Overview

The federally funded Nursing Faculty Loan Program (NFLP) can make graduate school more affordable for students planning to become full-time teaching nursing faculty. Graduates with NFLP loans who accept and maintain a full-time faculty position at any U.S. accredited school of nursing could have up to 85% of their loan forgiven.

Purpose

The NFLP is designed to increase the number of qualified nursing faculty needed to address the current U.S. nursing workforce shortage. The program provides funding through the U.S. Department of Health and Human Services to schools of nursing, including the Wayne State University College of Nursing, to support the establishment and operation of an NFLP loan fund.

Qualified students may be enrolled full or part time in advanced degree nursing programs. The NFLP offers partial loan forgiveness for borrowers who graduate and serve as full-time nursing faculty at an accredited school of nursing within nine months of graduation.

Loan recipients may cancel up to 20% of the NFLP loan and interest per year for a maximum of 85% of the total NFLP loan in return for serving as full-time teaching nursing faculty in any U.S. accredited school of nursing. For example:

Provisions

Recipients can receive financial awards for the academic year to offset a portion of the cost of tuition, books, fees, room and board, transportation, and other reasonable educational expenses as determined by the WSU College of Nursing.

Awards may be renewable for a maximum of five years and may not exceed $35,500 per student, per year. This program is contingent upon ongoing federal funding and therefore subject to change.

Eligibility

• A U.S. citizen, national or lawful permanent resident. A student who is in the United States on a student or visitor's visa is not eligible for an NFLP loan.
• Committed to assuming a full-time faculty position in any U.S. accredited school of nursing.
• Good academic standing with a 3.0 cumulative GPA for the current degree program. 
• Enrolled at least half-time (4-6 credits/semester) in a qualifying WSU College of Nursing program that offers an education component(s) to prepare qualified nurse faculty. 
• Complete the Graduate Certificate in Nursing Education.

In addition, a student must:

• Have a completed, appropriate year, Free Application for Federal Student Aid (FAFSA) on file with the WSU Office of Financial Aid
• Have no judgment liens entered against him/her based on the default of a Federal debt, 28 U.S.C. 3201 (e)
• Agree that by applying for the loan, the he/she gives WSU permission to check his/her records on Federal Student Aid's National Student Loan Data System and the General Service Administration's Excluded Party List websites 

Student resources to determine loan need

• Student aid eligibility worksheets
• WSU tuition and fee information 
• WSU Net Price Calculator
• WSU Office of Budget, Planning, and Analysis

Application process

A student who wishes to be considered for a NFLP loan must:

1. Complete and submit the university ScholarshipUniverse application.
2. Complete the online College of Nursing NFLP application; the link will open in October and close March 1 each year.
3. Submit a completed FAFSA. (NFLP loans are not need-based; however, a completed FAFSA is part of the federal approval process for this program)

Continuing students and new students must submit these items by by 5 p.m. on March 1.

Borrower rights and responsibilities

A student granted a NFLP loan must:

• Maintain a GPA of 3.0 or higher
• Maintain at least part-time (4-6 credits/semester) student status. 
• Sign a promissory note and a Statement of Rights and Responsibilities.
• Complete his/her specified educational program (MSN with teaching certificate, DNP or PhD) within 5 years of initial funding. 
• Follow the application procedures each year continued funding is desired (as required by HHS). Funding is contingent upon ongoing federal funding.

Loan cancellation

• If the borrower gains full-time employment within 12 months of graduation at any U.S. accredited school of nursing as a teaching faculty member, the borrower can cancel up to a maximum of 85% of the total NFLP loan (see chart at top of page).
• The borrower must serve as full-time nurse faculty for a consecutive four-year period at any U.S. accredited school of nursing following graduation from the program to cancel the maximum amount of the loan.
• The borrower is responsible for requesting cancellation. Verification of employment must be submitted to the WSU College of Nursing Office of Student Affairs within 12 months following graduation or the borrower will not be eligible for the loan cancellation provision.
• Those who fail to become full-time faculty members, at a single institution, within 12 months of graduation, or take a leave from school, must repay the loan with interest. Loan repayment begins after a nine-month grace period following graduation.

Interest charges

• Interest accrues on the NFLP loan at a rate of 3% per annum, beginning three months after the borrower ceases to be enrolled in their graduate nursing program.
• If the Borrower fails to complete the advanced nurse education program or fails to serve as a nurse faculty member for a consecutive four-year period, interest will be charged at the prevailing market rate.
• The prevailing market rate is determined by the U.S. Treasury Department and is published quarterly in the Federal Register. The rates are fixed.

Deferment

Deferment options under the NFLP are limited:

• NFLP borrowers who are 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, Peace Corps, or the U.S. Public Health Service Commissioned Corps ) are eligible for deferment for up to three years. 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 capability.
• NFLP borrowers who graduate and are employed, and decide to return to a graduate nursing education program to pursue a doctoral degree to further their preparation as nurse faculty may request deferment of payment for up to three years.

Forbearance

• A lending school may, based on its discretion, place a borrower's NFLP loan in forbearance when extraordinary circumstances such as poor health or hardship temporarily affect the borrower's ability to make scheduled loan payments. Interest on the loan continues to accrue but is not payable during this period.
• Repayment/cancellation Provisions
  • The NFLP loan is repayable over 10 years. Repayment begins nine months after graduation from the advanced nursing program (or when a borrower ceases to be enrolled in the program, or terminates employment as full-time faculty at a school of nursing).
  • The NFLP is a direct loan program with cancellation provisions. Up to 85% of the loan may be cancelled if the student fulfills specific requirements.
• Borrowers who fail to become a full-time faculty member at an approved school of nursing by the end of the 9 month grace period will be required to pay back the loan at the prevailing market rate at that time.

Borrower default

This occurs when the recipient:

• Fails to meet WSU Satisfactory Academic Progress.
• Fails to complete the advanced nurse education program.
• Fails to attain or maintain employment as a full-time faculty member at any U.S. accredited school of nursing within 12 months of graduation.
• Fails to notify the WSU College of Nursing Office of Student Affairs of gaining employment as a full-time faculty member at any U.S. accredited school of nursing within 12 months of graduation.
• Fails to make payments as required by the NFLP borrower's Promissory Note and repayment agreements.

Review your signed NFLP Promissory Note and Statement of Borrower's Rights and Responsibilities for all details and obligations.