Nurse Faculty Loan Program
The Nurse Faculty Loan Program (NFLP) is a low-interest Federal loan repayment program offered by the U.S. Department of Health & Human Services: Health Resources and Services Administration (HRSA). Schools of Nursing (SON) who receive the NFLP grant can distribute low-interest loans to qualified nursing students who will pursue careers as nurse faculty or preceptor/faculty, and who are enrolled in master or doctoral degrees in nursing with specific Nurse Educator training. After the student graduates and begins working as full-time faculty or preceptor/faculty, a portion of the NFLP loans is forgiven for each year of eligible full-time employment; up to 85% of the NFLP loan may be completely forgiven.
Student Eligibility Guidelines
To be considered for the NFLP a student must:
- Be 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 a NFLP loan.)
- Maintain a minimum cumulative GPA of 3.00 in the graduate nursing program.
- Intend to maintain continuous enrollment for two consecutive terms during the academic year (i.e. fall/spring, spring/summer).
- Enrolled at least half-time (6 credits/semester) in an eligible UNMC PhD or doctoral nursing program.
- Two three-credit graduate-level courses in education must be completed during the plan of study. These courses may include but are not limited to:
- NRSG 892 – Teaching & Learning Strategies in Clinical and Simulation – 3 Credit Hours
- HPTT 801 – Foundations of Health Education Professions – 3 Credit Hours
- HPTT 840 – Foundations of Clinical Teachings – 3 Credit Hours
- Recipients must not have any judgment liens entered against him/her based on the default of a Federal debt, 28 U.S.C. 3201 (e). By applying for this loan, you are giving the University of Nebraska Medical Center permission to check your records on the Federal Student Aid National Student Loan Data System.
- Have a commitment to assuming a faculty position as either (1) a full-time faculty member at an accredited school of nursing; (2) a part-time faculty member at an accredited school of nursing in combination with either another part-time faculty position or part-time clinical preceptor/educator position that is affiliated with an accredited school of nursing that together equate to full-time employment; or (3) within an academic-practice partnerships serve as a full-time APRN preceptor within your clinical role, while holding a joint faculty appointment with an accredited school of nursing.
Applications
Applications are reviewed twice per academic year. Applications received by August 1 are reviewed for funding for the entire academic year; while applications received by January 1 are reviewed for Spring and Summer awards only. Funds are limited and availability of funds varies from year-to-year based upon the amount received from HRSA. Continuing students who previously received NFLP loans have priority. Awards are made until funding allocations are expended. If all funds are awarded to individuals who apply in August, no funds will be available for individuals who apply later in the year.
This is not a need-based loan program.
Loan amounts may not exceed the cost of eligible educational expenses as calculated by the Office of Student Financial Aid and the College of Nursing. Per NFLP guidelines, the NFLP Loan may not exceed $50,000 per year.
Student Application Process
To be considered for NFLP funds, a student must:
- Read this web page in its entirety.
- Complete the NFLP application form.
The cost of eligible educational expenses will be reviewed with the UNMC Office of Financial Aid to determine the maximum NFLP award for each applicant. The College of Nursing’s NFLP committee will review completed applications and available loan funds. Recommendations for NFLP awards will be made by the committee.
The College of Nursing will notify the borrowers and will work with the Office of Financial Aid to complete the required paperwork. All loan documents are completed electronically through Educational Computer Systems, Inc. (ECSI). After the drop/add period, the approved NFLP loan will be posted to the student’s financial aid account.
Financial Counseling
Borrowers complete loan exit counselingon the ESCI website during their final semester at UNMC.
UNMC has contracted with ECSI to administer the NFLP, including billing and collecting NFLP loans. ECSI has many resources that will assist not only in the disbursement and collection of these loans, but in additional features as well. Some of those features include:
- Account inquiry on web
- Direct monthly payments from your checking account
- Additional payment options
- Advanced payments
- Access to downloadable forms such as deferment and forbearance
- Links to federal government regulations web site
- Online address changes
Service Obligation
The service commitment is four years as a full-time faculty member at an accredited school of nursing. The full-time faculty role may involve one of the following options:
- Employment as a full-time faculty member at an accredited school of nursing;
- Employment as a part-time faculty member at an accredited school of nursing combined with another part-time faculty position or part-time clinical preceptor/educator position affiliated with an accredited school of nursing that together equates to full-time employment; or
- Designation of nurse faculty in a joint nurse faculty appointment serving as full-time advanced practice registered nurse (APRN) preceptor for an accredited school of nursing, within an academic-practice partnership framework.
NFLP borrowers have a grace period of 9 months that begins at the completion of a course of study, or termination of student status, to establish and begin employment as a faculty member.
A service requirement/obligation incurred under another federal program for educational support must remain separate and distinct from the service obligation for NFLP loan cancellation. For example, a borrower cannot use their service obligation for NFLP to count toward the service obligation for the Nurse Corps Scholarship program.
Interest Charges
Interest accrues on the NFLP loan at a rate of 3% per annum, beginning 3 months after the borrower graduates from their Graduate Nursing program.
If the NFLP recipient (borrower) fails to complete the graduate nursing education program OR fails to serve as a nurse faculty member for any of the 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. Refer to the HHS, Office of Finance website for more information.
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 3 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, are employed in the full-time faculty role, and decide to return to a graduate nursing education program to further their preparation as nurse faculty may request deferment of payment for up to 3 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 hardships 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 and 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 loan program with cancellation provisions. Up to 85% of the loan may be cancelled if the student fulfills specific requirements.
The borrower may cancel:
- 20% of the principal and interest of the unpaid loan balance upon completion of each of the first, second, and third year of full-time employment as a nurse faculty member.
- 25% of the principal and interest of the unpaid loan balance upon completion of the fourth year of full-time employment as a nursing faculty member.
The borrower is responsible for requesting cancellation. NFLP borrowers are limited to a 12-month timeframe to establish employment as a full-time nurse faculty at a school of nursing following graduation from the program. If employment verification is not submitted within the 12-month period, the borrower will NOT be eligible for the NFLP loan cancellation provision.
Forms will be available from ESCI for employment validation in a faculty role.
Borrowers who fail to become a full-time faculty member at an approved school of nursing by the end of the 12-month employment window will be required to pay back the loan at the prevailing market rate at that time.
The grace period is nine months after graduation or cessation of enrollment. The separate 12-month employment window does not automatically postpone repayment; payments during months 10–12 are handled according to UNMC policy
Default by the Borrower
Default occurs when the recipient does any of the following:
- Fails to complete the advanced nurse education program;
- Fails to meet the university’s satisfactory academic progress guidelines;
- Fails to become or maintain employment as a full-time faculty member at a school of nursing. full-time has the meaning used by the employing school of nursing for its faculty;
- Fails to make payments as required by the NFLP borrower’s Promissory Note and repayment agreements.