DEPARTMENT OF TREASURY  
MICHIGAN HIGHER EDUCATION ASSISTANCE AUTHORITY  
BUREAU OF STUDENT FINANCIAL ASSISTANCE  
NURSING SCHOLARSHIP RULES  
(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  
determined on an enrollment count date that is established by  
institution.  
least  
half-time as  
each eligible  
(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.  
History: 2004 AACS.  
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.  
History: 2004 AACS.  
R 390.905 Responsibilities of participating school.  
Rule 5. A participating school is responsible for all of the following  
activities:  
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(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  
promissory note" forms to the authority by program due date.  
agreement  
and  
(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.  
History: 2004 AACS.  
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  
participating school.  
as  
determined  
by the  
(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.  
History: 2004 AACS.  
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.  
History: 2004 AACS.  
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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%.  
History: 2004 AACS.  
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.  
History: 2004 AACS.  
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