Student Loan Forgiveness for Healthcare Workers

Student Loan Forgiveness for Healthcare Workers – Overview

You have a reason to be happy if you are a healthcare worker struggling with student debt. Student loan forgiveness programs are here to help you with a more financially secure future in these trying times.

With student loan forgiveness programs, you can lower your monthly payment rate, decrease your loan term period, and eventually receive complete forgiveness for your student loan, tax-free, within just 10 years.

Applying for loan forgiveness programs can be as nerve-wracking as when you applied for your student loan.

If you are a healthcare worker worried about loan repayment during the pandemic, student loan forgiveness programs are great news.

In this article, we have listed some ways you can enjoy student loan forgiveness benefits for US healthcare workers.

Where to seek student loan forgiveness for healthcare workers?

Current healthcare workers with unpaid federal student loans can take advantage of President Biden’s “payment pause and waiver” initiative, which was announced recently.

This initiative applies to all loans owed to the Department of Education.

Where to seek student loan forgiveness for healthcare workers

Where to seek student loan forgiveness for healthcare workers

At the end of the relief period and after payment of a minimum of 120 qualifying installments, you can qualify for the PSLF (Public Student Loan Forgiveness) program.

Students under loan debt will receive credit towards PSLF on par with on-time monthly payments in the specified amount in the payment pause period.

What is Public Service Loan Forgiveness (PSLF)?

The Public Service Loan Forgiveness (PSLF) program is a back-end student loan forgiveness program. Under this, the healthcare worker’s remaining federal debt is canceled after a specific number of monthly payments have been made successfully.

Back-end loan forgiveness initiatives can cancel your entire debt, but you must satisfy the specified service requirements before receiving loan forgiveness or cancellation.

The eligibility criteria for this student loan forgiveness for healthcare workers via PSLF require the borrower to be a full-time employee in the public service sector, such as working at a government institution/department or working for a 501(c)(3) tax-exempt nonprofit organization.

The benefits of this program are awarded only to direct federal loans, which include Unsubsidized Loans, Direct Subsidized Loans, grad PLUS loans, parent PLUS loans, or direct consolidation loans.

As a borrower, you can also join an FFEL program loan or a federal Perkins loan with the Direct Loan program.

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, eligible borrowers can adjust student loan payments based on their net income. Once you have repaid a specified amount from the total owed, the program cancels any outstanding student loan balance.

The Department of Education offers four different income-driven repayment programs for healthcare workers:

  • Revised Pay-As-You-Earn (REPAYE) Repayment Plan
  • Pay-As-You-Earn Repayment (PAYE) Repayment Plan
  • Income-Based Repayment (IBR) Plan
  • Income-Contingent Repayment (ICR) Plan

Almost anyone under a federal student loan can qualify for at least one of these repayment plans.

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 don’t 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 don’t 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 family’s size.

Every plan has a different method to calculate your repayment amount, while the monthly payment is revised every year.

Under the Income-Contingent Repayment (ICR) plan and income-based repayment (IBR) plan, the government will cancel your remaining student loan debt after 25 years of repayment.

While under the Pay-As-You-Earn (PAYE) plan, you should have at least 20 years of repayment to show. In contrast, you can qualify for relief under the revised Pay-As-You-Earn Repayment (REPAYE) program; you should have at least 20 years of undergraduate or 25 years of graduate repayment record.

To apply for an income-driven repayment plan, healthcare workers can apply at but after consultation with their loan servicer first.


Frontline healthcare workers are the new heroes. The government is recognizing their impressive efforts by canceling their student loan debt.

We encourage you to visit the official AAMC website to learn more about similar loan forgiveness programs.

See Also

Education Grants for Healthcare Workers

Medical Innovation Grants

Home Loans for Healthcare Workers

Medical Billing and Coding Salary

Current Version
November 15, 2023
Updated By
Andrea Morales G.

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