Loan for Service

Nursing Student Loan for Service

The purpose of the Nursing Student loan-for Service program is to increase the number of nurses in areas of the state, which have experienced shortages, by making educational loans to students seeking certification or licensure in nursing.

 As a condition of the loan, a student must declare their intent to practice as a nurse in a designated health professional shortage area in New Mexico. Penalties apply for failure to provide service.

Amount of Loan

 The award is dependent upon the financial need of the student. The amount will be prorated and awarded each semester (fall/spring). Each applicant is required to submit a Free Application for Federal Student Aid (FAFSA)

Who is Eligible?

A New Mexico resident who is enrolled and accepted in a program of nursing at an accredited New Mexico public post-secondary educational institution.

Payment Provision

• Repayment begins 6 months after borrower exits school.
• Interest accrues from the date of each disbursement, and all interest accrued on the borrowers exit date shall be capitalized.
• Borrower may prepay the loan without any penalties.
• If a borrower, after completing his/her education, fails to serve in a designated shortage area for a period of at least one year, the Commission shall assess a penalty of 18% interest, unless the Commission finds acceptable circumstances for why the borrower did not serve in a shortage area.
• If a borrower fails to complete his/her education, the loan shall bear interest at 7%.
• If a borrower completes a minimum of one year service, but fails to complete his/her remaining service, the remaining amount shall bear interest at 7%.

Cancellation Provisions

A shortage area means those areas in New Mexico designated by the New Mexico Health Profession Advisory Committee as not being adequately served. For further information you may contact the New Mexico Higher Education Department at 1-800-279-9777. •The borrower will select and serve in a shortage area.

The borrower must serve 12 consecutive months in order to receive cancellation for one year.

If borrower is repaying his/her loan and subsequently begins service, cancellation will be applied on the remaining balance.

When borrower begins service the loan will be forgiven accordingly:

Loan Term                                                          Work in Shortage Area                        Percent Forgiven Yearly
 
1 academic year or less                                    1 year                                                       100%
2 academic years                                               2 years                                                       50% per year
3 or more academic years                               3 years                                                        40% first
                                                                                                                                                  30% second
                                                                                                                                                  30% third 

 How to Apply

• Applications are available online at New Mexico Higher Education Department.
• All applications must be postmarked by July 1.
• The Financial Aid Loan Officer will review loan applications and certify amounts if the financial need criteria are met, after current FAFSA has been filed.
• Once student completes and returns their contract to the New Mexico Higher Education Department, Clovis Community College will receive a check along with the names of the students who were awarded loans.
• Cashier will release loan check after tuition and fees are paid.
• See the Financial Aid office for release dates.

For further information on the New Mexico Nursing Student Loan, you may contact the New Mexico Higher Education Department at 1-800-279-9777.