I was offered a program like this. I was a Patient Care Associate who was accepted into a program that offered full time release from work with full time pay, benefits and tuition paid. I never showed my face at work until the program was completed. We were supposed to return to work during school breaks such as Christmas, Spring Break or summertime (however the LPN program was over the entire summer with a two week break before Fall Semester). I used to put for time off during those times, either with or without pay or sometimes a combination of both. The times off from school usually fell during times where income tax returns were due, so, I would live off of that, getting paid three times a month (we got paid biweekly) or when we got an additional $500 for uniform allowance.
Of course, it was a wonderful thing in one sense, because the only thing I paid for were additional books to study from (they offered reimbursment for textbooks) and supplies; they even paid for the review course and state boards for us. The bad thing is that we are sort of indentured servants to the hospital for the rest of the contract (mine ends in 2009), and for me, while I enjoy being an LPN, I began to see how the hospital really operates for nursing and I don't care for that aspect. I have no personal problems to date with administrators, charge nurses or such, but I don't like all that I see, either. We were all guarenteed a position when we obtained our licenses, and you get to walk away with the experience-something no one can ever take from you.
In most cases, a person has to be an employee at the hospital for at least a year, have an excellent employee evaluation and a good attendance record. I was employed there for 8 years at that time, was on several committees and was a great candidate for it. Good luck!