October 6, 2021

Can Hospitals Pay Off Student Loans for Nurses?

Forgiveness

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.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

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