The COVID-19 outbreak has put immense pressure on healthcare workers, especially nurses, and college debt adds to this burden. Fortunately, there are initiatives in place to assist you repay or forgive some or most of your college debt.
Nurse Corps Loan Repayment Program
Nurse Corps Loan Repayment Program encourages health workers in marginalized communities at severe scarcity hospitals or in nursing programs that are eligible. After two years of full-time, qualifying jobs, this program will pay 60% of your unpaid federal or private college debt. You may be able to extend your plan for a third year in order to pay off an additional 25% of your loans.
Unlike many other forgiveness initiatives, you will have to repay tax on that money you receive from the plan. You must also be a certified health professional, innovative and comprehensive nursing assistant, or nurse faculty member to be eligible.
The program accepts requests yearly, and you can enroll on this webpage. With this governmental tool, you may obtain a list of clinics and hospitals that identify as essential scarcity institutions.
Public Service Loan Forgiveness
After Ten years of continuous labor and 120 eligible payments, the Public Service Loan Forgiveness program forgives the loans of graduate students employed by the government. There is no limit to how much money can be forgiven.
If you work in a hospital for the state or non-profit hospitals or healthcare system agency, you may be qualified for PSLF.
Once a year or whenever you find a new job, you must fill out an Employment Certification Form. You can submit a PSLF request once you’ve completed all of your eligible payments.
National Health Service Corps Loan Repayment Program
Certified nursing staff may be qualified for approximately $50,000 in college debt repayment aid through the National Health Service Corps Loan Repayment Program if they operate permanently for 2 years in a certified Health Professional Shortage Area. Part-time employees may be eligible for nearly $25,000 in benefits.
This forgiveness program accepts both federal and private college debt, and money earned from the NHSC programs is tax-free. That program and the Nurse Corps Loan Repayment Program cannot be used at the same time.
You may enroll for the plan by filling out an online application.
Perkins Loan Cancellation
Poor undergrad and grad students used to be eligible for Perkins Grants, but the programme has now been phased out. While Perkins Loans are not currently available to students, those who already have them may be eligible for full debt forgiveness through the initiative.
If you work permanently as a nursing specialist in a high-need area for five years, you can have your loans forgiven in tax-free installments.
Call your debt servicer or the college from where you obtained the loan to inquire for Perkins Loan Forgiveness. Your college or provider will inform you of the paperwork and forms that must be submitted.
State-specific loan repayment programs
Extra repayment plans may be accessible in your state. Contacting your state’s health authorities or asking your employer for further info is the best strategy to find out if your state offers a programme. Here are a few state-based initiatives to consider:
California: You must be actively certified and practicing as a Nurse Practitioner and hold a Bachelor of science in nursing to be eligible for the Bachelor’s degree Nursing Loan Repayment Plan. If you operate for a year in a recognized Health Professional Service Area, you could receive nearly $10,000. This award can be given to you up to three times.
Idaho: If you work in a certified Health Professional Service Area, you might well be eligible for a federal loan payback award that is matched dollar for dollar by your workplace. Based on how much your company matches, you might earn anywhere from $10,000 to $25,000 per year. You must work a full time job for a period of two years.
Iowa nurses may be eligible for the Iowa Health Care Loan Repayment Program. The highest yearly payout is $6,000 or 20% of your remaining balance eligible student loans, whichever is less. For the next five years, you must work or teach in underprivileged communities.
This is not an entire list; you should verify with your state to discover what courses are offered. Please note that debt forgiveness and loan repayment plans aren’t your only options. If you’re having trouble repaying your federal student loans, an Income-Driven Repayment plan, which bases your monthly mortgage payments on your family income size, can be a good option.