Lori Meadows
Earning a nursing degree can be expensive, but there are several options available to help nurses pay off their student loans. These include loan forgiveness programs, income-driven repayment plans, high-paying nursing jobs, and scholarships or grants. Nurses who work in government or nonprofit settings, underserved areas, or the military may be eligible for loan forgiveness programs. Additionally, some hospitals may offer to pay off student loans in exchange for a commitment to work at that hospital for a certain period. Federal student loans offer benefits such as income-driven repayment plans and loan forgiveness after a specified number of qualifying payments. Private loans are also an option but may have different eligibility requirements and lack forgiveness or income-driven repayment plans.
| Characteristics | Values |
|---|---|
| Loan repayment programs | Bureau of Health Workforce offers eight programs that repay part of school loan debt in exchange for service in an eligible healthcare facility for a community in need |
| Loan forgiveness programs | Public Service Loan Forgiveness (PSLF) for nurses working in nonprofit or government settings; more extensive loan forgiveness for nurses working in underserved areas or in the military; Nurse Corps Loan Repayment Program |
| High-paying nursing jobs | Cleveland Clinic and Rush University Medical Center are two of the largest hospitals that pay student loans for eligible nurses |
| Income-driven repayment plans | Federal loans offer income-driven repayment plans that eventually lead to loan forgiveness after 10 to 25 years of qualifying payments |
| Private loans | Higher borrowing limits and no origination fees, but no forgiveness options or income-driven repayment plans |
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What You'll Learn
Loan forgiveness programs
Public Service Loan Forgiveness (PSLF)
The PSLF program is a federal program that offers loan forgiveness to nurses who work full-time (at least 30 hours per week) for a federal, state, local, or tribal government or a qualifying non-profit organization. To qualify, nurses must make at least 120 qualifying monthly payments while working for a qualifying employer. After meeting these requirements, the remaining balance of the federal loans is forgiven. Nurses in nonprofit or government hospitals, including federal, state, and tribal governments, are eligible for PSLF if they work full-time and have made the required number of payments.
Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program, offered by the Bureau of Health Workforce, repays up to 85% of unpaid nursing education debt for RNs, APRNs, and nurse faculty. In exchange, participants are required to work full-time for two years at an eligible healthcare facility with a critical shortage of nurses or an approved nursing school. After the initial two years, individuals may receive an additional 25% of loan repayment if they continue for a third year. This program gives funding preference to those with the highest financial need.
National Health Service Corps (NHSC)
The NHSC offers loan repayment programs for nurse practitioners, certified nurse midwives, and psychiatric nurse specialists working in areas with a shortage of primary care providers. The NHSC Rural Community Loan Repayment Program is another option for nurses working in approved rural settings. Additionally, the Students to Service program provides up to $30,000 in loan repayment each year for three years for those in their final year of an NP or CNM program who commit to serving in an NHSC-approved site.
Military Options
Joining the military is another route to loan forgiveness for nurses. Enlisting in the U.S. Army or the Army Reserve can provide up to $180,000 in student loan forgiveness. Nurses who serve in the military are eligible for extensive loan forgiveness programs.
It is important to carefully review the requirements and conditions of each loan forgiveness program to determine eligibility and understand the commitments involved. Additionally, nurses can explore other options such as income-driven repayment plans, high-paying nursing jobs, or travel nursing to help manage and repay their student loans.
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High-paying nursing jobs
There are several options for nurses to consider when it comes to paying off student loans. Firstly, the government offers loan forgiveness programs for nurses working in nonprofit or government settings, including federal, state, and tribal governments. This is known as Public Service Loan Forgiveness (PSLF), and it requires nurses to work full-time and make at least 120 payments toward their loan. Nurses working in underserved areas or in the military are eligible for even more extensive loan forgiveness. Additionally, nurse practitioners, certified nurse midwives, and psychiatric nurse specialists working in areas with a shortage of primary care providers may be eligible for National Health Service Corps (NHSC) loan repayment.
Another option is to pursue high-paying nursing jobs that will enable faster loan repayment. Traveling nurses, for instance, often receive higher pay rates and stipends to compensate for their skills and the challenges of traveling. Other high-paying nursing roles include Registered Nurse, Licensed Practical Nurse, and Nursing Assistant. Nurses with specialized certifications and advanced education, such as those in informatics, neonatal care, and pain management, also tend to earn higher salaries.
Some hospitals, such as the Cleveland Clinic and Rush University Medical Center, offer student loan repayment for eligible nurses in exchange for a commitment to work at the hospital for a specified period. Additionally, nurses can explore income-driven repayment plans, where loan payments are based on their income, or take on part-time travel nursing jobs alongside their regular RN job to boost their income.
For nurses interested in pursuing a master's degree, the Nurse Corps Scholarship Program offers tuition assistance in exchange for a commitment to work in an underserved area upon graduation. Finally, the Bureau of Health Workforce offers loan repayment programs for clinicians serving in health professional shortage areas or providing specific pediatric or behavioral health services.
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Income-based payments
Nurses can take advantage of income-driven repayment (IDR) plans, which are most suitable for those whose debt is disproportionately high compared to their income. IDR plans lower monthly payments and base them on income. There are four types of IDR plans: Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR). Under these plans, if you make payments on your federal IDR loans for 20 to 25 years, your remaining debt can be forgiven. However, you may have to pay income tax on the forgiven amount.
The Public Service Loan Forgiveness (PSLF) program is another option for nurses working full-time (at least 30 hours per week) for a federal, state, local, or tribal government or a qualifying not-for-profit organisation. PSLF forgives the remaining balance of all federal loans after the borrower has made at least 120 qualifying monthly payments.
Additionally, the Nurse Corps Loan Repayment program repays up to 85% of unpaid nursing education debt after two years. After the first two years of work, you will receive 60% of your outstanding loans repaid, with the option to receive an additional 25% after the third year. Income tax is applicable on the repaid amount.
The National Health Service Corps (NHSC) also offers loan repayment programs for nurse practitioners, certified nurse midwives, and psychiatric nurse specialists working in specified areas with a shortage of primary care providers. If you're in your final year of an NP or CNM program and commit to at least three years of service in an NHSC-approved site, you can receive up to $30,000 in loan repayment annually for three years, with the possibility of extending and receiving further forgiveness through the Students to Service program.
Furthermore, RNs, APRNs, and nurse faculty with government or private loans are eligible for student loan forgiveness by enlisting in the U.S. Army or Army Reserve. Nurses can receive up to $180,000 in student loan forgiveness, paid directly to their lender ($120,000 for three years of active duty or $60,000 for two years in the reserves). Income tax is applicable on the repaid amount.
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PSLF eligibility
Nurses can benefit from several loan forgiveness programs to help pay off student loans. The Public Service Loan Forgiveness (PSLF) Program is one such program that forgives the remaining balance of all federal loans. PSLF eligibility requirements include:
- Working full-time for a qualifying employer: Nurses must be employed full-time by a not-for-profit, government, or tribal organization. Most hospitals are eligible as they are considered not-for-profit organizations under Section 501(c)(3) of the Internal Revenue Code.
- Making at least 120 qualifying monthly payments: To qualify for PSLF, borrowers must make 120 separate monthly payments toward their federal student loans while employed full-time by a qualifying employer. This means that after 10 years of loan payments, the remaining balance may be forgiven. It is important to note that only certain types of loans may be forgiven under the PSLF Program, and borrowers should carefully review the eligibility criteria.
- Working in underserved areas or for the military: Nurses who work in underserved areas or for the military may be eligible for additional loan forgiveness programs specific to their situation. For example, the National Health Service Corps (NHSC) offers loan repayment programs for nurses working in approved rural or underserved areas.
- Enrolling in an income-driven repayment (IDR) plan: Nurses with federal IDR loans can have their remaining debt forgiven after 20 to 25 years of payments. This option is most suitable for those with debt higher than their income, as payments are based on income.
In addition to PSLF, nurses can explore other loan forgiveness programs, such as those offered by hospitals directly. Some hospitals, like Cleveland Clinic and Rush University Medical Center, offer to pay off student loans in exchange for a commitment to work at the hospital for a certain period. Nursing loan forgiveness programs can significantly reduce student debt, and it is recommended to research state-specific programs and their eligibility requirements.
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Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program is offered by the Bureau of Health Workforce to help nurses advance their careers while lowering their nursing school debt. The program offers loan repayment to registered nurses, advanced practice registered nurses, and nursing faculties in exchange for a two-year service commitment at a healthcare facility with a critical shortage of nurses. Awardees receive payments totaling 60% of their qualifying nursing school loan balance over the course of two years, and up to an additional 25% of their original loan balance for an optional third year of service.
To be eligible for the program, applicants must have received their nursing education from an accredited school of nursing located in a U.S. state or territory. Funding is also prioritized for those who need the most financial assistance. The application cycle for this program is currently open, and all applicants will be notified of their award status by September 30, 2025.
It is important to note that the Nurse Corps Loan Repayment Program is just one of several loan repayment programs offered by the Bureau of Health Workforce. There are eight programs in total, all of which require service in eligible healthcare facilities for communities in need. These programs are designed for clinicians in primary care medical, dental, or behavioral health disciplines, as well as students in their final year of eligible medical, nursing, dental, or physician assistant schools.
In addition to loan repayment programs, nurses can explore other options to pay off their student loan debt, such as income-driven repayment plans, travel nursing, loan consolidation, or taking advantage of loan forgiveness programs and high-paying nursing jobs.
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Frequently asked questions
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance of federal loans after the borrower has made a minimum of 120 qualifying monthly payments while working full-time for a qualifying employer. Nurses who work in any nonprofit or government setting are eligible for PSLF.
The Nurse Corps Loan Repayment Program (LRP) helps address the need for nurses in critical shortage facilities in the U.S. You will receive 60% of your total outstanding, qualifying, nursing education loans over two years. After your two-year service contract, you may be eligible for a third year and an additional 25% of your loans.
IDR plans are most appropriate for nurses whose debt is higher relative to their income. With IDR plans, your repayment term is extended, and your monthly payment is based on your discretionary income. Your repayment term will be 20 or 25 years, and if you still have a loan balance after the repayment term ends, the government will discharge the remaining amount.
