A borrower who is employed full-time as nursing faculty at an accredited school of nursing may request a postponement of installment payments by completing a Postponement of Payment Form.
The form must be submitted 30 days before repayment begins or as soon as possible thereafter and must be submitted annually. No payments will be billed, but interest will continue to accrue monthly at a rate of 3% per annum. At the end of a complete year of employment, a request for partial cancellation must be submitted. When a cancellation is processed, the interest bills will be reversed.
Changing jobs during a postponement period will not disrupt the postponement if the time off between jobs is not more than 15 working days or 21 calendar days. A new postponement form must be submitted for the new job to cover the remaining time necessary to qualify for cancellation.
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 interest rate will change from 3% APR to the current market rate.
The remainder of the loan will be paid by the borrower as outlined by the promissory note. See payment options for additional information.
Borrowers may request a partial loan cancellation each year while employed as full-time nurse faculty at an accredited school of nursing over a consecutive 4-year period. To receive loan cancellation, the borrower must submit the Request for Partial Cancellation of Loan Form to the university at the end of each complete year of full-time employment as faculty at a school of nursing.
For each complete year of employment as a nurse faculty, a percentage of the loan principal and the accrued interest will be cancelled 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
If the borrower takes a break from full-time employment as nurse faculty during the year, the borrower is not eligible for loan cancellation and must begin repayment of the NFLP loan, unless the borrower is approved and eligible for NFLP loan deferment or forbearance.