Federal Nursing

The Federal Nursing Student Loan is awarded to both undergraduate and graduate nursing students demonstrating financial need. Funding for the Federal Nursing Loan program is limited and awarded on a first come, first serve basis. The interest rate for this loan is fixed at 5%. There are no origination fees.

The federal government pays interest on (subsidizes) the loan until you begin repayment and during authorized periods of deferment thereafter. Repayment of principal and interest begins after a one time grace period of 9 months after you leave school or fall below half time enrollment.


There may be some circumstances where you can defer the repayment of your nursing loan. You must notify Gonzaga of continued student status by completing a deferment form every term you are enrolled. During a deferment period on your Nursing Student Loan, interest does not accrue and no payments are required. The following are some of the circumstances that you can request a deferment of your Nursing student loan:

  • Active duty in the uniformed services (Army, Navy, Marine Corps, Air Force, Coast Guard, the National Oceanic and Atmospheric Administration Corps, or the U S Public
  • Health Service Commissioned Corps)
  • Peace Corps volunteer
  • Collegiate nursing school. The program must lead to a baccalaureate or a graduate degree in nursing.
    Pursuit of advanced training in nursing or training to become a nurse anesthetist. Advanced training is training beyond your first diploma or degree in nursing.


If you are experiencing financial difficulties which prevent you from making timely payment on your Federal Nursing Loan, you may be eligible for a forbearance arrangement. Extraordinary circumstances include unemployment, poor health or other personal problems that have a short-term impact on the borrower's ability to make payments. This option is provided as an alternative to regular monthly payments for borrowers and is available for a six month period. The student is responsible for any interest that continues to accrue during a period of forbearance. Forbearance is granted at the lender's discretion.


Your Federal Nursing Loan may be eligible for cancellation due to Total and Permanent Disability.


Once your loan goes into repayment, if you do not make your scheduled loan payments, you run the risk of your loan going into default.  If your loan has defaulted, a hold may be placed on your Gonzaga registration, transcripts, and diploma until the default has been cleared.  All late payments are reported to credit bureaus and may affect your ability to receive other aid.


Consolidation is a process where you take out a new loan to pay off some or all of your existing federal student loans. There are many pros and cons to consolidation and you should do your research before pursing consolidation to see if it is the right choice for you. Beware of companies offering to lower your interest rate or get your loan canceled; these companies usually charge for loan consolidation, which you can do for free on your own.

If you choose to consolidate, you can complete the processes at Consolidate Your Federal Student Loans.