Key Points
- Multiple federal and state programs offer partial or full student loan forgiveness for nurses and healthcare professionals.
- The most generous options include Public Service Loan Forgiveness (PSLF) and certain state-based loan repayment programs.
- Eligibility and award amounts depend on your employer type, work setting, and service commitment length.
Nursing remains one of the most respected professions in the country but it’s also one of the most financially demanding to enter. The average nursing school graduate carries between $20,000 and $50,000 in student debt, depending on degree type.
At the same time, hospitals and clinics across the U.S. face persistent staffing shortages. To attract and retain qualified professionals, both the federal government and many states offer student loan forgiveness or repayment assistance programs for nurses and healthcare workers.
These programs reward service in underserved communities, nonprofit hospitals, and public health facilities, helping health care workers manage debt while meeting the needs to the community.
|
Program |
Administered By |
Max Forgiveness |
Term |
Eligible Loans |
|---|---|---|---|---|
|
PSLF |
Dept. of Education |
Full Loan Balance |
10 Years |
Direct Loans |
|
State Programs |
State Agencies |
$10,000 – $60,000 |
2 – 4 Years |
Varies |
|
Hospital/Employer |
Private Employers |
Varies |
Varies |
Any Qualifying Educational Loan |
|
Nurse Corps |
HRSA |
Up To 85% |
2 – 3 Years |
Any Qualifying Educational Loan |
|
Military |
DOD |
$40,000 – $120,000 |
2 – 3 Years |
Any Qualifying Educational Loan |
|
Perkins Cancellation |
Dept. of Education |
100% |
5 Years |
Perkins Loans |
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1. Public Service Loan Forgiveness
Public Service Loan Forgiveness is the “best” student loan forgiveness option because of the amount it forgives, and the flexibility it offers.
Administered by: U.S. Department of Education
Eligibility: Full-time employment with a government or nonprofit healthcare employer.
Work Requirement: 120 qualifying monthly payments under an income-driven repayment (IDR) plan.
Forgiveness Details:
After 120 qualifying payments, the remaining federal Direct Loan balance is forgiven.
Best For:
Nurses working for public hospitals, nonprofit clinics, or state universities.
Example:
A nurse with $70,000 in Direct Loans who makes consistent payments under IBR while working at a nonprofit hospital can have the remaining balance canceled after 10 years.
How to Apply:
- Submit the PSLF Employment Certification Form annually.
- Ensure your loans are Direct Loans and payments are made under an eligible plan.
- Use the Department of Education’s PSLF Help Tool to confirm progress.
Pros
Cons
2. State-Based Student Loan Repayment Programs
Many states offer additional repayment programs to attract nurses to underserved communities. You can see the full list of state’s that offer student loan forgiveness programs. Examples include:
- California State Loan Repayment Program (SLRP): Up to $60,000 for two years of service in a federally designated shortage area.
- Texas Nurse Faculty Loan Repayment Program: Up to $7,000 per year for nurse educators.
- New York State Nursing Faculty Loan Forgiveness: Up to $40,000 total for teaching in approved programs.
You can find current listings and eligibility requirements through your state’s department of health or higher education agency.
Pro Tip: Many state programs can be combined with PSLF if your employer qualifies under both.
3. Hospital And Employer-Based Loan Repayment Programs
Some hospitals, nonprofit systems, and large healthcare employers offer loan repayment or tuition reimbursement as part of hiring incentives.
Common examples include:
- Sign-on bonuses or reimbursement up to $10,000–$25,000 for multi-year commitments.
- Annual contributions toward student loans as part of retention agreements.
Contact your hospital’s HR department to ask if loan repayment benefits are available. Always review any service or payback obligations before accepting funds.
Be Alert: Don’t fall for Training Repayment Agreement Provisions (TRAPs) that may require you to repay any training or loan assistance received if you don’t stay at an employer for the specified period of time.
4. Nurse Corps Loan Repayment Program (HRSA)
The Nurse Corps Loan Repayment Program is a great way to get reimbursed for your student loans if you’re willing and able to work in critical shortage areas.
Administered by: Health Resources and Services Administration (HRSA)
Eligibility: Registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty.
Work Requirement: Two-year minimum commitment at a Critical Shortage Facility or approved school of nursing.
Forgiveness Details:
- Pays up to 60% of your qualifying nursing education debt for a two-year service commitment.
- Optional third year adds an additional 25%, bringing total repayment up to 85% of debt.
Example:
A nurse with $45,000 in student loans who serves three years in a qualified facility could have $38,250 forgiven, leaving only $6,750 to repay.
How to Apply:
- Confirm eligibility through the HRSA Nurse Corps portal.
- Gather documentation of RN or APRN licensure.
- Verify employment at a qualified Critical Shortage Facility (CSF).
- Submit the online application during the annual spring cycle.
Pros
Cons
5. Military Loan Repayment Programs For Nurses
Nurses serving in the military can qualify for specialized loan repayment options, including:
- Army Nurse Corps Loan Repayment Program: Up to $120,000 over three years of service.
- Navy Health Professions Loan Repayment Program: Up to $40,000 per year.
- Air Force Health Professions Scholarship Program: Covers tuition and provides a stipend during training.
These programs are ideal for those who plan a military nursing career or wish to combine service with professional development.
6. Perkins Loan Cancellation For Nurses
While Perkins Loan Cancellation is a great benefit, there are not many Perkins Loans left, as the program stopped funding loans in 2018.
Administered by: U.S. Department of Education
Eligibility: Nurses providing direct patient care.
Forgiveness Details:
- Up to 100% of Perkins Loan debt canceled after five years of qualifying service.
- Cancellation occurs incrementally—15% after the first and second years, 20% after the third and fourth, and 30% after the fifth.
Important: Perkins Loans were discontinued in 2018, but forgiveness remains available for borrowers with outstanding balances.
How to Apply:
- Contact the institution that issued your Perkins Loan (often your former college).
- Provide verification of qualifying employment.
Pros
Cons
Frequently Asked Questions
Can new nursing graduates apply for loan forgiveness immediately?
Yes, but most programs require full licensure and employment before applying. You can begin preparing by identifying qualifying employers early.
Can I combine forgiveness programs?
In many cases, yes. For example, time served under the Nurse Corps LRP can also count toward PSLF if your employer qualifies.
What happens if I leave before finishing my service commitment?
Leaving early can trigger repayment of benefits or cancellation of your award, so always review your contract carefully.
Do private loans qualify for forgiveness?
Most federal programs apply only to federal student loans. However, some hospitals and states may assist with private loans through their own repayment programs.
Are forgiveness benefits taxable?
Federal forgiveness under PSLF and Nurse Corps is currently tax-free. State or employer programs may vary.
Bottom Line
For nurses and healthcare workers, student loan forgiveness isn’t just possible – it’s increasingly common. With shortages driving policy change, programs continue to expand and evolve.
Start by verifying your employer type, loan status, and program eligibility. Even partial forgiveness can save tens of thousands of dollars and open up more financial freedom to continue doing essential work in healthcare.
Editor: Clint Proctor
Reviewed by: Chris Muller
The post Student Loan Forgiveness For Nurses And Healthcare Workers appeared first on The College Investor.
