Student loans for nurses are necessary in order for you to complete your nursing education. After all, the American Association of Colleges of Nursing reveals in its 2017 survey that 69% of nursing students took out nursing loans.
Nevertheless, the loan payments you are required to make may take a toll on your future finances as a healthcare professional. You may be wondering: “Can hospitals pay off student loans for nurses?” While hospitals do not typically directly pay nursing loans, nurses who work in non-profit hospitals may possibly qualify for student loan forgiveness.
Find out what Public Service Loan Forgiveness is. Discover if you are potentially eligible for this type of loan forgiveness as a nurse and how you can participate in this plan.
What Is Public Service Loan Forgiveness?
The Public Service Loan Forgiveness (PSLF) is a student loan forgiveness plan that is sponsored by the federal government of the U.S., according to Bankrate. The PSLF clears the remaining balance of student loans for borrowers under the Direct Loan program after they have made 120 monthly payments through an income-driven repayment plan.
Federal student loans that are included in the Direct Loan program may be forgiven through the PSLF. However, Perkins Loans and Family Education Loans (FFEL) are not qualified for forgiveness, except if they become consolidated in a Direct Consolidation Loan.
Who Is Eligible for Public Service Loan Forgiveness?
Borrowers who are working on a full-time basis for certain employers during the repayment period may possibly be permitted to participate in PSLF. Some examples of qualifying employers are non-profit organizations and state, federal, local, or tribal U.S. government organizations.
Forbes explains that you could potentially be eligible for PSLF as a nurse if you work for a non-profit hospital, non-profit healthcare organization, or a government agency.
How You Can Participate in Public Service Loan Forgiveness?
Follow these steps to apply for and participate in PSLF:
- Ensure that you are working for a qualifying healthcare employer, you have borrowed the right kind of federal loans, and you are enrolled in an income-driven repayment plan.
- Make 120 monthly loan payments while you are a full-time employee of a qualified hospital or organization.
- Submit the official PSLF Form once you have completed the 120 payments.
- Fill out a PSLF and Temporary Expanded PSLF (TEPSLF) Certification and Application (PSLF Form) annually or every time you move to a new workplace.
- If your PSLF application is successfully approved, your remaining loan balances will be forgiven. You are also no longer required to pay income taxes on forgiven loans.
Minimize Your Student Loans for Nurses by Applying for Student Loan Forgiveness
You do have the option of paying your nursing loans in full through an income-driven repayment plan if you do not wish to pursue a public service career.
However, choosing to work for a qualifying healthcare employer and applying for PSLF will give you the opportunity to save thousands of dollars in the long run. PSLF also makes it possible for you to shorten your repayment timeline by several years.
It’s definitely worth investing time and effort to apply for PSLF in order for you to finally become free from your student loans for nurses.