Nursing Loan Program

The purpose of the Nursing Student Loan Program (NSL) is to increase the number of qualified nurses within the healthcare profession to address the nursing workforce shortage.

Misericordia makes loans from the funds made possible through collaboration with HRSA/the federal government. The program offers low interest rate loans to borrowers who are seeking to further their education within nursing studies. Interest is subsidized until you begin repayment, which begins nine (9) months after graduation, dropping below half-time enrollment status, or dropping out of the nursing major. These loans are made available each academic year to eligible students who demonstrate financial need and are based on fund availability.

Students must complete the Free Application for Federal Student Aid (FAFSA). Students must be enrolled at least half-time in an eligible Nursing program and demonstrate financial need. MU will notify you if you are eligible for a Nursing Student Loan and share instructions on how to complete the application. 

Grace Period

The grace period immediately follows completion or termination as a full-time student or a half-time student for loans received. During the grace period, which is nine consecutive months long, repayment of principal is not required, and interest does not accrue. If the borrower resumes full-time or half-time studies at the same or another nursing school during the grace period, the interrupted grace period is treated as if it did not begin. In this case, the borrower is required to notify the lending school of his or her continued student status by completing a deferment form and submitting it to the loan servicer. 

Repayment

Repayment begins nine (9) months after gradation, dropping below half-time, or withdrawal (including changing your major). Installment payments are to be made during the 10-year period immediately following the expiration of the grace period and excluding any allowable periods of deferment. The borrower may prepay all or part of the loan at any time without penalty.

Interest

A uniform interest rate of five percent (5%) per year applies to all loans. Interest is computed on the unpaid principal balance and begins to accrue upon expiration of the grace period unless a borrower is eligible for deferment status.

Deferment

A deferment is period of time during which the borrower is not required to repay the loan principal. Interest will not accrue during any type of deferment. Qualifying terms and conditions are included in the promissory note and discussed during the exit interview. A borrower must apply for a deferment in writing by using a deferment form obtained from University Accounting Services (UAS), who services Misericordia's NSL. 

Forbearance

Due to a borrower's extraordinary circumstances, and at the discretion of the institution, the borrower may be placed in forbearance. This has the effect of temporarily suspending payment of principal; however, interest continues to accrue.  If a borrower is financially unable to make the required payments on a loan, he or she must submit a written request with supporting documentation to UAS. Misericordia may grant the borrower a forbearance for a period of up to one year at a time not to exceed a total of three years.

Cancellation

NSLs may be canceled because of the death of the borrower, or because the borrower has become permanently and totally disabled.

Default

Failure of the borrower to make payments as required by the NSL borrower’s Promissory Note and repayment agreement will result in default on the loan. Maintaining communication with Misericordia and the servicer will help you avoid going into default.