Nurses are not exempt from the national student loan debt crisis. On average, nurses graduate with a median student debt of $40,000 to $54,999.
For this reason, many nurses turn to student loan forgiveness programs to ease the burden of their unpaid nursing education debt. There are many available nurse loan forgiveness programs, but they all vary based on the type of degree you have, the kinds of loans you’re signed under, and the healthcare facility you work for.
Let’s find out which nurse loan forgiveness program is most beneficial to you.
Public Service Loan Forgiveness
The Public Service Loan Forgiveness Program (PSLF) is a federal program that forgives the remaining balance on Direct loans for qualifying public service workers who meet specific eligibility criteria.
To qualify for PSLF, you must:
- Have taken out federal student loans in the past. Private loans do not qualify for PSLF.
- Be employed full-time by an eligible federal, state, local, or NPO. Be sure to ask your employer if the organization qualifies for PSLF. Even if your job is a public service role, if your organization is not registered for PSLF, you cannot participate in the program.
- Have made 120 qualifying payments on a qualifying repayment plan.
Here are some public service jobs that qualify for PSLF:
- Educators (teachers, professors, administration)
- Civil authority (police)
- Healthcare providers (nurses, doctors, insurance companies)
The PSLF Program is best for borrowers who work in public service roles and have taken out federal student loans (private student loans do not qualify for PSLF!).
If you’re a nurse looking for loan forgiveness programs for the debt of nursing school, PSLF is a great option to consider. To apply for PSLF, you will have to have made 120 qualifying payments through an income-based repayment plan while being employed full-time by an approved employer. Once you’ve reached this quota, fill out the Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification and Application.
Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment program is a nurse loan forgiveness program offered by the Health Resources & Service Administration (HRSA). The Nurse Corps Loan Repayment Program encourages nurses to work in critical shortage facilities (CSF), which are healthcare facilities in areas lacking primary, mental health, and dental care.
The Nurse Corps Loan Repayment Program pays up to 85% of your nursing education debt. To qualify for the program, you must meet the following eligibility requirements:
- Must be either a registered nurse (RN), nurse faculty (NF), or advanced practice registered nurse (APRN)
- Work full-time in a critical shortage facility or an accredited nursing school
- Have attended a qualifying nursing school in the United States and territories
The Nurse Corps Loan Repayment Program is best for registered nurses, nurse faculty, or advanced practice registered nurses who work in a critical shortage facility. See if your workplace is considered a critical shortage facility here.
To apply, read the Nurse Corps LRP Application and Program Guidance and submit your application through their portal.
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
National Health Service Corps (NHSC) Loan Repayment Program
The National Health Service Corps Loan Repayment Program is another nurse loan forgiveness program offered by the Health Resources & Service Administration (HRSA).
In order to qualify for the program, you must:
- Be a U.S. citizen
- Work as a provider (or be eligible to be a provider) in Medicare, Medicaid, or the State Children’s Health Insurance Program
- Be fully trained and licensed to practice in a National Health Service Corps-approved primary, medical, dental, or mental care discipline
- Have a qualified student loan
- Work in clinical practice at an NHSC-approved site for at least two years
Your loan repayment amount depends on whether you participate in full-time or half-time service. If you do full-time service, you can receive up to $50,000 in loan repayment for your initial two-year term. If you do half-time service, you can receive up to $25,000.
This program is best for providers who work in Medicare, Medicaid, or the State Children’s Health Insurance Program who are willing to work in a healthcare professional shortage area for a two-year commitment.
Find information on applying here.
Perkins Loan Cancellation
If you’re a nurse who’s taken out Perkins Loans to cover the cost of your nursing education, Perkins Loan Cancellation is the program for you.
The Perkins Loan Cancellation program is a federal loan forgiveness program that can cancel up to 100% of your debt for five years of eligible service.
The program is best for full-time nurses who work in a qualifying healthcare institution and have taken out Perkins Loans before 2017.
In order to apply, contact the financial aid office of the school that you took out the loan for, or the school’s respective Perkins Loan servicer.
Important Note: The Perkins Loan Program, not the Perkins Loan Cancellation, ended in 2017 and students can no longer apply for Perkins Loans.
Army Nurse Corps Benefits/Health Professions Loan Repayment Program
If you’re a nurse on active duty or in the Army Reserve, you may be able to receive up to $250,000 in student loan forgiveness.
Nurses can also receive signing bonuses, competitive salaries, and other benefits if they decide to serve in the reserves or on active duty for an extended period of time.
This program is best for nurses who plan to serve in the Army.
Other Options for Reducing Nursing School Debt
If you’re looking for options outside of nurse loan forgiveness programs, consider student loan refinancing.
Student Loan Refinancing
Student loan refinancing is when you combine all or some of your loans under one new loan, usually with better terms like a lower interest rate or a longer repayment term.
To refinance your student loans, you’ll have to start looking into refinancing lenders and comparing refinancing terms. If you want to be approved to refinance your student loans, you’ll want to have a strong credit score and steady income.
Best Student Loan Refinancing Companies For Nurses
Refinancing your loans is a great way to secure better loan terms and ease the burden of paying for your loans. Here are some student loan refinancing companies that we recommend for nurses.
Arkansas Student Loan Authority (ASLA)
The Arkansas Student Loan Authority offers loans to Arkansas residents or students who have attended a school in the state. They offer competitive rates and flexible terms to those who qualify. ASLA is best for nurses who either live in or attended school in Arkansas and want competitive interest rates and flexible loan terms.
College Ave
College Ave offers student loan refinancing and is known for their strong customer service, competitive interest rates, and flexible loan terms. For example, College Ave offers nonstandard 6- or 9-year loans, which is unlike many other private lenders. College Ave is best for nurses that want access to good customer service and a flexible repayment term.
Earnest
Earnest offers student loan refinancing with customizable repayment plans where you can choose your repayment term down to the month. Earnest also has forward-looking eligibility criteria and offers competitive interest rates. Earnest is best for nurses who don’t have a cosigner and want a repayment plan customized to their situation.
INvestED
INvestED offers student loan refinancing to Indiana residents and students who attended school in Indiana. They offer a variety of repayment options, competitive interest rates, and flexible terms. INvestED is best for nurses that are Indiana residents or attended school in Indiana and want access to different repayment options.
ISL Education Lending
ISL Education Lending is a nonprofit student lender offering both private student loans and student loan refinancing. ISL Education Lending is best for nurses who want to work with a nonprofit lender and want competitive interest rates.
LendKey
LendKey will connect you with a network of 100+ lesser known credit unions and community banks so you can work with and take out loans from smaller institutions. LendKey is best for nurses that are creditworthy borrowers and want to work with smaller lenders with low rates and good customer service.
Nelnet Bank offers student loan refinancing for both private and federal student loans, including parent PLUS loans. Nelnet Bank also offers a flexible forbearance policy and competitive interest rates. Nelnet Bank is best for nurses that are looking for competitive rates and want the ability to refinance student loans, including parent PLUS loans.
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Closing Thoughts From the Nest
If you’re a nurse who’s taken out federal student loans to pay off tuition, you should definitely take advantage of the nurse loan forgiveness programs and loan refinancing options available to you.
Student loan debt can stack up quickly, so it’s optimal to have a plan ahead of time.
Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we ma