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NURSE FACULTY LOANS 

 


Below are links to forms relating to the Nurse Faculty Loans.



GENERAL INFORMATION

The Nurse Faculty Loan is a Federal Loan administered by your lending institution. This loan is a legal obligation that must be repaid in accordance with the terms of your promissory note. This loan cannot be consolidated with any Federal loans and may be reported on a monthly basis to at least one national credit bureau.

The interest rate on this loan will accrue at the rate of 3% per annum beginning three (3) months after you cease to be a full-time student in the Nurse Education program. Interest will be payable at the end of your nine (9) month grace period. This 3% interest rate is contingent upon your completion of the Nurse Education program and verification of your employment as a Nurse Faculty member once you graduate.

You must submit a properly completed form certifying your employment within one year of your graduation from the program. If you fail to complete the program or fail to serve as a full-time nurse faculty member upon graduation, interest on this loan will accrue on the outstanding balance at the prevailing market rate as determined by the Treasury Department (rate is published quarterly). Current rate information may be found at www.hhs.gov.

This loan is repayable in equal quarterly or monthly installments over a 10 year repayment period that begins 9 months after you cease full-time enrollment in the program. You have the right to pay more than the amount that is due on your loan. You may also prepay any amounts without any penalty (any portion of the principal and/or accrued interest) on the loan at any time.

If you fail to make an installment payment when due or fail to comply with any other terms of your promissory note, your loan will be considered in default. Your default may be reported to a credit bureau. If you have difficulty making your loan payments contact your school or ACS Education Services immediately.


CANCELLATIONS
Nurse Faculty Loan Cancellation
Permanent/Total Disability Discharge
Death Discharge
DEFERMENTS
Student
Military Service
FORBEARANCE
Discretionary Forbearance

Nurse Faculty Loan Cancellation Benefit

A borrower may be eligible for partial cancelation of their loan by serving as a full-time nurse faculty for a consecutive four-year period at a school of nursing following graduation from the program.
  • Submit a certification of employment to the lending institution within one year of graduation from the program and re-certify annually.
  • Submit a Request for Postponement of Payment to the lending institution annually for each year you expect to claim cancellation.
  • To receive loan cancellation, submit a Request for Partial Cancellation Form and submit to the lending institution at the end of each complete year of full-time employment as faculty at a school of nursing (maximum of 4 years).


  • Up to 85% of your loan may be cancelled for employment as a full-time faculty member in a school of Nursing. You must be employed for a complete year as defined by the employing school of nursing for 12 consecutive months. The loan is cancelled at the following rates:

    • 20% for the first year of employment
    • 20% for the second year of employment
    • 20% for the third year of employment
    • 25% for the fourth year of employment

You may be ineligible or lose cancellation benefits under the following circumstances:

  • If your employment is not consecutive, you are ineligible for further cancellation benefits. Repayment of your loan will begin and interest will accrue at the prevailing rate.
  • If you discontinue employment, you are ineligible for further cancellation benefits. Repayment of the loan will begin and interest will accrue at the prevailing market rate.
  • It is your responsibility to complete and submit your certification forms on an annual basis, in a timely manner.

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Permanent and Total Disability

Should the borrower become unable to engage in any substantially gainful activity because of a medically determined impairment, the unpaid balance of the loan and accrued interest may be canceled. To claim this entitlement, the borrower must submit to the lending institution, a formal request for loan cancellation and a physician's statement that certifies the date of onset, nature and extent of the disability.
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Death

Principal and interest installments may be canceled in the event of death. To claim this cancellation, the executor of the estate must submit a death certificate or evidence of death to the lending institution.
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Student Deferment

A Nurse Faculty Loan Program borrower may be eligible for Student Deferment for a maximum of 3 years if:
  • Graduated, is employed and returned to a graduate nursing education program full-time in order to pursue a doctoral degree to further their preparation as nurse faculty
  • OR
  • Graduated and participates in a post-doctoral program and is attending full-time.
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Military Service

A Nurse Faculty Loan Program borrower may be eligible for Military Service Deferment for a maximum of 3 years if:
  • Full-time active duty in the Army, Navy, Air Force, Marine Corps, Coast Guard, National Oceanic and Atmospheric Administration Corp., or in U.S. Public Health Service.
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Discretionary Forbearance

The lending institution may, based on its discretion, grant a Nurse Faculty Loan Program borrower Forbearance when extraordinary circumstances temporarily affect the borrower’s ability to make scheduled loan payments.
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