Student Loan Forgiveness for Healthcare Workers ā Overview
Healthcare workers facing student debt now have multiple forgiveness programs to reduce or eliminate their loans. Student loan forgiveness programs are here to help you have a more financially secure future in these trying times.
With programs like Public Service Loan Forgiveness (PSLF), you may receive full federal loan forgiveness after 120 qualifying payments while working full-time for a nonprofit or government healthcare employer.
Applying for loan forgiveness programs can be as nerve-wracking as when you applied for your student loan.
Student loan forgiveness programs continue to benefit healthcare workers managing high loan balances post-training.
This article lists some ways for US healthcare workers to enjoy student loan forgiveness benefits.
Where to seek student loan forgiveness for healthcare workers
The Public Service Loan Forgiveness (PSLF) program requires 120 non-consecutive monthly payments made while employed by a qualifying public or nonprofit healthcare employer. This means that periods of employment in qualifying public service positions, even if interrupted, can contribute towards meeting the PSLF criteria as long as the total number of payments reaches 120. Consult the Federal Student Aid website to remain accurately informed on PSLF qualifications.
This temporary credit policy applied only to federal payment pauses through 2022; PSLF now requires active repayment and qualifying employment, provided they meet other qualifying criteria.
What is Public Service Loan Forgiveness (PSLF)?
The Public Service Loan Forgiveness (PSLF) program is a back-end student loan forgiveness program. Under this program, the healthcare workerās remaining federal debt is canceled after a specific number of monthly payments are successfully made.
PSLF cancels the remaining Direct Loan balance after 120 qualifying payments made under an income-driven repayment plan, contingent on meeting continuous service requirements.
The eligibility criteria for PSLF require the borrower to be employed full-time by a U.S. federal, state, local, or tribal government or not-for-profit organization that is tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
This program applies only to Direct federal loans; FFEL or Perkins loans must be consolidated to qualify. Parent PLUS loans are only PSLF-eligible if consolidated and repaid under the Income-Contingent Repayment (ICR) plan. Still, they can become eligible through consolidation into a Direct Consolidation Loan and choosing an income-contingent repayment plan for the consolidated loan.
Borrowers can consolidate the FFEL program or federal Perkins loans into a Direct Consolidation Loan to qualify for PSLF.
What is income-driven repayment?
The federal government also offers income-driven repayment plans as part of its back-end loan forgiveness initiative.
Under this program, eligible borrowers can adjust their student loan payments based on their net income. The program cancels any outstanding balance once they have repaid a specified amount of the total owed.
As of 2025, four income-driven repayment (IDR) plans are available, including the SAVE plan, which replaced REPAYE:
- Saving on a Valuable Education (SAVE) Plan (formerly REPAYE)
- Pay-As-You-Earn Repayment (PAYE) Repayment Plan
- Income-Based Repayment (IBR) Plan
- Income-Contingent Repayment (ICR) Plan
While many borrowers with federal student loans may qualify for one of the income-driven repayment (IDR) plans, eligibility criteria, such as the type of federal loan and the borrowerās income relative to their debt, can affect their eligible plan. Borrowers should review the specific requirements for each IDR plan on the Federal Student Aid website to determine the best option for their circumstances.
The eligibility criteria for REPAYE and PAYE repayment plans can cancel out debts if you have taken:
- Unsubsidized Loans and Direct Subsidized Loans
- Direct PLUS Student Loans
- Direct Consolidation Loans that donāt include PLUS loans (FFEL or Direct) made to parents
The eligibility criteria to apply for more manageable loan repayment under the IBR plan include:
- Unsubsidized Loans and Direct Subsidized Loans
- Unsubsidized Federal Stafford Loans and Subsidized Loans
- FFEL or Direct PLUS loans for students
- FFEL Consolidation or Direct Loans that donāt include PLUS loans made to parents
The eligibility criteria to apply for efficient student loan repayment under ICR include:
- Direct Consolidation Loans
- Direct PLUS Loans for students
- Unsubsidized Loans and Direct Subsidized Loans
An income-driven repayment plan decreases your monthly student loan repayment according to your discretionary income and your familyās size.
Each IDR plan uses a different formula based on income and family size, with payments recalculated annually.
Under the Income-Based Repayment (IBR) plan, the remaining loan balance is forgiven after 20 or 25 years of qualifying payments, depending on when you first received your loans. The Income-Contingent Repayment (ICR) plan forgives the remaining balance after 25 years.
Under the PAYE plan, the remaining loan balance is forgiven after 20 years of qualifying payments. Under the SAVE plan (which replaced REPAYE), undergraduate loan balances are forgiven after 20 years, and graduate loans after 25 years; you should have at least 20 years of undergraduate or 25 years of graduate repayment history.
Healthcare workers can apply for IDR plans through www.studentaid.gov and are encouraged to confirm eligibility with their loan servicer.
State & Employer Programs
New state programs like Hawaiāiās HELP (2023) and Connecticutās SLRP (2024) offer $25,000ā$50,000 in loan forgiveness for healthcare professionals working in shortage areas. Many hospitals now offer employer-based student loan repayment benefits, with contributions up to $5,250 per year tax-free through 2025.
Conclusion
Healthcare workers have access to expanded forgiveness options through PSLF, income-driven plans, and new state or employer programs introduced since 2023.
See Also
Education Grants for Healthcare Workers
Home Loans for Healthcare Workers
