Federal Nursing Loans
The Federal Nursing Loan is a low interest (5%) loan awarded to students with financial need who are enrolled and accepted into the nursing program. Priority is given to students whose FAFSA is completed by April 15th. Borrowers must be enrolled in a minimum of six credits. Repeating courses may affect the student's eligibility for Title IV aid. (Ex: If a student repeats a previously passed course for a second time, those credits cannot be included in the student's enrollment status.) Title IV aid includes all federal programs.
Borrowers are allowed a nine month grace period after graduation, withdrawal from school, or dropping below half time (six credits) before repayment begins. Interest does not accrue during the grace period.
The Student Loan Service Center services the nursing loans offered by MSU. Borrowers may also apply for cancellation of their nursing loans through the U.S. Department of Health and Human Services.
In 2009, the Federal Reserve approved amendments to Regulation Z (Truth in Lending) that revised the disclosure requirements for private education loans which includes the Federal Nursing Loan.
What does this mean to me as a nursing loan borrower?
First time nursing loan borrowers are required to complete a Master Promissory Note (MPN), and Personal Data Sheet (PDS) . All borrowers must complete nursing loan entrance counseling annually. This requirement can be completed at www.mappingyourfuture.org.
In addition, the following new disclosures are required to complete processing of a nursing loan:
1. Federal Nursing Loan Application and Solicitation Disclosure.
- Emailed to students who have been awarded a nursing loan.
- Describes the general terms of the loan as well as the estimated amount you will repay over the life of the loan.
- You should review the information carefully, however, no action is required on your part.
2. Federal Nursing Loan Approval Disclosure.
- Emailed to students who have been awarded a nursing loan.
- Describes the specific terms of the loan.
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Requires that the loan must be accepted within 30 days of receipt of the Loan Approval Disclosure. To accept the loan:
- CampusConnection > Student Center > Accept/Decline Awards > Select Aid Year.
3. Private Education Loan Applicant Self-Certification.
- Emailed to students who have been awarded or accepted a nursing loan.
- Borrower must complete the self-certification form; data needed to complete the form is found on CampusConnection:
- Student Center > View Financial Aid > Select Aid Year > Financial Aid Summary.
- Completed form should be returned to the MSU Financial Aid Office, 500 University Ave West, Minot ND 58707 or faxed to (701) 858-4310.
4. Federal Nursing Loan Final Disclosure
- Mailed to students once all of the above requirements have been met.
- No action is required on the part of the borrower unless cancellation is requested.
- Borrower has three days from the receipt of the final disclosure to request cancellation of the loan.
Once all steps have been completed, loan funds are disbursed to the student's account no sooner than six business days after the Final Disclosure Form is mailed to the student.
All borrowers should review the Nursing Loan Rights and Responsibilities.