Nursing school can be expensive, and paying back student loans (plus interest) can feel like a never-ending uphill battle. According to the American Association of Colleges of Nursing, some nursing degrees can cost over $100,000, causing many nurses to rely on either private student loans or federal loans to fund their education. However, this often leaves them feeling overwhelmed by the amount of debt they carry after graduation. Luckily, there are lots of things in the works, including federal student loan forgiveness for certain borrowers.
On June 30, 2023, the Supreme Court struck down President Biden's plan to forgive some or all federal student loan debt for tens of millions of Americans. By a 6-to-3 vote on ideological lines, the court ruled that federal law does not authorize the Department of Education to cancel such debt.
However, on July 14, 2023, the government took action to correct years of mistakes made by loan servicers who collected payments on behalf of the federal government. This resulted in over $39 billion in federal student loan debt being eliminated for more than 800,000 borrowers.
If you aren't part of that group, don't worry! Millions of individuals will see their loans adjusted as part of the program, which will continue into 2014. The relief will be granted to those with federal loans owned directly by the Education Department and who have enrolled in income-driven repayment plans or would have qualified for forgiveness under these plans. These plans set a cap on the payment that borrowers owe as a percentage of their income. While borrowers are required to make payments for a period of 20-25 years, any remaining balance is forgiven at the end of that term.
For those that don't qualify for the Biden-Harris student loan forgiveness plan, there are other student loan forgiveness programs available for nurses. See 10 different options for student loan forgiveness to find what works best for you.
Luckily, there are many programs available for nurses, which can help shorten the student loan repayment period and wipe out some or all of their debt:
Please note that the options mentioned in this content are for informational purposes only. These options may not be applicable to everyone, and eligibility requirements may vary. It is important to do your own research and consult with your loan servicer before making any decisions regarding your student loans. This content is not intended to provide legal or financial advice and should not be relied upon as such. The Marketplace team is not responsible for any decisions or actions you take regarding your student loans based on the information provided in this content.
Public Service Loan Forgiveness (PSLF) is a federal program that allows individuals with eligible federal student loans who work in public service jobs to have their remaining loan balance forgiven after making 120 qualifying monthly payments under an income-driven repayment plan.
The program aims to incentivize students to pursue careers in the public sector, such as government, non-profit, or education, by offering student loan relief for those who serve their communities. However, it's important to note that only federal direct loans (received under the Direct Loan Program) are eligible, and borrowers must meet certain requirements to qualify for forgiveness.
To qualify for PSLF, candidates must work full-time for an eligible employer for at least 10 years while repaying their federal student loan debts. This program is ideal for nurses with federal student loans who work for or plan to work for nonprofit hospitals, other nonprofit medical organizations, or government agencies. You can complete the Public Service Loan Forgiveness (PSLF) form with the PSLF Help Tool.
The PSLF is a great program for nurses if you've worked full-time for an eligible employer for at least 10 years while repaying your federal student loan debt.
Historically, an income-driven repayment (IDR) plan set your monthly student loan payment at an amount that was intended to be affordable based on your income and family size, and any remaining balance after making payments for 20-25 years would be forgiven.
SAVE is effectively replacing another IDR plan called Revised Pay As You Earn, also referred to as REPAYE. Borrowers who are already enrolled in REPAYE will automatically be able to receive the new features and benefits of the SAVE plan. Future borrowers will not be able to enroll in REPAYE after July 2024.
The SAVE Plan, like other income-driven repayment plans, calculates your monthly payment amount based on your income and family size. However, the SAVE Plan provides the lowest monthly payments of any IDR plan available to nearly all student borrowers. Apply for the SAVE plan on the Federal Student Aid website today to see what may be the best solution for your unpaid nursing education debt.
If you received Perkins Loans to help pay for nursing school, you might be eligible for cancellation. Full-time nurses and allied health professionals can receive 100% forgiveness for Perkins loans after five years of service.
The program offers incremental forgiveness, meaning a percentage of the principal amount is canceled annually, usually 20% every year. To see if you apply, get in touch with the school that disbursed the Perkins loans, or your loan servicer.
The Health Resources and Services Administration (HRSA) offers a Nurse Corps Loan Repayment Program that covers up to 85% of student loan debt: 60% over two years and an additional 25% if you’re eligible for a third year. To qualify you must:
Be a registered nurse (RN), advanced practice registered nurse (APRN), or nurse faculty member.
Be employed full-time (32 hours/week) at a Critical Shortage Facility (CSF), a public or private health care facility located in, designated as, or serving a Health Professional Shortage Area (HPSA); an HPSA is an area lacking enough primary care or mental health professionals, or serve as faculty at an eligible nursing school.
Have received nursing education from an accredited nursing school in the United States or a U.S. territory.
Keep in mind that these funds are considered taxable income, however, federal taxes are automatically deducted from the reward. Additionally, taking rural assignments is a great way for travel nurses to meet the requirements, as these locations usually classify as a health professional shortage area (HPSA). Find HPSA locations and apply for the Nurse Corps Loan Repayment program today.
Another nursing student loan forgiveness option is the National Health Service Corps Repayment Program. Within this program, there are three different repayment plans for registered nurses. To receive student loan repayment assistance, you must work at an NHSC-approved Health Professional Shortage Area, also known as HPSA, for at least two years.
If you work full-time (40 hours/week) for two years, you can receive up to $50,000 from the NHSC Loan Repayment Program. Alternatively, you can work part-time (20 hours/week) for two years for up to $25,000. The National Health Service Corps Loan Repayment Program is one of the best loan repayment programs for any licensed registered nurse.
This loan repayment program helps nurse practitioners, registered nurses, and other healthcare workers pay their eligible school education loans — up to $50,000 in exchange for an initial two-year service commitment to practice in health facilities servicing American Indian and Alaska Native communities.
Opportunities are based on Indian health program facilities with the greatest staffing needs in specific health profession disciplines. As a participant, you can extend your contract every year, continuing to work in Indian Health Service facilities until your qualified student debt is paid. Many registered nurses enter this program because of the financial benefits, but are pleased to find a calling to work with this population. Learn more and apply today to see if you qualify for loan assistance.
Many registered nurses who agree to go into military service see thousands of dollars of their student loans forgiven. There are many options for military student loan forgiveness, depending on what branch you serve. One of the most popular choices is the Army Active Duty Health Professions Loan Repayment Program, which is eligible for registered nurses and advanced practice registered nurses (ARPNs).
If you enlist in the Army, you can qualify for up to $120,000 to repay nursing student loans in exchange for a three-year service to the Army (minimum) — meaning you can receive $40,000 per year.
In order to enlist as an Army nurse, you must be:
Between the ages of 21 and 52
Hold a Bachelor of Science in Nursing degree from an accredited school
Have a valid registered nurse (RN) license
Meet the Army's physical and moral standards
A U.S. citizen or permanent resident
Many states offer their own forgiveness programs for nurses to those that work in a health professional shortage area (HPSA) within the state. Some of those states include California, Iowa, Michigan, and Minnesota.
If you want to know which loan repayment programs you may be eligible for based on where you live, check your state's Department of Education website to learn more.
Some hospitals offer loan repayment assistance or forgiveness plans to registered nurses, especially if they are in a critical shortage facility. Check hospitals and clinics in your area to see which hospitals might forgive some of your nursing education debt in exchange for your commitment.
Talk about forgiveness or tuition reimbursement options with the human resources department of any healthcare facility you’re considering.
If you're a travel nurse, check with your staffing agency to see if they offer tuition reimbursement, loan assistance, or any forgiveness plans. Ask your recruiter how much student loan forgiveness you’re eligible for and what requirements you need to meet.
This is a great option for healthcare travelers who may not qualify for other programs because they earn too much or don’t work at eligible facilities.
With any student loan forgiveness program, there is a trade-off. While it can feel financially freeing to get your remaining student loans forgiven, you may have less control over your healthcare career and where you work based on the requirements of the program.
Nurses can have thousands of dollars in loans forgiven for each year of service
You can still make a good living as a registered nurse while participating in student loan forgiveness
After participating, you can have more money to save, travel, and do the things you want to do
You may be limited to working in an underserved or specific area, which may mean less job flexibility
Oftentimes, you need to commit to working for multiple years to qualify
You may need to continue making student loan payments while you work and are a part of one of the above programs
While a student loan repayment program might work for many full time nurses, they may not be for you, and that's okay. There are ways to get your student loans paid without a loan forgiveness program.
For example, many nurses begin travel nursing to make more money, because they earn a higher rate than most perm staff nurses. From there, they can use a higher income to pay down their loan balance faster. Often, maximizing your income instead of trying to cut things out of your budget is the best way to pay off debt. When you’re ready to become a travel nurse, find travel assignments on Marketplace.
Another way to pay off student loans is to take the avalanche approach, paying off the highest interest to the lowest interest, or the snowball approach, from the smallest amount to the biggest. Choosing a plan and sticking to it is essential for reaching your goal without a loan forgiveness program. Make sure any extra payments you make on your loans are going toward the principal amount. This allows you to pay off your debt faster by minimizing interest payments, but you may have to work with your loan servicer to ensure the money is applied correctly.
Paying off student loans can be daunting, but it doesn’t have to be! Now that you know the options available to you as a nurse, figure out what loan repayment program you're eligible for and make a plan. You got this.