Undergoing higher education can be very rewarding; not only do you get licensed to formally practice what you studied for years, but you’re also regarded in your respective circles as the professional that you are. However, studying to become a professional, especially a nurse, is a very costly process, one that leaves the person with years of student debt to pay. It’s not uncommon for the vast majority of nurses to begin their journey into their professional careers with a hefty student loan balance.

There are several ways through which you can reduce or eliminate your student loan, which usually revolve around federal, local, and private loan repayment assistance programs and, more importantly, forgiveness programs.

Federal Loan Repayment Programs

There are several federal programs that can assist you with repaying your federal or private student loans. Depending on the program, you may receive up to $120,000 to help repay the loans taken while pursuing a nursing career. However, all of the assistance programs that we’ll list below are only applicable to those who undertook loans for nursing endeavors.

• Health Resources and Services Administration Programs: The HRSA administers two loan repayment assistance programs for nurses: the National Health Service Corps Loan Repayment Program, and the NURSE Corps Loan Repayment Program. These two are similar in that they require the candidate to work full-time (with some part-time exceptions) in a health center with a critical nursing shortage. The former offers up to $50,000 for two years of uninterrupted service, while the latter offers up to 60% of the outstanding balance for working the same amount of time. However, the NURSE program also offers an additional 25% of the outstanding balance with a third year of service. The former isn’t taxable, while the latter is taxable, and federal taxes will be withheld when it’s disbursed.
• Indian Health Service Loan Repayment Program: This program offers up to $40,000 to repay outstanding loan balance for those who would work for a two-year uninterrupted period in American Indian or Alaska Native communities. The reward is paid in two installments, at the beginning of each year of service. This amount is taxable, and the program will help to pay 20 percent of the candidate’s federal tax.
• Military Loan Repayment Programs: There are many military branches that offer loan repayment assistance to nurses willing to sign up for several years of uninterrupted service:
  • Army’s Nursing Program: Offers up to $30,000 as a sign-up bonus and up to $120,000 in loan repayment assistance for those with over three years of active-duty service. The Army Reserve offers up to $50,000 for nursing school loans with over three years of commitment.
  • Navy: This branch has several loan repayment program such as the Navy’s Health Professions Loan Repayment Program, which awards up to $40,000 in loan repayment assistance each year. The Navy Nurse Candidate Program, on the other hand, offers a $10,000 sign up bonus, and a $1,000 monthly stipend for up to 24 months for full-time students pursuing a B.S. in nursing at an eligible school. However, for the latter, the nurse must agree to 4 to 5 years of service in the Navy to qualify.
  • Air Force Active Duty Health Professions Loan Repayment Program: This is another option for nurses who want to pursue a career in military nursing, which assists in repaying their loans.

Federal Loan Forgiveness Programs

Just like with the federal loan repayment assistance programs, the federal government also has several other programs that can pardon the debt entirely. These programs are not exclusive to nurses, but can still help them with their outstanding balance. However, they are only applicable to those with qualified federal student loans.

• Public Service Loan Forgiveness: This program requires the professional with loans taken through the direct loan program to make 120 qualified monthly payments while working full time with a qualified employer. After the monthly payments are settled, the remaining outstanding balance will be forgiven.
• Income-Driven Repayment Plan Forgiveness: Some individuals might opt to repay their loans through an income-driven repayment program, which takes into consideration the type of loan taken, the income of the person, the family size, and their place of residence. In some cases, the monthly payments may drop to or near zero. Furthermore, depending on the repayment plan, the rest of the loan could be forgiven after 20 to 25 years of payments.
• Perkins Loan Cancellation: Those who have received a federal Perkins loan may have it pardoned over the course of 5 years of uninterrupted full-time nursing work. The first and second years each would see 15 percent of the loan principal canceled, the second and fourth years each would see another 20 percent, with the remaining 30 percent canceled after the fifth year.

State Loan Repayment Programs

Each state has a number of student loan repayment programs for nurses, as an incentive for them to serve in federally identified Health Professional Shortage Area, or state-designated facility. Here is a table from U.S. News that lay out each of these relevant programs for each state: