Nursing Debt Forgiveness Opportunities Through State and Federal Programs

There are several state and federal programs that offer nursing debt forgiveness opportunities. The Public Service Loan Forgiveness (PSLF) program is one such option, which forgives the remaining balance on your loans after you've made 120 qualifying payments while working in a qualifying public service job.

Some states also offer their own nursing debt forgiveness programs, such as the New Jersey Nursing Scholarship Loan Program, which forgives up to $5,000 in loan debt for nurses who work in certain high-need areas.

To qualify for these programs, you'll typically need to work in a qualifying healthcare setting, such as a hospital or community clinic, and meet specific income requirements.

The Nurse Corps Loan Repayment Program is a game-changer for nurses with significant student loan debt.

This program is available through the Health Resources and Services Administration (HRSA) and can pay off up to 85 percent of your nursing education debt. To qualify, you must be a registered or advanced practice registered nurse or nurse practitioner who received your degree from an accredited U.S. nursing school.

You must also work for at least two years in a critical shortage facility (CSF), which is a public or private healthcare facility in or serving a Health Professional Shortage Area (HPSA). Alternatively, if you're a nurse instructor, you must teach at an eligible nursing school.

The competition for this program is fierce, with only 2,071 initial awards made in 2022 out of 5,419 applications received. NCLRP awards aren't exempt from federal income taxes.

Here are some key details about the Nurse Corps Loan Repayment Program:

After two years of work, nurses may be eligible for a third year of service and receive 25 percent of their loan balance. This program gives preference to those who need the most help financially.

To be eligible for Public Service Loan Forgiveness (PSLF), you must work for a 501(c)(3) nonprofit or another type of nonprofit that meets qualifying criteria. Nonprofit hospitals, healthcare facilities, and educational settings often qualify.

You can use Student Aid's employer search tool to determine if your nonprofit employer meets PSLF eligibility requirements. If your employer doesn't qualify, you can explore Income-Driven Repayment (IDR) plans, which can stabilize your monthly student loan payments and offer forgiveness after 10, 20, or 25 years of repayment.

The Disadvantaged Faculty Loan Repayment Program is a great option for nurses from disadvantaged backgrounds. You could be eligible for this program if you come from a background based on economic or environmental factors.

This program is under the HRSA's purview and requires a two-year commitment at an approved, accredited health professions school in a state or U.S. territory.

You can apply for extended contracts after completing your two-year term.

If you're a nurse employed by a private sector or self-employed, you have fewer forgiveness options than those working for the government or non-profit organizations. However, you can still receive forgiveness through Income-Driven Repayment (IDR).

You could also inquire with your employer about student loan repayment assistance as an employment benefit. Many employers offer this as a perk to attract and retain top talent.

Nurses employed by private sector or self-employed individuals may have limited forgiveness options, but IDR is still a viable option. This program can help make your monthly payments more manageable.

Many states offer their own programs for nursing school debt forgiveness. These programs can be a game-changer for nurses who want to work in underserved areas.

In Michigan, for example, nurses can be awarded up to $200,000 to repay their nursing school loans in exchange for a two-year commitment to working in a Health Professional Shortage Area.

Most state loan repayment programs require a commitment to service in an underserved area, so be sure to research your state's options to learn more.

You can find state-sponsored student loan forgiveness programs on the Federal Student Aid website, which lists programs available in each state. Some examples include the Maryland Loan Repayment Program for nurses and nursing support staff.

Here are a few state-level loan forgiveness programs to get you started:

State-Level Programs can vary widely from state to state. Most states offer at least one student loan forgiveness program for nurses.

Some programs, like Michigan's, can award up to $200,000 to repay nursing school loans in exchange for a two-year commitment to working in a Health Professional Shortage Area.

Research your state's nurse loan forgiveness programs to learn more about your options. States like Maryland offer programs like the Maryland Loan Repayment Program (MLRP) for nurses and nursing support staff.

These programs often require 2-4 year commitments, sometimes with the option to extend. Funding and eligibility may be limited, so it's essential to check the details.

To explore state-level programs, visit the Federal Student Aid website. You can also check the website of the state you're targeting to learn more about their specific programs.

Here are a few examples of state-level programs:

If you're a registered nurse in New York State, you might be eligible for student loan forgiveness if you become a nursing faculty member. To qualify, you'll need to be licensed to practice in NYS and employed at a nursing school located in the state.

To work as a nursing faculty member in New York State, you'll need to meet certain requirements. You must be qualified as nursing faculty or adjunct clinical faculty, and you'll need to be employed at a nursing school located in New York.

To apply for student loan forgiveness, you'll need to have an outstanding balance on eligible student loan debt. You'll also need to have been a NYS resident for 12 continuous months prior to your application.

There are several federal programs that can help nurses forgive their debt. The Federal Perkins Loan Cancellation program can cancel loans for full-time nurses who work in healthcare professional-shortage areas for 5 consecutive years.

You can also qualify for the National Health Service Corps Loan Repayment Program, which offers up to $50,000 in loan repayment assistance to nurse practitioners and certified nurse midwives who work in Health Professional Shortage Areas for at least two years.

Active Duty Health Professions Loan Repayment Program offers up to $120,000 to repay nursing student loans over a three-year period. Nurses can receive up to $40,000 annually through this program.

Here's a breakdown of the loan repayment amounts for the National Health Service Corps Loan Repayment Program:

Note that half-time service is only available to nurses who work in private practices.

If you're a nurse with a Federal Perkins Loan, you might be eligible for cancellation. This program is for nurses who received Perkins loans before 2017 and have worked for 5 consecutive years in a healthcare professional-shortage area.

To qualify, you'll need to meet the eligibility criteria, which is outlined in the Federal Perkins Loan Cancellation section. This program is a great option for nurses who are dedicated to working in underserved areas.

Here's a breakdown of the cancellation schedule:

Keep in mind that the Federal Perkins Loan Cancellation program is only available to nurses who received Perkins loans before 2017. If you're not sure if you're eligible, it's worth checking with the relevant authorities to confirm.

Military service can be a great way to pay off nursing student loans. The Army Active Duty Health Professions Loan Repayment Program offers up to $120,000 to repay nursing student loans.

This program is a three-year commitment, with nurses receiving up to $40,000 annually. You can choose to serve in the Army, Navy, Air Force, or as a reservist or veteran.

Both RNs and APRNs are eligible for the Army Active Duty Health Professions Loan Repayment Program. This program is one of the most popular options for military student loan forgiveness for nurses.

You can learn more about Military Student Loan Forgiveness for Nurses to see if this is the right path for you.