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      Analyze your repayment or forgiveness options with our student loan specialists.
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  • How Nurses Can Get Student Loan Forgiveness

How Nurses Can Get Student Loan Forgiveness

Nurses have many options to make monthly student loan payments more manageable, including several paths to student loan forgiveness.

Published August 13, 2023

12 min read

Table of Contents

  • Nurses employed by the government
  • Nurses employed by nonprofit organizations
  • Nurses employed by private sector or self-employed
  • Other student loan management options for nurses
  • How to apply for student loan forgiveness
  • Next steps
  • Forgiveness quiz for nurses

According to Nurse Journal, close to three-quarters of nursing students graduate with student loan debt. As the costs of higher education continue to rise, most Americans pursuing a bachelor’s degree and more advanced degrees in nursing will need to take out student loans.

Fortunately, nurses have many options to make monthly payments more manageable, including several paths to student loan forgiveness. Although not all nurses will qualify for all forgiveness, the variety of available programs is worth researching.

Let’s explore how nurses can qualify for student loan forgiveness through federal programs, such as Income-driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF), as well as programs through state governments and health organizations.

Nurses employed by the government

Nurses employed by a government entity – whether federal, state, local, or tribal – have access to a wide range of excellent options for full and partial federal student loan forgiveness. Popular options include federal programs such as the ten-year PSLF program, IDR (a requirement of PSLF), as well as many state-level programs.

PSLF for nurses

The Department of Education’s (ED) PSLF program, which is available exclusively to employees of government and qualifying nonprofit organizations, is one of the most popular paths to student loan forgiveness for nurses who are passionate about a career in public health.

Through this program, your remaining federal student loan debt is forgiven after ten years of repayment (or 120 total qualifying payments) through IDR. Nurses working for several different employer types typically qualify for PSLF, including:

  • Qualifying nonprofit hospitals or organizations
  • State hospital systems
  • Federal hospitals
  • Public schools, including universities and K-12 school systems

You can find the eligible employer search tool on studentaid.gov here and learn more about qualifying for PSLF here.

Biden Administration's Proposed Changes

There are currently proposed changes to the Public Service Loan Forgiveness (PSLF) and Income-driven Repayment (IDR) programs that could change eligibility, requirements, and potentially the amount of money you could save. For more information, visit studentaid.gov or schedule a consultation with a GradFin student loan specialist.1

IDR for nurses

While a requirement for the PSLF program, IDR is another program that – when it’s not paired with PSLF – offers a path to federal student loan forgiveness for nurses after 10, 20, or 25 years of repayment, depending on which IDR plan you’re enrolled in and how much debt you have. The IDR plan choices are:

  • Income-Based Repayment (IBR)
  • Pay As You Earn (PAYE)*
  • Saving on a Valuable Education (SAVE) / Revised Pay As You Earn (REPAYE)
  • Income-Contingent Repayment (ICR)**

*New enrollments in PAYE are being accepted until further notice, but this plan will eventually be phased out. No changes for current enrollees.

**Only new enrollments from borrowers of consolidated Parent PLUS loans are being accepted into the ICR plan. No change for current enrollees.

These plans provide nurses with options other than forbearance if they’re having trouble making monthly payments and will adjust your monthly payment amount based on your adjusted gross income and family size – not how much you owe.

To learn more about each IDR plan and determine which one is right for you, visit our resources below or schedule a complimentary 30-minute consultation with one of our student loan specialists.

  • Guide to Federal Student Loan Repayment Programs
  • Types of IDR Plans for Your Career
  • The Pros & Cons of IDR

One-time Adjustment Deadline 

If you’re a borrower with commercially managed FFEL, Perkins, or Health Education Assistance Loan (HEAL) Program loans, be sure to apply for a Direct Consolidation Loan by the end of 2023, to take advantage of this forgiveness opportunity. To learn more, schedule a free call with a GradFin specialist.

State by state resources

Depending on the state you live and work in, you could be eligible for state-sponsored student loan forgiveness. Usually designed to address health professional staffing shortages and the needs of medically underserved communities, these programs often require 2–4-year commitments, sometimes with the option to extend.

Most US states offer at least one student loan forgiveness program for nurses, though they’re typically subject to funding, may be limited to certain nursing specialties, and have others special requirements.

For example, programs such as the Maryland Loan Repayment Program (MLRP) for nurses and nursing support staff offer varying maximum forgiveness amounts for nurses depending on their specialty and degree type.

Check which options are available in your state on the Federal Student Aid website.

Other student loan forgiveness options for nurses

Nurses also have a number of opportunities for student loan forgiveness through national-level programs beyond the Department of Education.

Through the Health Resources & Services Administration (HRSA), nurses could qualify for forgiveness through federal loan repayment programs such as:

  • Nurse Corps Loan Repayment Program
  • National Health Service Corps Loan Repayment Program
  • National Health Service Corps Substance Use Disorder Workforce Loan Repayment Program
  • National Health Service Corps Rural Community Loan Repayment Program
  • Substance Use Disorder Treatment and Recovery Loan Repayment Program (STAR LRP)
  • National Health Service Corps Students to Service Loan Repayment Program

Additionally, the military offers student loan forgiveness programs for nurses such as the Army Active Duty Health Professions Loan Repayment Program, which RNs and APRNs are eligible for. In exchange for enlisting in the Army with a three-year service commitment, you could qualify for up to $120K to repay nursing school loans and receive $40K per year. For more information on this program, visit healthcare.goarmy.com.

Nurses employed by nonprofit organizations

Nurses employed by nonprofit organizations often have student loan forgiveness options similar to government-employed nurses. PSLF is available to nurses who work for 501(c)(3) nonprofits and even other types of nonprofits, so long as the organization’s work meets qualifying criteria. Nonprofit hospitals, healthcare facilities, and educational settings often qualify. You can use Student Aid’s employer search tool to understand if your nonprofit employer meets PSLF eligibility requirements.

If your employer doesn’t qualify for PSLF, IDR plans which stabilize your monthly student loan payments and offer forgiveness after 20 or 25 years of repayment are also available to nurses regardless of their employer. Additionally, some nonprofit organizations could offer their own student loan assistance programs as a benefit for employees.

Nurses employed by private sector or self-employed

Though nurses who are employed by for-profit organizations or are self-employed have less forgiveness options than those that work for the government or a not-for-profit, you could still receive forgiveness through IDR. You could also inquire with your employer about student loan repayment assistance as an employment benefit.

And beyond the most popular student loan forgiveness programs for nurses, there are some other student loan options and management strategies that nurses could look into.

Other student loan management options for nurses

If you don’t qualify for PSLF or IDR for any reason, or you have private student loans, you still have options available to you that could help.

Perkins Loan cancellation

Although typically associated with the teaching profession, some nurses may also qualify for Perkins Loan Cancellation. To be eligible, you must be a:

  • Registered Nurse
  • American Registered Nursing Practitioner
  • Medical Assistant
  • Licensed Practical Nurse
  • Certified Nursing Assistant
  • Licensed Medical Technician

Perkins Loan cancellation forgives a certain percentage of your loan for each year of service you complete according to the following schedule:

  • 1-2 years of full-time employment: 15% of the loan principal and interest
  • 3–4 years of full-time employment: 20% of the loan principal and interest
  • 5 years of full-time employment: 30% of the loan principal and interest

Learn more about Perkins Loan Cancellation for nurses on the studentaid.gov website here.

Student loan refinancing

If you don’t qualify for forgiveness or repayment assistance, or if you have private student loans, refinancing might be a good option for you. Refinancing is the process of applying for a new private loan to cover and pay off your current student loan(s). Refinancing could lower your interest rate and either shorten or extend your repayment terms.

How to apply for student loan forgiveness

Although each student loan forgiveness program will have a different application process, a good first step is to contact your loan servicer to see what types of federal student loans you have.

If you’re applying for PSLF or IDR, you should start organizing the information you’ll need for the application process:

Get Access

You'll need your verified Federal Student Aid (FSA) ID – this is the account username and password that allows students (and parents) to identify themselves electronically to access US Department of Education systems.

Gather Financial Information

You'll need to gather your financial information, including showing either a standard 1040 tax return or a tax return transcript, and your spouse's (if applicable).

Prepare Personal Information

You'll need to verify some personal information, so have your ID ready and your current address.

Also note that you may need to take the extra step of consolidating your federal loans, depending on which type(s) you have and which federal forgiveness program you’re applying for.

Next steps

To learn more about PSLF, IDR and other student loan debt management options, schedule a free consultation with one of our student loan specialists. Our dedicated team can help nurses understand all of their options, including how to qualify for different forgiveness programs, and can help you create an individualized plan.

Our team also stays up-to-date on student loan forgiveness rules and requirements and can provide guidance around the application process and annual compliance requirements. Learn more about how to apply for student loan forgiveness here.

Quiz

How much do you know about forgiveness options for nurses?

Start Quiz

Select any option:

Typically, nurses employed by which of the following organizations could qualify for PSLF? (Select all that apply)

Federal hospital systems

State hospitals

Public schools

All of the above
Additionally, nurses employed by qualifying nonprofits could qualify for PSLF.

True or False:

Nurses that work for the private sector or are self-employed are NOT eligible for Income-driven Repayment (IDR).

True

False
You could be eligible for IDR regardless of your employer.

Select any option:

State-level loan repayment programs often require yearslong commitments, typically within the range of:

2–4 years
Many state programs are in the 2–4-year range.

5–10 years

10+ years

Result

Great! You’re on your way.

Now that you understand the student loan forgiveness options available for nurses, our student loan specialists can help determine your eligibility and next steps toward these forgiveness programs.

Get Started Start Over

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    Laurel Road is a brand of KeyBank N.A. All products are offered by KeyBank N.A. Student loans, mortgages, personal loans, and credit cards ARE NOT FDIC INSURED OR GUARANTEED. Member FDIC. NMLS #399797. Equal Housing Lender. ©2023 KeyCorp® All Rights Reserved.

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    Disclaimers

    Sources:
    https://nursejournal.org/resources/how-much-debt-after-nursing-school/
    https://health.maryland.gov/pophealth/Pages/Maryland-Loan-Repayment-Programs---Nurses-and-Nursing-Support-Staff.aspx
    https://health.maryland.gov/pophealth/Pages/State-Loan-Repayment-Program.aspx
    https://nurse.org/education/student-loan-forgiveness-for-nurses/#military

    This information provided is for informational purposes only and does not substitute consultation with a legal, tax or investment professional for important financial decisions. Laurel Road assumes no liability for loss or damage incurred by use of the information provided. Please visit laurelroad.com for full product details, terms and conditions.

    1. GradFin and Laurel Road are brands of KeyBank N.A.

    IMPORTANT INFORMATION: The U.S. Department of Education recently announced a student loan debt relief plan which includes forgiveness of up to $10,000 for qualifying federal student loans and up to $20,000 for qualifying Pell Grant recipients. For more information, please read the announcement. Please note that if you refinance qualifying federal student loans with Laurel Road, you may no longer be eligible for certain benefits or programs and waive your right to future benefits or programs offered on those loans. Examples of benefits or programs you may not receive include, but are not limited to, student loan debt relief or public service loan forgiveness, repayment options such as Income Based Repayment or Pay As You Earn, or COVID-19 relief benefits such as a 0% interest rate, suspension of payments or loan forgiveness. Please carefully consider your options when refinancing federal student loans and consult www.studentaid.gov for the most current information.

    Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice, legal, financial, or tax advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Calculators do not include the fees and restrictions that certain products may have. This calculator does not indicate whether you would qualify for a Laurel Road loan. Please visit the applicable banking product pages on laurelroad.com for specific terms and conditions.

    This information provided is for informational purposes only and does not substitute consultation with a legal, tax or investment professional for important financial decisions. Laurel Road assumes no liability for loss or damage incurred by use of the information provided. Please visit laurelroad.com for full product details, terms and conditions.