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Loan Collections

Nurse Faculty Loan Program Repayment Terms

This explains certain rights and obligations you need to know concerning your Nurse Faculty Loan. Information should be safeguarded and retained for further reference. It is your responsibility, until your loan is repaid, to keep us informed of any change of an address. The status of the loan is reported to Equifax Credit Bureau monthly from the date of disbursement.

  1. REPAYMENTS MONTHLY: This loan has a nine (9) month grace period which will begin with the completion of the program or cease to be a full-time student in the advanced nurse education program. The first three (3) months of the grace period the interest is free. The remaining six (6) months the interest will accrue. After the nine (9) month grace period, the monthly billing will begin. Maximum repayment period is ten years.
  2. DUE DATE: You must make payments on your loan even if you do not receive a bill or repayment notice. Billing statements are sent to you as a convenience from our billing service, Heartland ECSI, with a due date of the tenth (10) of the month. Please put your loan number on all payments and/or correspondence. Checks or money orders should be made payable to “Nurse Faculty Loan” and sent to SDSU Student Loan Collections, Morrill Hall 140, Box 2201, Brookings, SD 57007-1829. You can also make payments online at Heartland ECSI.
  3. FEES: Failure to meet a scheduled repayment or timely filing of forms could result in a late fee. This institution will deny credits or transcripts, accelerate the loan so that the entire indebtedness will become due and payable at once. Past due accounts will be reported to the Credit Bureau and turned over to our collection agency. Collection fees could be an additional 50% more than your total loan balance.
  4. CONSOLIDATION: Loans from more than one lender may be consolidated into one Payment. Consolidation pays off the existing loans and creates one new loan, usually extending the payment period and lowering monthly payments. They have a visit student loan consolidation. You can sign in electronically or get a paper application from the website. The Nurse Faculty Loan Program which you received, together with the annual interest rate of three (3) percent per annum or the prevailing market rate as indicated on your promissory note is to be repaid in accordance with your repayment schedule.
  5. INTEREST
    1. Rate of three (3) percent per annum. If employed as a full-time nurse faculty(director position not eligible, must be teaching) at a school of nursing for a “Consecutive Four-Year Period” (85%) and the remaining six years of the “Repayment Period” (15%).
    2. Prevailing market rate. If you fail to complete the advanced nurse education program, fail to establish employment as a full-time nurse faculty (director position not eligible, must be teaching) at a school of nursing within nine (9) months of graduation or cease full time employment as a nurse faculty at a school of nursing before the consecutive four year period is completed.
  6. DEFERMENT/POSTPONEMENT/CANCELLATION
    1. UNIFORM SERVICES: Periods of up to three years during which you are ordered to active duty of a uniformed service may be deferred by completing a “Request for Deferment of Payment” at the entrance of active duty and the end of each year of service up to 3 years. Must be signed by you and your commanding officer. Volunteer or civilian job in the uniform service is NOT eligible for a deferment. During student deferment, interest accrues at the prevailing market rate.
    2. CERTIFICATION OF EMPLOYMENT FORM: Which is an agreement with South Dakota State University that you are a participant in the loan forgiveness program, must be completed only once as soon as you are employed full time as a faculty member at an accredited school of nursing but no later than 12 months after graduation from the program. If you switch jobs you must complete a new application. If employment verification is not submitted within the 12-month time frame you will NEVER be eligible for the Nurse Faculty Loan cancellation provision.
    3. REQUEST FOR POSTPONEMENT OF INSTALLMENT PAYMENT FORM: Must be completed 30 days before the 9 month grace period ends and then at the beginning of each subsequent year of eligible employment. The postponement form is an interim form to notify us of your intent to cancel at the end of the year, which postpones any repayment. Unpaid leave of absence will void the postponement. Must complete the program to be eligible for postponement.
    4. REQUEST FOR PARTIAL CANCELLATION LOAN FORM: Must be completed at the end of each complete year of full-time employment as a faculty member (director position not eligible, must be teaching) at a school of nursing.  Must complete the program to be eligible for cancellation. Each of the above forms must be completed and signed by the borrower and by an authorized official from your military service or place of employment. If you do not complete the program at SDSU you will not be eligible for the employment postponement or cancellation.

  7. CANCELLATION RATES: For each completed year of employment, as a full-time nurse faculty member at a college of nursing and proper completion of documentation, a portion of your loan will be canceled at the following rates:

    • 20% of the principal and any accrued interest for each of the first, second, and third year of full-time employment.
    • 25% of the principal and any accrued interest for the fourth year of full-time employment.

    The remaining unpaid balance monthly payments must begin immediately until paid in full. Interest remains 3% if completed four (4) continuous years of eligible employment. If three (3) or fewer years of eligible employment interest reverts to the prevailing market rate.

Death or Disability Cancellation

In the event of your death, your total loan balance at that time would be canceled. An official copy of the death certificate must be provided. In the event of your total and permanent disability, the outstanding amount of your loan would be canceled. Permanent and total disability means the inability to attend school or work and earn money because of medically determined impairment. A Loan Discharge application form must be completed if totally and permanently disabled. The Secretary of HHS would approve or disapprove the cancellation due to disability.