Nursing School Loan Explained
The Nursing Student Loan (NSL) program is available those that are a U.S. citizen, U.S. national, or permanent resident who are enrolled at least half time as an undergraduate or a graduate student in a nursing degree program. You can be awarded up to $2,500 per academic year, depending on your financial need. The annual limit increases to $4,000 during your final two years of the nursing degree program. The total NSL maximum is $13,000. The interest rate will be 5 percent and interest does not accrue during periods of deferment. For consideration for a nursing school loan, you must report parental data on the FAFSA, even if have had independent student status.
Each and every time you accept a nursing school loan (NSL), you will be mailed a paper promissory note and a loan disclosure form that you will be required to complete and return before your nursing school loan funds will be disbursed to you.
If you have accepted a nursing school loan award, a promissory note will be required. A promissory note is a legal and binding contract for your promise to repay the nursing school loan according to the terms listed on the note. The promissory note will give details on the nursing school loan amount, interest, and repayment terms.
Promissory notes can usually be accessed online; however, paper promissory notes will also be available by contacting your lender.
For some nursing school loans, you will have to complete a master promissory note, which will be good for one or more nursing school loans for one or more academic years. Other nursing school loans require a new promissory note for each loan. Be sure to check with your University e-mail account and follow the instructions you have received to complete your promissory note(s). Your nursing school loan funds will not be disbursed until your submitted loan documents have been confirmed by the University or College of your choices Office of Student Finance.
With most Nursing Student Loans you will be required to attend an exit interview when you:
• Are ready to graduate.
• Leave the University (even if it is just temporary).
• Drop your registration below half time enrollment.
• Transfer to another school.
• Leave for a National Student Exchange (NSE) experience.
Exit interviews will usually be conducted on campus by Student Financial Office and are required of all borrowers from federal and University nursing student loan programs. At an exit interview, you will receive information regarding the rights and responsibilities of the borrower and a lender and servicer. You will also be told about repayment, deferment, and cancellation of your nursing student loans. For University based loans, your repayment terms will include length, interest rate, outstanding balance, and payment amounts.
Federal regulations and University policy do require student financial offices to maintain documentation that you have attended an exit interview. For University based nursing student loans, you will be required to complete and sign various different forms. If you have not completed the paperwork, a hold will be placed on your record.
If you have borrowed from the William D. Ford Federal Direct Loan Program, you will have to go online to www.dlservicer.ed.gov to complete an exit interview. Your Financial Aid Office staff can provide general information on the Federal Direct subsidized and unsubsidized loans in their exit interviews, however the financial aid office will not handle exit interviews for that particular loan program.
Exit interviews are required if you have borrowed from any of the following student loan programs:
• Federal Perkins Loan
• Health Professions Student Loan
• Nursing Student Loan
• Primary Care Loan
• University Trust Fund Loan
