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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.
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 (typically enrolled in by borrowers pursuing 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). 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.
IDR for nurses
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:
IDR Comparison Chart
Applications for SAVE, other IDR plans, and loan consolidation are available on http://studentaid.gov. You can also submit a PDF application to your loan servicer by uploading it to your servicer’s website, or mailing it to them. Expect a delay in processing times. The Education Department recommends checking its website for updates – there is no processing time estimate available.
10% of your discretionary income (and your spouse’s if filing jointly)
Never more than federal 10-year Standard Repayment Plan amount
20 years
Not accepting new enrollments
Challenges to SAVE
Multiple legal challenges made by states to the Saving on A Valuable Education (SAVE) plan could impact implementation of key aspects of the plan. For the most up-to-date developments, visit studentaid.gov.
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:
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.
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 an employer doesn’t qualify for PSLF, nurses can benefit from IDR plans which stabilize monthly student loan payments and offer forgiveness after 10, 20, or 25 years of repayment regardless of their employer. Additionally, some nonprofit organizations may 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, talk to 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?
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.
