Nursing School Student Loans
Special Programs Aim for Nursing Students
Nursing students, good news is you don’t have very far to go to find really appealing student loan programs designed with your educational needs and career goals in mind. In fact, armed with the right information you may be able to build a strategy that includes low interest loans and loan repayment or forgiveness programs for nurses. In the end you very well could have a free education. That’s how in demand nurses are right now.
Here are some of the best sources for nursing student loans:
- Federal government
- State governments
- Private student loan lenders
Federal Loans for Nurses
Like any other college student the first resource for low-interest, long-term loans is the federal government. Loans for undergraduates include Stafford Loans, Perkins Loans and the Federal Consolidation Loan, and loans designed for graduate students include the same as those for undergrads with the addition of the PLUS Loan for Graduates and Professionals.
Federal student loans are your very first step in financing your education. Find out from your school what program will originate your federal loans, the Direct Loan Program from the Department of Education or the Federal Family Education Loan Program (FFELP).
Applying for Federal Loans: Filing Your FAFSA
There is only one way to apply for your federal loans: by filling out the Free Application for Federal Student Aid (FAFSA). Complete it online or print off a copy and mail it back to the Department of Education. Most importantly, file it by the deadline or you lose out. Fail to file the FAFSA and you unnecessarily exclude yourself from some of the most affordable and practical student loan sources and may shoot yourself in the foot when it comes time to shop for nursing loan forgiveness or loan repayment programs. It’s this simple: get the FAFSA done.
Discounted Stafford Loans for Nurses
Discounted Stafford Loans for nurses are offered through some student loan lenders, specifically those in partnership with state-based student loan programs. These loans feature the Stafford Loan guarantees, but often are packaged with even more enticing incentives and special favors for nursing students. Your best bet for finding one of these: shop FFELP lenders for “nursing loans.” Be cautious, you’ll find both private and federal loans possibly jumbled together.
Example:
Sallie Mae and the State of Virginia extend a discounted or customized Stafford Loan—the Care for Virginia Student Loan—to nursing students willing to stay in Virginia and work as nurses. You must be attending a nursing school in the state.
Government Loans for Nurses
The Nursing Student Loan program is a federally funded low-interest, long-term loan for nursing students. If you are in a diploma program, Associates, Bachelors or Masters Nursing program, you may be eligible for the NSL. Because this is a campus based program funds are administered directly through your campus financial aid department. How do you access the NSL program?
- Find out if your school participates in the Nursing Student Loan program.
- Make sure you have filed a FAFSA. No FAFSA, no NSL funds, period.
- File an application for the NSL with your school financial aid office.
- Complete the Master Promissory Note provided by your financial aid office.
- Students with financial need are given preference.
Unfortunately Stafford Loans don’t cover the complete cost of a nurse’s education, particularly when you get to grad school. Stafford Loans have annual and lifetime limits, when they are met what do you do? And other government nursing loans are specifically designed for financially needy and disadvantaged nurses, what happens when you don’t fit into these categories?
Private Loans for Nurses
After you subtract the federal student loans and other form of government aid, do you still have a balance due on your college costs? At this point you may consider a private loan. This should not be your first resort, but your last. Why? Federal loans are available to almost every type of college student; this is very affordable student aid. Private loans may seem more convenient and comprehensive, but make no doubt—they are high cost. Private loans are an irresponsible way to fund your entire nursing education.
The right way to use private loans: apply for all the federal financial aid you can. Then and only then find a private loan that works for you and only borrow what you need to pay off your college expenses after federal loans have been applied.
If your credit history is less than stellar have a back up plan that works: plan to apply for your private loan with a co-borrower, someone you know with good credit who’s willing to do this for you. Consider this a valuable opportunity to rebuild your credit: when you begin loan repayment make your full payments on time.
**Ask your student loan provider or personal banking institution if they offer any student loans for the health professions or nursing programs.
Loan Programs for Nursing Faculty
Guess what? If you’re a nurse faculty member or graduate nursing student in a nursing instructorship degree program, here’s a tip: you may be eligible for a number of very appealing nursing loans and loan repayment programs specially designed to offer you incentive.
Nursing instructors are considered some of the most in demand professionals. Without you there are no new nursing recruits, without nursing recruits the nursing shortage grows more critical. Schools want you and everyone from the federal government on down may be ready to offer you free money for your career commitment.
- Nursing faculty students, if you are enrolled in a graduate program leading to a nurse teaching degree, possess outstanding student loans from your nursing education, and can prove financial need or other disadvantage, make sure you apply for the Disadvantaged Faculty Loan Repayment Program sponsored by the U.S. Bureau of Health Professions. You may earn up to $20,000 per year for two years of service under this program.
Nursing Loan Forgiveness and Loan Repayment Programs:
- The most widely recognized nursing loan repayment program is that sponsored by the U.S. Department of Health and Human Services, the federally sponsored Nursing Education Loan Repayment Program. Read the eligibility rules carefully. If you are employed in a high need medical facility and have outstanding nursing school student loans you may qualify for up to 60% repayment with this program. Awards may be based on financial need.
- Indian Health Service Loan Repayment Program looks to recruit nursing graduates. Commit two years of nursing practice to service in an approve IHS facility and you qualify for part or whole repayment of your outstanding nursing school student loans.
- Minnesota Office of Rural Health and Primary Care loan forgiveness plans include: student nurse anesthetists, nurse practitioners and clinical nurse specialists that commit to nursing in a rural facility may earn $6,750 per year (max. 4 years) for loan forgiveness. Student RNs and LPNs that commit to nursing home work may earn $3,750 annually toward loan forgiveness.
