Nursing Loan
Nursing Student Loan
The U.S. Department of Education backs a Nursing Student Loan (NSL) for students seeing their nursing degree. The NSL is a low interest, fixed-rate, federal government loan awarded based on the student’s financial need. The program is administered by participating postsecondary institutions throughout the United States and applies to both undergraduate and graduate students.
To apply, students must fill out a Free Application for Federal Student Aid (FAFSA) or a FAFSA renewal application, by the priority deadline (Feb. 15). Students who file their FAFSA as an independent student still are required to include their parent’s financial information on the form to qualify for the NSL. As with all federal student aid, the borrower must be either a U.S. citizen or an eligible non-citizen enrolled at least half time in a degree-seeking program. Borrowers must also maintain satisfactory academic progress and meet all other requirements as indicated by the school.
Once awarded, the Nursing Student Loan is good for up to $2,500 for the first two years and $4,000 the last two years. The lifetime aggregate maximum is $13,000. Funding is limited dependent upon the school. The loan cannot exceed the student’s un-met financial need and can only be used for tuition and other college-related expenses.
Currently the NSL interest rate is five percent, which is considerable low even compared to other federally sponsored loans. Borrowers receive a nine-month grace period (also better than federal loans). Additionally, the borrower is allowed 10 years to complete repayment of the loan.
After a student is awarded the NSL, he or she must complete a promissory note which is essentially a document promising to repay the debt per the nursing school loan terms and conditions. A promissory note must be filled out each time a loan is awarded.