The Catholic University of America

Nurse Faculty Loan Program

Program Overview
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 offer MSN and doctoral degrees with specific Nurse Educator tracks can apply for the grant. Awards are distributed to qualified students in the form of low-interest loans. After the student graduates and begins working as full-time faculty, up to 85% of the "NFLP" loan may be completely forgiven.
The Catholic University Nurse Faculty Loan Program is approximately 91% federally funded by the Department of Health and Human Services, Health Resources and Services Administration and approximately 9% funded by Catholic University.
Student Eligibility Guidelines
In order to borrow funds through the Nurse Faculty Loan Program (FNLP) 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 all attempted courses.
  • Intend to maintain continuous enrollment for two consecutive terms during the academic year. (i.e. fall/spring, spring/summer)
  • Enrolled at least half-time (at least 4 credits) in an eligible master’s or doctoral program that offers an education component(s) to prepare qualified nurse faculty. (the School of Nursing is responsible to determine if you are enrolled in an eligible program of study)
  • Have a completed appropriate year Free Application for Federal Student Aid (FAFSA) on file with the Office of Student Financial Assistance.
  • 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 Catholic University of America permission to check your records on Federal Student Aid's National Student Loan Data System and the General Service Administration's Excluded Party List web sites.
  • Have a commitment to assuming a full-time faculty position in a nursing program.
Academic Eligibility Guidelines
To determine if you are meet the academic career/program/plan and coursework requirements necessary to be eligible to participate in and receiving funding from the Nurse Faculty Loan Program, please review the academic program requirements available on the School of Nursing (SON) website. The SON will have to complete Section II of the Nurse Faculty Loan Application to certify their determination that you meet the nursing department criteria for “good standing” and that you meet the academic career/program/plan and course requirements set forth by the U.S. Department of Health and Human Services, Health Resource and Services Administration to participate in and receive funding from the Federal Nurse Faculty Loan Program (NFLP).
Application Process
The School of Nursing ("SON") in collaboration with the Office of Student Financial Assistance jointly administers the NFLP at Catholic University.   The application is available on the forms page of the Office of Financial Assistance website.
NLFP loans are made on a first-come-first-served basis for an academic year until funds are expended. Previous recipients that meet the annual August 1 application deadline will receive first consideration. Funds are limited and availability of funds varies from year-to-year. 
This is not a need-based loan program.
Recipients are limited to five (5) years of support under the Program.
The NFLP Loan may not exceed $35,500 per year. Due to the limited funding, students may borrow this loan to cover the cost of tuition only.  
Impact of the Higher Education Opportunity Act (HEOA) of 2008
The Higher Education Opportunity Act of 2008 mandated a number of changes to provide a significant amount of additional information to students who choose to utilize non-Title IV educational loans (such as the Nurse Faculty Loan Program). The regulations which went into effect on February 14, 2010 change the disclosure requirements for the Truth in Lending Act ("TILA") for education loans made expressly for post-secondary education expenses.
To comply with these new requirements the new application process for the Nurse Faculty Loan Program now consists of three phases, each comprising several steps.
STUDENT APPLICATION PROCESS (PART 1 of 2)
 
1.    Complete a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.
2.    Complete the Nurse Faculty Loan Application.
3.    Have the School of Nursing complete Section II of the NFLP Application to certify that you meet the NFLP academic career/program requirements.
4.    Complete the Federal Private Education Loan Application Self Certification included in the NFLP Application.
5.    Review the Private Education Loan Application and Solicitation Disclosure detailing the sample loan terms for the Nurse Faculty Loan Program that is included in the NFLP Application. (Keep for your records)
6.    Return the NFLP Loan Application and the Federal Private Education Loan Application Self Certification (at the same time) to the Office of Student Financial Assistance.
 
Note: The NFLP Application will not be considered complete until all steps above are completed and the NFLP Loan Application and Federal Private Education Loan Application Self Certification are received in the Office of Financial Aid.
 
OFFICE OF STUDENT FINANCIAL ASSISTANCE APPLICATION PROCESS
 
1.    The Office of Student Financial Assistance will review the completed applications in the order in which they are received to determine program and loan amount eligibility.
a.    Previous year NFLP recipients who meet the application deadline of August 1st will be granted preference.
b.    If funding is remaining, the remaining NFLP applications from new applicants and prior recipients that missed the deadline will be processed in date received order until funding is exhausted.
2.    Once the loan is approved, the Office of Student Financial Assistance will post the approved NFL as an offer on Cardinal Station and an email notification will be sent that your loan was approved and is pending your acceptance on Cardinal Station. 
 
 STUDENT APPLICATION PROCESS (PART 2 of 2)
 
1.     After receiving your approval email, you have thirty days to accept your loan on Cardinal Station. If you fail to accept the loan on Cardinal station within the thirty day period, your loan will be canceled and may not be reinstated. After thirty days all accepted loans will be originated with our institutional loan servicer University Accounting Systems (UAS). UAS will contact approved loan recipients by email with instructions on how to complete the Nurse Faculty Loan Program Promissory Note and Rights and Responsibilities Worksheet.
2.    Complete the Nursing Faculty Loan Program Statement of Rights and Responsibilities.
3.    Complete the Nurse Faculty Loan Program (NFLP) Promissory Note.
 
Note: Loan funds will be disbursed within 10 business days from the date that UAS notifies the Office of Student Financial Assistance of the completion of all required documents.
 
Graduation and Beyond
Borrowers should complete an "Exit Loan Counseling" session on the UAS website during their final semester at Catholic University.
The Student Loan Officer (within the Office of Enrollment Services) will administer all repayment activities for the Nurse Faculty Loan Program. We have contracted with University Accounting Systems (UAS) to bill and collect our Perkins Student Loans and NFLP Loans. UAS has many resources that will assist not only us in the disbursement and collection of our loans, but will assist our borrowers with many features that alone we could not provide.  Some of those features include:
  • Electronic Promissory Notes (see sample)
  • Electronic Entrance and Exit Interviews
  • 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
  • On-line address changes
  • UAS will also handle the 2nd and 3rd mandatory disclosures outlining the financial terms of the loan that were mandated by the Higher Education Opportunity Act
Requesting a Refund
Loan proceeds will first be applied to tuition and fee charges at Catholic University. If a credit balance exists after all CUA charges have been paid, a borrower will be issued a refund either by paper check or by direct deposit (if the student has elected this option).   The Office of Enrollment Services with notify you when a paper check is available for pickup or when a deposit has been made to your account.
Interest Charges
Interest accrues on the NFLP loan at a rate of 3% per annum, beginning 3 months after the borrower ceases to be an 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 4 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 Web site at http://www.hhs.gov/asrt/of/finpollibrary/financialpolicies.html#DebtCollectionInterestRates for more information.
Although we have yet to find the "perfect calculator" that borrowers could use to examine the differences that interest rates make in the overall cost of the loan, the one at http://www.finaid.org/calculators/loancomp.phtml works reasonably well.
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 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 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 /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.
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 nurse 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.
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.
Default by the Borrower:
This occurs when the recipient:
  • 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.