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 receive the NFLP grant can distribute low-interest loans to qualified nursing students who will pursue careers as nurse faculty or preceptor/faculty, and who are enrolled in master or doctoral degrees in nursing with specific Nurse Educator training. After the student graduates and begins working as full-time faculty or preceptor/faculty, a portion of the NFLP loans is forgiven for each year of eligible full-time employment; up to 85% of the NFLP loan may be completely forgiven.
- Student Eligibility Guidelines
- Academic Eligibility Guidelines
- Applications
- Student Application Process
- College and UAMS Office of Student Financial Aid Process
- Graduation and Beyond
- Interest Charges
- Deferment
- Forbearance
- Repayment and Cancellation Provisions
- Default by the Borrower
Student Eligibility Guidelines
In order to borrow funds through the Nurse Faculty Loan Program 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 the graduate nursing program.
- Intend to maintain continuous enrollment for two consecutive terms during the academic year (i.e. fall/spring, spring/summer).
- Enrolled at least half-time (5 credits/semester) in a UAMS eligible master’s or doctoral nursing program with an education component(s) to prepare qualified nurse faculty.
- 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 the University of Arkansas for Medical Sciences permission to check your records on the Federal Student Aid National Student Loan Data System (https://nslds.ed.gov/npas/index.htm).
- Have a commitment to assuming a faculty position as either (1) a full-time faculty member at an accredited school of nursing; (2) a part-time faculty member at an accredited school of nursing in combination with either another part-time faculty position or part-time clinical preceptor/educator position that is affiliated with an accredited school of nursing that together equate to full-time employment; or (3) within an academic-practice partnerships serve as a full-time APRN preceptor within your clinical role, while holding a joint faculty appointment with an accredited school of nursing.
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 contact the NFLP Program Administrator, Dean Patricia Cowan in the College of Nursing. Dean Cowan will complete Section II of the Nurse Faculty Loan Application to certify the College’s determination that you meet the College’s 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.
Applications
The College of Nursing, in collaboration with the UAMS Office of Student Financial Aid, administers the NFLP at UAMS. The two-part application is available at the bottom of this webpage.
Applications are reviewed twice per academic year. Applications received by August 1 are reviewed for funding for the entire academic year; while applications received by January 1 are reviewed for Spring and Summer awards only. Funds are limited and availability of funds varies from year-to-year based upon the amount received from HRSA. Thus, some applicants may not receive funding. Continuing students who previously received NFLP loans have priority. Among first-time applicants, priority is given to students enrolled in doctoral programs. Awards are made until funding allocations are expended. If all funds are awarded to individuals who apply in August, no funds will be available for individuals who apply later in the year.
This is not a need-based loan program.
Recipients are limited to five (5) years of support under the Program. Loan amounts may not exceed the cost of eligible educational expenses as calculated by the UAMS Office of Student Financial Aid and the College of Nursing. Per NFLP guidelines, the NFLP Loan may not exceed $40,000 per year.
Student Application Process
In order to borrow funds through the Nurse Faculty Loan Program a student must:
- Complete the Nurse Faculty Loan Program application (part 1) and respond to the two questions (part 2) related to how you would fulfill the faculty work obligation post-graduation and when you would enroll in the nurse educator courses.
- Obtain a copy of your plan of study.
- Submit your original, signed application and plan of study to the Dean of the College of Nursing (via USPS to: 4301 West Markham Street, Slot 529, Little Rock, AR 72205; or hand-deliver to the Little Rock campus: College of Nursing Dean’s Suite, Rahn building 5th Floor, Room 5202).
- The Dean will complete Section II of the NFLP Application to certify that you meet the NFLP academic career/program requirements.
College of Nursing and UAMS Office of Student Financial Aid process
The cost of eligible educational expenses will be reviewed with the UAMS Office of Student Financial Aid to determine the maximal NFLP award for each applicant. The College of Nursing’s Nurse Faculty Loan Program committee will review the completed applications and available loan funds. Recommendations for NFLP awards will be made by the committee.
The UAMS College of Nursing will notify recommended recipients and provide NFLP recipients with Award Agreement letters, the Nurse Faculty Loan Program Promissory Note, and the Statement of Borrowers’ Rights and Responsibilities for review and signature. In addition, the Truth in Lending document will be provided. Prior to the NLFP recipient accepting the award, Dean Cowan will meet with the recipient to answer any questions.
The student (NFLP award recipient) submits originals of all hand-signed documents (application, Award Agreement, Promissory Note, and Statement of Borrower’s Rights and Responsibilities) to the Dean of the College of Nursing. Upon recipient of these documents, the College of Nursing submits the signed, original documents to the UAMS Office of Student Financial Aid. The College of Nursing also submits the NFLP account number to the UAMS Office of Student Financial Aid.
NFLP award recipients and the NFLP administrator (Dean of the College of Nursing) retain a copy of the signed documents.
After the 11th day headcount, the approved NFLP loan will be posted to the student’s financial aid account. Typically, this is within five business days of the UAMS Office of Student Financial Aid receiving the signed documents.
The NFLP administrator provides NFLP recipients with information on required educational courses and activities and tracks NFLP recipients’ compliance with completion of those activities.
Graduation and Beyond
During the last semester, participate in an exit Interview with College of Nursing NFLP Administrator (Dean), Complete the Student Post-Completion Point of Contact Form, and undergo “Exit Loan Counseling” session with Educational Computer Systems, Inc. (ESCI).
Financial Counseling
Borrowers complete the “Exit Loan Counseling” session on the Educational Computer Systems, Inc (ECSI) website during their final semester at UAMS.
UAMS has contracted with ECSI to administer repayment activities for the Nurse Faculty Loan Program, including billing and collecting NFLP loans. ECSI has many resources that will assist not only us in the disbursement and collection of these loans, but will assist our borrowers with many features that alone we could not provide. Some of those features include:
- 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
ECSI 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.
Service Obligation
The service commitment is four years as a full-time faculty member at an accredited school of nursing. As previously noted, the full-time faculty role may involve one of the following options:
- Employment as a full-time faculty member at an accredited school of nursing;
- Employment as a part-time faculty member at an accredited school of nursing combined with another part-time faculty position or part-time clinical preceptor/educator position affiliated with an accredited school of nursing that together equates to full-time employment; or
- Designation of nurse faculty in a joint nurse faculty appointment serving as full-time advanced practice registered nurse (APRN) preceptor for an accredited school of nursing, within an academic-practice partnership framework.
NFLP borrowers have a grace period of 9 months that begins at the completion of a course of study, or termination of student status, to establish and begin employment as a faculty member.
A service requirement/obligation incurred under another federal program for educational support must remain separate and distinct from the service obligation for NFLP loan cancellation. For example, a borrower cannot use their service obligation for NFLP to count toward the service obligation for the Nurse Corps Scholarship program.
Interest Charges
Interest accrues on the NFLP loan at a rate of 3% per annum, beginning 3 months after the borrower graduates from their Graduate Nursing program.
If the NFLP Recipient (Borrower) fails to complete the graduate nursing education program OR fails to serve as a nurse faculty member for any of the consecutive four-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 (https://www.hhs.gov/about/agencies/asfr/finance/financial-policy-library/index.html) for more information.
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, are employed in the full-time faculty role, and decide to return to a graduate nursing education program 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 and 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.
Forms will be available from ESCI for employer validation of employment in a faculty role.
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
APPLICATION FORMS
The application has two parts: one is a PDF document, and the other is a Word document. Both must be completed. See “Student Application Process” section above.