 32.1-123 of the Code of Virginia ].

"Participant"or "loan repayment participant" ] means an eligible registered nurse, a licensed practical nurse, or a certified nurse aide student or graduate who enters into a contract with the commissioner and participates in the scholarship or loan repayment program.

"Interest" means the legal rate of interest pursuant to the Code of Virginia. ]

"Penalty" meanstwice ] the amount ofmoney equal to twice the amount of ] all monetary payments to the scholarship or loan repayment participant, less any service obligation completed.

"Reasonable educational expenses" means the costs of education, exclusive of tuition, that are considered to be required by the school's degree program or an eligible program of study, such as fees for room, board, transportation and commuting costs, books, supplies, educational equipment and materials, and travel, ] thatwas were ] a part of the estimated student budget of the school in which the participantis or ] was enrolled.

"Registered nurse" or "RN" means anurse person ] whohas passed a state registration examination and has been licensed to practice nursing by the Board of Nursing in the Commonwealth of Virginia is licensed or holds a multistate licensure privilege under the provisions of Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia to practice professional nursing as defined in § 54.1-3000 of the Code of Virginia ].

12VAC5-507-15

 [ 12VAC5-507-15. Nursing Scholarship Advisory Committee.

All scholarship and loan repayment awards shall be made by an Advisory Committee appointed pursuant to § 23-35.9 of the Code of Virginia. ]

12VAC5-507-20

Part II
Administration of Nursing
Scholarship Program Scholarships ]

12VAC5-507-20. Eligibility for scholarships.

In order to be considered for a scholarship,applicants must meet the following criteria an applicant shall ]:

1. Be abona fide resident of Virginia for at least one year as determined by § 23-7.4 of the Code of Virginia United States citizen, a United States national, or a qualified alien pursuant to 8 USC § 1621 ];

2.Be a bonafide resident of Virginia by being domiciled in the Commonwealth for at least one year as defined in § 23-74 of the Code of Virginia;

3. ] Be accepted for enrollment or enrolled in an approved nursing education programin the Commonwealth of Virginia ] preparingthem him ] for examination for licensure asa ] practicalnurses nurse ] or registerednurses nurse ] or accepted for enrollment or enrolled in an approved nurse aide education program in the Commonwealth of Virginia ] preparingthem him ] for certification;

4. If already enrolled in an approved nursing education program in the Commonwealth of Virginia or an approved nurse aide education program in the Commonwealth of Virginia, have a cumulative grade point average of 2.5 in core nursing classes; ]

3. 5. ] Submit a completed application form and appropriate grade transcript prior to the established deadline dates;and

4. 6. ] Demonstrate financial need, ] which is verified by theschool's ] financial aidofficer/authorized officer or authorized ] personas part of the application process; and

7. Not have an active military obligation ].

Failure to comply with An applicant who fails to meet ] all of thesecriteria will cause the applicant to requirements shall ] be ineligible for a scholarship.

12VAC5-507-30

12VAC5-507-30. Conditions of scholarships.

A. Prior to becoming a participant in the nursing scholarship program, the applicant shall enter into a contract with the commissioner agreeing to the terms and conditions upon which the scholarship is granted. 

B. ] For each$100 $2,000 ] of scholarship money received, the participant agrees to engage in the equivalent of onemonth year ] of full-time nursing practice in a long-term care facility in the Commonwealth.Employment must begin within 90 days of the participant's graduation date The participant shall notify the department, within 180 days of being awarded a nursing diploma or degree, of the type of nursing practice to be performed and give the name and address of the employer for approval ]. Voluntary military service, even if stationed in Virginia, cannot be used to repay the service obligation required when a scholarship is awarded.

The participant shall notify the department in writing of his employment location within 30 days of his employment at a long-term care facility in the Commonwealth.

The participant may request approval of a change of employment. The board in its discretion may approve such a request.

The participant may request approval of a change of practice site. Such requests shall be made in writing. The department in its discretion may approve such a request.

C. ] If a participant fails to complete his studies, the full amount of the scholarship or scholarships received, plus applicable interest charge, must be repaid.

D. ] If upon graduation a participant leaves thestate Commonwealth ] or fails to engage or ceases to engage in nursing practice in a long-term care facility in Virginia before all employment conditions of the scholarship award are fulfilled, the participantmust shall ] repay the award amount reduced by the proportion of obligated years served plus applicable interest and penalty.

E. ] If the participant is in default due to death or permanent disability so as not to be able to engage in nursing practice in a long-term care facility, the participant or his personal representative may be relieved ofthis his ] obligation under the contract to engage in nursing practice upon repayment of the total amount of scholarship or loan repayment funds received plus applicable interest. For participants completing part of the nursing obligation prior to becoming permanently disabled or in the event of death, the total amount of scholarship or loan repayment funds owed shall be reduced by the proportion of obligated years served. The obligation to make restitution may be waived by the board upon application of the participant or the participant'sestate personal representative ] to the board.

F. ] Individual casesof hardship ] may be considered by the board forforgiveness of payment or service a variance of payment or service, pursuant to § 32.1-12 of the Code of Virginia, if the board finds compliance with the applicable service requirements or default repayment would pose an undue hardship on the participant ].

Partial fulfillment of the participant's obligation shall reduce the amount of restitution plus penalty and applicable interest due by an amount of money equal to the same percentage of time employed.

All refund checks should be made payable to the Commonwealth of Virginia.

Before any scholarship is awarded, the applicant must sign a written contract agreeing to the terms established by law and the Board of Health.

G. All default payments shall be made payable to the Commonwealth of Virginia. ]

12VAC5-507-40

12VAC5-507-40. Number of applications per student.

Scholarships are awarded for single academic years. However, the same student may, after demonstrating satisfactory progress in his studies,which is demonstrated by a cumulative grade point average of 2.5 in core nursing classes, ] apply for and receive scholarship awards forany a ] succeeding academic year or years. No studentmay shall ] receive scholarships for more than a total of four years.

12VAC5-507-50

12VAC5-507-50. Amounts of scholarships.

Theamount number ] ofeach scholarship award is scholarships awarded shall be ] dependent upon the amount of money appropriated by the General Assembly, the amount of the funds available within the Nursing Scholarship and Loan Repayment Fund administered by the Board of Nursing pursuant to § 54.1-3011.2 of the Code of Virginia, ] and the number of qualified applicants.No Each ] participantwill shall ] receive an awardfor less than $150 of $2,000 per year ].

12VAC5-507-60

12VAC5-507-60. How to applyfor a scholarship ].

Application, guidelines, and additional information may be available from the dean/director of a nursing program or from the financial aid office or from the department.

It is preferred that applications are completed online by going to Eligible applicants shall submit a complete application on a form made available by the department on the department's website. A complete application shall include documentation of all eligibility requirements. The deadline for submission of the application shall be announced by the department on ] the department's website.

12VAC5-507-70. Deadline dates.

Applications will not be accepted more than two months in advance of the deadline, which is June 30.

Applications or transcripts received after 5 p.m. on the above date will not be considered for scholarship awards.

Part III
Administration of the Nursing Loan Repayment Program

12VAC5-507-80. Administration of the nursing loan repayment program.

The commissioner, as executive officer of the Board of Health, shall administer this program. Any requests for variance from this chapter shall be considered on an individual basis by the board.

12VAC5-507-70

12VAC5-507-70. Reporting requirements of scholarship participants.

Reporting requirements of the scholarship participant are as follows:

1. Each participant shall provide information as required by the department to verify compliance with the practice requirements of the nursing scholarship program (e.g., verification of employment in a long-term care facility by submitting a Verification of Employment form once every six months).

2. Each participant shall promptly notify the department in writing within 30 days if any of the following events occur:

a. Participant changes name;

b. Participant changes address;

c. Participant changes practice site (participant is required to request in writing and obtain prior approval of changes in practice site);

d. Participant no longer intends to or is unable to fulfill service obligation as a nurse in the Commonwealth in a long-term care facility;

e. Participant ceases to practice as a registered nurse, licensed practical nurse, or certified nurse aide; or

f. Participant ceases to or no longer intends to complete his nursing school program.

12VAC5-507-80

12VAC5-507-80. (Reserved.)

12VAC5-507-90

Part III
Administration of the Nursing Loan Repayment Program
 ]

12VAC5-507-90.Eligible applicants Eligibility for the nursing loan repayment program ].

An eligible applicant for the nursing loan repayment programmust shall ]:

1. Be abona fide resident of Virginia for at least one year as determined by § 23-7.4 of the Code of Virginia United States citizen, a United States national, or a qualified alien pursuant to 8 USC § 1621;

2. Be domiciled in Virginia for at least one year as defined in § 23-7.4 of the Code of Virginia ];

2. 3. ] Be a registered nurse, licensed practical nurse, or certified nurse aide;

 [ 3. 4. ] Have graduated from an approvededucational nurse education ] program pursuant to Chapter 30 (§ 54.1-3000 et seq.) of Title 54.1 of the Code of Virginia;

4. 5. ] Have a valid unrestricted Virginia license to practice nursingor be certified as a nurse aide as an RN, LPN, or CNA ], a copy of which shall be furnished to the nursing loan repayment program;

5. 6. ] Have submitted a completed application to participate in the nursing loan repayment program;and

6. 7. ] Have [ signed and submitted, a written contract agreeing to repay educational loans and to serve in a long-term care facility for the applicable period of obligated service in the Commonwealth. no other contractual service obligation unless completely satisfied before the nursing loan repayment program contract has been signed;

8. Not have an active military obligation;

9. Be employed or have a contract for employment in a long-term care facility within a month of the application date;

10. Not have a history of failing to comply with, or inability to comply with, service or payment obligations;

11. Not have a history of noncompliance within any other state or federal scholarship or loan repayment program; and

12. Have an educational loan balance that can be verified ].

12VAC5-507-100

12VAC5-507-100. Application requirementand restrictions ].

The applicantmust shall ] submit a completed applicationfor loan repayment for the nursing loan repayment program, and the application must be received in the department between the dates of January 1 and May 1 of the year in which the applicant intends to initiate practice in the Commonwealth. The applicant must agree to serve a minimum of one year for a loan amount up to $1,200 to a maximum of four years for a loan amount up to $4,800, including documentation of eligibility requirements, to the nursing loan repayment program, and the application must be received in the department by the deadline date published on the department's website. The application form shall be available on the department's website ].

12VAC5-507-110

12VAC5-507-110. Selection criteria.

Applicants shall be competitively reviewed and selected by the Nursing Scholarship Advisory Committee for recommendation to the commissioner ] for participation in the nursing loan repayment program based upon the following criteria:

1.Commitment to serve in a long-term care facility. The individual's stated commitment to serve in a long-term care facility in the Commonwealth. Qualifications. Decisions for determining loan repayment participants shall be based on an evaluation of an individual's qualifications and competency to practice. These qualifications may include attainment and maintenance of a Virginia nursing license or certification, additional certification in a specialty, professional achievements, and other indices of competency received from supervisors and program directors ].

2. Virginia graduates. Preferential considerationwill shall ] be given to individuals who are graduates of Virginia nursing schools (verification will be obtained by the nursing loan repayment program).

3. Availability for service.Individuals Preferential consideration shall be given to individuals ] who are immediately eligible and available for service in a long-term care facilitywill be given preferential consideration ].

4. Length of proposed commitment. Preferential considerationwill shall ] be given to individuals who commit to longer periods of service in a long-term care facility.

5. Selection for participation. All of an individual's professional qualifications and competency to practice will be considered, including but not limited to certification in a specialty, professional achievements, and other indicators of competency received from supervisors and program directors.

6. No other obligations. Individuals shall have no other obligation for health professional service to the federal government or state government unless such obligation will be completely satisfied prior to the beginning of service under the nursing loan repayment program. ]

12VAC5-507-120

12VAC5-507-120. Loan repayment amount.

The amount that the state agrees to repay will depend upon availability of funds and the applicant's indebtedness, but no amount will exceed the total indebtedness. The nursing loan repayment program requires one year of service in a long-term care facility in the Commonwealth for up to $1,200 in loans paid by this program.

The applicant shall agree to provide full-time nursing services in a long-term care facility in the Commonwealth a minimum of one year for a loan repayment amount up to $2,000 with an option for renewal in the second, third, and fourth year upon submitting a new application, with a potential maximum award amount of $8,000. Renewals shall only be granted if an applicant can show a reduction in his educational loan balances. The loan repayment amount shall depend upon availability of funds and the applicant's indebtedness, but no amount shall exceed the total indebtedness. ]

12VAC5-507-130

12VAC5-507-130. Loans qualifying for repayment.

A. ] Based on the availability of funds, the loan repayment programwill pay for the cost of education necessary to obtain a nursing certificate, diploma or degree. The program will shall ] pay toward the outstanding principal, and ] interest, and related expense ] ofverifiable ] federal, state, or local government loans and commercial loans obtained by the participant forthe following ]:

1. School tuition and required fees incurred by the participant Tuition expenses ];

2. Other reasonable educational expenses, and

3. Reasonable living expenses asdetermined by the board estimated by the school as part of the school's standard student budget and determined reasonable by the department ].

B. All loan award payments shall be applied only to outstanding educational loans secured while attending an approved nurse education program that led to RN, LPN, or CNA licensure. Qualifying outstanding educational loans shall:

1. Have sufficient documentation verifying the educational use of the loans;

2. Not exceed the "reasonable" level as determined by the school's standard budget in the year the loan was made; and

3. Not include loans from friends and relatives.

C. The department shall be the final authority in determining qualifying educational loans. ]

12VAC5-507-140

12VAC5-507-140.Repayment restrictions Release of information ].

A. The following financial debts or service obligations are not qualified for repayment by the loan repayment program:

1. Public Health Service Nursing Shortage Area Scholarship;

2. Public Health and National Health Service Corps Scholarship Training Program;

3. Indian Health Service Scholarship Program;

4. Armed Forces Health Professions Scholarship Programs;

5. National Health Service Corps Scholarship Program financial damages or loans obtained to repay such damages;

6. Indian Health Corps Scholarship or loan obtained to repay such damages;

7. Financial damages or loans obtained to repay damages incurred as a result of breach of contract with any other federal, state, local agency or commercial institution;

8. Loans for which documentation verifying the educational use of the loans is not available or is not sufficient;

9. Loans or part of loans obtained for educational or personal expenses during the participant's education that exceed the "reasonable" level as determined by the school's standard budget in the year the loan was made;

10. Loans that have been repaid in full; and loans that incur their own obligation for service which has not yet been performed;

11. Loans from friends and relatives;

12. The Mary Marshall Nursing Scholarship Program; and.

13. The Nursing Scholarship Program with a commitment to service in a long-term care facility.

B. The board will be the final authority in determining qualifying educational loans.

12VAC5-507-150. Release of information. ]

Applicants shall agree to execute a releaseof information ] to allow thedepartment board ] access to loan records, credit information, and information from lenders necessary to verify eligibility and to determine loan repayments. To facilitate the process, applicantsshould shall ] submitpay-off payment ] statements from each lending institution.

Participants who have consolidated qualifying loans with other loansmay be asked to shall ] submiton request ] other documentation, such as copies of original loan applications, to verify the portion of the loan that qualifies for repayment.

The applicant shall submit all requested loan documentation prior to approval by theboard department ].

12VAC5-507-150

 [ 12VAC5-507-160 12VAC5-507-150 ]. Effective date for start of service.

Applicantsshall ] become participants in the loan repayment program only when the applicant and the commissioner or his designee have signed the loan repayment program contract. The effective start date of the obligated service under the contractis shall begin on or after ] the date ofemployment in a long-term care facility or the date of ] the commissioner's signature, whichever is later ].

12VAC5-507-160

 [ 12VAC5-507-160. Repayment procedure.

Loan repayment shall be limited to qualified loans as determined by 12VAC5-507-130. Repayment of loans shall begin after the commissioner has received notification that the participant has officially accepted placement and has begun the required service obligation. Payment shall be a lump sum payment based on availability of funds. Payment shall be made to the participant. Verification of payment made to the lender shall be required and submitted to the department by the participant. It shall be the responsibility of the participant to negotiate with each lending institution the terms of the educational loan repayments.

12VAC5-507-170. Repayment policy.

It will be the responsibility of the participant to negotiate with each lending institution for the terms of the educational loan repayments. Each lending institution must certify that the participant's debt is a valid educational loan prior to payment by the loan repayment program. Any penalties associated with early repayment shall be the responsibility of the participant.

12VAC5-507-180. Disbursement procedure.

The financial institution holding the educational loan will be paid one lump sum payment. This payment will be credited to the account of the participant in an amount up to $1,200 for a one year commitment within 45 days of the contract being signed by the applicant and the commissioner or his designee. If a participant wishes to commit to another year of service, he will be required to sign another contract. Depending on availability of funds, the nursing loan repayment program will pay the applicable financial institution another lump sum payment up to $1,200 for the additional year commitment. Payment will be made approximately 45 days after the beginning of the subsequent year. The maximum number of loans a participant can receive is four.

12VAC5-507-170

12VAC5-507-190 12VAC5-507-170. ] Compensation during service.

Each participant is responsible for negotiating his own compensation package directly with the site where he will provide nursing services in a long-term care facility.

12VAC5-507-180

 [ 12VAC5-507-200 12VAC5-507-180. ] Monitoring during service.

Monitoring of theparticipant's ] serviceby participants obligation ] shall be conducted on an ongoing basis by department staff. Service verification forms shall be submitted by the participant to the department semi-annually (every six months) and countersigned by a representative of the service site (e.g., the medical director, human resource coordinator, chief executive officer, etc.) certifying continuous full-time service byparticipants the participant ].

The participantis required to shall ] maintain practice records in a manner that will allow the department to readily determine if the individual has complied with or is complying with the terms and conditions of theparticipation agreement contract ].

12VAC5-507-190

 [ 12VAC5-507-210 12VAC5-507-190 ]. Terms of service.

The following are the terms of service for the loan repayment program:

1. The participant shall contract to provide one year of service with a maximum of up to four years in whole year increments. Additional service beyond the one year commitment is dependent upon the availability of state funds for the nursing loan repayment program. An existing contract may be renewed for one year at a time up to a maximum of four years as funds become available;

2. The participant shall begin service within 90 days from entering into the contract;

3. The participant shall provide full-time service. Time spent in an "on-call" status will not count toward the number of hours worked per week. Any exceptions to the "on-call" provisions of this subdivision must be approved in advance by the board prior to acceptance in the loan repayment program.

4. No period of advanced training may count toward satisfying a period of obligated service under this loan repayment program;

1. The applicant shall agree to provide full-time nursing services in a long-term care facility in the Commonwealth for a minimum of one year with an option for renewal in the second, third, and fourth year upon submitting a new application, with a potential to serve up to four years. Additional years of loan repayment beyond the one-year commitment are dependent upon the availability of state funds for the nursing loan repayment program;

2. The participant shall provide full-time service; and

3. No period of advanced training shall count toward satisfying a period of obligated service under this loan repayment program.

12VAC5-507-200

12VAC5-507-220 12VAC5-507-200 ]. Loan repayment contract.

Prior to becoming a participant in the nursing loan repayment program, the applicant shall enter into a contract with the board commissioner ] agreeing to the terms and conditions upon which the loan repayment is granted. The contract shall:

1. Include the terms and conditions to carry out the purposes and intent of this program;

2. Provide that the participantwill be required to shall ] providefull-time ] nursing servicesas an RN, LPN, or CNA ] in a long-term care facility in the Commonwealth for a minimum period of one year;

3. Provide for repayment of all amounts paidby the board ], plus interest and penalties, less any service time if the participant is found to be in breach of contract;

4. Be signed by the applicant;and ]

5. Be signed by the commissioner orher his ] designee; and

6. Include other provisions as the commissioner may deem appropriate ].

12VAC5-507-210

 [ Part IV
Contract

12VAC5-507-230 12VAC5-507-210 ]. Breach of contractfor loan repayment program ].

The following may constitute breach of contract:

1. Participant's failure to begin or complete his term of obligated service in a long-term care facility under the terms and conditions of the nursing loan repayment contract, regardless of the length of the agreed period of obligated service ];

2. Participant's falsification or misrepresentation of informationor misrepresentation of information ] on the program application or verification forms or other requireddocument documents ];

3. Participant's employmentbeing is ] terminated for good cause as determined by the employer and confirmed by the department. If employment is terminated for reasons beyond the participant's control (e.g., closure of site), the participant must shall ] transfer to anotherboard-approved ] long-term care facility site in the Commonwealth within six months of termination. Failure of participant to transfer to another site shall be deemed to be a breach of the contract; and

4. Participant's failure to provideall reasonable, usual, and customary full-time health care service the required nursing service ] in a long-term care facilityfor at least 45 weeks per year ].

12VAC5-507-220

 [ 12VAC5-507-240 12VAC5-507-220 ].Waiver or suspension, or both Postponement or waiver of service for loan repayment program ].

Participants have the obligation to complete full-time continuous service for the period of their entire commitment. Under unusual circumstances (e.g., illness), a participant may request that the board agree to a postponement of the service obligation. This postponement, if granted,will shall ] not relieve the participant of the responsibility to complete the remaining portion of the obligation. Such postponementwill shall ] not be permitted as a matter of course, but may be allowed inthe most compelling ] casesof undue hardship ].

If the participant is in default due to death or permanent disability, the obligation to make restitution may be waived by the board upon application of the participant or the participant's estate to the board. The board may grant a variance to service requirements or default repayments upon participant request if it finds compliance with the applicable service requirements or default repayment would pose an undue hardship on the participant.

12VAC5-507-230

12VAC5-507-250 12VAC5-507-230 ]. Cash reimbursement and penaltyfor loan repayment program ].

Participants who serve less than their obligated service are liable to pay monetary damages to the Commonwealth as stated in the contract, reduced by the proportion of obligated years served. The default penalty will require the participant to repay twice the total amount of the award received. For example, if a participant owes $1,200, he would have to repay at total of $2,400. ]

Participants who serve less than their obligated servicedue to permanent disability or in the event of death shall have the total amount of scholarship or loan repayment funds owed shall make repayment, including interest and penalty, to the Commonwealth as stated in the contract, ] reduced by the proportion of obligated years served.

12VAC5-507-240

 [ Part V
Records and Reporting

12VAC5-507-260 12VAC5-507-240 ]. Reporting requirementsof loan repayment participants ].

Reporting requirements of the loan repayment participant are as follows:

1. Each participant shallat any time ] provide information as required by theboard department ] to verify compliance with the practice requirements of the nursing loan repayment program (e.g., verification of employment in a long-term care facilityby submitting a Verification of Employment form once every six months ] ).

2. Each participant shall promptly notify theboard department ] in writing within 30 daysbefore if ] any of the following events occur:

a. Participant changes name;

b. Participant changes address;

c. Participant changes practice site(participant is required to request and obtain in writing prior approval of changes in practice site) ];

d. Participant no longer intends to fulfill service obligation as a nurse in the Commonwealth in a long-term care facility; or

e. Participant ceases to practice as a registered nurse, licensed practical nurse, or certified nurse aide.