Student Financial Services

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/.


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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.

Grace Period

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 Rate

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.

Late Charge

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.

Minimum Payment

The minimum payment of the NSL Loan is $40.00 per month.

Default

    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:

    1. The entire unpaid principal balance, plus accrued interest, and any applicable penalties or late charges may become immediately due and payable;
    2. The loan may be referred to a collection agency or attorney for legal proceedings;
    3. The University may withhold institutional services (transcripts, degrees, etc); or
    4. The University may consult with IRS concerning address updates.

Cancellation

Death Cancellation

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 after receiving the NSL loan, the loan may be cancelled based on medical documentation supplied by the NSL borrower's physician. 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 provided.

Deferment

(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.

Student Deferment

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.

Credit Bureau

Once a loan is disbursed, it is reported to the (3) three major credit bureaus, Equifax, Experian and TransUnion at the end-of-the-month. Thereafter, the loan should be considered a part of a student's debt-to-income ratio.

Consolidation

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.