Nurses are not exempt from the national student loan debt crisis. On average, nurses graduate with a median student debt of $40,000 to $54,999.
For this reason, many nurses turn to student loan forgiveness programs to ease the burden of their unpaid nursing education debt. There are many available nurse loan forgiveness programs, but they all vary based on the type of degree you have, the kinds of loans you’re signed under, and the healthcare facility you work for.
Let’s find out which nurse loan forgiveness program is most beneficial to you.
Public Service Loan Forgiveness
The Public Service Loan Forgiveness Program (PSLF) is a federal program that forgives the remaining balance on Direct loans for qualifying public service workers who meet specific eligibility criteria.
To qualify for PSLF, you must:
- Have taken out federal student loans in the past. Private loans do not qualify for PSLF.
- Be employed full-time by an eligible federal, state, local, or NPO. Be sure to ask your employer if the organization qualifies for PSLF. Even if your job is a public service role, if your organization is not registered for PSLF, you cannot participate in the program.
- Have made 120 qualifying payments on a qualifying repayment plan.
Here are some public service jobs that qualify for PSLF:
- Educators (teachers, professors, administration)
- Civil authority (police)
- Healthcare providers (nurses, doctors, insurance companies)
The PSLF Program is best for borrowers who work in public service roles and have taken out federal student loans (private student loans do not qualify for PSLF!).
If you’re a nurse looking for loan forgiveness programs for the debt of nursing school, PSLF is a great option to consider. To apply for PSLF, you will have to have made 120 qualifying payments through an income-based repayment plan while being employed full-time by an approved employer. Once you’ve reached this quota, fill out the Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification and Application.
Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment program is a nurse loan forgiveness program offered by the Health Resources & Service Administration (HRSA). The Nurse Corps Loan Repayment Program encourages nurses to work in critical shortage facilities (CSF), which are healthcare facilities in areas lacking primary, mental health, and dental care.
The Nurse Corps Loan Repayment Program pays up to 85% of your nursing education debt. To qualify for the program, you must meet the following eligibility requirements:
- Must be either a registered nurse (RN), nurse faculty (NF), or advanced practice registered nurse (APRN)
- Work full-time in a critical shortage facility or an accredited nursing school
- Have attended a qualifying nursing school in the United States and territories
The Nurse Corps Loan Repayment Program is best for registered nurses, nurse faculty, or advanced practice registered nurses who work in a critical shortage facility. See if your workplace is considered a critical shortage facility here.
To apply, read the Nurse Corps LRP Application and Program Guidance and submit your application through their portal.
National Health Service Corps (NHSC) Loan Repayment Program
The National Health Service Corps Loan Repayment Program is another nurse loan forgiveness program offered by the Health Resources & Service Administration (HRSA).
In order to qualify for the program, you must:
- Be a U.S. citizen
- Work as a provider (or be eligible to be a provider) in Medicare, Medicaid, or the State Children’s Health Insurance Program
- Be fully trained and licensed to practice in a National Health Service Corps-approved primary, medical, dental, or mental care discipline
- Have a qualified student loan
- Work in clinical practice at an NHSC-approved site for at least two years
Your loan repayment amount depends on whether you participate in full-time or half-time service. If you do full-time service, you can receive up to $50,000 in loan repayment for your initial two-year term. If you do half-time service, you can receive up to $25,000.
This program is best for providers who work in Medicare, Medicaid, or the State Children’s Health Insurance Program who are willing to work in a healthcare professional shortage area for a two-year commitment.
Find information on applying here.
Perkins Loan Cancellation
If you’re a nurse who’s taken out Perkins Loans to cover the cost of your nursing education, Perkins Loan Cancellation is the program for you.
The Perkins Loan Cancellation program is a federal loan forgiveness program that can cancel up to 100% of your debt for five years of eligible service.
The program is best for full-time nurses who work in a qualifying healthcare institution and have taken out Perkins Loans before 2017.
In order to apply, contact the financial aid office of the school that you took out the loan for, or the school’s respective Perkins Loan servicer.
Important Note: The Perkins Loan Program, not the Perkins Loan Cancellation, ended in 2017 and students can no longer apply for Perkins Loans.
Army Nurse Corps Benefits/Health Professions Loan Repayment Program
If you’re a nurse on active duty or in the Army Reserve, you may be able to receive up to $250,000 in student loan forgiveness.
Nurses can also receive signing bonuses, competitive salaries, and other benefits if they decide to serve in the reserves or on active duty for an extended period of time.
This program is best for nurses who plan to serve in the Army.
Other Options for Reducing Nursing School Debt
If you’re looking for options outside of nurse loan forgiveness programs, consider student loan refinancing.
Student Loan Refinancing
Student loan refinancing is when you combine all or some of your loans under one new loan, usually with better terms like a lower interest rate or a longer repayment term.
To refinance your student loans, you’ll have to start looking into refinancing lenders and comparing refinancing terms. If you want to be approved to refinance your student loans, you’ll want to have a strong credit score and steady income.
Best Student Loan Refinancing Companies For Nurses
Refinancing your loans is a great way to secure better loan terms and ease the burden of paying for your loans. Here are some student loan refinancing companies that we recommend for nurses.
Arkansas Student Loan Authority (ASLA)
The Arkansas Student Loan Authority offers loans to Arkansas residents or students who have attended a school in the state. They offer competitive rates and flexible terms to those who qualify. ASLA is best for nurses who either live in or attended school in Arkansas and want competitive interest rates and flexible loan terms.
Brazos is a nonprofit lender that provides student loan refinancing to Texas residents. Brazos offers competitive interest rates and flexible terms to those who qualify. Brazos is best for nurses who are Texas residents.
College Ave offers student loan refinancing and is known for their strong customer service, competitive interest rates, and flexible loan terms. For example, College Ave offers nonstandard 6- or 9-year loans, which is unlike many other private lenders. College Ave is best for nurses that want access to good customer service and a flexible repayment term.
Earnest offers student loan refinancing with customizable repayment plans where you can choose your repayment term down to the month. Earnest also has forward-looking eligibility criteria and offers competitive interest rates. Earnest is best for nurses who don’t have a cosigner and want a repayment plan customized to their situation.
INvestED offers student loan refinancing to Indiana residents and students who attended school in Indiana. They offer a variety of repayment options, competitive interest rates, and flexible terms. INvestED is best for nurses that are Indiana residents or attended school in Indiana and want access to different repayment options.
ISL Education Lending is a nonprofit student lender offering both private student loans and student loan refinancing. ISL Education Lending is best for nurses who want to work with a nonprofit lender and want competitive interest rates.
LendKey will connect you with a network of 100+ lesser known credit unions and community banks so you can work with and take out loans from smaller institutions. LendKey is best for nurses that are creditworthy borrowers and want to work with smaller lenders with low rates and good customer service.
Nelnet Bank offers student loan refinancing for both private and federal student loans, including parent PLUS loans. Nelnet Bank also offers a flexible forbearance policy and competitive interest rates. Nelnet Bank is best for nurses that are looking for competitive rates and want the ability to refinance student loans, including parent PLUS loans.
SoFi is one of the biggest student loan refinancing companies in the industry. SoFi is best for nurses who have at least an associate’s degree, are a creditworthy borrower, and want to take advantage of SoFi’s borrower benefits.
Closing Thoughts From the Nest
If you’re a nurse who’s taken out federal student loans to pay off tuition, you should definitely take advantage of the nurse loan forgiveness programs and loan refinancing options available to you.
Student loan debt can stack up quickly, so it’s optimal to have a plan ahead of time.
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