Student Loan Forgiveness for Healthcare Workers: How to Get It

• Public Service Loan Forgiveness is a great option for healthcare workers in nonprofit or government roles, providing full forgiveness after 10 years of qualifying payments.

• Income-Driven Repayment Plans also offer forgiveness, ideal for those in private practice or higher-income roles.

• Some state and federal programs support healthcare workers in underserved areas, and refinancing may be a good option for those in stable, high-income roles.

For healthcare workers, student loan debt can feel like a weight that’s always there, shaping decisions and, in some cases, limiting options. But here’s the good news: there are several loan forgiveness and repayment assistance programs specifically designed for healthcare workers.

Each path has its own set of trade-offs. Here’s a quick breakdown:

• Public Service Loan Forgiveness: Forgives remaining federal student loan debt for healthcare workers after 120 qualifying payments

• IDR Forgiveness: Forgives the remaining balance after 20-25 years of income-based payments.

• Refinancing: Best for high-income earners with a manageable loan balance.

Let’s explore some of these programs together so you can make an informed decision that supports your financial goals and professional dreams.

Related: Kaiser Student Loan Forgiveness: Who Qualifies for PSLF?

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is a good option if you’re working in a government or nonprofit role. This program forgives the remainder of your student loan balance after 10 years of qualified work and payments. What’s really great? The forgiven balance is tax-free, which means no extra tax bill waiting for you.

Is PSLF for You? It is generally best for healthcare workers who feel comfortable staying with a nonprofit or government employer for the long term. If you’re working full-time in a public hospital, a nonprofit clinic, or perhaps even in public health, PSLF might be a strong fit.

Key Requirements

• Employer: Your employer needs to be a government agency or a nonprofit. Learn more in our PSLF Qualifying Employers Guide.

• Loan Type: Only Direct Loans are eligible, but there’s a workaround if you have other federal student loans—turn them into a Direct Consolidation Loan. Learn How to Consolidate Student Loans.

• Payment Plan: An Income-Driven Repayment plan typically works best.

• Commitment: You’ll need to make 120 qualifying monthly payments, which usually span 10 years of service.

You can download all necessary documents for your application process from our Forms and Application Guide. If you’re feeling lost and need guidance, contact our student loan lawyers for a clear, straightforward plan.

IDR Forgiveness

Income-Driven Repayment (IDR) can be a helpful choice if you’re in a private-sector job where forgiveness options like PSLF aren’t on the table. IDR plans base your payments on your income and family size, which can make them more affordable. After 20 or 25 years of payments, whatever’s left of your loan is forgiven.

• Who’s It Best For? IDR can be a good option for healthcare workers in higher-paying jobs outside the nonprofit world, such as those in private practice, or for those looking for a flexible approach that allows them to increase their income over time.

• Example Scenario: Let’s say you’re a traveling nurse, moving from one high-need location to another. IDR allows you the flexibility to adjust your payments as your income changes, and eventually, that remaining loan balance will be forgiven—though it’s wise to save a little each year for that tax bill down the road.

Note to Borrowers: There is a risk of a tax bill when the forgiven amount is considered taxable income after December 31, 2025. It’s worth discussing tax planning with a financial advisor to prepare for this, as it may vary depending on your retirement savings and other financial factors.

Related

• IBR Loan Forgiveness

• SAVE Plan Tax Bomb

You’re likely familiar with federal programs like PSLF and Income-Driven Repayment. But there are also other options that can provide debt relief, particularly if you’re open to working in underserved areas or specialized roles.

Here’s an overview of each program:

• NHSC Loan Repayment Programs (LRPs): The National Health Service Corps provides loan repayment assistance of up to $50,000 for a two-year commitment to healthcare professionals working in Health Professional Shortage Areas (HPSAs). Other NHSC options also target substance use disorder treatment and rural health, making this program ideal for those open to serving in high-need or underserved rural communities.

• NIH Loan Repayment Programs: The National Institutes of Health Loan Repayment Programs help healthcare professionals in research fields. These programs provide loan repayment assistance of up to $50,000 annually and support medical school researchers with a hefty loan balance.

• Nurse Corps Loan Repayment Program: Designed to help registered nurses, nurse practitioners, and nurse faculty working in shortage areas or at eligible nursing schools. It covers 60% of loan balances for a two-year service commitment, with an additional 25% covered if extended for a third year, helping reduce loan burdens for nurses in high-need locations.

• Department of Veterans Affairs (VA): For VA-employed healthcare workers, EDRP offers up to $200,000 in student loan payments over a five-year period. Learn more in our VA Student Loan Forgiveness for Employees Guide

• Indian Health Service Loan Repayment Program (IHS): This program provides up to $50,000 in student loan repayment for healthcare professionals who commit to a two-year term serving in American Indian or Alaska Native communities.

Beyond the major federal forgiveness options provided by the Department of Education, many states have their own loan repayment programs designed to attract healthcare professionals to underserved areas. Among these are New Mexico’s Allied Health Loan for Service Program, Iowa’s Health Professional Recruitment Program, and Alaska’s SHARP Program.

Each state program has its own eligibility requirements, benefit levels, and service commitments. If you’re open to working in a specific state, check with the state health department or relevant loan repayment office to see what unique opportunities might be available.

Related: State Student Loan Forgiveness Programs

Student loan forgiveness programs are often tailored to support specific healthcare roles. Here are some of the most common qualifying professions:

• Physicians and Pediatricians: Primary care physicians, including pediatricians, frequently qualify for PSLF, NHSC, and various state programs, particularly when serving in nonprofit hospitals or clinics in underserved areas.

• Physician Assistants (PAs): PAs, especially those in primary care, may qualify for PSLF and NHSC programs if working in nonprofit or underserved areas. Learn more in our Physician Assistant Loan Forgiveness Guide.

• Nurses and Advanced Practice Registered Nurses (APRNs): This includes registered nurses, nurse practitioners, clinical nurse specialists, certified nurse midwives, and nurse anesthetists. Nurses working in public or nonprofit hospitals can qualify for PSLF, while APRNs are often eligible for additional programs like NHSC and state-based loan repayment options. Learn more about Student Loan Forgiveness for Nurses.

• Mental Health Professionals: Psychologists, counselors, and social workers working in nonprofit or public health settings may benefit from PSLF and NHSC programs. These programs provide mental health support in communities with limited resources. Learn more about Student Loan Forgiveness for Mental Health Professionals.

• Physical Therapists, Occupational Therapists, and Allied Health Professionals: Physical therapists, occupational therapists, dietitians, and radiology technologists may qualify for PSLF, IDR forgiveness, and certain state programs if employed in nonprofit or high-need settings. Learn more in our Physical Therapist Student Loan Forgiveness Guide.

• Chiropractors: Although limited in specific loan forgiveness programs, chiropractors working in nonprofit clinics may qualify for PSLF and IDR forgiveness plans. Learn more in our Chiropractor Student Loan Forgiveness Guide.

• Pharmacists and Dentists: Pharmacists and dentists often qualify for PSLF and state repayment programs, particularly when serving in nonprofit healthcare facilities or designated shortage areas. Learn more in our Student Loan Forgiveness for Pharmacists Guide.

For some healthcare providers, refinancing can be a viable strategy, especially for those with private loans or those in high-income positions who do not rely on federal forgiveness programs.

Consider refinancing if you have:

• A Favorable Income-to-Debt Ratio: Refinancing is most effective if your income is high relative to your debt.

• Stable Employment: If you’re in a secure job, refinancing could help you reduce interest rates, potentially saving money over the life of the loan.

• Private Loans: Private student loans generally don’t offer forgiveness options, so refinancing to secure better terms can make a big difference.

If you’re not counting on PSLF or IDR forgiveness and have a strong income-to-debt ratio, refinancing can be an effective way to manage your student debt faster and at a lower cost. Reach out to your lender or contact an expert student loan lawyer to help you with this matter.

Related: How to Refinance Student Loans

The best loan forgiveness option for Healthcare Workers typically depends on their employment setting and career goals. PSLF is ideal for those in nonprofit or government roles, offering complete forgiveness after 10 years. If you’re in the private sector, IDR plans offer a long-term path to forgiveness.

We’ve assisted many healthcare professionals in understanding and achieving their student loan forgiveness goals and developing effective repayment strategies tailored to their unique needs.

If you’re ready to explore the best plan for your situation, schedule a consultation with our student loan lawyers today to take the next step toward managing your loans effectively.

Related reading:

• PSLF Qualifying Employers List

• How to Apply For Student Loan Forgiveness

• Student Loan Forgiveness for Rural Medical Practitioners

• Student Loan Forgiveness Options for First Responders

• Veterinary Student Loan Forgiveness