The nurse has received a financial aid package that has a “forgiveness

QUESTION

The nurse has received a financial aid package that has a “forgiveness” clause. What can the nurse expect as a result of this clause being part of this package?

1. If the student decides to change majors, the financial aid will be transferred to the new degree.
2. The student will not have to pay back some portion of the financial aid package if the student works in a specific location for a period of time after graduation.
3. Because the student is going to be a nurse, the amount of the financial aid package will be forgiven if the nurse continues to pursue advanced degrees in nursing.
4. The student won’t have to pay any money back unless the student’s grades fall below satisfactory.

ANSWER:

Correct Answer: 2

Although financial aid packages can be written in many ways, the most common meaning of “forgiveness” is that the recipient will not have to pay a portion (or sometimes all) of the money back if the recipient works in a specific location or specialty for a period of time after graduation. In most cases, financial aid packages change (and may be invalid or have to be repaid) when majors change or when grades are not satisfactory. In either case, the money owed is not forgiven. Although the student may continue to receive aid of some sort while seeking advanced degrees, there is a limit to federal aid that cannot be exceeded; and simply seeking advanced degrees does not mean that money owed does not have to be repaid.