How to Comply with Nurse Corps Scholarship Program Requirements

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Nurse Corps Scholarship Program
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Upon graduation and licensing, you must fulfill your Nurse Corps Scholarship Program (Nurse Corps SP) service obligation.

You must serve at an eligible health care facility and in the discipline—registered nurse (RN) or nurse practitioner (NP)—for which we awarded you funds.

Program Requirements | Award TaxService Terms | Contract Termination

Contract Period | Continuation Award

What are the scholarship program requirements while I'm in school?

While you’re in school, you must:

  • Be enrolled in your nursing program until the program is complete.
  • Verify your enrollment status each term (e.g., semester, quarter) through the Bureau Health Workforce (BHW) Customer Service Portal.
  • Have a school official certify your full-time (part-time, if approved) enrollment status.
  • Submit a transcript after the add/drop date of each term to show the courses and credit hours your scholarship award will cover.
  • Upload an official or unofficial transcript at the end of each semester.

Is my scholarship taxable?

Yes. The entire scholarship award, including tuition, fees, other reasonable costs, and the monthly stipend, is subject to federal taxes.

All scholarship funds awarded to participants, or to their school on their behalf, is reported to the IRS on a Form W-2, Wage and Tax Statement.

State and local taxes are not withheld from any of the scholarship payments.

How long is my service term?

You must serve full-time (or part-time equivalent) for at least two years.

Can I terminate my contract?

You may terminate your contract. 

However, you must do so on or before June 1 of the relevant school year.

How do I terminate my contract?

  • Submit a written request to terminate your contract for that academic year.
  • Repay all amount paid to, or on behalf of, you (i.e., pre-tax tuition, stipends, and other reasonable costs) for that academic year.

What happens if you terminate my contract?

You no longer have to serve for that particular school year.

However, you must serve for any years prior in which we provided you scholarship funds.

What happens if I don’t meet the requirements to terminate my contract?

Your contract remains in effect. You must serve two years since we already supplied you scholarship funds.

What is my award’s contract period?

Your contract comprises the academic year(s) for which you applied and were awarded a scholarship (not to exceed four years). 

You may not defer scholarship funding. And, you must use your award in consecutive academic terms.

We consider any funding you receive after the end of the academic year in your contract to be another contract year.

Am I eligible for a continuation award after my initial award?

You may be eligible for additional scholarship support.

However, it must be for the same nursing degree for which we funded your original contract. 

How do I request a continuation award?

To request additional scholarship support for any subsequent academic years:

  • Submit a signed contract for that academic year.
  • Submit a report verifying that you are still in an acceptable level of academic standing.

You will not need to reapply for scholarship support under the Application and Program Guidance (PDF - 617  KB).

How do you determine if I receive a continuation award?

If there are available funds, we may grant you a continuation award.

However, you must:

  • Remain eligible to participate in the Nurse Corps SP (e.g., acceptable academic standing, not repeating coursework). Note: We conduct a credit check as part of the eligibility process.
  • Comply with our policies and procedures for requesting continued support; and
  • Have complied previously with program policies and requirements.

If you plan to request additional support, you must be able to support yourself financially until the new scholarship payment schedule takes effect.

If we grant you a continuation award, you may not receive the first payment until months later.

Date Last Reviewed:  March 2020