America has a nurse faculty shortage. The good news is that you can help by teaching the next generation of nurses. The better news is that UW graduate nursing programs have a grant from the Health Resources and Services Administration that can help pay for your Master of Nursing degree.
The federally funded Nursing Faculty Loan Program (NFLP) makes graduate school more affordable for students planning to become nurse faculty. Graduates with NFLP loans who accept and maintain a full-time faculty position, or multiple part-time positions equaling full-time, at any U.S. accredited school of nursing, could have up to 85% of their loan forgiven.
The purpose of this loan forgiveness program is to increase the number of nursing faculty needed to address the current U.S. nursing workforce shortage. The program provides funding through the U.S. Department of Health and Human Services.
Maximum loan amount
Students may borrow up to $35,500 each academic year for up to 5 years. The NFLP is not a need-based loan; rather it is a service loan.
Loan cancellation overview
The NFLP loan can be cancelled up to 85% of the loan amount if the graduate becomes a full-time faculty for up to 4 consecutive years after graduation: 20% of principal and interest on the amount of the unpaid loan balance upon completion of each of the first, second, and third year of full-time faculty employment 25% of the principal and the interest on the amount of the unpaid loan balance upon completion of the fourth year of full-time faculty employment. For example:
Borrowers will then have six years to repay the remaining 15% of the principal balance, plus interest (with a 3% interest rate). The interest rate will revert to the prevailing market rate (6.8% in 2020) if the borrower does not complete the degree or does not meet the four-year faculty employment requirement. The prevailing market rate is determined by the U.S. Treasury Department and is published quarterly in the Federal Register. Rates are fixed.
Nurse faculty defined
“Nurse Faculty” is defined as an academic educator (faculty) or a clinical educator/instructor role at an accreditd school of nursing, or a clinical educator/preceptor role at an accredited health facility. For NFLP graduates, “Full-time” nurse faculty employment is designated by the lending institution (UW). Full time employment status may include: being employed as a full-time faculty member in an accredited school of nursing, being employed as a part-time faculty member at an accredited school of nursing in combination with another part-time faculty position or a part-time clinical educator/preceptor position at an accredited health facility, affiliated with an accredited school of nursing that together equates to full-time employment. For example:
- 1 Full-time Faculty position (tenure or non-tenure track) = 1 Full-time employment status
- 1 Part-time faculty position (adjunct faculty/clinical instructor/part-time faculty) + 1 Part-time faculty position = 1 Full-time employment status
- 1 Part-time faculty position + 1 Clinical educator position (clinical educator, clinical preceptor) = 1 Full-time employment status
Time to secure a nurse faculty position
NFLP borrowers are allowed up to 12 months to gain employment following graduation from their course of study. The allowance period goes beyond the grace period for repayment (9 months) and provides the borrowers additional time to meet their service obligation and receive loan cancellation.
Applicants must be a Master’s, DNP, or PhD student in good standing, a U.S. citizen or permanent resident, and plan to teach in a faculty role upon graduation, be enrolled in a minimum of 5 credits per quarter, and complete the Master of Nursing program.
This takes place late August or early September. Students work with the graduate advisor to complete the NFLP paperwork. Send a message with the subject line “Request for NFLP application” to email@example.com. Follow the application procedures each year continued funding is desired (as required by HHS). Funding is contingent upon ongoing federal funding. In summary;
- Submit a completed FAFSA. NFLP loans are not need-based; however, a completed FAFSA is part of the federal approval process. UW Federal Code 003798.
- Complete and submit the university's NFLP loan application packet - available late August-Early September and sent to the student by the graduate program advisor.
- University's NFLP application
- A promissory note
- Truth in Lending Act form
- The borrower is responsible for requesting cancellation within 12 months following graduation or the borrower will not be eligible for the loan cancellation provision.
- Those who fail to become full-time faculty members, at a single institution, within 12 months of graduation, or take a leave from school, must repay the loan with interest. Loan repayment begins after a nine-month grace period following graduation.
- The borrower is responsible for following up with UW Fiscal Services when requesting documentation of eligible employment as a nurse faculty.
- Deferement, forbearance, default question pertaining to loan repayment are directed to UW Financial Aid.
Updated May 2022