If you are employed full-time as a faculty nurse at a nursing school, you may be eligible for partial cancellation of your Nurse Faculty loan. Submit this application to us at the end of each complete year of full-time employment. If you take a break from full-time employment as nurse faculty, the borrower is not eligible for loan cancellation and must begin repayment of the NFLP loan immediately.
If you are employed full-time as a faculty nurse at a nursing school and will request partial cancellation of the loan at the end of each complete year of employment, you may also request a postponement of installment payments on the loan. Submit the Request for Postponement of Installment Payment Form at the beginning of each year of employment to the University.
Section 846A of the Public Health Service Act authorizes cancellation of up to 85% of Nurse Faculty Loan Program (NFLP) loans for borrowers who are employed full-time as nurse faculty for four consecutive years.
- The borrower may cancel 20% of the principal and the interest on the amount of the unpaid loan balance upon completion of each of the first, second and third year of full-time employment as nurse faculty.
- 25% of the principal and the interest on the amount of the unpaid loan balance upon completion of the fourth year of full-time employment as nurse faculty.
- The 15% principal balance along with interest accrued at a rate of 3% annually must be repaid within 6 years.
- NFLP borrowers are limited to a 12-month timeframe to establish employment as 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 cancellation.