Iowa Student Loan Nursing Education Loan Forgiveness Program
Frequently Asked Questions
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Contact Us
If you need assistance or have additional questions, send an e-mail to mbrown@studentloan.org or call (800) 243-7552, ext. 7656 or (515) 273-7656.
Application Process
Q. If students are approved one year, do they need to reapply for the loan forgiveness program each year that they remain in school?
A. No, once students are approved they do no need to reapply; however, a student who is not approved can reapply for consideration the following year.
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Eligibility
Q. Who is eligible to apply for the program?
A. Students who are enrolled in registered nursing programs or post-baccalaureate nursing educator programs at an accredited Iowa college or university can apply. Nursing educators who are enrolled in non-nursing doctoral programs that qualify them to teach nursing are also eligible to apply.
Q. Once approved, who is eligible for the forgiveness of their education loans?
A. All nurse educators* and RNs who graduate from an accredited Iowa college or university and who are employed full time in Iowa and have a qualifying education loan will be eligible to apply for forgiveness benefits. RNs must be providing direct patient care in order to qualify for loan forgiveness benefits.
Q. Can I apply once I have completed my academic program?
A. No. Applicants must be students enrolled at an Iowa college or university for at least a portion of the award year covered by the application. The award year covered by this application runs from July 1 through June 30.
Note: A registered nurse who returns to school for an additional degree (such as a BSN or MSN) is eligible to apply. Furthermore, loan forgiveness benefits may be available immediately if the applicant is approved and is able to continue eligible employment while pursuing the additional degree.
Q. How long do I have to work in Iowa to qualify for the forgiveness benefit?
A. Partial forgiveness is made after one year of service, building to 100% forgiveness after four years of service.
*Part-time employment may qualify for partial year forgiveness (nurse educators only).
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Employment
Q. How soon after completing my educational program do I have to begin employment in Iowa?
A. In general, you must be employed full time, as defined by your employer, within 12 months of the completion of your educational program.
Q. What happens if I am an approved applicant, but I do not practice in the shortage area for which I was approved? For example, what if I was approved for long-term care nursing but eventually work in a hospital in a rural county?
A. If you go into areas of service that are different than the areas for which you were originally approved, you may be eligible to have your award adjusted. Note: Award adjustments are less likely for applicants approved during the 2007 – 2008 and subsequent award years. For inquiries, please call (800) 243-7552, ext. 7656 or (515) 273-7656.
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Extensions
Q. What happens if I am an approved applicant and I change my projected program completion date or continue on for a BSN after completing an ADN?
A. If you change your program completion dates or degree goals, you can request an extension of your forgiveness approval to coincide with those changes by calling (800) 243-7552, ext. 7656 or (515) 273-7656.
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Qualifying Loans
Q. What educational loans qualify for forgiveness through the program?
A. Qualifying education loans include:
- FFELP subsidized and unsubsidized Stafford Loans owned or serviced by Iowa Student Loan.
- Private (student) loans owned or serviced by Iowa Student Loan.
- Federal Consolidation Loans (including Direct Loans) consolidated with Iowa Student Loan.
Iowa Student Loan must be the owner or servicer of any educational loans that you would like to be considered for Iowa Student Loan’s Forgiveness Program.
If Iowa Student Loan is not your current lender for any educational loans, you may want to review federal loan consolidation options with Iowa Student Loan after completing your academic program. Please call Matt Brown at (800) 243-7552, ext. 7656 to discuss your individual situation. Please also review the disclosure related to federal loan consolidation.
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Taxes
Q. Are loan forgiveness benefits taxable?
A. Approved applicants who receive loan forgiveness benefits from Iowa Student Loan will be issued an IRS form 1099-C. Applicants should consult a tax professional to understand any tax implications associated with the loan forgiveness amounts that are received.
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