Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Show
Nearly 70% of medical school graduates left school with debt in 2021, according to the Association of American Medical Colleges. The median debt—not including undergraduate study—was $200,000 per student. That’s a hefty sum to pay back. If you, like most med school grads, took on debt to attend school, it’s likely you’d benefit from student loan forgiveness. A healthcare worker’s salary, especially at the beginning of a career, doesn’t always make it easy to keep up with payments. How Does Student Loan Forgiveness Work for Healthcare Workers?Like other public service employees, healthcare providers who work at nonprofit or government organizations can qualify for Public Service Loan Forgiveness. You can also sign up for an income-driven repayment plan to pay off your federal loans. This lowers monthly payments to a percentage of your income—resulting in forgiveness of any remaining balance after 20 or 25 years. Beyond these widely available programs, there are other options specific to healthcare workers, as well:
8 Loan Forgiveness Options for Healthcare WorkersStudent loan repayment and forgiveness programs can limit the amount you’re required to pay back. And it’s not just physicians who may qualify for student loan forgiveness based on their healthcare service. Student loan forgiveness for nurses, nurse practitioners, certified nurse midwives, licensed clinical social workers, dentists, veterinarians, researchers and more all have programs available. Here are some you should consider. National Health Service Corps (NHSC) Loan Repayment ProgramsThe National Health Service Corps, run by the federal Health Resources & Services Administration, offers three different loan repayment programs for healthcare providers. These offer loan repayment assistance in exchange for at least two or three years of service in certain locations:
The same application applies to all three programs, but you can only apply for one program in total. NHSC Nurse Corps Loan Repayment ProgramNurses have an additional NHSC-run loan repayment assistance program to choose from: Nurse Corps. If you’re a registered nurse, advanced practice registered nurse or nurse faculty, you could have up to 85% of your outstanding nursing school debt paid off. To qualify, you must work in an eligible critical shortage facility or an accredited school of nursing at least 32 hours per week. The student loan repayment award is 60% of debt paid off over two years plus another 25% paid off for an optional third year. National Institutes of Health (NIH) Loan Repayment ProgramsClinical researchers focused on biomedical or biobehavioral research can receive up to $50,000 in loan repayment per year from the NIH—whether they’re working at an NIH lab or for an external employer on research deemed critical for the NIH. You must have a doctoral degree, such as an M.D., Ph.D., Pharm.D., Psy.D. or D.D.S., and your student loan debt must equal or exceed 20% of your salary. Indian Health Service Loan Repayment ProgramThe federal Indian Health Service awards up to $40,000 in loan repayment to clinicians who commit to two years of service in healthcare facilities focused on serving American Indian and Alaska Native communities. A wide range of professions can qualify, from advanced practice nurses to physical therapists (with a master’s or doctoral degree) to licensed acupuncturists. Centers for Disease Control and Prevention (CDC) Epidemic Intelligence Service ProgramThis two-year postgraduate fellowship is an opportunity for physicians, nurses, veterinarians, pharmacists and more to investigate epidemiological outbreaks, natural disasters or other public health issues for the CDC. You may be assigned to a state or local office or to the CDC headquarters. One of the benefits is up to $50,000 per year in student loan repayment, depending on funding availability. Only federal student loans qualify for repayment. State-specific ProgramsIn addition to federal agencies, many states offer forgiveness programs for healthcare workers. These programs often require participants to work in rural communities, HPSAs or other high-need areas. Here are a couple examples of state-specific programs for healthcare workers:
Award amounts and service commitments vary—and whether or not the award amount is taxable as income depends on the program. To find state opportunities specific to your discipline, check with your school or explore lists maintained by industry organizations like the Association of American Medical Colleges and the American Dental Education Association. No matter the type of care you provide, you’ll most likely find a program that will reward you for working in locations particularly in need of your talents. Check Out: Student Loan Forgiveness Calculator Best Student Loan Refinance Lenders Of 2022Find the best Student Loan Refinance Lenders for your needs. Is there student loan forgiveness for mental health workers?California. The California State Loan Repayment Program helps mental and behavioral health providers who work in designated shortage areas at an approved practice site. Assistance is contingent on a two-year full-time or four-year half-time service commitment, with varying award amounts from $5,000 to $50,000.
Who qualifies for the student loan forgiveness program?To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.
How can I get my student loan completely forgiven?If you work full-time for a government or not-for-profit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—that is, 10 years of payments.
Can school psychologists get loan forgiveness?The Patient Protection and Affordable Care Act, Title V defines school psychologists under the category of "mental health professionals" who are eligible for loan forgiveness.
|