ONLINE COUNSELING:
REPAYMENT OF YOUR NURSE EDUCATION SCHOLARSHIP LOAN (NESLP) SCHOLARSHIP LOAN
WHAT YOU MUST KNOW

Your Responsibilities
You made a commitment to repay the funds you received from the state of North Carolina when you signed the promissory note(s) for the NESLP scholarship loan. The goal of the NESLP programs is to provide financial resources to students with the expectation that these resources will be repaid through employment (work service) as a registered nurse (RN) or licensed practical nurse (LPN) in the state of North Carolina for one year for each year the scholarship loan was received. Therefore, if you have completed your nursing program and pass the State Board of Nursing licensing requirements, the preferred method for you to repay your scholarship loan is by working as a nurse in North Carolina.

If you do not meet the work service requirement, then your loan must be repaid in cash with 10% interest (15% if you move/live outside of the state of North Carolina) on the principal amount borrowed beginning 90 days from the first date of ineligibility. Ineligibility occurs when you fail to meet the requirements for the program (i.e., drop out of school, do not work as an RN/LPN, or do not graduate). These are your responsibilities.

Building/Maintaining Good Credit
Repaying loan obligations on time helps you:
  • Maintain your credit rating in good standing.
  • Avoid extended interest payments.
  • Avoid negative activity reported to credit bureaus.
  • Avoid additional monetary or other penalties imposed by a collection agency or by legal action.
  • Apply payments to only principal and interest, not to penalty fees.


Repayment
Service cancellation or cash repayment must begin within 90 days following graduation or within 90 days of the first date on which you become ineligible (The actual date is provided in your graduation letter).

Service Cancellation
You MUST contact NCSEAA at the beginning of your employment. Before service cancellation can begin, NCSEAA must have proof that you completed your nursing degree, and you must also complete an Application for Service Cancellation. Unless the NCSEAA is notified that service cancellation should begin, cash payments will be expected.

Any direct patient care facility in North Carolina qualifies for service cancellation. Full-time employment is required. V.A. hospitals qualify for service cancellation. Home health agencies qualify for service cancellation if full-time employment is guaranteed. Baylor Plans are considered to be full-time (you MUST indicate on the Application for Service Cancellation form if you are working a Baylor Plan).

Note: Remember to check with us to see if your scholarship loan can be forgiven if you have worked for at least six months in North Carolina following completion of a program for which you received funding.

WHAT IF YOU CAN'T MAKE A PAYMENT?
If you ever have financial difficulties making cash repayments, contact the NCSEAA as soon as possible before your account becomes past due. Contact us immediately to prevent default! Call one of our Repayment Counselors at 800-700-1775, Ext. 312, or 919-549-8614, Ext. 312.

We are aware that occasionally circumstances arise that make repayment more difficult or sometimes impossible. Our goal is to help you keep your account in good standing and avoid additional collection actions for unexcused non-payment.

Depending on your program, you may be eligible for:
  • Temporary reduced monthly payments if you provide appropriate documentation to justify the reduction.
  • Repayment postponements or deferments for being in school, or in a medical or unemployment hardship situation.


Postponement of Repayment
A deferment is a temporary postponement of repayment for a specified period of time. Interest DOES accrue during deferment. Under certain circumstances (personal illness, maternity leave, or full-time enrollment in school), you may request a "deferment" of repayment. If you have a change of circumstances that you think would qualify for deferment, you must contact the NCSEAA. If you are in cash repay, then you must continue to make payments until the deferment is approved.

DEFAULT MEANS SERIOUS CONSEQUENCES
If you default - that is, do not repay your educational loan as promised, you will lose your eligibility for any state-funded assistance for education. Defaulting on a loan results in serious consequences that can affect you for many years.

Defaulting on a loan means:



The default status of your loan may be reported to national credit bureaus. This may seriously damage your credit rating and your ability to obtain additional credit for car loans, home mortgages or credit cards.

You will be subject to an increase in your total debt as a result of assessment of projected collection costs. These costs could add 25% or more to the amount you otherwise would owe for loan principal and interest. Collection costs are prorated as a portion of each payment you make for principal and interest. Payments are applied first towards collection costs owed, then towards interest accrued, and, lastly, towards the loan principal.

NCSEAA will pursue these collection actions for repayment of a defaulted loan:

  • Refer your account to a collection agency;
  • Seize your State tax refunds;
  • Contact your employer, if you are a State employee, for wage garnishment of up to 10% of your disposable income;
  • Transfer your loan to the State Attorney General's Office for collection/legal action.

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