Student Loan Forgiveness for Nurses: It is a fact that becoming a nurse is an excellent way to serve others in need. Also, it’s a way to earn a good living. Nursing school, however, leads to large amounts of student loan debt. This is because the need for nurses is so high. However, there are student loan forgiveness programs created to address this.
Thus, if you’re a student and you’re a nurse, don’t be worried. This is because, there are student loan forgiveness for nurses. This is much available and there are many options. However, student loan forgiveness for nurses have different requirements. This depends on the forgiveness program.
It is important you note this. These forgiveness programs also support the growing need for quality healthcare workers. This is particularly in areas of the country that have critical shortages.
In this article you shall get important information on student loan forgiveness program for nurses. However, let’s begin with knowing what loan forgiveness is.
What Is Loan Forgiveness?
This means that, after a certain period of time and meeting certain requirements, the borrower of the loan is no longer required to repay some or all of the remaining principal and interest owed on their student loan. However, this depends on the type of loan forgiveness you receive. Also, you’ll likely still need to pay income tax on any amount that’s forgiven.
Some Student Loan Forgiveness for Nurses
The government has created options for student loan forgiveness for nurses. Be sure to check each program’s specific qualifications before applying. Below are some of the student loan forgiveness for nurses:
1. Public Service Loan Forgiveness
This is one of the student loan forgiveness for nurses. Public Service Loan Forgiveness (PSLF) is a student loan relief option for nurses. Also, it is for borrowers working in a few other professions. To partake you must have qualifying Federal Direct Loans.
When choosing this student loan for nurses, please note. The Qualifications for PSLF are:
You must have student loans through any federal income-driven repayment programs.
Also, make 120 qualifying payments on your student loan. A qualifying payment is one that is on-time. Furthermore, it is paid in full. Additionally, the 120 payments don’t need to be consecutive.
You must work for a government. Also, you must work for qualifying non-profit organization. This is for the entire time you are making qualifying payments. As well as during the application process.
What are these Qualifying Organizations?
Any federal, state, local, or tribal government organization.
Not-for-profit organizations. They must be tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
Also, other types of not-for-profit organizations that are not tax-exempt. Especially those under Section 501(c)(3) of the Internal Revenue Code. That is if their primary purpose is to provide certain types of qualifying public services.
The Repayment Programs that Qualify for PSLF
When choosing this student loan for nurses, please note. There are four income-driven repayment plans that qualify for PSLF. They are:
Pay As You Earn (PAYE).
Revised Pay As You Earn (REPAYE).
Also, the is income-Based Repayment (IBR).
Additionally, there is income-Contingent Repayment (ICR).
Although the standard 10-year payment plan qualifies for PSLF, please note. Without having your student loan payments lowered, your student loan will be paid off. This happens after making 120 payments.
Another great feature to PSLF is this. The forgiven loan amounts aren’t considered income by the Internal Revenue Service (IRS). As such, they are not taxable.
To apply, you will need to submit PSLF Application for Forgiveness. If you’re approved for PSLF, please do this. Submit the Employment Certification for Public Service Loan Forgiveness form annually. Do this anytime you change employers.
2. Perkins Loan Cancellation
This is another student loan forgiveness for nurses. It is important you note this. Nurses with Perkins loans may qualify to get up to 100% of their student loans canceled. This can be for 5 years of qualifying full-time service.
Additionally, in order to apply, you must contact your school’s financial aid department. Also, you can contact your designated loan servicer.
It is important you know this. The Perkins loan program ended in September 2017. However, if you received it before it ended, you’re still eligible to apply for loan cancellation.
3. Nurse Corps Loan Repayment Program
This is another type of student loan forgiveness for nurses. This is overseen by National Health Resources & Services Administration (HRSA). Through this program, qualifying nurses can get up to 85% of their student loan debt paid off. This is in exchange for working 2 to 3 years in critical shortage health facilities in the U.S.
If you are accepted to the program, take note. They will pay for 60% of your unpaid nursing student loan debt. This is for over two years. Also. you have an option to extend your service for a third year. This is to get an additional 25% of your debt paid off.
While hoping to get this student loan forgiveness for nurses, please note. To qualify, according to the HRSA website, you must meet the following criteria:
You must be a licensed registered nurse (RN).
Also, you must be an advanced practice registered nurse (APN).
Additionally, you must be a nurse faculty member with qualifying nursing debt.
Furthermore, please note. Your nursing education must be from an accredited school of nursing. This school should be located in U.S.
Also, you must work full time in an eligible Critical Shortage Facility. This facility must be in a high need area (for RNs, APNs).
Additionally, you must work full time in an accredited school of nursing.
4. Military Student Loan Forgiveness for Nurses
This is another student loan forgiveness for all nurses. The U.S military offers several student loan forgiveness to nurses. However, they are only available to those who have not yet served in the military.
Despite all the military college loan repayment programs, please note. Payments are made on outstanding principal balance of your student loans. They do not cover any accrued interest.
Also, unlike Public Service Loan Forgiveness, loan repayment does count as taxable income. This is according to the IRS. With the military repayment programs, payments are made directly to your lender. This comes with taxes being withheld for the IRS before payments are made.
5. Army Reserves College Loan Repayment Program
This another type of student loan forgiveness for nurses. If you are a nurse serving in the Army Reserves, take note.
You can receive up to $50,000 to repay college loans. You must enlist in the Army Reserves for 6 years to be eligible.
6. Navy Nurse Candidate Program (NCP)
This is another type of student loan forgiveness for nurses. If you’re a nursing student opting to serve full-time in the Navy, please note. You could get up to $34,000 to help pay your way through nursing school. This can be through the Nurse Candidate Program (NCP).
Also, the program provides accepted candidates with an initial $10,000 grant. Additionally, it gives $1,000 monthly stipend for up to 24 months.
7. Air Force Active Duty Health Professions Repayment Program (ADHPLRP)
Also, this is a type of student loan forgiveness for nurses. According to the Air Force, “ADHPLRP participants receive repayment of loans used to finance health profession education”.
Also, repayment may consist of loan amounts for principal expenses. Additionally, it may consist of interest, reasonable educational and living expenses. The maximum repayment is $40,000. Furthermore, there’s a minimum 2-year active duty obligation. This is in order to receive any loan repayment.
States You can Find Student Loan Forgiveness for Nurses
Below are some states in the U.S that offer student loan forgiveness for nurses:
Should Nurses Pursue Student Loan Forgiveness
If have doubts about authenticity of student loan forgiveness for nurses, take note. Nurses have a multitude of options for receiving help to pay off student loan debt.
Some programs cover accrued interest while others leave you covering the bill. However, not all repayment programs are tax-free. As such, make sure to take that into consideration when selecting the best student loan forgiveness for you.
It is important you note this. Some repayment options involve working in rural. Also, some goes even to inner city areas. These are areas that are lacking sufficient healthcare professionals. If that doesn’t interest you, you might need to look at other ways of paying off student loan debt faster.
In a Nutshell
In summary, please take note. Student loan forgiveness for nurses is a real. Also, you can get the help of a Student Loan Planner. Student Loan Planner has consulted with over 750 people. Thus, creating custom student loan plans. These plans have saved students thousands of dollars.
If you need help figuring out the right loan repayment choices, you can contact the Planner. Be that as it may, please take note. There are a lot of student loan forgiveness programs for nurses. Do well to carry out more research.