The partnership aims to address the nursing shortage and create economic opportunity for aspiring nurses.
(Boston, MA and Salt Lake City, UT)—Today, Western Governors University (WGU) and Social Finance announced the Reinvesting in Nursing Education and Workforce (ReNEW) Fund, a national nursing fund designed to address America’s healthcare talent crisis and create economic opportunity for aspiring nurses. The ReNEW Fund aims to help historically underserved students in WGU’s Bachelor of Science in Nursing (BSN) prelicensure program at the Michael O. Leavitt School of Health by offering zero-interest loans. The Fund, which began serving students in July, received an initial $10 million commitment from WGU and will be managed by Social Finance, a national nonprofit.
Health systems across the country, facing increased turnover and elevated staffing costs, need more nurses; yet many aspiring nurses cannot afford to enter the profession. The ReNEW Fund aims to address these challenges by helping to cover the cost of the final two years of WGU’s prelicensure program for individuals with financial barriers, including last-mile training costs, such as the costs of in-person labs and clinical placements.
The Fund will partner with employers—who will make payments into the Fund upon the hire and retention of WGU graduates. Nurses who remain employed with partner employers will have payments made on their behalf. Students who work elsewhere will repay the Fund as a zero-interest loan only if they meet a yearly minimum income threshold of $60,000. All payments will go back into the Fund to support future nursing students.
“High education costs combined with expensive, risky financing options lock many talented aspiring nurses out of the profession. Building on our experience over the past decade, the ReNEW Fund is an entirely new model to rethink how to finance nursing education so that students receive more support and take on less financial risk,” said Tracy Palandjian, CEO & Co-Founder of Social Finance. “In addition, partner employers will benefit from a steady pipeline of RNs, and philanthropic funders will see their dollars reach more people than traditional scholarships and grants.”
In 2009, WGU launched the nation’s first competency-based nursing prelicensure program. Today, WGU is making a national impact in the healthcare field, awarding 5.5% of all bachelor’s and master’s degrees in nursing, based on federal data. WGU’s innovative hybrid program is approximately 60 percent online, with the remaining 40 percent as hands-on clinical and lab time. Students undertake clinical training at WGU’s nursing simulation labs and complete multiple clinical rotations in hospitals and community-based settings for each clinical course.
“Expanding pathways to opportunity requires innovation in higher education, financing, and building sustainable talent pipelines,” said Scott Pulsipher, President of WGU. “The ReNEW Fund leverages WGU’s unique position to provide aspiring nurses with the support they need to succeed. By collaborating with Social Finance, employers, and funders, we aim to significantly address the nursing shortage and improve the health of our communities nationwide.”
Over the last five years, WGU nursing graduates achieved an average first-time pass rate of 89.21% on the NCLEX-RN—the licensing exam required to become a registered nurse (RN)— well above the national five-year average of all BSN programs. Initially, the Fund will serve students across the 24 states where WGU’s prelicensure program is currently accredited.
The ReNEW Fund will join a portfolio of funds designed, structured, and managed by Social Finance, including similar models in New Jersey, Massachusetts, and Colorado, and across the nation with the Google Career Certificates Fund.
Interested partners and employers can learn more about the ReNEW Fund at wgu.edu/renew or at socialfinance.org/renew.
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About Social Finance
Social Finance (SF Advisors, LLC) is a national nonprofit and registered investment advisor. We work with the public, private, and social sectors to create partnerships and investments that measurably improve lives. Our Impact Investment team designs, launches, and manages impact-first investments. Our Advisory team partners with government and philanthropy leaders to implement data-driven programs for social impact. And through the Social Finance Institute, we aim to build the field and change systems through actionable research, communities of practice, and educational outreach. Since our founding in 2011, we have mobilized more than $400 million in new investments designed to help people and communities realize improved outcomes in workforce and economic mobility, health, and housing. Learn more at socialfinance.org.
About Western Governors University (WGU)
A nonprofit, online university established in 1997 by 19 U.S. governors with a mission to expand access to high-quality, affordable higher education, WGU now serves approximately 176,000 students nationwide and has awarded over 380,000 degrees to nearly 340,000 graduates in all 50 states. Driving innovation as the nation’s leading competency-based university, WGU has been recognized by the White House, state leaders, employers, and students as a model that works in postsecondary education. In less than 30 years, the university has become a leading influence in changing the lives of individuals and families, and preparing the workforce needed in today’s rapidly evolving economy. WGU is accredited by the Northwest Commission on Colleges and Universities, has been named one of Fast Company’s Most Innovative Companies, and has been featured on NPR, NBC Nightly News and CNN and in The New York Times. Learn more at wgu.edu and wgu.edu/impact.
