Nursing Student Loans
The Nursing Student Loan (NSL) Program is designed
to provide low-interest rate loans to nursing students
attending accredited nursing schools offering a diploma,
associate degree, baccalaureate or doctorate degree.
The Department of Health & Human Services (HHS)
governs the loan. For regulatory information, visit
the HHS website at http://bhpr.hrsa.gov/dsa/sfag/.
What's on this page?
Repayment of the Loan
The total loan amount, plus the interest accrued on
the amount, is repayable in monthly installments known
as the repayment period. The maximum repayment period
for the NSL Loan is (10) ten years. Once the loan is
received whether billed or not the loan must be repaid.
However any NSL borrower may prepay all or any part
of the principal and accrued interest on the loan at
any time before it becomes due.
The grace period is the period of time between when
the NSL borrower leaves school or drops below halftime
student status and the time they begin repayment. During
this period, NSL borrowers are not required to make
payments and interest does not accrue. The grace period
for the NSL loan is (9) nine months.
Interest is the cost paid to borrow the money. It
can be fixed or variable, simple or compound. The annual
interest rate of the NSL Loan is (5%) five percent.
It is a fixed, simple interest rate. Interest begins
after the grace period. No interest accrues while the
NSL borrower is in school.
Under the terms of the promissory note, a school may
assess a penalty or late charge should any NSL borrower
fail to make payment on time, or fail to file the necessary
deferment or cancellation form prior to the scheduled
due date. The NSL Loan charges (6%) six percent of
the past due payment amount for the late charge.
The minimum payment of the NSL Loan is $40.00 per
Per federal regulations, Default is when any NSL
borrower fails to make a scheduled payment or to
file a cancellation
or deferment form on time. Defaulters may be subject
to the following:
- The entire unpaid principal balance, plus accrued
interest, and any applicable penalties or
late charges may become immediately due and payable;
- The loan may be referred to a collection agency
or attorney for legal proceedings;
- The University may withhold institutional services
(transcripts, degrees, etc); or
- The University may consult with IRS concerning
In case of death, the NSL loan may be canceled on
the basis of a death certificate or other evidence
that is conclusive under state law.
Permanent and Total Disability Cancellation
Per federal regulations, permanent and total disability
is being unable to engage in gainful employment of
any kind because of a medically determinable impairment
which is expected to continue for a long and indefinite
period of time or to result in death. If the NSL
borrower becomes permanently and totally disabled
the NSL loan, the loan may be cancelled based on
medical documentation supplied by the NSL borrower's
The final review and determination will be made by
the Secretary of HHS based upon the recommendation
of the school and the medical support documentation
(For NSL Loans made on or after November 13, 1998)
Repayment of both principal and interest on the NSL
borrower's loan may be postponed by submitting a properly
completed deferment form by the specified due date.
Deferments are not automatic. The deferment form must
be submitted on an annual or semester basis depending
on the program. The University has a right to deny
a request for deferment if it does not comply with
the information requirements or if the deferment is
submitted late. A NSL borrower must notify the University
or our billing agent, ACS, when they have completed
or terminated from a deferrable activity.
If any NSL borrower ceases to be a full-time student
pursuing an eligible course of study, but re-enters
the same or another nursing school within the grace
period is eligible for a student deferment only if
the school offers the NSL program. When a NSL borrower
receives this type of deferment they will be eligible
for another grace period.
Advanced Professional Training Deferment
Any NSL borrower who serves on active duty as a member
of the uniform service or as a Peace Corps volunteer
is eligible for military deferment. The maximum deferment
period is (3) three years.
Once a loan is disbursed, it is reported to the
(3) three major credit bureaus, Equifax, Experian
at the end-of-the-month. Thereafter, the loan should
be considered a part of a student's debt-to-income
Consolidation is a program that allows a financial
agency to purchase different types and amounts
of federal loans in order to simplify repayment. The
Nursing Student Loan is eligible for consolidation
under the federal consolidation guidelines.