If you are a nurse with Perkins loans, you can qualify for full loan forgiveness if you work for at least five years as a nurse. The school or the servicer can tell you what forms you need to complete and what documentation you need to provide to get forgiveness. As a nurse, you might be eligible for PSLF if you work for a government agency, non-profit hospital or non-profit health service organization.
You must make monthly payments toward your loans while working full-time for an eligible employer. After months of payments, you can submit your application for PSLF. If your application is approved, your remaining loan balance is forgiven tax-free. Several states operate their own loan repayment programs to attract and retain health care professionals.
To find out if your state has a loan repayment assistance program, contact your state department of health or education department. Not all nurses will qualify for student loan forgiveness or repayment assistance programs. If you have federal student loans, you can reduce your payments by enrolling in an income-driven repayment IDR plan. There are four different IDR plans, but with each, your repayment term is extended, and your monthly payment is based on your discretionary income.
If you still have a loan balance after the repayment term ends, the government will discharge the remaining amount. However, the discharged amount is taxable as income under the current IRS rules. If you have private student loans or would prefer to pay off loans faster, another option is to refinance your student loan debt.
With this approach, you apply for a refinancing loan from a private lender that has different terms than your existing loans. The new loan is used to pay off the old ones, and it may have a lower interest rate or smaller monthly payment than you had before. If you qualify for a lower interest rate, you can save a significant amount of money over the life of your loans. You also can decide to extend your repayment term to reduce your monthly payments and get more breathing room in your budget.
Keep in mind that there are some drawbacks to refinancing federal student loans. For example, refinancing your federal loans would make you ineligible for the CARES Act student loan relief measures , including the loan payment suspension and interest waiver that are in effect until September 30, If you decide that refinancing is right for your needs, here are our picks for the top student loan refinancing lenders.
Kat Tretina is a freelance writer based in Orlando, FL. The program requires two years of service, and recipients may renew for an additional two years. Who Is Eligible: RNs and NPs who work in public or private not-for-profit settings in federally designated shortage areas approved by the Indiana Department of Health are eligible may apply. Each participant must possess a current and unencumbered license and spend at least 32 hours per week providing direct care.
Their sites must accept government health insurance. Iowa offers a nursing loan forgiveness program for federal loans. Private loans do not qualify, though existing recipients may refinance their federal loans with private lenders. The program requires five consecutive years — one of the longer requirements for student loan forgiveness for nurses.
They must work in Iowa cities with a population of less than 26, and located more than 20 miles from a city with a population of 50, or more. They must work for a nonprofit or public healthcare practice within a federally designated HPSA that accepts government health insurance. It requires a two-year commitment. The employer or another sponsor, such as a philanthropic organization, must match dollar for dollar.
They must work within an HPSA for a nonprofit or government provider that accepts government health insurance. Participants may be able to renew for an additional three years. Who Is Eligible: NPs, nurse midwives, and psychiatric nurse specialists qualify. Each recipient must work at least 40 hours per week serving outpatients. They must also work for government or nonprofit facilities that accept government health insurance and offer sliding-scale payments. Only U. Maine offers nursing loan forgiveness programs for primary care providers, including NPs who work in primary care.
Who Is Eligible: NPs working as primary care providers who received loans before January 1, , may apply. Maryland delivers student loan forgiveness for nurses based on the participant's debt load. Who Is Eligible: Participants must have graduated from Maryland colleges and hold nursing certificates or diplomas. Candidates must work for a state or local government organization or a nonprofit that helps low-income, underserved residents or underserved areas. School nurses do not qualify.
Part-time recipients must work for four years. Participants must work in federally designated HPSAs or other state-designated areas. They may not participate in other loan forgiveness programs. Their sites must offer sliding-scale fees for individuals unable to pay their full amount. Minnesota's nursing loan forgiveness program aims to encourage students to pursue a nursing career as a means of combating shortages throughout the state.
Mississippi's nursing loan forgiveness program is geared toward students who have already earned their bachelor's degree in nursing. The loan is forgiven once the recipient serves one year as a full-time educator at an accredited nursing school in Mississippi or after completing one year of professional service.
Who Is Eligible: Loans are available to residents who are seeking a master's degree in nursing from a Mississippi postsecondary institution. Applicants must have a bachelor's degree in nursing and a valid Mississippi nursing license. Recipients must agree to practice in an underserved community within Missouri. Who Is Eligible: RNs, APRNs, nurse practitioners NPs , certified registered nurse anesthetists, family nurse practitioners, and nursing students in their final full year of school are eligible to apply.
Applicants must have a Missouri nursing license from an institution approved by the state board of nursing. Outside of student loan forgiveness for nurses, individuals can reduce their educational debt by enrolling in an income-driven repayment plan.
Nurses with these plans can pay a percentage of their salaries rather than a specific dollar amount. Income-driven payment plans allow individuals to pay more as they earn experience or additional certifications while keeping payments low in entry-level work.
These plans can help nurses moving for their first jobs, who often have relocation expenses on top of loan repayment. Travel nursing , which usually pays a higher hourly salary, offers another alternative to nursing loan forgiveness programs. However, this pathway can be more demanding, as travel nurses are often sourced to provide care during states of emergency or aid in nursing shortages.
Finally, nurses can consider refinancing their student loans. If interest rates have dropped or a graduate finds a new funding source, such as a credit union that charges less interest, refinancing may offer a strong pathway. Featured or trusted partner programs and all school search, finder, or match results are for schools that compensate us.
This compensation does not influence our school rankings, resource guides, or other editorially-independent information published on this site. Share this. NurseJournal Staff. Student Loan Forgiveness Explained Nursing school requires a significant financial investment that often involves taking on student loan debt. Nurse Faculty Loan Programs Nurses who agree to teach for four years after graduation, along with learners studying for their master's or doctoral degrees in nursing, can apply for funding to pay for tuition and other college expenses.
An eligible nurse must: Maintain an unencumbered license Have an unpaid loan balance related to any level of education for nursing Have completed the nursing program to be eligible for this program Apply to the Nurse Corps Loan Repayment Program. Public Service Loan Forgiveness Full-time working nurses who have made at least monthly payments on their Direct Loan through an income-driven repayment plan can find reprieve from their debt.
Perkins Loan Cancellation According to program guidelines, eligible applicants must have received their Perkins Loan before Department of Education accredits it. Deadline Extended Apply now through January 27, , p.
You are a: Licensed registered nurse; Advanced practice registered nurse, such as a nurse practitioner; or Nurse faculty member with qualifying nursing debt. You received your nursing education from an accredited school of nursing located in a U.
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