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Home » Administration » Business Office » Loan Department |
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Contact Information:
Loan Department
414 East Clark Street
Slagle Hall Room 207
Vermillion, SD 57069
phone: 605-677-6620
fax: 605-677-5055
loandept@usd.edu
Last Modified: 03/20/06
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- nursing student loans (NSL)
- These loans are awarded to nursing students who are registered at least half time. The annual interest rate is 5 percent, and begins 9 months after the borrower drops below half time student status, graduates or separates from the University.
Monthly payments will be calculated to enable full repayment within 10 years (program minimums of $15 or $40 per month, determined by your promissory note). Repayment is made to the University. The program allows deferment of repayment in certain instances. Please review your promissory notes and our deferment section for more information.
- As a borrower, you may have received Nursing Student Loans during your course of study which are covered by different statutory provisions as a result of legislative changes in the Program. Nursing Student Loans are governed by provisions in effect at the time loans are made.
- Exit interview: If your enrollment drops below half-time status, you transfer to another institution, you separate (even temporarily), graduate from the University or cease to purse an eligible course of study, you must meet with the Loan Department to discuss repayment of your loan, and provide an address where you can be contacted in the future.
- Change of address: Until your loan is repaid, you must keep the Loan Department informed of any address change.
- Repayment of loan: The total amount of loan support received under this Program, plus accrued interest, is repayable over a ten-year period which begins immediately after the nine month grace period expires. Any questions pertaining specifically to your loan repayment terms or schedule should be directed to the Loan Department.
- You may prepay all or any part of the loan principal and accrued interest at any time before it becomes due.
- Penalty charges: For loans made on or after October 1, 1985, the school must assess a penalty charge if you fail to make a payment or evidence of entitlement for deferment and your loan becomes more than 60 days past due. This charge may not exceed 6 percent of the amount due (principal and interest) at the time the charge is calculated. For loans made prior to October 1, 1985, the school may assess a late penalty charge if you fail to make a payment when due or to file "timely" evidence of entitlement for deferment. To avoid this penalty charge, payments or forms for deferment must reach the school on or before the due date of any scheduled repayment installment in accordance with the repayment schedule.
- Interest rate: All loans made on or after November 4, 1988, carry a uniform interest rate of five percent (5%) a year. For interest rates on loans prior to November 4, 1988, consult with your lending institution.
- Failure to make payments: Payments made by you and other borrowers are the primary source of NSL funds for current students. Also, your failure to make payments could jeopardize your school's eligibility to continue loaning NSL funds to students. Therefore, if you fail to remit payment as set forth in your repayment schedule, the school is required to implement aggressive collection efforts, including the use of collection agents, litigation and credit bureaus.
Deferment: Once the repayment period has begun, you may be eligible for periods of deferment during which interest ceases to accrue on the loan(s) and repayment of principal is not required To determine which deferments may be available to you, please review your promissory notes or continue reading below.
Renegotiation and forbearance: If you encounter difficulties in making payment as required by your repayment schedule, you may be eligible for renegotiation of your repayment schedule or forbearance. Renegotiation allows for reduced payments over a limited time period because of inability to meet the payments required by your repayment schedule. In cases of extreme financial hardship, forbearance allows for a temporary suspension of payments. In either case, repayment must still be completed within a ten-year period.
- To request renegotiation or forbearance, you must contact the Loan Department, whose responsibility it is to determine whether to grant renegotiation or forbearance.
- Cancellation for death or disability
- Death: Should you die, the unpaid balance of your loan including accrued interest may be canceled. To claim cancellation, the executor of your estate must submit to the lending school a death certificate or other official proof which is conclusive under State law.
- Permanent and total disability: Should you become unable to engage in any substantial gainful activity because of a medically determinable permanent and total impairment, the unpaid balance of your loan including accrued interest may be canceled. To claim this entitlement, you must submit to the Loan Department a formal request for loan cancellation and a physician's statement which certifies the date of onset, nature, and extent of your disability along with copies of all medical records pertinent to the disability.
- Additional information: Any questions regarding repayment of your loan should be directed to the Loan Department.
- DISCLAIMER: The information that is provided on this website concerning student loans is only intended to give general information. The final authority on any policies or procedures for the loan program are University Policies and federal regulations given by the U.S. Department of Education or the U.S. Department of Health and Human Services.
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