Personal Finance / Nursing Student Loan Forgiveness
There’s no way around it: getting your nursing degree can get pricey. Debt can become a hassle for nurses, causing them to pursue side hustles to supplement their incomes or to work infinite overtime shifts.
However, many programs exist that provide nursing student loan forgiveness in 2022.
The application for the Biden-Harris Administration’s Loan forgiveness program is now open!
For more details, read here.
In this article, we’ll cover:
- What is nursing student loan forgiveness?
- Nurse Corps Loan Repayment Program
- Public Service Loan Forgiveness Program
- Biden-Harris Administration’s Student Debt Relief Plan
- Federal Perkins loan cancellation and discharge
- Military nursing student loan forgiveness
- FAQs
What is student loan forgiveness?
Loan forgiveness occurs when you are no longer required to make payments on your loan because of your job. To qualify, your loans must be in good standing and not defaulted. There are federal, state, and other repayment options for nursing student loan forgiveness.
Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program is designed for:
- Registered nurses
- Advanced practice registered nurses (such as nurse practitioners)
- Nurse faculty
You have to work in under-resourced communities at a critical shortage facility or an eligible nursing school. You must also have received your nursing education from an accredited nursing school located in a U.S. state or territory.
The program pays up to 85% of unpaid nursing education for up to three years of work. After your two-year service contract, the program may extend for a third year to make you eligible for the full 85%. That said, you do have to pay taxes on funds received from the program. You can apply for this nursing student loan forgiveness program online.
What counts as a critical shortage facility?
Critical shortage facilities are located in areas that don’t have many healthcare providers. They offer medical care to these populations.
Types of critical shortage facilities include:
- Native Hawaiian health centers
- Indian health service centers
- End-stage renal disease dialysis centers
- Disproportionate share hospitals
- Urgent care centers
- Certified behavioral health clinics
- Rural health clinics
- Residential nursing homes
- Free and charitable clinics
Public Service Loan Forgiveness Program
This is the most used nursing student loan forgiveness program. The Public Service program offers nurses loan forgiveness after working full-time and making 120 non-consecutive payments. Nurses must work 30+ hours (for a government or nonprofit) to gain eligibility.
If you work more than one job, you can combine your hours. However, you’ll need to have your employer fill out paperwork to gain eligibility.
To take advantage of the PSLF, change to an income-driven repayment plan. These plans generate your income to figure out your monthly cost. Switching over reduces your payments and can forgive more debt.
How to apply for a PSLF program
After making the 120 qualifying monthly payments and working for the same employer, you can fill out an application. Once you fill out the application, attach it to the employer certification form and mail it to the U.S. Department of Education.
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Biden-Harris Administration’s Student Debt Relief Plan
President Joe Biden has announced that in an effort to relieve the student loan crisis, his administration will be forgiving federal student loans. Eligible borrowers will be forgiven of $10,000, while Pell Grant recipients will be forgiven of $20,000.
In order to qualify, you must:
- Make less than $125,000 (or less than $250,000 for married couples)
- Have federal loans (does not apply to private loans)
The student debt relief loan application for this program is now open, and only takes a moment to apply for! The final day you can apply for this will be on Dec. 31, 2023, so make sure to do it by then!
As an additional relief effort, there has been another extension of the loan repayment pause until December of 2022. Borrowers will resume making payments in January 2023.
For more information, you can visit the government student financial aid website for The Biden-Harris Administration’s Student Debt Relief Plan.
Federal Perkins loan cancellation and discharge
Nurses who have federal Perkins loans and work full-time may qualify for a 100% loan discharge. Though Perkins loans are no longer granted, nurses who have already taken them out can have their loans canceled.
The loan cancels out over 5 years. To have your loans withdrawn, apply to the school you received the loan directly from, or through the loan provider.
Military nursing student loan forgiveness
Nurses who have served in the military are eligible for many types of loan forgiveness programs. The Army, Navy, and Air Force have programs that can give up to $40,000 a year for nursing student loans. Eligibility depends on the program. Repayment awards are taxed.
To apply, contact your specific military branch for more details.
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FAQs
You can seek loan forgiveness through the Nurse Corps Loan Repayment Program; the Public Service Loan Forgiveness Program; Federal Perkins loan cancellation and discharge; military nursing student loan forgiveness; or a state-sponsored loan forgiveness program.
Yes. Nurses can apply for student loan forgiveness through federal or state programs.
No, there are no COVID-related nursing student loan forgiveness programs for federal student loans. However, payments for some loans are paused through December 31, 2022.
State nursing student loan forgiveness
Most states have nursing student loan forgiveness programs. Generally, you need to work in a critical needs area to qualify.
Below are several state programs available to nurses:
Alaska
If you live in The Last Frontier state, there’s a SHARP program dedicated to recruiting healthcare providers to work in critical needs areas in exchange for loan assistance.
Medical workers can earn up to $27,000 per year in loan forgiveness based on their positions.
Arizona
The Arizona Loan Repayment Program allows nurses to receive loan assistance to pay off their student loan debt. This program requires a 2-year commitment to provide primary care services in federally designated shortage areas.
Nurses can receive up to $50,000 in funds to help pay back loans for their first 2 years of work.
Florida
New nursing graduates who attended school in Florida and outside the state, along with experienced nurses in Florida have a unique opportunity to get rid of debt. Through its Nursing Student Loan Forgiveness Program, Florida provides up to $4,000 per year (for no more than 4 years) to nurses who work full-time at eligible organizations.
To gain eligibility, nurses must have a license within Florida as an LPN, RN, or APRN. They also must have student loans from a nursing program in Florida.
Illinois
Nurses within Illinois — especially those just graduating from a nursing program — who decide to work in veterans homes may receive loan forgiveness of up to $5,000 per year (for a maximum of 4 years).
In order to gain eligibility for the Veterans Home Nurse Loan Repayment Program, nurses must:
- Be a resident of Illinois
- Receive employment verification by the Illinois Department of Veterans Affairs
- Meet licensing standards created by the Illinois Department of Financial and Professional Regulation
Iowa
The state’s Health Care Loan Repayment Program says that nurses must work a minimum of 5 years for $6,000, or a 20% reduction of the loan balance.
Louisiana
The Louisiana State Loan Repayment Program aims to recruit healthcare workers to work in rural or urban communities for loan help.
Nurses must work full-time in a shortage area or at a nonprofit to receive up to $15,000 a year with a three-year period minimum. You must have a Louisiana nursing license and not be in default.
Michigan
The Michigan State Loan Repayment Program provides repayment assistance for up to $200,000 for eligible loans. It’s expected that medical professionals serve in underfunded communities. Only ARPNs qualify for this loan.
Minnesota
The Minnesota Nurse Loan Forgiveness Program provides repayment to registered or licensed practical nurses who work in a designated nursing home or with people who have developmental disabilities. However, this program requires a 2-year commitment.
The contract can get extended for two more years for those working in nursing home facilities. Qualified candidates can earn $5,000 every year and a maximum of $20,000 over the course of 4 years.
Montana
The Montana Institutional Nursing Incentive Program provides loan assistance for RNs who work full-time at a Montana state hospital or state prison. Qualified candidates need to submit documentation stating that their loans are more than $1,000.
The final amount awarded depends on state funding. Candidates can only apply for repayment for 4 years.
Oregon
The Oregon Partnership State Loan Repayment Program asks nurses to commit either two years of full-time service or 4 years of part-time service in a health shortage area. Full-time nurses are eligible for up to $35,000 a year. Part-time workers can receive up to $17,500 a year.
Pennsylvania
Through the Pennsylvania Primary Care Loan Repayment Program, RNs who choose to work in shortage areas can receive loan repayment. Qualified candidates are eligible for up to $60,000 for full-time nurses, while part-time nurses can receive up to $30,000. Candidates must serve at least two years.
Rhode Island
Within the state, nurses may qualify for the Rhode Island Professional Loan Repayment Program. To receive these funds, you must work either 2 years of full-time work or 4 years of part-time work within a shortage area.
Tennessee
Tennessee offers the Graduate Nursing Loan Forgiveness Program. This program is dedicated to helping Tennessee residents who are RNs become nurse educators. To qualify, applicants must:
- Be a Tennessee resident
- Have a Tennessee nursing license
- Be enrolled in an eligible master’s degree or post-master’s degree nursing educational program.
Applicants must work full-time for 4 years to get their loans forgiven.
Texas
To qualify for the Rural Communities Health Care Investment Program, nurses need to work 12 back-to-back months in a rural community. The maximum payment is $10,000. This is especially helpful for new graduates from Texas nursing programs who are unsure how to pay off their loans.
Vermont
Vermont offers an educational loan repayment program for nurses with a maximum of $6,000. To qualify, you must work 12 months within an under-resourced area. Each nurse also needs to work at least 45 weeks every year, with 20 weeks including clinical hours.
West Virginia
The West Virginia State Loan Repayment Program provides loan assistance for nurses who work full time for at least two years in under-resourced rural areas. Qualified candidates can earn up to $40,000 for a two-year commitment and an additional $25,000 for two more years if the contract gets extended.
Nursing student loan forgiveness
You’re not trapped if you have student loan debt. Almost everybody does. However, not everyone has good opportunities to pay it off. Nurses do.
If you need to find a qualifying job to earn loan forgiveness, we’ve got you covered. Just sign up at Incredible Health and let the jobs come to you.
Sources:
“Student Loan Forgiveness.” studentaid.gov. Accessed July 21, 2022.
“Apply to the Nurse Corps Loan Repayment Program.” bhw.hrsa.gov. Accessed July 21, 2022.
“Locations.” ihs.gov. Accessed July 21, 2022.
“Disproportionate Share Hospitals.” hrsa.gov. Accessed July 21, 2022.
“Public Service Loan Forgiveness (PSLF).” studentaid.gov. Accessed July 21, 2022.
“Income-Driven Repayment (IDR) Plan Request.” studentaid.gov. Accessed July 21, 2022.
“Public Service Loan Forgiveness Form.” studentaid.gov. Accessed July 21, 2022.
“Perkins Loans.” studentaid.gov. Accessed July 21, 2022.
“Alaska’s SHARP Program.” health.alaska.gov. Accessed July 21, 2022.
“Loan Repayment Program.” azdhs.gov. Accessed July 21, 2022.
“Nursing Student Loan Forgiveness Program.” floridastudentfinancialaid.org. Accessed July 21, 2022.
“Veterans Home Medical Providers Loan Repayment Program.” isac.org. Accessed July 21, 2022.
“Health Care Award Program.” iowacollegeaid.gov. Accessed July 21, 2022.
“Eligibility and Program Requirements.” michigan.gov. Accessed July 21, 2022.
“Minnesota Long Term Care Nurse Loan Forgiveness Guidelines.” health.state.mn.us. Accessed July 21, 2022.
“Montana Institutional Nursing Incentive Program (MINIP).” mus.edu. Accessed July 21, 2022.
“Oregon Partnership State Loan Repayment Program (SLRP).” ohsu.edu. Accessed July 21, 2022.
“Pennsylvania Primary Care Loan Repayment Program (LRP).” health.pa.gov. Accessed July 21, 2022.
“Graduate Nursing Loan Forgiveness Program.” tn.gov. Accessed July 21, 2022.
“Rural Communities Health Care Investment Program.” texasagriculture.gov. Accessed July 21, 2022.
“Office of Primary Care and Area Health Education Centers (AHEC) Program.” med.uvm.edu. Accessed July 21, 2022.
“State Loan Repayment Program (SLRP).” hsc.wvu.edu. Accessed July 21, 2022.
“The Biden-Harris Administration’s Student Debt Relief Plan Explained.” studentaid.gov. Accessed August 27, 2022.
