Becoming a nurse is a superb thanks to serve others in need also as earn an honest living. school of nursing , however, can cause large amounts of student loan debt. But because the necessity for nurses is so high, several national and state student loan forgiveness for nurses are created to draw in new nursing candidates.
In addition to helping borrowers handle their nursing student loans, these loan forgiveness programs also support the growing need for quality healthcare workers. And this very true for areas of the country that have critical shortages. the necessity for qualified nurses is on the increase . consistent with the Bureau of Labor Statistics, the utilization of registered nurses is projected to grow 7% from 2019 to 2029. That’s faster than the typical rate of growth for all occupations, which is 4%.
The demand for specialised healthcare services is on the increase thanks to several factors. for instance , a rise in chronic conditions that require care is driving demand. Also, an aging population generally means more healthcare workers are going to be needed within the future.
Student loan forgiveness programs for nurses have different requirements. But generally, a private can have some of their student loan debt forgiven after fulfilling specific service criteria.
Other forgiveness programs require a particular number of qualifying student loan payments so as for the balance to be approved for student loan forgiveness. The federal features a few student loan forgiveness programs which will be employed by nurses. So make certain to see each program’s specific qualifications before applying.
Student Loan Forgiveness for Nurses: The 4 Best Options
Getting a nursing education can be difficult, but repaying the debt for such education is way harder. Many borrowers think that the Public Service Loan Forgiveness is the only way out for them. However, there are other options that can help nurses to repay the debt.
This guide will discuss four effective ways of student loan forgiveness for nurses. It is essential to get familiar with each program to select the most suitable one. If you need further guidance, you can also contact Student Loans Resolved.
Student Loan Forgiveness for Nurses
This guide presents four important programs for nurses to eliminate or reduce the debt obligation:
Public Service Loan Forgiveness
Perkins Loan Forgiveness
The Nurse Corps Loan Repayment
The NHSC Loan Repayment
Each program has its eligibility conditions, award, and drawbacks. Read carefully to choose the best opportunity to solve your debt problems.
1. The Public Service Loan Forgiveness
Public Service Loan Forgiveness is a great opportunity for borrowers working in the public sector, including nurses. The program allows debtors to eliminate the whole debt once they make 120 qualifying payments. The qualifying payments have their requirements, which will be discussed in subsequent sections.
Additionally, the PSLF benefit is one of the best student loan forgiveness for nurses because it is non-taxable. Borrowers do not need to pay extra taxes from the forgiven loan amount. However, the downside of this program is that it has many requirements. Therefore, every year, thousands of borrowers get rejections due to ineligibility.
Different conditions exist about the workplace, work hours, loan type, repayment plan, payment qualification, etc. Borrowers need to get familiar with each element to maximize their chance for this student loan forgiveness for nurses.
Only governmental organizations- federal, state, local, tribal, and non-profit establishments qualify for this program. If you are serving in such a workplace, there is a high chance that you will qualify for forgiveness.
Unlike the programs discussed below, the Public Service Loan Forgiveness depends on the employer qualifications more than the job type. Hence, many qualifications for certifications, education, or service type does not exist. However, the nursing service should be full-time. The workplace can define full-time, but it cannot be less than 30 hours per week. If the employer defines it as more than 30 hours, then the higher amount- the employer’s definition- matters for this student loan forgiveness for nurses.
Yet, borrowers with half-time work can still qualify for the PSLF if they work more in more than one workplace. When the combined average of work hours is at least 30 hours weekly, the service will qualify.
This forgiveness opportunity only covers direct loans. Hence, if a nurse has other types of federal loans like the FFEL, Perkins, or private debt, he/she will not be able to utilize this program.
Some borrowers consolidate their loans to become eligible or simplify the repayment process. Keep in mind that only the payments after consolidation will be counted in the case of consolidation. For example, imagine you made ten qualifying payments before consolidation. If consolidated, you will lose ten payments and start all over again to progress toward 120 payments.
Nurse Corps Loan Repayment
If you are a Registered Nurse, Advanced Practice Registered Nurse, or Nurse Faculty, you can benefit from Nurse Corps Loan Repayment. Different from the PSLF, this program gives huge importance to nursing credentials. Hence, it is essential to fit one of the three categories mentioned. In return, this student loan forgiveness for nurses can cover 85% of the whole education debt.
In PSLF, we mentioned the importance of the workplace. In the Nurse Corps Loan Repayment plan, the workplace again matters. The program aims to provide uniform access to healthcare providers, including nurses, in different areas of the U.S. Hence, it requires the applicants to serve in a Critical Shortage Facility or qualifying nursing school in return for debt forgiveness. The mandatory service period is two years.
In the refinancing process, borrowers need to have two main elements: a good credit score and stable income. However, in some cases, a co-signer can also be required.
Usually, a good credit score is higher than 600. Such a score ensures that the borrower will most likely repay the debt and not default. Stable income is necessary to guarantee that the borrower will still have money to repay the debt on future dates.
If the borrower lacks reliability, a co-signer can be mandatory. For example, borrowers with bad debt might need a cosigner to back up their claims. In case the debtor is unable to make payments, the co-signer will be responsible for providing funds.