Student Loan Forgiveness Programs for Nurses

Yes, there are real federal programs that can forgive or repay nursing student loans. Two of the most relevant for nurses are Public Service Loan Forgiveness (PSLF) and the NURSE Corps Loan Repayment Program. Both depend on where you work, and both have eligibility rules that have changed over time, so use this article for the basics and confirm every detail on the official program sites and with your loan servicer.

Start with what kind of loans you have

Before looking at any program, find out exactly which loans you hold. Federal student loans are listed in your account on StudentAid.gov, the Federal Student Aid site. Private loans from banks or other lenders won't appear there and generally don't qualify for federal forgiveness programs.

For each loan, write down:

• The loan type (for example, Direct, FFEL or Perkins)
• Your servicer
• Your current repayment plan
• Your balance and interest rate

This list matters because programs treat loan types differently. For example, PSLF applies to federal Direct Loans, and other federal loan types usually need to be consolidated into a Direct Consolidation Loan to count. Ask your servicer before consolidating, since it can affect your progress.

Public Service Loan Forgiveness

PSLF forgives the remaining balance on eligible federal Direct Loans after you make 120 qualifying monthly payments while working full time for a qualifying employer. The payments don't have to be consecutive. In general:

• Qualifying employers include government organizations and nonprofit organizations that are tax-exempt under Section 501(c)(3). Many hospitals and health systems are nonprofits, but not all are, so check each employer.
• Qualifying payments must be made under a qualifying repayment plan, such as an income-driven plan.
• Full time is defined by the program's rules, not just by your job title.

PSLF looks at the organization that employs you. If you work at a nonprofit hospital through a for-profit staffing or travel agency, that time usually doesn't count, because the agency is your employer. The PSLF Help Tool on StudentAid.gov lets you search for employers and complete the employment certification form. Certifying employment every year and whenever you change jobs helps problems surface early.

Repayment plans and PSLF rules have changed several times in recent years, and they can change again. Before you make decisions based on PSLF, check the current rules on StudentAid.gov and ask your servicer how your payments are being counted.

The NURSE Corps Loan Repayment Program

The NURSE Corps Loan Repayment Program is run by the Health Resources and Services Administration (HRSA). It pays a portion of qualifying nursing education loans for registered nurses, advanced practice registered nurses and nurse faculty. In exchange, you commit to a period of service, typically full time, at an eligible Critical Shortage Facility or as faculty at an eligible school of nursing.

A few things to know:

• It is competitive. HRSA has a limited number of awards each cycle and uses funding priorities.
• Applications open on a set schedule, and the dates and requirements can change from cycle to cycle.
• Not every facility qualifies, so confirm your workplace's eligibility before you apply.

HRSA also runs the NURSE Corps Scholarship Program for students, which pays for nursing school in exchange for service after graduation. Full details for both are on the HRSA website.

Other programs worth checking

Depending on your role and where you work, you may also find:

• National Health Service Corps loan repayment for certain clinicians, including nurse practitioners and certified nurse-midwives, who serve at approved sites in shortage areas. Check its current list of eligible disciplines, since some of its programs include other nursing roles.
• State loan repayment programs, which many states run for health professionals who work in shortage areas or with underserved patients.
• Military programs: the armed forces offer loan repayment and other education benefits for nurses who serve. A healthcare recruiter can explain the options.
• Employer benefits: some employers offer student loan repayment assistance or tuition reimbursement as part of the benefits package.

How forgiven or repaid amounts are treated for taxes depends on the program and current law, so ask a tax professional how they apply to you.

If you're still in nursing school

Planning ahead now can make repayment easier later:

• Keep track of every loan you take, including whether it is federal or private, since only federal loans can qualify for federal forgiveness programs.
• Look at the NURSE Corps Scholarship and any state or school programs that pay for school in exchange for service.
• Ask your school's financial aid office how each loan you're offered would work with programs like PSLF.
• Think about where you want to work after graduation. Nonprofit and public employers, and facilities in shortage areas, are the ones most programs focus on.

How to protect yourself

A few habits help you avoid costly surprises:

1. Keep records. Save every employment certification, servicer letter and payment confirmation.
2. Check your payment count. Review your PSLF progress in your StudentAid.gov account and question anything that looks wrong.
3. Watch for scams. You never have to pay to apply for PSLF or to get help with federal student loans. Your servicer and Federal Student Aid help for free.
4. Confirm before big moves. Before changing employers or repayment plans, ask your servicer how it affects your progress.
5. Read service agreements carefully. For programs like NURSE Corps, understand what happens if you can't complete your commitment.

Factoring loans into job decisions

Loan programs can make a job at a nonprofit hospital, public facility or shortage-area clinic worth more than its hourly rate suggests. When you compare offers, list the employer type alongside pay and benefits. Our guide to comparing nursing job offers shows how to weigh benefits against pay, the free pay calculator helps you compare pay between offers, and the pay pages show pay ranges from jobs posted on NurseTide.

If you are still choosing a degree path, weigh the debt each option involves; our article on ADN vs BSN covers the trade-offs. And if you'd like to hear how other new nurses are handling repayment, you can ask in the new grad nurses group.

Next step

When you look at your next role, check whether the employer could count toward a loan program. Jobs on NurseTide show the pay, so browse nursing jobs and compare the full picture.

General information for nurses, not medical, legal, tax or financial advice. Follow your facility's policies, your state board of nursing and the terms of your employer or contract.