PHEAA Launches "Healthier Futures" to Address Nursing Shortage in PA
Increase Student Nurse Enrollment; Expand Quality Health Care

Latrobe, PA - February 21, 2003 - The Pennsylvania Higher Education Assistance Agency (PHEAA) and American Education Services (AES)* today announced locally the establishment of Nursing Loan Forgiveness for Healthier Futures. The purpose of the program is to address the serious nursing shortage affecting the delivery of quality health care throughout the Commonwealth.

The objectives of the program include:

• Increase the number of students enrolling in and graduating from approved nursing education programs.
• Increase the number of nurses working throughout the Commonwealth.
• Encourage licensed practical nurses to earn registered nursing degrees.
• Increase the numbers of nurses attending graduate school to prepare to replace nursing educators who are approaching retirement.

"Today, Pennsylvania students have another reason to consider a career in nursing," noted Richard E. Willey, PHEAA/AES President and CEO. "Healthier Futures provides students with the comfort of knowing that PHEAA will stand beside them, before, during and after their education, to help alleviate the burden of student loan debt - - empowering them with the freedom to achieve an affordable education and preparing them for a rewarding career."

Jointly administered with the Pennsylvania Higher Education Foundation, PHEAA expects to fund $13.3 million in loan forgiveness with proceeds from a series of bond-issue refinancings at no cost to taxpayers.

"One of the major obstacles we face in addressing the serious nursing shortage facing the Commonwealth is the issue of funding for student aid, especially with anticipated budgetary challenges," noted Representative Jess M. Stairs. "We have developed this innovative program at no cost to taxpayers to provide nursing students with a financial incentive to achieve their goals through higher education. Healthier Futures is a tremendous opportunity for students while at the same time will help to alleviate the state's nursing shortage."

Enrollment in Pennsylvania nursing education programs increased in 2001 for the first time since 1995; however, graduation rates continue to decline and are less than what experts predict will be needed to meet the demand for nursing care. Additionally, data indicates that nearly one-fourth of nursing students will be lost through attrition and a recent study indicates that 45 percent of RNs in the Commonwealth plan on leaving nursing within the next ten years while only 11 percent of RNs are between the ages of 20-34. Recent projections indicate a nationwide shortage of 800,000 nurses by 2020.

"It is a privilege for Latrobe Area Hospital to participate in this program," commented LAH nurse recruiter Suzanne Rause, RN. "We applaud the efforts of PHEAA in offering this loan forgiveness program at no cost to taxpayers, and are honored to accept the challenge to match employees with our own scholarship program. With our state having one of the nation's largest aging populations, the need for nurses to remain in Pennsylvania will become even more critical as time goes on. This program is a valuable tool for attracting and retaining caregivers."

"PHEAA's loan forgiveness program gives credibility and attention to the dire need for qualified nurses. We need to encourage our young people to think of nursing as a respectful career with many opportunities for advancement and fulfillment," said Jami Nanassy, RN, BSN, instructor in the Allied Health Professional Internship Program at Eastern Westmoreland Career and Technology Center, which offers high school students career exploration opportunities in cooperation with Latrobe Area Hospital. "PHEAA is helping our young people by offering this program."

PHEAA, in cooperation with employer-sponsored loan forgiveness programs, such as by hospitals, health systems and nursing homes, will forgive up to $12,500 or 25 percent of eligible student loan principal over three years of qualifying employment. Participating employers will at least match PHEAA's loan forgiveness contribution. Employer- sponsored programs will also have the flexibility to increase their matching contribution to help enhance their institution's nurse recruitment and retention efforts.

"This program is also great benefit to nontraditional students like myself," said Deborah A. Kuhn, a patient care assistant at Latrobe Area Hospital, enrolled in the nursing program at Westmoreland County Community College. "It provides peace of mind knowing that the money I'm earning is going to meet family needs instead of paying tuition. The loan forgiveness program will influence others to pursue their dream."

To qualify for participation in Healthier Futures students must graduate from an approved professional nursing education program during or after 2003. Participants must also maintain employer-verified, full-time, continuous employment after graduation as a direct care nurse at an approved Pennsylvania health care facility or as a nurse educator in the Commonwealth for a minimum of one year and hold eligible federal Stafford loan(s).

Nursing Loan Forgiveness for Healthier Futures is the first phase of a multi-faceted PHEAA funded effort designed to address the nursing shortage in the Commonwealth.

Applications and eligibility requirements are available online at www.pheaa.org. For additional information, call 800-859-5442.

* American Education Services is a division of PHEAA