Principal and interest cancellations are earned for teaching full-time as a nursing faculty member at an accredited school of nursing.

• The borrower must begin teaching in an eligible position within 12 months of completing their degree.
• The borrower may be awarded a cancellation for each full year of teaching.
• Teaching service must be ongoing.
  • Regular paid leave for vacation or sick leave is not considered a break in service.
  • The borrower will lose eligibility and repayment of the loan begins immediately if there is more then 15 days between the end of one full-time employment position and the beginning of a subsequent position.
• The borrower will be awarded a 20% cancellation of principal and the full amount of interest accrued for the first three years of cancellation.
• The borrower will be awarded a 25% cancellation of principal and the full amount of interest accrued for the fourth year of cancellation.
• The borrower is responsible to repay the remaining 15% of the loan principal per the repayment terms of the loan.
• To request a Nurse Faculty Loan Cancellation the borrower must submit a Nurse Faculty Loan Cancellation Request Form along with all required documentation upon procuring the full time nurse faculty position and again at the end of each full year of employment.
  • The initial request form serves as notification to the loan servicer and school that the borrower is eligible for a loan deferment and has not defaulted on the service obligation.
  • Defaulting on the service obligation results in loss of cancellation benefits, increase in the loan interest rate and the immediate initiation of repayment.