Loan Relief for the Healthcare and Education Professionals

Loan Forgiveness for Nurses

Nursing is one of the most demanding professions in the world, and could very well be one of the most underrated professions as well. It takes a lot of time and effort to become a nurse and requires a lot of long hours. Approximately 57% of nurses apply for loan forgiveness for nurses through various programs. Finish a full nursing education will land you in student debt of up to $29,800, the average Registered Nurse (RN) earns approximately $73,000 a year.

There are a number of ways that a nurse can reduce the debt burden of student loans. Loan forgiveness programs for nurses are a great way to do so, this allows nurses to gain control of their finances and also creates qualified and experienced healthcare professionals that are in critical shortage in certain parts of the world. There are a number of loan forgiveness programs that you can look into as a nurse, let’s take a look at a couple.

What are the National Loan Forgiveness Programs for Nurses?

There are a couple of student loan forgiveness programs that nurses can apply for.

Public Service Loan Forgiveness Program

The Public Service Loan Forgiveness Program (PSLF) is only applicable to Federal Direct Loans. Nurses that are using these loans may apply for the PSLF Program. Here are some of the other eligibility criteria for the PSLF Program.

  • The loans should be on the Income-Driven Repayment Plan.
  • 120 qualifying payments. The applicant will need to make 120 payments on time and in full for it to be considered a qualifying payment. The 120 qualifying payments do not need to be consecutive.
  • The applicant must be employed in a government healthcare facility or a non-profit organization during the 120 payments and during the application period.

PSLF Compliant Repayment ProgramsPay As you Earn (PAYE)

The Pay as you Earn (PAYE) scheme allows you to make payments against your student loan depending on your income and not a fixed amount. The loan amount that will need to be repaid periodically is a percentage of your income.

Revised (PAYE)

The Revised Pay as you Earn scheme caps the repayment of the installment to 10% of your income. If these payments are made on time the scheme forgives you the balance after 20 to 25 years of payment.

Income-Based Repayment (IBR)

The Income-Based Repayment (IBR) takes into account your income and expenses, based on the size of your family and decides how much you owe towards your loan for each payment.

Income-Contingent Repayment (ICR)


The Income-Contingent Repayment (ICR) scheme is quite similar to the other schemes, wherein, the monthly payments are based on the income of the borrower and change as the borrower’s situation changes.

Perkins Loan Cancellation

In September 2017 the Perkins loan forgiveness program was suspended, but if you have been a borrower earlier than that you are still eligible for loan cancellation. The program awards a 100% loan cancellation of completion of 5 years of qualifying service.

Benefits of Using a Loan Forgiveness Program

There are a number of reasons to check out loan forgiveness while trying to pay off your student loan. Here are some:

  • Loan forgiveness for nurses can help create a motivated healthcare workforce.
  • Loan forgiveness programs require nurses to complete certain criteria. Completing these requirements can help build professional experience for nurses.
  • Since a lot of these loan forgiveness programs for nursing students require them to satisfactorily complete a certain amount of time in a critical shortage healthcare facility it helps the healthcare system spread out more evenly.
  • The amount of student debt that is waived off as a result of the loan forgiveness for nurses program does not appear in the credit record of the borrower, thereby, it does not affect the credit rating of the borrower.

Loan Forgiveness Programs for Teachers

Teaching jobs are in high demand and there are a number of schools that are looking for qualified teachers to join their ranks. Being a teacher can be one of the most rewarding jobs in the world. But becoming a teacher is no easy task, as you need to hold a bachelor’s degree in the field you plan to teach in and a teaching certificate that proves you are qualified to teach young minds. These certifications and degrees cost money and being wrapped up in student debt while having to deal with a classroom full of students isn’t a great situation, for this reason, there are a teacher loan forgivenessprograms that can help you reduce the burden of student debt and benefit you in the long run as well. Let’s take a look at one of these programs.

Public Service Loan Forgiveness (PSLF) Program

The PSLF Program is one of the most widely used programs for teacher loan forgiveness. This is mainly due to the fact that the requirements to be eligible for this program are quite easy to fulfill. Here are the eligibility requirements for this program.

  • Qualifying employment for this program is work experience at a Government organization at any level (US, Federal, State, local or tribal).
  • Non-Profit organizations exempt under section 501(C)(3) of the Internal Revenue Code.
  • Full-time volunteers with the AmeriCorps or Peace Corps.
  • Loans availed under the Willian D. Ford Federal Direct Loans qualify for the PSLF Program.
  • If consolidated with the Direct Federal Loans, the Federal Family Education Loan (FFEL) and the Federal Perkins Loans qualify for this program.
  • You need to make 120 qualifying payments towards your loan. This means it will take at least 10 years before you can qualify for the PSLF Program.