Federal Nursing Loan

A loan option for nursing students

If you’re pursuing an associate, bachelor’s, or graduate degree in the IU School of Nursing, you may be eligible for a long-term, low-interest Federal Nursing Loan (NSL).

NSLs are available to nursing students whose FAFSA show exceptional financial need, who are enrolled at least half time, and who meet satisfactory academic progress standards. You’re automatically considered for this loan if you submit your FAFSA by the priority deadline each year.

If you’ve been approved

The Office of Student Financial Services at IU Fort Wayne determines loan amounts, and IU’s Student Loan Administration handles the promissory note, entrance and exit counseling, and repayment process for NSLs.

After your NSL is approved, the Student Loan Administration will contact you at your university email address and on your To-Do List to notify you to sign your promissory note. Complete the process as soon as you can to avoid a delay in your funding.

Interest accrual and the grace period

NSLs have a fixed interest rate of 5 percent. Interest does not accrue during deferment and grace periods.

After you stop attending school at least half time, your nine-month grace period will begin. If you re-enroll as a nursing student during the grace period and are approved for an in-school deferment, you’ll get another nine-month grace period the next time you stop attending school at least half time. If you re-enroll again, you are not eligible for another grace period.

Loan repayment

You’ll be required to go through exit counseling when you’re scheduled to graduate from IU Fort Wayne or drop below half time. An exit interview is your opportunity to review the amount of your loans and rights and responsibilities in repaying these loans.

Repayment begins when your grace period ends. The maximum repayment period is 10 years, and you’ll be expected to make regular payments. The minimum monthly payment is $40, but may be higher depending on your balance.

You may prepay your loan at any time without penalty. This may reduce your interest costs significantly.

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