Key points
- Many federal and state programs offer partial or full student loan forgiveness for nurses and health care professionals.
- More generous options include Public Service Loan Forgiveness (PSLF) and some government loan repayment programs.
- Eligibility and award amounts depend on employer type, work setting, and length of service commitment.
Nursing remains one of the most respected professions in the country, but it is also one of the most financially demanding professions to enter. the The average nursing school graduate carries between $20,000 to $50,000 in student debt, By type of degree.
Meanwhile, hospitals and clinics across the United States 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 health care workers.
These programs reward service in underserved communities, nonprofit hospitals, and public health facilities, helping health care workers manage debt while meeting community needs.
program | Managed by Free +1000 AI Tools
| Max forgiveness | condition | Eligible loans |
|---|---|---|---|---|
PSLF | Department of Education | The entire loan balance | 10 years | Direct loans |
State programs | State agencies | $10,000 – $60,000 | 2 – 4 years | Varies |
Hospital/Employer | Private sector employers | Varies | Varies | Any eligible education loan |
Nurses Corps | HRSA | up to 85% | 2 – 3 years | Any eligible education loan |
army | Ministry of Defense | $40,000 – $120,000 | 2 – 3 years | Any eligible education loan |
Perkins cancellation | Department of Education | 100% | 5 years | Perkins Loans |
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1. Public Service Loan Forgiveness
Public Service Loan Forgiveness is the “best” option for student loan forgiveness due to the amount it forgives and the flexibility it provides.
Managed by: US Department of Education
Eligibility: Work full-time with a government or non-profit employer in the health care field.
Work requirements: 120 monthly payments qualify under the Income-Driven Repayment (IDR) plan.
Forgiveness details:
After 120 qualifying payments The remaining Federal Direct Loan balance is forgiven.
Best for:
Nurses working in public hospitals, non-profit clinics, or public universities.
example:
A nurse with $70,000 in direct loans who makes consistent payments under IBR while working at a nonprofit hospital can cancel the remaining balance after 10 years.
How to apply:
- send PSLF Employment Certificate Form annually.
- Make sure your loans are direct loans and payments are made under a qualifying plan.
- Use the Department of Education’s PSLF Help tool to confirm progress.
Pros
cons
2. Statewide student loan repayment programs
Many states offer additional reimbursement programs to attract nurses to underserved communities. You can see the complete list of states 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 Nursing College Loan Repayment Program: Up to $7,000 per year for nursing educators.
- School of Nursing Loan Forgiveness in New York State: Up to $40,000 for teaching in accredited 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. Loan repayment programs approved by hospitals and employers
Some hospitals, nonprofit systems, and major healthcare employers offer Loan repayment or tuition fee payment As part of employment incentives.
Common examples include:
- Sign-up or payout bonuses up to $10,000 – $25,000 For multi-year commitments.
- Annual contributions toward student loans as part of retention agreements.
Contact your hospital’s human resources department to inquire if loan repayment benefits are available. Always review any service or refund obligations before accepting funds.
Be alert: You do not fall within the provisions of Training Reimbursement Agreements (TRAPs) that may require you to repay any training or loan assistance you received if you do not reside with your employer for a specified period of time.
4. Nursing Authority Loan Repayment Program (HRSA)
The Nurse Corps Loan Repayment Program is a great way to pay back your student loans if you are willing and able to work in areas of severe shortage.
Managed by: Health Resources and Services Administration (HRSA)
Eligibility: Registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty.
Work requirements: Minimum two-year commitment at A Critical deficiency facility Or an accredited school of nursing.
Forgiveness details:
- Pays up to 60% of qualified nursing education debt For a two-year service commitment.
- Adds an optional third year 25% extraBringing the total payment to 85% of debt.
example:
A nurse with $45,000 in student loans could be hired and serve three years in a qualifying facility $38,250 is exemptleaving only $6,750 left to pay.
How to apply:
- Confirm eligibility by HRSA Nursing Authority Portal.
- Gather RN or APRN licensing documentation.
- Verification of employment at a qualified Critical Shortage Facility (CSF).
- Submit the application online during the annual spring session.
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: until $120,000 More than three years of service.
- Marine Health Professions Loan Repayment Program: until $40,000 annually.
- Air Force Health Professions Scholarship Program: It covers tuition fees and provides a stipend during training.
These programs are ideal for those who plan a military nursing career or want to combine service with professional development.
6. Cancellation of the Perkins Loan for Nurses
While the cancellation of the Perkins loan is a huge benefit, there are not many Perkins loans left, as the program stopped funding the loans in 2018.
Managed by: US Department of Education
Eligibility: Nurses provide direct care to patients.
Forgiveness details:
- until 100% of Perkins loan debt Cancelled after five years of qualifying service.
- Cancellation occurs gradually, by 15% after the first and second years, 20% after the third and fourth years, and 30% after the fifth year.
important: Perkins Loans were discontinued in 2018, but forgiveness remains available to borrowers with outstanding balances.
How to apply:
- Contact the institution that issued your Perkins Loan (usually your former college).
- Provide verification of qualified employment.
Pros
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Frequently asked questions
Can new nursing graduates apply for loan forgiveness immediately?
Yes, but most programs require full licensing and employment before applying. You can start preparing by identifying qualified employers early.
Can I combine remission programs?
In many cases, yes. For example, time spent in the Nurse Corps LRP may also count toward PSLF if your employer qualifies.
What happens if I leave before finishing my service commitment?
Leaving early could result in payment of benefits or cancellation of your award, so always review your contract carefully.
Are private loans eligible for forgiveness?
Most federal programs apply only to federal student loans. However, some hospitals and states may help you obtain private loans through their repayment programs.
Are forgiveness benefits taxable?
Federal amnesty under PSLF and the Nurse Corps currently exists Tax free. State or employer programs may vary.
Bottom line
For nurses and healthcare workers, student loan forgiveness is not only possible — it’s increasingly common. With shortages prompting policy change, programs continue to expand and evolve.
Start by checking your employer type, loan status, and program eligibility. Even a partial pardon could save tens of thousands of dollars and open up more financial freedom to continue doing essential work in health care.
Editor: Clint Proctor
Reviewed by: Chris Mueller
The post Student Loan Forgiveness for Nurses and Healthcare Workers appeared first on The College Investor.
