Loan Forgiveness Programs for Nurses

With the ever increasing costs of nursing school, nurses are graduating with on average between $40k - $55k in debt.  If you’ve chosen to go the nursing route, never fear.  There are plenty of debt forgiveness and assistance programs to help you pay back your debt.  Introducing, loan forgiveness for nurses.

Let's take a quick look at your options: 

These programs all vary in who is eligible to apply and in what loans are eligible for forgiveness or repayment.  Also, many programs cannot be done in conjunction with another one.  We'll go through each program below.

Income-Driven Repayment Plans

The income driven plans are unique in that they are open to anyone regardless of occupation.  With this program, you choose from 4 different repayment plans that are based on your income and family size.  If your income increases/decreases or your family size increases, your payments would change accordingly.  

After 20 or 25 years of on-time monthly payments, you would be eligible to have your remaining loan balance paid off.  Be aware though that any amount paid off is taxed as ordinary income.

These repayment plans are open to any one with student loan debt (though be sure to check if your debt qualifies).  This may not be the best option for you, as it would mean 20 or 25 years before your loans would actually be eligible to be paid off.

Public Service Loan Forgiveness Program

The Public Service Loan Forgiveness Program (PSLF) is one of the best forgiveness programs out there.  As long as you are working for a qualifying company, you are able to have your remaining loans forgiven after 10 years of on-time payments.  That's way better than waiting 20 or 25 years!

To be eligible you must be working full-time (at least 30 hours a week).  If you have more than one job, you can combine your hours to meet the requirement.  However, you will need to fill out the paperwork for each job.

Nurse Corps Loan Repayment Program

This program is funded by the Health Resources and Services Administration and can pay up to 85% of your student loan debt.  It is open to licensed registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty (NF).  You must be a US citizen, US National or Lawful Permanent Resident.

The program requires a two-year minimum commitment at a Critical Shortage Facility (in an area lacking health professionals).  Over those two years, you will get payments for 60% of your student loans.  

You can then apply for an additional third year and in that year you will receive an additional 25% of your original loan amount.  You must be working full-time. There are no part-time options.

Be sure to check out other NHSC programs as they have additional programs that you may be able to apply to as well that is not taxable.  You can only receive assistance from one though.

To Apply

To apply to this program submit your application through the Bureau Health Workforce Customer Service Portal.  You will have to create an account with them to fill out the application.  Preference is given according to your financial need.  Be aware of the application deadline. Applications are only accepted once a year!

Indian Health Service Loan Repayment Program (LRP)

This program requires that you work full-time for two years in an American Indian or Native Alaskan community.  You would be eligible to receive up to $20,000 per year for your commitment.  The award amount is taxable but they will help you pay 20% of your tax bill.

The eligibility requirements are a little stricter for this program.  You need to be an advanced practice nurse: C.N.M., C.R.N.A., D.N.P., N.P., A.N.D., or B.S.N.  The good news is you may extend your commitment until your loans are paid off.

Check out their site for more information on specialties etc.

National Health Service Corps Loan Repayment Program

The National Health Service Corps (NHSC) offers 4 different loan repayment programs: NHSC Loan Repayment Program, NHSC SUD Workforce Loan Repayment Program, NHSC Rural Community Loan Repayment Program, and the NHSC Students to Service Loan Repayment Program (only open to doctors and dentists).

These programs are open to a range of health care practitioners including Physicians (MD/DO), Physician Assistants (PA), Health Service Psychologists (HSP), Licensed Clinical Social Workers (LCSW), Marriage and Family Therapists (MFT), Licensed Professional Counselors (LPC), and certain nurse practitioners.

In addition, each program expands to include other professions that they deem eligible. You may only apply to one program.

NHSC Loan Repayment Program

Including the professions mentioned above, this program is also open to Nurse Practitioners (in certain specialties), Certified Nurse Midwives (CNM), and Psychiatric Nurse Specialists (PNS).  

It only requires a 2-year service commitment but you must work at an approved site in a Health Professional Shortage Area (HPSA).  For working full time you can receive up to $50,000 and for working part-time, up to $25,000.

Pay attention to the application deadline as it takes 3 weeks to complete the application.  You must be US citizen and able to be a provider in Medicare, Medicaid, and the State Children’s Health Insurance Program.

NHSC SUD Workforce Loan Repayment Program

SUD stands for Substance Use Disorder and this program was formed in response to the opioid crisis.  The requirements are the same as the previous program as well as the application time (3 weeks).  So be sure to apply early!

The commitment for this program is 3 years and as a full-time worker you would receive up to $75,000 towards loan repayment (up to $37,500 for part-timers).  You must work at an approved SUD site.  Nurse Practitioners, Certified Nurse-Midwives and Registered Nurses are also eligible to apply.

NHSC Rural Community Loan Repayment Program

This program was established to help the opioid crisis in the rural communities across the country.  You should be a US citizen and a provider in Medicare, Medicare, and the State Children’s Health Insurance Program.  Also, you must be working, or have accepted a position at an approved rural SUD site that provides outpatient care in HPSAs.

RN, CNMs, NPs and Psychiatric Nurse Specialists are all eligible to apply.  This one is also a 3-year service commitment where, as a full-time worker, you can receive up to $100,000 in repayment and $50,000 working part-time.

To Apply

Nurse Faculty Loan Program

This is a loan program offered to accredited nursing schools with students trying to attain an advanced education nursing degree and who wish to teach.  

If you receive these loans, you can have up to 85% of them canceled so long as you commit to working full-time as nurse faculty at an accredited institution.

It is only offered to nursing schools or advanced education nursing programs as a one-year funding opportunity but nursing schools may re-apply every year.  All previous funds must be used before re-applying.

Faculty Loan Repayment Program

This program is funded by the Health Resources and Services Administration (HRSA) like the NHSC.  If you are interested in pursing a career in teaching and you are a R.N. or A.P.N., this program could be for you.  It was established to help recruit faculty members from people in the health field. 

If you decide to work at an accredited health professions institution full-time or part-time, a portion of your loans will be repaid each year.  The government will pay up to $20,000 per year and many health professions institutions will match this.  This program also provides funding to help pay for the increased tax burden.

To Apply

National Institute of Health Loan Repayment Program (LRP)

The NIH has many repayment programs for those who are willing to do research in biomedical and biobehavioral fields at a non-profit or governmental organization. 

It is open to US citizens and permanent residents who have one of the following degrees or their equivalent: D.D.S., D.M.D., Ph.D., M.D., D.O., D.V.M., Pharm. D., A.N.D./B.S.N.

To qualify, your student loan debt must be more than 20% of your initial pay and you must work for them for at least 2 years.  NIH repays up to $50,000 per year and also pays the IRS for you for your resulting tax bill with an amount equal to 39% of the repayment amount.

NIH Intramural LRP

There are 3 Intramural programs offered by the NIH.  These are for people employed by NIH.  For these programs please consult with your supervisor about your eligibility.

• NIH AIDS Research Loan Repayment Program: 2 year commitment
• NIH Clinical Research for Individuals from Disadvantaged Backgrounds LRP: 2 year program
• NIH General Research LRP: Minimum 3 year requirement, Open to individuals in subspecialty and residency training programs

NIH Extramural LRP

There are 5 Extramural programs offered by the NIH.  These are for people not employed by the NIH.

• Clinical Research LRP
• Pediatric Research LRP
• LRP for Minority Health Disparities Research
• Contraception and Infertility Research LRP
• Clinical Research for Individuals from Disadvantaged Backgrounds LRP

All extramural programs are a 2 year commitment and you must work at least 20 hrs per week on the NIH research.  Check out their website for more specific guidelines for each program.

To Apply

Go online to NIH LRP website and click on Apply.  Make sure you know which LRP you want to apply for as well as its deadlines and timelines. They have a system that can help walk you through the process.  Also, they have a nice calculator so you can see how much your award would be.

In addition, certain people are considered ineligible for this program, such as people with Federal Judgment liens.  There are also specific loan conditions, i.e. no parent PLUS loans.  So be sure to check that out as well.

There is no limit on how many times your reward can be renewed and NIH will continue awarding you money equal to ½ half the amount of your eligible debt.  Max is $50,000.  If your debt is less than $10,000, they will pay it in full.

Of course, should you need to break contract for any reason, you will have to pay $7,500 for every month you didn't complete or $31,000, whichever is higher.

Army Nurse Corp

Besides the $20k or $30k active duty sign up bonus, certain nurses can receive special pay ($15 - $40k every year) and extra Board certification pay ranging from $2,000 to $6,000 each year.

Under their Active Duty Health Professions Loan Repayment Program, nurses can receive $40,000 per year for 3 years to help repay their student loan debt. 

Signing up for reserve duty with the Healthcare Professionals Loan Repayment Program, you receive up to $50k over the course of 3 years.  The first two years you would receive $20k and the last year $10k.

Navy Nurse

For the Navy Health Professions LRP, you may apply if you are in your last year of nursing school or training program/residency.  You must serve a minimum of 2 years and would receive $40,000 in debt repayment assistance.

With the Navy Nurse Candidate Program, you must be a student at an eligible institution pursuing a BS degree in Nursing. You would have to commit to a few years (maybe 5) of service but you can receive a sign up bonus of $10,000 as well as a $1,000 stipend for 2 years while in school.

Air Force Nurse

Under the Air Force Active Duty Health Professions LRP, you can receive up to $40k per year (not sure if that is a life time maximum or available each year).  Check with a local Air Force Rep for more information.

Army National Guard

With a 3-year service agreement under the Medical Professional Accession Officer Bonus, you may be eligible to receive a special signup bonus.  The bonus is paid out every year at the beginning of the year.  You may be able to receive a retention bonus as well after completing your 3 years.

They also have a Health Care Professional LRP in which you could receive up $250k depending on your profession and specialty for 7 years of service.  The first 6 years you will receive $40,000 and the seventh year $10,000.

Perkins Loan Cancellation

With just 5 years of service, you could have your Perkins Loans completely forgiven, interest included.  To be eligible for this benefit you must be a registered nurse (RN), licensed practical nurse (LPN), certified nursing assistant (CNA), or an advanced registered nursing practitioner (ARNP).

Every year that you work in an eligible employment or volunteer service, you can have a portion of your loans cancelled.  For your 1^st and 2^nd years, they will cancel 15%.  For your 3^rd and 4^th years, 20% will be canceled and for your final 5^th year, the remaining 30% will be canceled.

You will have to apply for the benefit through your school.

State Sponsored Programs

Alaska

The SHARP program has a loan assistance program where you can receive up to $47,000 per year (awards are Tiered) plus a matching contribution from your employer.  The amount you will receive depends on your location and your position.  You must work in a qualified shortage area full-time or part-time.

California

Open to registered nurses working in a shortage or underserved area.  It requires a one-year commitment and you can receive up to $10,000.  You can continue with the program for 3 years for a maximum award of $30,000.

Florida

Florida has a student loan forgiveness program where you could work in a number of locations (even public schools) and receive their award of up $4,000 for a maximum of 4 years.  Certain employers will be required to match the award giving you double to money!

Illinois

Veterans’ Home Medical Providers’ LRP -  You must be a licensed nurse in good standing and a resident of Illinois to receive loan assistance.  It is open to those who are working in a veterans’ home.  You can receive up to $5,000 per year for up to 4 years.

Nurse Educator Loan Repayment Program - This is open for nurses who have been teaching at least 12 consecutive months in an approved program prior to application.  You can receive $5,000 per year for up to 4 years in this program.

Louisiana

Started to encourage nurses to work in the inner city and rural areas of Louisiana.  You must work in a shortage area or for a non-profit to receive this award.  It has a 3-year commitment with $15,000 awarded each year.  You can extend for an additional 2 years.  

Maryland

Janet L. Hoffman Loan Assistance Program - You must be a resident of Maryland and have graduated from a Maryland institution. You are required to work in a low-income, underserved community and make less than $60,000 (if married $130k) a year. 

Your award amount depends on the amount of your student loan debt.  If it is $15k or less, you can get up to $1,500 each year.  If it’s between $15-$40k, up to $3,000.  If it’s between $40 - $75k, up to $6,000 per year and if it is over $75k, up to $10k per year.  You can receive awards for a maximum of 3 years.

Minnesota

Minnesota’s loan forgiveness programs are open to licensed nurses working at a nursing home, with people who have developmental disabilities, or in rural communities.  

You must commit to at least two years. If you qualify, you can receive up to $6,000 each year.  For nurses working in a nursing home, you can extend for an additional 2 years for a grand total of $24,000.

Minnesota State LRP -  Awards up to $10,000 for part-time workers and up to $20, 000 for full-time workers per year.  Only one person from each qualified location may apply.  It is a two-year commitment that can be extended up to 4 years.

Health Professional Education LFP -  Nurses only need a 2-year commitment in a rural or underserved community to receive yearly 15% of the average debt amount for the nursing profession.  Max is 4 years.

Montana

The Montana Institutional Nursing Incentive Program is open to nurses with a loan balance of at least $1,000 who work full-time at a state prison or hospital.  Award amounts vary depending on funding and the amount of people who apply.

Montana NHSC LRP - This is open to health professionals who agree to work full-time for two years in an Health Professional Shortage Area (HPSA).  You can receive up to $15,000 yearly.

New York

Nursing Faculty Loan Forgiveness Incentive Program - You must be licensed in NY and a resident of NY for at least a year.  You should also have a Masters or Doctoral degree.  You can receive up to $8,000 a year for a maximum of $40,000. Parent PLUS and Perkins loans are not eligible.  Other loans must have been received after 2001.

Pennsylvania

The Pennsylvania Primary Care Loan Repayment Program requires a two year commitment working in an HPSA.  You can work part-time or full-time.  Part-timers can receive up to $30,000 and full-timers, up to $60,000.

Rhode Island

Educational Loan Repayment Program for Primary Care Providers - You must be licensed to practice in Rhode Island in internal medicine, family medicine or pediatrics.  You can receive up to $10,000 each year for a maximum of $40,000.  However, it cannot exceed 50% of your debt.

Vermont

Educational LRP - For this program, you must commit to working 45 hours per week with 20 clinical hours and serve for at least 1 year.  You can receive up to $6,000 per year.  Priority given to rural, underserved, and shortage areas.

Virginia

State LRP - With this program, you can receive up to $25,000 for two years of service in an HPSA.  Awards must be matched by the employer.

West Virginia

State LRP - You must work full-time for a minimum of two years in an HPSA.  You can receive up to $40,000 for the two-year commitment and an additional  $25,000 per year for another two years if extended. Maximum $90,000.

Wyoming

Healthcare Professionals LRP - You may receive up to $10,000 for a maximum of 3 years of service.  (not funded through June 30, 2020)

State LRP - Eligible for up to $20,000 for 2 years of service in a NHSC approved site.

Things to note:

• Any debt forgiven you have to pay taxes on.
• Loans in default are not eligible for forgiveness programs (but are eligible for discharge programs).  Defaulted loans must be brought back to good standing first (rehabilitated or consolidated). Else-wise you could try student loan settlement or bankruptcy.
•  Check every year to make sure you still qualify for whichever program you choose.  You don't want to get to the end and find out that you do not.
• You need to re-certify every year for the income driven repayment plans and PSLF program.
• You may qualify for more than one program but you may not be able to do them at the same time.

All in All

Being a nurse can be a very rewarding career where you can help people live healthier lives.  But being saddled with tens of thousands of dollars of debt sucks.  Hopefully, now armed with the knowledge of the many programs available to you, you'll finally be able to kiss your loans goodbye.

Fighting! (by this I mean, good luck!)