After one year of membership, RNAO members and associates are eligible to apply for an education loan. Repayment of your loan does not start until after the completion of your course. There is no interest until one year after repayment begins. Interest is prime plus 1%.
The original intent of the Permanent Education Fund was to assist Registered Nurses to continue their education, however we are also able to make loans to up to 10 undergraduate nursing student associates per year.
Statement of Policy:
1. Loan Amount
1.1 The maximum amount of each loan is $2,000.00.
1.2 At any given time, a member cannot have in excess of $2,000.00 in loans outstanding.
1.3 Up to 10 undergraduate nursing students working towards RN registration with the CNO may also apply for and receive PEF loans.
2. Loan Eligibility
To be eligible applicant must:
2.1 provide a letter of acceptance into a program of study from an accredited college or university or RNAO program that will further her/his career in nursing .
2.2 be a current RNAO member or undergraduate nursing student associate and have been an RNAO member or undergraduate nursing student associate for at least 12 consecutive months immediately prior to applying for the initial loan.
2.3 be a current RNAO member or undergraduate nursing student associate and have been an RNAO member or undergraduate nursing student associate for at least 24 consecutive months immediately prior to applying for the second and subsequent loans, and have no lapse in their membership during the time that the initial loan is outstanding.
2.4 continue to be a RNAO member or undergraduate nursing student associate until the loan is repaid.
2.5 successfully complete the program of study that entitles her/him to a certificate, diploma or degree.
2.6 designate a guarantor who has provided the RNAO with documentation that s/he has met the terms and conditions to guarantee the loan or provide collateral in a form satisfactory to the RNAO together with a fully executed Security Agreement.
2.7 When all loans are paid in full, and there is no balance outstanding, the next loan application will be considered an "initial loan".
3. Payment of Loans
3.1 Payment will be received in Canadian funds through the Association' s Pre-Authorized
3.2 The repayment of the loan shall commence immediately after the completion of the course.
3.3 The minimum monthly repayment will be 5% of the total amount of the loan. Loans will be interest free for one year from the date of first installment; thereafter, interest shall be due and payable monthly on the unpaid balance of the loan and interest shall be calculated at the bank prime plus 1% in effect as established from time to time by the bank used by RNAO.
4. Loan Deferral
4.1 A loan deferral will be granted only if written confirmation from the educational institution is received confirming that the graduation date has been extended. The initial loan payment date will commence immediately upon the new graduation date.
4.2 Loan deferral requests due to financial hardship will be considered by the Director of Membership and Services on an individual basis. The monthly payment and length of deferment are at the discretion of the Director of Membership and Services.
4.3 In all cases of loan deferment, the interest charge will continue to be applied to the amount of loan repayment as per the original agreement.
5. Processing of Loan Applications
5.1 RNAO will consider only those applications with completed documentation.
5.2 RNAO will consider applications in the order in which they are received
with preference to those applications from members who have no
outstanding PEF loans.
6.1 RNAO will treat all information pertaining to the loan as confidential.
This policy will go into effect as of November 1, 1999. Changes to policies regarding terms will not affect previously disbursed loans, and existing contracts will remain unchanged.