Loan Repayments

Federal Nursing Student Loans are need-based loans available to undergraduate students pursuing a degree in nursing through the School of Nursing at Salem State University.

The Federal Nursing Student Loan program is a campus-based loan program, with the school acting as the lender with funds provided by the Health Resources and Services Administration (HRSA). 

The interest rate is 5% fixed for the life of the loan. No interest is charged while the student is in school. Students have a nine-month grace period after they leave school and up to ten years to repay their loans. There is no penalty for pre-payment before the end of the ten-year repayment period. 

Federal regulations require students to complete Exit Counseling for their nursing student loans if they are enrolled less than half-time, are no longer enrolled in the nursing program, no longer attending Salem State, or have graduated. 

Students will be contacted by their loan servicer, UNISA, on how to complete this process during their grace period. 

Federal Direct Loans

Federal regulations require students to complete Exit Counseling for their Federal Direct loans if they are enrolled less than half-time, are no longer attending Salem State University, or have graduated. Exit Counseling can be completed at studentaid.gov.

A Direct Consolidation Loan allows you to consolidate (combine) one or more federal education loans into a new Direct Consolidation Loan for the purpose of lowering your monthly payment amount or gaining access to federal forgiveness programs.

The Federal Nursing Student Loan is eligible for consolidation into a Direct Consolidation Loan. 

For more information on consolidating your federal loans, please visit studentaid.gov or contact your loan servicer. 

There are options available to you before you default on your loan. Contact us immediately and your loan servicer, UNISA, if you fall behind on your payments, to see if you are eligible for deferment. Per the Nursing Student Loan Master Promissory Note, the eligibility conditions for deferment are:

• Active Duty member of a uniformed service of the United States (maximum of 3 years)
• Volunteer under the Peace Corps Act (maximum 3 years)
• Enrolled Full-Time or Half-Time in a collegiate nursing school (maximum 10 years)
• Pursuing advanced professional training in nursing, including training in nurse anesthetist (maximum 10 years)

You must complete a Student Loan Deferment Request Form and follow all instructions on the form. 

Please keep in mind that we help thousands of borrowers who graduated from or left Salem State University. We will do our best to process your paperwork as soon as possible.

Nursing Student Loans

UNISA is the loan servicer and is contracted with Salem State University to perform all the billing and accounting for this loan program. UNISA provides students with repayment information and Exit Counseling. For any questions, please contact UNISA at 1-800-875-8910.

Perkins Loans

Perkins Loans can be repaid to the Department of Education. For more information, please contact the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

Federal Direct Loans 

The Department of Education will assign the loan servicer. Your loan servicer will update you on the loan status and repayment information. The loan servicer will provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment. The billing statement will tell you how much to pay. The monthly payment amount depends on your repayment plan.

For more information on loan servicers and current repayment plans available, please visit:

• Studentaid.gov – Who is my Loan Servicer?
• Studentaid.gov - Repayment Plans

The first day that you miss a payment on your federal student loans, your loan becomes delinquent or past due. The loans remain in delinquency until you make a payment or make other payment arrangements with your loan servicer. If you are delinquent on your student loan payment for 90 days or more, your loan servicer will report the delinquency to the national credit bureaus, which can negatively impact your credit rating. If you continue to be delinquent, you risk your loan going into default.

If you do not make your scheduled loan payment on your federal student loans for at least 270 days, your loans will go into default. 

Defaulting on a student loan can lead to serious legal and financial consequences, which include the following:

• The entire unpaid balance of your loan and any interest you owe becomes immediately due (this is called "acceleration").
• Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan (this is called “Treasury offset").
• Your wages may be garnished. Meaning your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
• You can no longer receive deferment or forbearance, and you lose eligibility for other benefits, such as the ability to choose a repayment plan.
• You lose eligibility for additional federal student aid, such as Federal Pell Grants and student loans.
• The default is reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card.
• It may take years to reestablish a good credit record.
• You may not be able to purchase or sell assets such as real estate.
• Your loan holder can take you to court.
• You may be charged court costs, collection fees, attorney's fees, and other costs associated with the collection process.
• Your school may withhold your official transcript. If the school withholds your official transcript, upon your request, they must provide you with an unofficial transcript that another institution might accept.

For more information, please visit the Student Loan Delinquency and Default page at studentaid.gov.

To keep any loan you borrow from going into delinquency or default status, follow the tips listed below: 

• Only borrow what you need.
• Keep an information folder with any information about your loans, including Master Promissory Notes, Entrance Interviews, Exit Interviews, Loan Counseling, cancelled checks, repayment information, and other important information regarding your loan(s).
• Complete your required Exit Loan Counseling for all federal loans.
• Make your payments on time.
• Notify the Salem State University Loan Repayment Office and UNISA (Nursing Student Loans only) of any address changes, name changes, etc.
• As soon as you encounter financial difficulties, contact the Salem State University Loan Repayment Office immediately before you stop making payments on your loan(s).
• Consider loan consolidation options.
• Thoroughly read all correspondence that you receive from the Salem State University Loan Repayment Office and UNISA (Nursing Student Loans only).

Salem State has partnered with Student Connections to provide additional support and ensure you have everything you need to manage your federal student loans. This service is completely free! Their Borrower Advocates can help answer any questions and assist you in finding the best, most affordable repayment option.

While you are in repayment, Student Connections may contact you through emails, text messages, and phone calls to:

• Help you find your loan balance and monthly payment amount
• Discuss available repayment plans
• Ensure you understand your options if you need to reduce or delay your payments

Visit My.StudentConnections.com or talk to a Borrower Advocate for free at (866).311.9450.