The Federal Nursing Student Loan is intended for undergraduate or graduate students pursuing education leading to a diploma or degree in nursing. Loans can be borrowed to cover tuition as well as some other educational expenses and are granted based on financial need. Participating schools are responsible for selecting students for participation in this loan program and determining the amount of loan funds each student needs.
Consolidating Federal Nursing Student Loans
Federal Nursing Student Loans are particularly attractive because they are interest free while students are enrolled in school full-time. Students must take at least 12 credits per semester to be eligible for this loan. In addition to being interest free during student enrollment, Nursing Student Loans have a fixed 5 percent interest rate and a 90-day grace period before repayment must begin.
The amount that can be borrowed in a Federal Nursing Student Loan varies depending on the participating school. As with other federal student loans there is no credit check required. Other than interest, there are no other fees charged on a Nursing Student Loan.
Federal Nursing Student Loans can be consolidated along with other federal student loans. However, like Perkins loans they have a fixed 5 percent interest rate, which makes them far less favorable to consolidate. Consolidating your Nursing Student Loans with variable interest rate federal loans may raise the calculated rate of your student consolidation loan. Furthermore, Nursing Student Loans lose their subsidy benefits upon consolidation. In many cases it makes sense to avoid including your Nursing Student Loans in your consolidation loan. Instead, if you need help making payments on your nursing loan, consider requesting an income sensitive repayment plan from your lender.