Student Loan Forgiveness Programs for Healthcare Workers

Forgiveness for healthcare workers can come from both federal and state programs. While federal programs may offer forgiveness, most state programs provide repayment assistance in exchange for service. 

The right program for you depends on factors such as your profession, employer, repayment plan, student loan type, and whether you can commit the time required to maintain eligibility.

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What loan forgiveness programs help healthcare workers?

Here’s how student loan forgiveness and loan repayment programs (LRPs) compare for nurses, doctors, and other healthcare professionals:

How does PSLF work for healthcare workers?

The Public Service Loan Forgiveness program is accessible to the widest range of healthcare professions. Instead of specific healthcare professions, eligibility is based on working for a qualifying employer. Qualifying employers are either government organizations at any level, 501(c)(3) nonprofits, or other nonprofits that provide qualifying public services.

However, working at a nonprofit facility doesn’t necessarily mean your employment qualifies for PSLF.

“A physician or other healthcare professional can work inside a nonprofit hospital but be employed by a separate organization that may not qualify,” says Anthony Sozzo, director of student financial planning at New York Medical College. “I always encourage borrowers to verify their employer and EIN [Employer Identification Number] early rather than discovering a problem years later.” 

You must also be enrolled in an income-driven repayment plan and make 120 on-time payments toward your federal Direct Loan balance. You must recertify your income and family size annually, which can affect your monthly payment amount. 

Monthly payments don’t need to be consecutive to qualify for PSLF, which is why Tom O’Hare, college planning coach and founder of Get College Going, encourages routine recertification. 

“PSLF is calculated based on a cumulative timeline, which allows individuals to move in and out of nonprofit organizations. Still, a major error can occur if they don't recertify when they change employers,” explains O’Hare. “This can affect reaching the eligible time period as originally anticipated. It is always recommended that individuals recertify their PSLF eligibility status as a safety net to prevent errors.”

Once you reach 120 qualifying payments, you must submit a PSLF request through your loan servicer. If approved, any remaining balance on your Direct Loans is forgiven without federal income tax liability. 

2026 changes to PSLF

The “One Big, Beautiful Bill Act” didn’t change PSLF, but it changed the repayment plans borrowers can use while working toward forgiveness.

The Repayment Assistance Plan (RAP) replaced several existing income-driven repayment plans and is the only IDR plan for new loans. Payments made under RAP will count toward Public Service Loan Forgiveness. Parent PLUS loans and Direct Consolidation Loans that include a parent PLUS loan aren’t eligible for the RAP or PSLF. 

Saving on a Valuable Education Plan (SAVE) is no longer available for loans disbursed after July 1, 2026, and those currently enrolled in SAVE must switch to a new repayment plan. 

Borrowers who took out student loans before July 1, 2026, may still qualify for older repayment plans, including Income-Based Repayment (IBR). However, if you’re enrolled in Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR), you must switch to a different plan, or you’ll be automatically moved to the new Tiered Standard Plan when those plans are eliminated by July 1, 2028.

What is the NHSC loan repayment program?

The NHSC Loan Repayment Program is available to licensed primary care providers working in healthcare fields such as behavioral health, mental health, and oral health. Qualifying employers must meet discipline and specialty requirements.

Unlike PSLF, which is only available for federal Direct Loans, NHSC LRP assistance can be used toward undergraduate and postgraduate federal and private student loans.

You must practice as a qualifying primary care provider, work at an approved Health Professional Shortage Area, and commit to working either full or half time over a two-year period. Award amounts are based on workers’ outstanding loan balance; for full-time service, it’s up to $75,000 in repayment assistance, or $37,500 for half-time service.

NHSC LRP also offers a one-time $5,000 Spanish-language proficiency award for Spanish-speaking providers, and may offer contract extensions for an additional annual award.

What is the Nurse Corps LRP?

Nurse Corps LRP is a program administered by the Health Resources & Services Administration. It offers nurses — registered nurses (RN) or advanced practice registered nurses (APRN) — and nurse faculty up to 60% repayment assistance toward qualifying federal and private student loan balances.  

In exchange for this award, licensed participants must agree to and complete a two-year, full-time obligation at an eligible facility. Qualifying facilities must be located within a critical shortage area, or at an eligible nursing school as nurse faculty.

Are there state-based forgiveness programs?

The state you reside and work in might offer student loan forgiveness for healthcare workers. These programs vary depending on where you live.

The Pennsylvania Primary Care Loan Repayment Program offers up to $80,000 in repayment assistance to physicians, dentists, and psychologists working full time for two years in federally designated health professional shortage areas. Other practitioners can qualify for up to $48,000 in repayment help for full-time work or $24,000 for half-time employment. 

By comparison, California healthcare workers may qualify for the California State Loan Repayment Program (CA-SLRP), which offers $50,000 to full-time qualifying professionals and $25,000 for half-time healthcare workers with the option to extend service contracts for additional awards. 

To learn more about student loan repayment programs in your area, visit your state’s health department website. ​​

Should you refinance instead of seeking forgiveness?

With the array of forgiveness options available to healthcare workers, it’s worth exploring which federal loan forgiveness or NHSC loan repayment programs might work best for you. However, if you have no plans to enter public service or are not willing to relocate to a healthcare shortage area, forgiveness might not be a viable option.

Student loan refinancing transfers your unpaid federal or private education loan balance into a new, private student loan. During this process, you’ll work with a new lender or servicer, and your new loan will have a different rate, terms, and repayment plans. If you have a high income and excellent credit, you might be able to secure a competitive rate. 

Refinancing your student loans as a healthcare worker should be done with caution and a plan. It’s a one-way exit for federal education loans — the refinanced debt won’t qualify for federal loan forgiveness programs afterward.

“A common regret is refinancing too early before the borrower really knows where their career will take them. Someone may later take a qualifying nonprofit position, experience a change in income, or simply realize that federal repayment protections would have been valuable,” cautions Sozzo.