FAQ: Nurse Faculty Loan Program

The information on this page applies to award recipients and borrowers in the Nurse Faculty Loan Program (NFLP).

If the NFLP award recipient (also referred to as lending institution) uses a third-party loan servicer, award recipient schools should communicate this information to third-party loan servicers and the borrowers.

Waiver of interest

During the COVID-19 public health emergency, HRSA waived interest on NFLP loans from March 13, 2020, until August 31, 2023. Interest on loans will begin to accrue on September 1, 2023.

Loan servicers must make the following changes, effective August 31, 2023:

• Adjust accounts so interest will begin to accrue on September 1, 2023.
• Notify borrowers of this adjustment and the current payment amount in advance of the due date.
• Apply any payments during this period to the principal and interest balance.

Administrative forbearance and preparing for repayment to resume

HRSA allowed for an administrative forbearance from March 13, 2020, until August 31, 2023 ("COVID-19 Forbearance").

• After the COVID-19 Forbearance ended August 31, 2023, borrowers must resume making payments.
• NFLP Borrowers should reach out to their loan servicer. Lending institutions/loan servicers can work with borrowers to help them understand their options.
• See the COVID-19 Forbearance Section below for additional details.

Frequently asked questions

Where can I get the latest information on changes to other HRSA loan programs?

Program updates on HRSA's other loan programs will be posted to the COVID-19 Forbearance webpage at FAQ: School Loan Programs | Bureau of Health Workforce (hrsa.gov).

Loan interest waiver

How long was interest waived?

Interest was waived for the period of March 13, 2020, through August 31, 2023. Interest will start accruing on September 1, 2023.

Will monthly payments go down because interest was waived?

Monthly payments may remain the same; however, if there are questions related to loan payments, borrowers should contact their lending institution or loan servicer.

If borrowers made loan payments after March 13, 2020, how will those payments be applied?

During the COVID-19 Forbearance, the full payment made was applied to principal balance.

Did defaulted loans accrue interest during the interest waiver period?

Defaulted loans did not accrue interest from March 13, 2020, until August 31, 2023.

Did the interest waiver also cover penalty interest rates imposed in cases of default?

Yes, the waiver on interest applied to all interest rates during the specified period, including those imposed on borrowers in default.

How will borrowers know when interest will start accruing again?

Lending institutions should inform loan servicers and borrowers when interest will start accruing again. The end date for the zero-interest period is August 31, 2023. Interest will start accruing on September 1, 2023.

With the interest on loans waived, must schools pay HRSA for the waived interest or absorb that unaccrued interest?

NFLP award recipients are not responsible for repaying HRSA or absorbing any portion of the interest waived. Recipients were required to keep accurate and complete documentation to record the interest waived, consistent with grant requirements related to record-keeping.

COVID-19 Forbearance

Will unpaid interest during the March 13, 2020, to August 31, 2023, COVID-19 Forbearance period be capitalized?

Because of COVID-19 Forbearance, zero interest was accrued between March 13, 2020, and August 31, 2023, therefore capitalization is not applicable in this case. Lending institutions and loan servicers should confirm any unpaid interest accrued prior to March 13, 2020, to the principal balance consistent with the standard practice for this program.

For NFLP, does the COVID-19 Forbearance count as part of the 10-year repayment period? Does this mean monthly payments will increase after payments resume to ensure the loan is repaid within 10 years?

For NFLP, the COVID-19 Forbearance period March 13, 2020, until August 31, 2023, is not included in the 10-year repayment period. The lending institution/loan servicer should resume or establish a loan repayment schedule for NFLP borrowers when loan payments restart in October 2023.

How long did administrative forbearance last?

The COVID-19 Forbearance lasted from March 13, 2020, until August 31, 2023.

How should loans that were already in forbearance on March 13, 2020, be handled?

NFLP Loans already in forbearance prior to the COVID-19 Forbearance stopped accruing interest starting on March 13, 2020. Interest accrual will resume on September 1, 2023. For additional assistance, please reach out to your NFLP Project Officer.

How should credit reporting entities handle forbearance?

HRSA does not have authority to dictate credit reporting entities' policies. We recommend borrowers reach out directly to the lending institutions/loan servicers to discuss any issues related to credit reporting.

Loans in default

Should borrowers placed with a collection agency prior to March 13, 2020, remain in collections?

Yes, borrowers already in collections should remain in collections. However, no interest should accrue on their loans during the COVID-19 Forbearance period.

For loans already in collections, will collection costs be waived during this period?

NFLP funds can be used to cover the costs of collection of loaned principal and accrued interest and/or penalty fees. HRSA cannot waive the cost for the servicer to administer the loan. Cost of collection for NFLP loans should be charged according to the existing agreement between the lending institution and the loan servicer, as applicable.

Reporting requirements

Will HRSA require any special tracking or reporting for these loans/processes on the annual performance report (APR)?

At this time, HRSA does not anticipate making any changes to the APR to track these loans, but institutions maintaining a student loan fund must continue to adhere to standard record-keeping and HRSA-reporting requirements.