Nursing Faculty Loan Services

Postponement and Cancellation

When employed full-time as a faculty member at a school of nursing, the borrower may request partial cancellation of the loan at the end of each complete year of employment.

The application form to postponement repayment must be submitted 30 days before repayment begins or as soon as possible thereafter. The approved application will put the monthly payments on hold although principal and interest will continue to accrue each month. At the end of a complete year of employment, a request for partial cancellation must be submitted.

For each complete year of employment as a nurse faculty, a percentage of the loan principal and the accrued interest will be canceled at the following rates:

• 1st year, 2nd year, and 3rd year – 20% for each year on the principal balance unpaid on the first day of unemployment.
• 4th year – 25% of the principal balance unpaid on the first day of employment.

Paid leave of absence (vacation, sick leave, paid maternity leave) is not considered a break in employment and does not affect the postponement period. Unpaid leave of absence during a year of postponement will void the postponement and make the borrower ineligible for partial cancellation for that year.

Changing jobs during a postponement period may not disrupt the postponement period but will require a new application from the new job to cover the remaining time. If the time off between jobs is not more than 15 working days or 21 calendar days from the date of resignation, the postponement period is not disrupted.

Periods of postponement are not followed by a grace period. Repayment will begin immediately following a period of postponement. If a borrower fails to apply for partial cancellation by the end of a year of postponement, all accrued principal and interest payments become due and payable.

The remainder of the loan will be paid by the borrower as outlined by the promissory note. See payment options for additional information.