Do Health Care Workers Qualify for Student Loan Forgiveness? Eligibility Requirements Explained

Loan Forgiveness for Healthcare Workers: Healthcare professionals, especially those who worked during the pandemic, often face significant student loan debt. Fortunately, there are several student loan forgiveness programs designed specifically for healthcare workers to help reduce or eliminate their debt.

These programs vary in their requirements but typically include options like the Public Service Loan Forgiveness (PSLF) program, where healthcare workers can have their loans forgiven after working for qualifying nonprofit or government employers, such as hospitals. Additionally, Income-Driven Repayment (IDR) forgiveness plans allow borrowers to reduce their monthly payments based on their income, and after a set period, any remaining balance may be forgiven.

When Will the Latest Student Loan Forgiveness Take Effect?

Understanding the specific eligibility requirements for each program can help healthcare professionals find the right option to reduce their financial burden.

Public Service Loan Forgiveness (PSLF) for Healthcare Workers

Healthcare professionals looking for student loan forgiveness have a few options, and one of the most popular is the Public Service Loan Forgiveness (PSLF) program. To qualify for PSLF, healthcare workers must meet the following requirements:

1. Hold federal Direct Loans: Only federal Direct Loans are eligible; Federal Family Education Loans (FFEL) and private loans do not qualify.
2. Work with a qualifying employer: This includes full-time or part-time employment with a nonprofit or government organization, such as hospitals or universities.
3. Make payments under an income-driven repayment plan: Plans like PAYE (Pay As You Earn), SAVE, or IBR (Income-Based Repayment) are eligible for PSLF.

Healthcare workers can apply for tax-free forgiveness on any outstanding balance if they fulfill these requirements and make 120 qualifying payments. To guarantee continued eligibility, healthcare professionals are encouraged to submit an employment certification form on a regular basis.

When Will the Latest Student Loan Forgiveness Take Effect?

National Health Service Corps (NHSC) Loan Repayment Programs

The NHSC Loan Repayment Programs help healthcare workers who serve in areas with limited access to healthcare. These programs offer three types of repayment plans, with commitments ranging from two to three years. Healthcare workers can receive between $50,000 and $100,000 to help pay off their loans.

The program is available for doctors, nurse practitioners, physician assistants, social workers, and other healthcare professionals. Some of the workplaces in this program also qualify for Public Service Loan Forgiveness, giving workers more options to reduce their loans.

Nurse Corps Loan Repayment Program

The Nurse Corps Loan Repayment Program (LRP) helps registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty by forgiving a portion of their student loans.

After working for two years in an underserved area, participants can have 60% of their nursing school debt forgiven. If they continue for a third year, they can receive an additional 25% forgiveness.

However, unlike the Public Service Loan Forgiveness (PSLF) program, the loan forgiveness from this program may be subject to taxes.

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NIH Loan Repayment Programs

Healthcare professionals involved in research can take advantage of the National Institutes of Health (NIH) Loan Repayment Programs (LRPs). These programs offer up to $50,000 per year to help repay student loans.

The program is available to those in fields such as pharmacy, psychology, and dentistry. It applies to both NIH internal employees and those working in research positions at external organizations.

Income-Driven Repayment (IDR) and SAVE Plan Forgiveness

Income-Driven Repayment (IDR) plans, which offer taxable loan forgiveness after 20–25 years, can be advantageous for healthcare workers who might not be eligible for other forgiveness options.

Eligible professionals can cap payments between 5 and 10% of their income under the recently implemented SAVE Plan, which took the place of REPAYE. Those with large loan balances in relation to their income are a good fit for this option.