Nurse Faculty Loan Program

The NFLP is available to current graduate students pursuing a Master of Science in Nursing Education or Doctor of Nursing Practice degree.

• Enrollment in the advanced nursing education degree program or doctoral degree program
• In good academic standing at the time of application
• Commitment to become full-time nurse faculty for a period of four consecutive years at an accredited college of nursing upon graduation
• A United States citizen, a non-citizen national, or a lawful permanent resident of the US, the District of Columbia, Guam, the Commonwealth of Puerto Rico, the Northern Mariana Islands, American Samoa, the US Virgin Islands, the Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau (A student in the US on a student or visitor's visa is not eligible for the NFLP loan)
• Have no judgment liens entered against his/her property for default on a federal debt, 28 U.S.C. 3201(e)

• Must be enrolled full- or part-time in the advanced nursing education degree program or doctoral degree program
• Must complete all required coursework and clinicals prior to graduation
• Must maintain enrollment for a minimum of 2 consecutive semesters/terms during an academic year while receiving NFLP support, unless the borrower is:
  • Scheduled to graduate in December
  • Ordered to active duty as a member of the armed forces of the United States
  • Or on an approved, temporary leave of absence in accordance with the Texas A&M University’s student enrollment and leave policy

• Be accepted to and enrolled in the advanced nursing education degree program or doctoral degree program
• Submit the Free Application for Federal Student Aid (FAFSA) each academic year. The FAFSA is used to confirm citizenship status and non-default on federal student loans. The NFLP is not a need-based program, and FAFSA financial data are not used to determine NFLP eligibility
• Eligible students will be awarded the NFLP loan upon receipt of the FAFSA and confirmation of admission/enrollment to/in the program
• After receiving the financial aid award notification each academic year, complete the NFLP Loan Application, accept the loan award, and complete other required online processes
• Sign and submit a Letter of Commitment each academic year

• Allowable Costs – NFLP funds are awarded to cover the cost of tuition, fees, and books
  • Receipt of other awards designated for these expenses will result in a corresponding decrease in the NFLP award
  • A book allowance is based on a per credit hour average of the book costs for the program, so actual book costs may vary from the award allowance provided
  • Upon request, the NFLP award may be increased to cover the reasonable cost of a computer
• Limitations
  • NFLP loan awards will be made annually (subject to the availability of funds, submission/completion and approval of all required forms, and the recipient maintaining good academic standing) for the period required to complete the course of study, not to exceed 5 years of NFLP support.
  • If funding is limited, past NFLP recipients will have priority over new applicants
  • Funding is limited to one advanced degree

• An NFLP borrower must, within 12 months of graduation, obtain full-time employment as a nurse faculty at an accredited college of nursing
• After each year of full-time employment, a portion of the NFLP loan will be forgiven (cancelled)
• Maximum forgiveness (cancellation) is 20% of the first three years and 25% of the fourth year of the remaining balance borrowed (and interest thereon) as determined on the first date of employment
• A service requirement/obligation incurred under another federal program for educational support must remain separate and distinct from the service requirement/obligation for the NFLP program

• Obtain full-time employment as a nurse faculty at an accredited college of nursing and submit the NFLP Employment Certification Form within 12 months of graduation
  • Full-time employment is defined as:
    • A full-time faculty appointment at an accredited college of nursing or
    • A part-time faculty appointment at an accredited college of nursing in combination with another part-time faculty position or part-time clinical preceptor/educator position working with nursing students and affiliated with an accredited college of nursing that together equates to full-time employment. (Adjunct faculty positions are acceptable.)
  • Nurse faculty is defined as an academic educator (faculty) or a clinical educator/instructor role at an accredited college of nursing, or a clinical educator/preceptor role working with nursing students at an accredited health facility.
  • Actual employment may begin after the 12-month period, but the borrower must have obtained and submitted an acceptance or appointment letter within 12 months of graduation.
  • If employment verification is not received within 12 months following graduation, the borrower will not be eligible for the NFLP loan cancellation provision and interest will be converted to the prevailing market rate.
• Submit the NFLP Request for Postponement of Installment Payment form annually for each period of cancellation.
  • This form is intended to notify the college that repayment is not expected from a borrower who is employed full-time as a faculty at an accredited college of nursing and will be requesting partial forgiveness (cancellation) of the loan at the end of each complete year of employment
  • For the first year, the form should be submitted with the NFLP Employment Certification Form within 12 months of graduation
  • For subsequent years, the form should be submitted with the NFLP Request for Partial Cancellation 30 days prior to expiration.
• Submit the NFLP Request for Partial Cancellation form at the end of each complete year of employment (30 days prior to expiration). For each complete year of eligible full-time employment, a portion of the NFLP loan will be forgiven (cancelled) as follows:
  • 20% of the principal and the interest on the amount of the loan (as determined on the first date of employment) upon completion of each of the first, second, and third year of eligible full-time employment; and
  • 25% of the principal and the interest on the amount of the loan (as determined on the first date of employment) upon completion of the fourth year of eligible full-time employment
  • To qualify for the maximum cancellation, the borrower must maintain eligible full-time employment for a consecutive 4-year period.
  • The Promissory Note, which specifies the terms and conditions of the NFLP loan, binds the student to his/her repayment obligation and states the provisions for loan cancellation.

• Interest begins to accrue 3 months after the borrower graduates or ceases to be enrolled in an eligible program of study.
• For borrowers who graduate from the eligible nursing degree program, the interest rate is 3% per year.
  • Loans for borrowers employed as full-time nurse faculty at an accredited college of nursing for a consecutive 4-year period will bear interest at the rate of 3% for the 4-year period and the remaining 6 years of the repayment period.
• Prevailing Market Rate
  • Interest will accrue at the prevailing market rate when a borrower:
    • Fails to complete the course of study
    • Fails to establish eligible full-time employment following graduation from the program, or
    • Ceases full-time employment as nurse faculty at a college of nursing prior to completing the entire 4-year service agreement
  • The prevailing market rate is determined by the U.S. Treasury Department and is published quarterly in the Federal Register. The rate is fixed, and will be the prevailing market rate in effect when the rate is converted. Refer to the U.S. Department of Health & Human Services (HHS) Office of Finance web site for current or historical rates

• Grace Period: The grace period for an NFLP loan is 9 months and begins immediately after the borrower graduates or otherwise ceases to pursue a course of study at the college of nursing. Neither interest nor principal is payable during the grace period, although interest begins to accrue after 3 months.
• Repayment Period: The 10-year repayment period begins after the 9-month grace period. Payments are not due from a borrower during periods of Postponement while employed full-time to qualify for the cancellation. However, these years are included in the 10-year repayment period
• Repayment Schedule: The NFLP loan is repayable in equal or graduated periodic installments, which must be made no less often than quarterly, in accordance with the terms of the schedule provided by NMC and agreed to by the borrower
  • If the borrower’s NFLP loan has been cancelled for the maximum portion of the principal amount of the loan and interest, the remaining amount of the unpaid loan balance is repayable in equal or graduated periodic installments over the remaining 6 years of the repayment period.
  • If the borrower receives partial cancelation for 1, 2 or 3 years of employment (i.e. a total cancellation of 20%, 40% or 60%), the remaining unpaid balance of the loan is repayable in equal or graduated periodic installments over the remaining repayment period (9, 8 or 7 years, respectively).
• Prepayment: The borrower may, at his or her option and without penalty, prepay all or any part of the principal and accrued interest at any time. If an accelerated payment is made, that prepayment must first be applied to any accrued interest and then to the principal balance
• Multiple Loans: When a borrower has more than one NFLP loan outstanding at NMC, the sum of the amounts loaned may be combined for repayment purposes (i.e. multiple loans disbursed to a recipient during the academic year or years of support). NFLP loan disbursements from more than one NFLP college cannot be combined for repayment purposes
• Consolidation: At any time after the end of the grace period, NFLP Loans are eligible to be consolidated. However, after consolidation the loan is not eligible for cancellation.

• NFLP borrowers are eligible for deferment for up to 3 years:
  • When ordered to active duty as a member of a uniformed service of the United States (Army, Navy, Marine Corps, Air Force, Coast Guard, the National Oceanic and Atmospheric Administration Corps, or the U.S. Public Health Service Commissioned Corps)
    • A borrower who voluntarily joins a uniformed service is NOT eligible for deferment, nor is a borrower who is employed by one of the uniformed services in a civilian capacity
  • When the borrower graduated and is employed as nurse faculty, and returns to a graduate nursing education program to further their preparation as nurse faculty, or
  • When the borrower graduated and is pursuing advanced professional training in Nursing (e.g. postdoctoral program/ fellowship).
• Deferments are not automatic. A borrower must submit a Certification for Deferment Status for each period of deferment, at least 30 days before the beginning of:
  • The activity that makes the borrower eligible for deferment, or
  • The repayment period (i.e., the due date of the first payment) if the borrower is beginning the activity during the grace period
• During periods of deferment, interest continues to accrue at the prevailing market rate but is not required to be paid during this period.
• Deferment periods are not excluded from the 10-year repayment period.

• Death: The college will cancel any remaining payments on the NFLP loan upon receipt of a death certificate or other official proof of the borrower’s death.
• Permanent and Total Disability: A borrower may be entitled to cancellation of any remaining payment of the NFLP loan in the event of permanent and total disability. Permanent and total disability is defined as unable to engage in gainful employment of any kind because of a medically determined impairment that is expected to continue for a long and indefinite period of time or to result in death.
  • To claim cancellation for disability, a borrower must submit a formal request to NMC, and provide specific documentation pertaining to the borrower’s loans, disability, treatment, employment history and financial support. Upon review of the documentation, the Secretary of HHS or a designee will make this determination and will cancel the NFLP loan upon approval.

• Any of the following conditions will cause the NFLP loan to be considered in default:
  • Failure to graduate from the program of study
  • Failure to obtain eligible full-time employment and provide certification within 12 months of graduation
  • Failure to complete 4 consecutive years of eligible full-time employment
  • Failure to make payments as required by the promissory note and repayment agreement
• When a loan is in default:
  • It is no longer eligible for cancellation
  • Interest rate will be increased to the prevailing market rate