State makes changes to nursing scholarship fund to reach more NE students before deadline

Nursing students at Creighton University (Courtesy of Creighton University)

LINCOLN — Guidelines for a scholarship fund for budding Nebraska nurses, which had not been tapped as anticipated, have been changed to reach more students before an impending deadline.

In 2022, the Nebraska Legislature directed $5 million in federal American Rescue Plan Act funds toward scholarships for students on short-term or accelerated nursing tracks. The idea, architects said, was to get needed public health workers into the field faster.

But so far, about $3 million of that has been provided to nearly 800 Nebraska students, according to the state’s Department of Health and Human Services, which administers the “Nursing Incentives Scholarship Program.” 

And there is a deadline tied to the pandemic-related funding. Dollars not obligated (awarded) by the end of this year are to be returned to the federal government. 

Meanwhile, the nursing shortage remains alarming, according to a study by state health care entities — with Nebraska on pace to be short about 5,435 nurses by 2025.

Bigger amounts

This week, the DHHS issued a media release announcing changes in the scholarship program. Those include raising the ceiling on how much an applicant can receive and expanding eligibility to students in longer-paced, traditional bachelor of science in nursing programs.

Before, entry was limited to programs with shorter training periods, such as licensed practical nurses, associate degree nurses or accelerated one-year bachelor of science in nursing programs.

For students enrolled in semester-based programs, the scholarship awards had been up to $2,500. Now that has been doubled, to up to $5,000 a semester, said DHHS spokeswoman Alycia Davis. She said students enrolled in quarterly programs are now eligible for $3,500 a quarter.

Qualified applicants are to receive scholarships on a first-come, first-served basis, DHHS said, until the fund is depleted. Eligibility is not affected by income.

“Nebraska needs more nurses and this opportunity allows us to double the size of scholarships and widen eligibility to help address our nursing shortage,” said Charity Menefee, DHHS director of public health. 

‘They listened’

Deb Carlson, president and CEO of Nebraska Methodist College in Omaha, called the changes “fantastic.”

“They listened,” she said. “We still have a nursing shortage in Nebraska obviously and all across the country. This really helps our students stay in the programs and leave with less debt.”

Carlson was among health care officials who had questioned the scholarship eligibility restrictions, saying last year that the state was well-intentioned but had “missed the mark” in not opening the scholarship to students in more traditional four-year nursing programs.

A concern voiced by her and others at the time was that people might view the low applicant response as a sign that budding nurses don’t need the financial boost, which Carlson said was not the case.

Kim Houtwed of the Nebraska Nurses Association, which helped draft the scholarship legislation in the first place, said the association backed the changes.

“We are definitely supportive of any legislation or any regulation interpretation that puts more of those ARPA funds out to nursing students … so they can get their education.”

Must practice two years in NE

Other eligibility criteria include that the student must have finished all prerequisites and be enrolled in a Nebraska nursing program. 

Upon completion of their program, scholarship recipients must practice nursing in Nebraska for a minimum of two years.

“These scholarships will help reduce barriers to entry in the nursing field and grow Nebraska’s public health workforce,” Menefee said. “Each scholarship recipient will play a vital role in bolstering Nebraska’s public health infrastructure and reinforcing the importance of nurses and their many roles within the public health system.”

The original scholarship bill was introduced by State Sen. Myron Dorn of Adams in 2022 and lawmakers allowed for the changes through legislation passed this year.

Davis said the fall 2024 application already has opened and the deadline to apply is July 31.

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