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Nursing Education Loan (NEL) Program
Policies for Applicants and Recipients

APPLICATION PROCESS:

1. To be eligible for review and consideration for an NEL, a complete application packet with all the following items must be submitted by mail, email, or brought to the Board office by 11:59 pm CST June 30th.
   1. Application - Nursing Education Loan Program form (SFN 11692) for first time applicants OR
      Reapplication - Nursing Education Loan Program form (SFN 58630) if applying for the same degree level for which you previously received an award.   Attestation statement must be marked complete acknowledging loan repayment is through working as a nurse in North Dakota.
   2. $30.00 nonrefundable application fee.
   3. Unofficial transcripts or copies of transcripts with nursing degree(s) awarded or nursing program enrolled in from all colleges/universities attended.
   4. Co-Signer Information form (SFN 14689).
   5. One professional reference letter.
   6. Student Status Memorandum form (SFN 14690) completed by the nursing program nurse administrator or designee dated after March 1^st verifying your acceptance and current enrollment into a board approved and/or accredited nursing education program.
2. The spouse of an education loan applicant or another education loan applicant is not acceptable as the co-signer of the note.  The co-signer of the note should be a North Dakota resident.  If the co-signer is not a ND resident, the applicant must provide a letter of explanation. The co-signer must be 18 years or older. Proof of age may be requested by board staff.
3. A written statement from the administrator of the nursing program or designee verifying the applicant’s acceptance and enrollment dates in the program will be used to determine if an applicant meets the qualifications for the education loan program.  The baccalaureate applicant must be at least a junior within the next academic year to be considered for the education loan.
4. Applications will ONLY be accepted between March 1 and July 1 (11:59 pm CST June 30). All education loan applications will be considered annually at the July board meeting.  An application will be reviewed by the board only if it is received into the board office by the deadline and the application packet contains all required items as listed.
5. All applicants for education loans are considered under blind review. A board member, staff employee or family member of either of the foregoing, who submits an application for an education loan will be excluded from all application processing, review and board action related to the education loan program.
6. Reapplication may occur annually if the applicant continues to be enrolled in the nursing program and has not received the total loan amount allowed by NDAC 54-04.1-03-01 for the degree level.
7. Applicants with a graduation date prior to September 1^st will be considered as the current academic term for purposes of number of cycles to complete the program and will not be eligible for reapplication.  

LOAN DISBURSEMENT PROCESS:

1. Education loan recipients must return the signed notes to the board office after notification of award before disbursement may be made. Applicant notifications will be mailed to selected recipients by August 31.
2. The education loan recipient must be accepted and enrolled in the nursing major before any portion of the award is disbursed. 
3. Education loan recipients must maintain continuous enrollment and non-probation status in the education program to be eligible for disbursement of funds. 
4. The undergraduate student must be enrolled in a minimum of six (6) credits per semester or twelve (12) credits per calendar year. The graduate student must be enrolled in a minimum of three (3) credits per semester or six (6) credits per calendar year.
5. Education loan payments will be made in one payment or as directed by the board.
6. An education loan award is transferable from one board-approved nursing education program to another upon receipt of proof of enrollment in the nursing program.
7. Request for variance from these guidelines must be appealed to the board.

LOAN REPAYMENT PROCESS:

1. The nursing education loan may be repaid by nursing employment in North Dakota or by holding a North Dakota license while serving in any branch of the United States Military after graduation.  The repayment rate will be one dollar per hour of employment.  Upon graduation, the Board of Nursing will provide Nursing Education Loan Affidavit of Employment (SFN 16156) twice a year in June and December.  The NEL recipient will complete their portion of this form for each employer they worked for during the Dates Employed time period on the form to ask for verification of actual hours worked for employment credit from the employer(s).  The employer will complete their portion to provide the hours worked during the Dates Employed time period and send the form directly back to the ND Board of Nursing for processing. 
2. Repayment by Nursing Employment
   1. Recipients must be employed or making payment at any given time.
   2. Recipients must be employed an average of 20 hours per week to qualify for repayment by nursing employment.
   3. A faculty member on a full-time contract will receive employment credit for 2080 hours per year.
3. Recipients completing a nursing program must provide the board with the name and address of their North Dakota employer within sixty days of graduation.   If employment in North Dakota is terminated before the loan is canceled, interest will begin to accrue on the unpaid balance from the date of termination.
4. The recipient who is not employed or has not applied for the NCLEX examination within sixty (60) days of graduation must begin to make repayment and interest will begin to accrue. 
5. The education loan recipient who has not passed the NCLEX examination within 180 days of graduation must begin to make repayment and interest will begin to accrue.
6. Upon completion of an academic degree the recipient may request a deferment of payment if proceeding directly into the next level of education.
7. Interest accrual and repayment on all notes will begin within sixty (60) days of withdrawal or dismissal from the nursing program.
8. The loan may be forgiven at the discretion of the board upon proof of military deployment.
9.  A licensed nursing loan recipient who has graduated from a nursing education program but has not successfully passed the NCLEX-RN or APRN certification examination may use employment hours as a licensed nurse for repayment from the date of program completion.
10. Employment credit for the registered nurse in a graduate program will begin after all academic requirements have been completed, including the completion of the master's thesis or the doctoral dissertation.  The completion of requirements may occur in advance of the date of graduation.
11. Education loan recipients and their co-signers who are sixty (60) days delinquent in repayment of their account will be sent a demand for payment according to NDAC 54-04.1-05-02. Demand for Payment.  

Adopted: 11/92
Reviewed/Revised: 3/2022