Student Loan Repayment for Nurses and APRNs: What to Know

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A career in nursing offers a world of growth potential for experienced RNs. Thanks to expanded educational opportunities and scope of practice laws, registered nurses (RNs) and advanced practice registered nurses (APRNs) have more options than ever to achieve professional autonomy and receive higher financial rewards. However, accessing this new level often comes at the price of tuition fees that can take years to pay off.

Despite these challenges, RNs and APRNs remain vital in addressing healthcare shortages across the United States’ primary care and mental health services. With nursing program enrollment on the rise, hundreds of thousands of nursing students want to know: what options are available for student loan repayment and forgiveness?

As of June 2023, the most relevant data on nursing school debt was published in a 2017 American Association of Colleges of Nursing (AACN) report, revealing some sobering statistics. Approximately 76 percent of the 2,235 nursing students surveyed have outstanding undergraduate loans ranging from $15,000 to $150,000, with the highest percentage of borrowers owing between $40,000 and $54,999. Of those surveyed, 69 percent took out loans, while 27 percent received institutional aid to pay for school. Moreover, more than half of the students surveyed have dependents and attend school full-time.

In 2022, the Biden-Harris Student Debt Relief Plan provided loan forgiveness of up to $20,000 regardless of income or loan type. A joint effort supported by the US Department of Education and the US Department of Treasury, this relief offers a generous financial cushion for those with varying incomes and types of loan debt and suspended payments until the end of 2022. In addition, it grants significant, targeted debt relief to those in need: 95 percent (43 million) for single borrowers earning under $125K per year or $250K per year for married borrowers. These figures include 60 percent of Pell Grant recipients eligible for up to $20,000 of loan cancellation.

While three out of every four RNs are burdened with educational debt, the good news is there are loan forgiveness and repayment programs to help RNs and APRNs get out of debt and into financial freedom. Read on for a guide to student loan repayment and forgiveness options for RNs and APRNs.

What Are Loan Forgiveness & Repayment Programs?

Nurses facing financial struggles can find relief with loan forgiveness and repayment programs. These authorized federal or non-profit options provide invaluable resources, such as forgivable loans and grants for those committed to public health services in rural areas.

With loan forgiveness, nurses have some options available to get control of their finances. For example, through the Public Service Loan Forgiveness (PSLF) Program, individuals can make 120 payments and see their entire balance forgiven in return—something worth considering for those employed in public service industries, such as Veterans Administration healthcare facilities.

As for loan repayment, one of the most popular options is income-driven repayment plans that adjust monthly payment amounts so that borrowers are only required to pay what they can afford.

By taking advantage of loan forgiveness and repayment programs, nurses can become champions in patient care while providing vital services nationwide. These dedicated professionals can make a positive difference for patients and their communities – all while decreasing student debt burdens that accompany healthcare careers.

Qualifications for Nursing Loan Forgiveness & Repayment Programs

Qualifying for any loan forgiveness and repayment program depends on certain factors. However, when it comes to paying off nursing school, graduates can be eligible for nursing loan forgiveness & repayment programs if they meet the specified criteria.

Depending on the program, requirements may include the following:

Current unencumbered RN or APRN license
Full-time employment in a public or non-profit direct patient care setting or
Graduating from a CCNE- or ACEN-accredited nursing program
Making a minimum number of on-time payments
US citizenship
Working in a nurse administration or nursing education role in a public health sector

Public sector work may include public health or other charitable organizations that qualify under 501(c)(3). In the case of the PSLF program, nurses must commit to serving an area for a fixed duration and make the required number of loan payments before applying for loan forgiveness for nursing school debts.

Benefits of Loan Forgiveness & Repayment Programs

For many nurses, loan forgiveness or repayment programs have significant benefits. Participating in such a program can:

Reduce the amount of financial strain and stress experienced in paying back student loans
Improved creditworthiness
Saving money (by paying less in interest)
More take-home income
Access to further educational opportunities

Furthermore, with decreased payments and higher disposable income, enrolling in loan forgiveness and repayment programs can increase financial freedom and upward mobility.

Ultimately, loan forgiveness or repayment plans are invaluable resources for individuals who cannot manage their debt independently.

Nursing Loan Forgiveness & Cancellation Programs

Nursing loan forgiveness programs can benefit nurses who want to take control of their debt by committing to specific terms of professional services. In addition, these programs provide a means for loan repayment through partnerships with the government.

Here are some examples of nursing loan forgiveness programs.

Public Service Loan Forgiveness (PSLF) Program

The Public Service Loan Forgiveness (PSLF) Program enables borrowers to have their federal student loan principal and interest balances forgiven by providing loan forgiveness to individuals employed in public service jobs, including active-duty military and veterans. Eligibility for loan forgiveness through the PSLF Program is based on full-time, qualifying public service employment and 120 qualifying payments made on eligible Direct Loans.

After eligibility is verified, borrowers then have the opportunity to apply for loan forgiveness. This loan forgiveness program offers an excellent opportunity for registered nurses and anyone working in a qualifying public sector job to reduce or eliminate their federal student loan debt.

Perkins Loan

A Federal Perkins Loan is a loan forgiveness program for those pursuing careers in public service, including positions in government, law enforcement, health services, and more. It can allow for the loan’s full or partial principal amount and interest to be canceled after completing a period of service or loan repayment, depending on the type of loan.

To take advantage of loan cancellation, borrowers must meet specific requirements set by their loan provider or authorized state institutions. Although it is not guaranteed that loan cancellation will be available to everyone, it is often useful for those dedicated to committed public service roles.

Nursing Loan Repayment Programs

Nursing loan repayment plans are designed to assist nursing professionals by providing partial or full reimbursement options to ease the burden of nursing school loans. These programs offer qualified nurses a portion or all of their nursing loan debt repaid according to specific criteria and qualifications.

Here are some examples of nursing loan repayment programs.

Nurse Corps Loan Repayment Program (NCLRP)

The Nurse Corps Loan Repayment Program (NCLRP) is an initiative from the United States Health Resources and Services Administration to provide loan forgiveness for registered nurses (RNs) and advanced practice registered nurses (APRNs).

It offers individuals up to 85 percent loan repayment for approved loan balances in exchange for a two-year service commitment at an approved critical shortage facility, such as a school-based health center, community health center, critical access hospital, or other sites.

This program helps alleviate the financial burden of loan debt and encourages individuals to join the nursing field to help fill a vital need in underserved communities. Nursing faculty members with qualifying debt are eligible for this program.

National Health Service Corps (NHSC) Loan Repayment Program

The National Health Service Corps (NHSC) Loan Repayment Program helps health professionals repay educational loan debts in exchange for two years of service in communities with limited access to healthcare. Through loan repayment, the NHSC supports primary care providers who work in health professional shortage areas and demonstrate a commitment to excellence in their service to underserved communities.

Eligible loan repayment recipients must be US citizens, work full- or half-time, and maintain regulations and standards set by the NHSC. In this program, nurses can qualify for up to $50,000 in loan repayments over two years (full-time) or up to $25,000 in the same period (half-time). This program is available to RNs and nurse practitioners (NPs). In addition, military reservists in the US Armed Forces or National Guard are eligible if specific qualifications are met.

The NHSC loan repayment program is an invaluable tool for cultivating essential primary care providers and mental healthcare providers; it supplements their educational loans while increasing access to quality care where it may have been otherwise unavailable.

Indian Health Services (IHS) Loan Repayment Program (LRP)

The Indian Health Services Loan Repayment Program is a loan repayment program for qualified healthcare professionals. Participants can receive up to $40,000 to pay off nursing school loans as part of this loan program. In exchange, the loan recipient must serve at least two years in an approved healthcare facility on or near an American Indian reservation or in a high-need area.

After the initial two-year commitment, nurses can apply for an additional year of service, earning $20,000 of loan forgiveness each year until their loans are repaid. Most nurses can repay their loans entirely by working in this program for three years.

This loan repayment program helps attract qualified providers to areas where they are critically needed and serves a vital role in providing access to quality healthcare to those living in these underserved areas.

US Military Loan Repayment Program (LRP)

The US Military Loan Repayment Program (LRP) is a loan repayment benefit offered by the United States Armed Forces to those who are Military Occupational Specialties (MOS) in the military and agree to enter a three-year service commitment in certain areas and meet specific qualifications. The Army pays 33.3 percent of an outstanding principal balance or $1,500 annually, whichever amount is greater, up to $65,000.

This program offers excellent financial benefits and can help ease some of the burdens associated with loan repayments. Those who received medical training or are military nurses can use this program.

Income-Driven Repayment (IDR) Plans

Income-Driven Repayment (IDR) Plans are loan repayment options designed to help borrowers manage their student loan payments if they struggle to make their current loan payments. These plans offered by the federal government adjust the loan repayment amount according to a borrower’s income so that loan payments remain affordable.

Four different plans are available for borrowers, allowing them to customize a loan payment plan that works best for their budget and lifestyle. Many of these plans offer loan forgiveness after a certain period, allowing borrowers to be proactive and prevent defaulting on their loans.

State-Based Loan Repayment Programs

State-based nursing loan repayment plans provide financial assistance for nurses in exchange for working in underserved areas. Designed to combat nursing shortages, these programs support nursing professionals by paying off their nursing school tuition and other nursing licensure costs.

In most cases, the loan repayment program will forgive a certain amount of debt if the nurse agrees to work for an approved facility for several years. Participation in such programs benefits nurses and their desired workplaces, providing much-needed relief while aiding those with nursing shortages.

For example, the Texas Department of Agriculture’s Rural Communities Health Care Investment Program is an innovative initiative that assists nursing students in rural areas with nursing loan assistance. The program offers nursing graduates a loan repayment program of up to $10,000 annually for two years.

Another Texas-based loan repayment program example is the Nursing Faculty Loan Repayment Assistance Program offers nursing faculty with master’s or doctoral degrees significant financial support. Those accepted into the program will benefit from up to $7,000 in loan repayment for up to five years. The program has been lauded as an important way to recognize and encourage nursing faculty in Texas and retain a high-quality nursing education workforce.

RNs and APRNs are encouraged to research state-based loan repayment programs through their State Board of Nursing (SBON) and other state-level organizations.

Other Options to Pay for Nursing Programs

Nursing faculty are often required to have specialized and in-depth knowledge, which comes at a price. However, nursing students need not rely solely on student loans to fund their nursing education.

Many alternative tuition funding options are available, such as:

Employer tuition assistance programs (e.g., the Amazon Career Choice program)
Grants and scholarships (gifts of money that don’t have to be repaid)
Military benefits (e.g., the GI Bill)
Reduced or free tuition at community colleges

With the help of these various options, nursing students can find financial aid sources that fit best with their unique circumstances to make funding nursing school more achievable.

Rachel Drummond, MEd

Writer

At NursingColleges.com, Rachel Drummond has applied her extensive experience in education and mindfulness to elucidate the importance of self-care for nursing students since 2022. Through her writings, she underscores the role of mental and physical well-being in fostering resilient and compassionate healthcare professionals.

Rachel is a writer, educator, and coach from Oregon. She has a master’s degree in education (MEd) and has over 15 years of experience teaching English, public speaking, and mindfulness to international audiences in the United States, Japan, and Spain. She writes about the mind-body benefits of contemplative movement practices like yoga on her blog, inviting people to prioritize their unique version of well-being and empowering everyone to live healthier and more balanced lives.