California Student Loan Forgiveness For Nurses
Registered nurses in the state of California may qualify for the Bachelor of Science Nursing Loan Repayment Program. This program provides up to $10,000 for nurses who agree to to fulfill a one-year service obligation in areas of California that do not have enough nurses to fulfill their needs. If youre a nurse in California, you can apply through the CalREACH portal.
Pros And Cons Of Student Loan Forgiveness Programs
While student loan forgiveness programs sound incredible at first glance–and for many individuals say they can be life-changing–they do warrant consideration over the pros and cons.
Relying on a student loan forgiveness program for your nursing education may not always be the best route for you, depending on your individual situation.
Should Nurses Pursue Student Loan Forgiveness And Repayment Programs
Nurses have a multitude of options for receiving help to pay off student loan debt. Some programs cover accrued interest. But others leave you covering that bill. Also, not all repayment programs are tax-free. So make sure to take that into consideration when selecting the best student loan forgiveness or repayment program for you.
Many repayment options involve working in rural or inner-city areas that are lacking sufficient healthcare professionals. But if that doesnt interest you, you might need to look at alternatives for paying off student loan debt faster.
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You Don’t Have To Pay For Assistance To Receive Student Loan Relief Through The Slrn Program
There are companies misrepresenting the facts about themselves to get your business and your money. Be aware of the warning signs that a company may not have your best interest in mind. Be cautious of companies that:
- Request a fee before they will assist you with your loans and ask you to provide them your credit card information or debit card information.
- Use taglines such as “New Laws Forgiving Federal Student Loans” and “Get Rid of Student Loan Debt!” and urge you to act quickly because the loan forgiveness program is ending soon and you will forfeit your rights to the benefits.
- Ask you to sign over power of attorney or other third-party authorization so they can make changes to your account.
- Request you do not contact PHEAA while they are working on your behalf.
- Promise to cancel your student loan debt, lower your monthly payment immediately, or provide instant relief from wage garnishment or default.
- Ask you to provide your logon credentials to access your account online.
PHEAA will not contact you regarding the information listed above.
Graduate Nursing Loan Forgiveness Program
Those who accept the award must sign a promissory note and in doing so incur an obligation to enter a faculty or administrative position at a college or university in Tennessee in a nursing education program. The obligation is equivalent to four years of full-time employment to have the loan forgiven, immediately upon completion of the education program.
If recipients do not meet this obligation the award must be repaid. Repayment will begin if the recipient does not complete the plan of study or is not employed in a faculty or administrative position at an eligible Tennessee college or university. Interest accrues at 9% from the last date enrolled in an eligible program or the day after graduation from an eligible program.
Awards are made in equal installments each term throughout the academic year. The award may be renewed three times for a total of four years for full-time students, up to seven times for a total of years for part-time students, or for the length of the program of study, whichever is less.
To be eligible, the applicant must:
- be a Tennessee resident and a U.S. citizen, and
- have an unencumbered Tennessee nursing license, and
- be enrolled in an eligible masters degree or a post masters degree in a nursing educational program at an eligible Tennessee institution.
Eligible Programs and Institutions
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Nursing Student Loan Forgiveness Programs
If you want to apply to a Nursing Student Loan Forgiveness program, you will find that you are in luck. Currently, getting rid of student debts for nursing education is relatively easy. Compared to other cancellation or discharge programs, this field offers a lot of conveniences. Nursing Student Loan Forgiveness is quick to attain and has eligibility conditions that most applicants can satisfy. Below listed are the different options for forgiveness or discharge programs. Each of them gives a general overview of the plans, but you can find more detailed information by choosing one. Lets find a way to eliminate loans faster at reasonable costs!
What Is Loan Forgiveness And How Does It Work
Nursing graduates can turn to student loan forgiveness programs and cancellation programs to help eliminate their student debt. Programs may offer full or partial financial help when nurses commit to working in underserved areas.
Dr. Karen Crowley, associate professor at the School of Nursing at Regis College, explains that student loan forgiveness programs offer the chance to eliminate student loan debt and gain continued job security. However, nurses should understand program specifications before accepting funds.
“It is essential that nursing students and nurses understand what will be required of them, for how long, and decide if these requirements are something they see as feasible,” she says.
Student loan forgiveness programs come with strings attached. Many require students to fulfill work commitments for at least two years. Crowley reminds nurses that, “because of the requirements set by these programs, nurses won’t have the flexibility of where they work or switching employers without loss of the forgiveness benefits.”
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National Health Service Corps
Nurse practitioners or nurse midwives with student loan debt who commit to working for the Indian Health Service in Indian Health Service facilities, tribally-operated 638 health programs, and Urban Indian Health Programs for at least two years can receive up to $40,000/year until their loans are repaid. You do not have to be of Indian/Native American heritage to participate.
Who is Eligible: Nurse practitioners in adult, family, geriatric, pediatric, or women’s health specialties, psychiatric nurse specialists, or certified nurse midwives
Learn More About/Apply to Indian Health Service.
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Do Nurses Qualify For Student Loan Forgiveness
The NHSC and other government organizations offer student loan forgiveness for nurses. These programs typically require nurses to work in an underserved area, for specific providers, or in the military for up to three years. You can pay as much as 100% of your loans, and the benefits may be tax free.
What Is The Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program is for registered nurses who work in underserved communities at critical shortage facilities. Applications are accepted once a year to those interested in applying.
The NCLRP supports registered nurses, advanced practice registered nurses, and nurse faculty by paying up to 85% of their unpaid nursing education debt.
Individuals who work at a qualified facility can get 60% of their student loans paid off over two years of employment. Borrowers have the option of getting an additional 25% of their loans paid off by the Nurse Corps program for a third year.
In exchange, accepted applicants must work at least two years at a critical shortage facility or other appropriate locations in the United States.
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Military Loan Forgiveness For Nurses
Nurses who agree to military service may see tens of thousands of dollars of their student loans forgiven. For instance, the United States Navy website says that nursing students who serve full time in the Navy can qualify for up to $34,000 in loan repayment to help pay for nursing school through the Nurse Candidate Program . This aid is given out as an initial grant of $10,000, plus a stipend of $1,000 per month for up to 24 months.
Meanwhile, nurses can participate in the Air Force Active Duty Health Professions Loan Repayment Program , which is available for eligible specialties within the Medical Corps, Nurse Corps and Biomedical Sciences Corps. This program offers up to $40,000 in loan repayment assistance, although taxes are assessed on forgiven amounts. Loan forgiveness can be used for principal and interest payments, as well as reasonable educational and living expenses.
Best for: New enlistees in a branch of the United States Armed Forces who plan to serve their country as a qualified health care professional for at least two years.
How to apply: Talk to your military recruiter for more information.
How To Apply For Pslf
Applying for the PSLF can be confusing so the federal government has developed a specific tool to aid individuals in the application process. The tool accomplishes the following:
- Helps you understand more about the PSLF Program and what you need to do to participate and possibly have your loans forgiven
- Helps you assess whether your employer qualifies for PSLF
- Helps you assess whether your loans qualify for PSLF
- Helps you decide which PSLF form to submit
- Uses the information we have about your federal student loans to explain other actions you should or must take if you want to receive PSLF
In addition to using the tool, here are the basics you need to know before you can apply:
- The 120 qualifying monthly payments = 10 years, so you will need at least 10 years of qualifying payments before youre eligible to apply.
- You have to be still working for the qualifying employer when you apply.
When youre ready to apply–aka have made your 120 payments and know youre eligible–you can fill out the application and send it, along with your employers certification form, to:
- U.S. Department of Education
- P.O. Box 69184
- Harrisburg, PA 17106-9184
One note: If you already use FedLoan Servicing for your loan, you can upload both forms directly on their website instead of mailing your paperwork.
Another option for nurses is the Nurse Corps Loan Repayment Program.
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Other Ways To Repay Student Loans
Student loan forgiveness programs can be a huge help to many nurses who are trying to juggle their educational debt after graduation. But in reality, not everyone will qualify for this type of financial assistance.
If you cant qualify for student loan forgiveness or you dont want to be tied down to a specific nursing job for several years, some other strategies that could potentially save you money on your educational debt include:
- Refinancing or consolidating your student loans: If you have good credit and steady income, you might be able to qualify for a lower interest rate on your student loans through a private lender. Just be aware that if you refinance federal student loans with a private lender, youll give up a number of benefits, including federal forbearance and income-driven repayment options.
- Repaying your student loans faster: While you wont have any of your loan balance forgiven, you could reduce the total amount you pay by making extra payments on your loans. This will help you get out of debt sooner and will cut down on the amount of interest tacked on to your loans.
- Income-driven repayment plans: If your student loan payments are high compared to your income, the Department of Education offers several income-driven repayment plans that might help you. In addition to potentially helping you lower your monthly student loan payment, these plans feature loan forgiveness for qualifying borrowers after 20 to 25 years.
Understanding Student Loan Forgiveness For Nurses
Nursing school can be a significant investment, especially if you rely on student loans to finance your education. A 2017 report published by the American Association of Colleges of Nursing found that nearly 70% of nursing graduate students, such as those enrolled in traditional or online MSN programs, took out student loans, with most borrowing $40,000-$50,000. Over 75% of those same students also carried a significant amount of undergraduate debt.
Those enrolled in in-person or online RN programs faired a bit better, borrowing just under $25,000 to finance a bachelors degree or similar credentials, according to NerdWallet. Either way, with median salaries at just over $75,000 for RNs and $115,000 for advanced practice RNs , graduates could spend years paying down their debt.
The good news is that help is available. Aware of the cost of nursing school and mindful of the growing need for nurses, many organizations and federal agencies offer relief or repayment programs. Here are the best options available, along with information on how you may qualify.
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Refinance Your Student Loans
If you have private student loans or would prefer to pay off loans faster, another option is to refinance your student loan debt. With this approach, you apply for a refinancing loan from a private lender that has different terms than your existing loans. The new loan is used to pay off the old ones, and it may have a lower interest rate or smaller monthly payment than you had before.
If you qualify for a lower interest rate, you can save a significant amount of money over the life of your loans. You also can decide to extend your repayment term to reduce your monthly payments and get more breathing room in your budget.
Keep in mind that there are some drawbacks to refinancing federal student loans. Once you refinance, your loans will become private loans, and youâll no longer qualify for federal benefits. For example, refinancing your federal loans would make you ineligible for the CARES Act student loan relief measures, including the loan payment suspension and interest waiver that are in effect until September 30, 2021.
If you decide that refinancing is right for your needs, here are our picks for the top student loan refinancing lenders.
Indian Health Services Loan Repayment
The Indian Health Service Loan Repayment Program offers to repay up to $40,000 of qualified student loans when you agree to an initial two-year service obligation. Qualifying nurses agree to work full time at a health program site that serves American Indian and Alaska Native communities.
This programs availability is based on staffing needs at Indian Health Service facilities, as well as availability as funds. Further, funds are disbursed based on a ranking system, with preference given to American Indian and Alaska Native applicants.
Best for: Nurses who work for at least two years at an eligible Indian Health Service facility that serves American Indian or Alaska Native communities.
How to apply: Apply on the Indian Health Service website.
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Military Student Loan Forgiveness For Nurses
Nurses with military experience may be eligible for additional student loan assistance that goes beyond federal programs open to civilians and the general public. Veterans, active-duty soldiers, and reserve members can take advantage of these and other benefits depending on the nature and duration of their service.
Each branch of the military offers its own loan forgiveness programs along with its own eligibility and application criteria. Whether youve served with the Army, Navy, or the Air Force, options are available to help you repay your student debt. Keep reading to find out more about available programs and what they require.
Army Active Duty Health Professions Loan Repayment Program
Active duty service members with a background in nursing may qualify for this program with the Army, depending on the length of their service. The initiative repays up to $120,000 in nursing educational loans across three consecutive years totaling $40,000 annually.
Recipients may also be eligible for an additional $10,000 accession bonus if they agree to accept a commission as an Army Medical Corps officer. Participation in this program does not affect eligibility for other benefits like health insurance, retirement investing, or housing.
Army Reserves Healthcare Professionals Loan Repayment Program
Army Reserves College Loan Repayment Program
Navy Nurse Candidate Program
Air Force Active Duty Health Professions Repayment Program
How To Apply For Nclrp
The application is lengthy and requires documentation from your employer as well as additional supporting information. Because it can be a bit complicated, its recommended that you first familiarize yourself with the Application and Program Guidance document before you begin your application.
In general, you may be ready to apply for the forgiveness program if you meet the following criteria:
- Youre an LPN, APRN, or nurse faculty member.
- You earned your degree from an accredited nursing school in a U.S. state or territory.
- You work full-time in a CSF in a high-need area or accredited nursing school.
Its also worth noting that the forgiveness is given out depending on your financial need, so there may be applicants who receive higher amounts based on their needs.
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