A Nursing Student Loan is very similar to the Perkins Loan. A low-interest (5%) loan with no loan fees, the NSL is restricted to undergraduate nursing students with exceptional financial need. Wagner is your lender and the loan is made with government funds. You must repay this loan to your school upon withdrawing, graduating or dropping below half-time status.
If you are awarded a FNL in your Award Letter, you will be complete a Promissory Note and Entrance Counseling each semester with our servicer, ECSI.
Borrowers qualify for a nine-month grace period immediately following enrollment. The repayment amount depends upon the size of the debt with a maximum repayment period of ten years. On smaller loans, the minimum payment option is $120 quarterly. Interest on the loan is computed at the rate of 5% per annum simple interest on the unpaid principal balance. The borrower may prepay all or part of the loan at any time without penalty.
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 the school that made the loan. Additional information on deferments may be obtained from ECSI.
A forbearance is a temporary postponement of payments, an extension of time allotted for making payments, or the acceptance of smaller payments than were previously scheduled. Interest will continue to accrue during any period of forbearance. 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 the ECSI. The school 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.
There are no cancellation privileges to the Nursing Student Loan.
Maintaining communication with the servicer will help you avoid going into default.