Nursing Loan Forgiveness: Federal and State Programs 2026
Federal programs can eliminate a significant portion of a nurse’s student loan debt in exchange for service in underserved areas. Public Service Loan Forgiveness, the HRSA Nurse Corps Loan Repayment Program, and the NHSC Scholarship Program are the three primary federal options for RNs and APRNs. Most require work at a designated shortage facility or qualifying nonprofit employer.
Sponsored School(s)
Nursing education costs have risen sharply over the past two decades, and many RNs and APRNs graduate carrying substantial debt. The federal government and most states run programs designed to reduce or eliminate that debt in exchange for service at facilities in areas that most need nurses. Understanding these programs before you enroll is worth the time: degree level, program accreditation, and employer type all affect what you’ll qualify for after graduation.
This guide covers the major federal and state programs available to nurses, eligibility requirements for each, and a side-by-side comparison to help you decide which fits your situation.
- Federal Loan Forgiveness Programs: An Overview
- Public Service Loan Forgiveness (PSLF) for Nurses
- HRSA Nurse Corps Loan Repayment Program
- NHSC Scholarship Program for NPs and CNMs
- State Nurse Loan Repayment Programs
- Choosing the Right Program
- Frequently Asked Questions
Federal Loan Forgiveness Programs: An Overview
There are three main federal tracks for nursing loan forgiveness. Public Service Loan Forgiveness (PSLF) is administered through the Department of Education and is available to any nurse working for a qualifying employer. The Nurse Corps Loan Repayment Program (Nurse Corps LRP) is administered by the Health Resources and Services Administration (HRSA) and specifically targets nurses. The National Health Service Corps (NHSC) Scholarship Program, also administered by HRSA, supports nursing students in primary care roles before they incur debt.
Two factors shape which programs you can access: where you work and what type of loans you carry. Federal Direct Loans are required for PSLF. Both HRSA programs require service at federally designated shortage facilities. If you’re planning, knowing this now can help you choose the right program, employer, and loan structure from the start.
Public Service Loan Forgiveness (PSLF) for Nurses
PSLF is the broadest of the federal loan forgiveness options. It’s open to any nurse working full-time for a qualifying employer, regardless of specialty or credential level. For nurses at nonprofit hospitals or government agencies, it’s often the most powerful program available.
Who Qualifies for PSLF
The qualifying variable is employer type, not job title. Nurses employed full-time by a federal, state, local, or tribal government agency qualify. So do nurses employed by a 501(c)(3) nonprofit organization, which includes most nonprofit hospitals, community health centers, public universities, and government-funded clinics. A bedside RN at a nonprofit hospital qualifies. A nurse practitioner at a county public health department qualifies. An NP at a for-profit hospital does not, regardless of how long she has worked there.
Nurses who are already several years into PSLF-qualifying employment should think carefully before leaving a qualifying employer for a higher-paying role at a for-profit facility. Payments made to non-qualifying employers don’t count toward the required 120, and those periods can’t be recovered later.
How PSLF Works in Practice
PSLF forgives the remaining balance on federal Direct Loans after 120 qualifying monthly payments, which works out to 10 years of full-time employment with a qualifying employer. Payments must be made under a qualifying repayment plan. Income-driven repayment (IDR) plans are the most common choice. The 10-year Standard Repayment Plan technically qualifies, but it leaves no remaining balance to forgive after 10 years of full payments, so it rarely results in actual forgiveness. Check studentaid.gov for currently available IDR plans, as available plan options are subject to change.
The forgiven amount is not counted as taxable income. For nurses carrying large loan balances from BSN, MSN, or DNP programs, this distinction is significant compared to the Nurse Corps LRP, where repayment awards are taxable. Use the PSLF Help Tool at studentaid.gov to confirm employer eligibility and submit the PSLF Form regularly, not just at the end of your 10-year service period.
HRSA Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program is designed exclusively for nurses and offers a faster path to partial debt relief than PSLF. It doesn’t require 10 years of service. The trade-off is that forgiveness is partial rather than complete, and the awards are taxable income.
How Much the Program Covers
A two-year service commitment at a qualifying site pays up to 60% of eligible nursing education debt. Participants who complete a third year of service can receive up to an additional 25% of the original eligible balance, bringing the total to up to 85%. Current award amounts and award cycles are listed on the HRSA Nurse Corps LRP program page.
Because repayment awards are treated as taxable income at the federal level, and often at the state level, recipients should factor that tax liability into the net benefit calculation before applying. This is one of the most commonly misunderstood aspects of the program, and it’s a meaningful difference from PSLF’s tax-free forgiveness.
Eligibility and Work Requirements
To qualify for the Nurse Corps LRP, a nurse must hold an RN, APRN, or nurse faculty role and must have obtained nursing education from a U.S.-accredited program. Work must be full-time, defined as at least 32 hours per week for a minimum of 45 weeks per service year, at a Critical Shortage Facility (CSF) in a federally designated Health Professional Shortage Area (HPSA), or as full-time faculty at an eligible school of nursing.
Critical Shortage Facilities include:
- Ambulatory surgical centers
- American Indian health facilities
- Birth centers
- Community mental health centers
- Critical access hospitals
- Dialysis centers
- Disproportionate share hospitals
- Federally Qualified Health Centers (FQHCs)
- Free and charitable clinics
- Home health agencies
- Hospice programs
- Native Hawaiian health centers
- Nurse-managed clinics
- Outpatient facilities
- Private hospitals
- Public hospitals
- Residential nursing homes
- Rural Emergency Hospitals
- Rural health clinics
- School-based clinics
- State and local health departments
- Urgent care centers
The HRSA facility search tool can help you confirm whether a specific employer qualifies before you commit to a position for LRP purposes. HRSA maintains the current complete list of eligible CSF types on its program page.
Nurse Corps Scholarship Program
Separate from the LRP, the Nurse Corps Scholarship Program covers tuition, eligible fees, a monthly stipend, and other educational costs for nursing students who commit to working at a CSF after graduation. This is relevant for students planning, not graduates managing existing debt. Applicants must be enrolled in an accredited U.S. nursing degree program, be a U.S. citizen, national, or lawful permanent resident, and have no conflicting federal service obligations. Current application timelines and eligibility details are available at the HRSA Nurse Corps Scholarship page.
Both the Nurse Corps LRP and the Scholarship Program require that your nursing degree come from a U.S.-accredited program. Find accredited RN and APRN programs by state:
NHSC Scholarship Program for NPs and CNMs
The National Health Service Corps (NHSC) Scholarship Program is a separate HRSA offering that funds nursing students in primary care roles, specifically eligible primary care nurse practitioners (NPs) and certified nurse midwives (CNMs). It doesn’t apply to ADN or BSN students pursuing bedside RN roles, and non-primary-care NP specialties are not eligible.
NHSC scholars receive full tuition coverage, eligible fees, and a living stipend for the duration of their scholarship. In exchange, scholars commit to at least two years of full-time service at an NHSC-approved site in a federally designated HPSA for the first full or partial year of scholarship support. Each additional year of support extends the service commitment by one year, up to a maximum of four years of scholarship support. The service obligation is binding and begins after program completion.
The program is highly competitive and runs on an annual application cycle. Core eligibility requirements include U.S. citizenship or national status, full-time enrollment at an accredited U.S. program in an eligible primary care discipline, eligibility for federal employment, and no conflicting federal service obligation. Current cycle details, site eligibility, and application instructions are available at nhsc.hrsa.gov. Nurses interested in NP programs can review degree requirements on our nurse practitioner requirements page.
State Nurse Loan Repayment Programs
Most states administer some version of nurse loan repayment or forgiveness, and many of these programs are partially funded through HRSA’s State Loan Repayment Program (SLRP). These are often branded under state-specific names rather than nursing-specific titles. Fewer states run programs exclusively for nurses, targeting rural hospitals, long-term care facilities, public health departments, or schools of nursing facing faculty shortages.
When researching your state’s options, look for:
- Eligible nursing roles (RN, APRN, nurse faculty, or nursing students)
- Required work setting (HPSA-designated facility, rural county, critical access hospital, or long-term care)
- Minimum service commitment and maximum award amount
- Whether the award is taxable and whether it can be used alongside PSLF
- Application cycle and the administering state agency
California’s State Office of Rural Health coordinates NHSC and Nurse Corps programs and publishes application timelines for HRSA-supported programs serving HPSAs in the state. Washington administers the Washington Health Corps, which includes RNs and APRNs working in shortage areas. Texas has rural health loan repayment programs administered through the Texas State Office of Rural Health and the Texas Department of Agriculture, targeting clinicians practicing in shortage areas.
The best starting point is your state’s health department, primary care office, or higher education authority. Many state programs go undersubscribed because nurses are unaware of their existence. The Rural Health Information Hub funding database is a reliable starting point for identifying state-level programs by discipline and setting.
For state-level nursing licensure requirements by role, see our guides to nursing scholarships and financial aid, as well as our state-specific licensing pages.
Choosing the Right Program
The best option depends on where you work, what loans you carry, and how quickly you want relief. The table below compares the main federal programs at a glance.
| Program | Eligible Nursing Roles | Service Commitment | Forgiveness Taxable? |
|---|---|---|---|
| Public Service Loan Forgiveness (PSLF) | All RNs and APRNs with federal Direct Loans | 10 years (120 qualifying payments) at a nonprofit or government employer | No (forgiven balance is tax-free) |
| Nurse Corps Loan Repayment Program (HRSA) | RNs, APRNs, and nurse faculty | 2 years minimum at a HPSA Critical Shortage Facility (3rd year optional) | Yes (awards count as taxable income) |
| NHSC Scholarship Program | Primary care nurse practitioners (NPs) and certified nurse midwives (CNMs), students only | At least 2 years for the first year of support; each additional year of support adds 1 year (up to 4 years total support) | N/A (scholarship covers costs before debt accumulates) |
| State Loan Repayment Programs | Varies by state, often RNs, APRNs, and nurse faculty | Typically 2 to 4 years in a shortage setting | Varies by state and program |
Matching Your Situation to the Right Program
Nurses already working full-time at a nonprofit hospital or government agency with federal Direct Loans on an IDR plan should generally prioritize PSLF. Tax-free forgiveness of the entire remaining balance after 10 years is the strongest outcome for nurses with large loan balances from BSN, MSN, or DNP programs.
Nurses at for-profit facilities can’t use PSLF without changing employers. For them, the Nurse Corps LRP or a state program is more realistic. The two-year service commitment offers faster partial relief, but the taxable award should be factored into the net benefit calculation before applying.
NP and CNM students who haven’t yet entered clinical practice are the primary audience for the NHSC Scholarship. Receiving scholarship funding before debt accumulates avoids the forgiveness math entirely, but the program is competitive, and the service obligation is binding.
Some nurses can stack HRSA and PSLF benefits. If you work at a CSF that also qualifies as a 501(c)(3) or government employer, receiving Nurse Corps LRP payments doesn’t automatically disqualify your PSLF progress, as long as you remain in qualifying employment and continue making IDR payments. The interaction is complex and worth discussing with your loan servicer or a certified student loan advisor before you apply.
Frequently Asked Questions
Can nurses with an ADN qualify for the Nurse Corps LRP?
Yes. The Nurse Corps LRP is open to registered nurses at the ADN level, provided the degree is from a U.S.-accredited program, and the nurse works full-time at an eligible Critical Shortage Facility. The NHSC Scholarship, by contrast, is limited to primary care NP and CNM students in accredited primary care programs and doesn’t extend to ADN-level RNs.
Do PSLF payments have to be made under an income-driven repayment plan?
Yes. Only payments made under a qualifying income-driven repayment plan count toward the 120 payments required for PSLF. If you’re on a standard 10-year plan and working for a qualifying employer, switching to IDR allows you to carry forward any qualifying payments already made. Payments made on a standard plan don’t count retroactively, but aren’t lost either.
Can you use the Nurse Corps LRP and PSLF at the same time?
In some cases, if your employer qualifies as both a Critical Shortage Facility and a 501(c)(3) or government employer, receiving Nurse Corps LRP awards doesn’t automatically disqualify your PSLF progress. The interaction depends on your specific loan type, repayment plan, and how the LRP award is applied. This is worth confirming with your loan servicer or a certified student loan advisor before applying for either program.
Does the type of loan matter for these programs?
Yes. PSLF requires federal Direct Loans. FFEL Program loans and Perkins Loans don’t qualify for PSLF unless consolidated into a Direct Consolidation Loan. Consolidation can reset your qualifying payment count, though the IDR account adjustment may restore some credit depending on your situation. If you’re considering consolidation or refinancing, review the impact on each program’s eligibility requirements before acting.
Where do I start if I want to apply for a state loan repayment program?
Start with your state’s department of health, primary care office, or higher education authority website. Many states list their programs through a rural health office or a workforce development agency. HRSA’s Bureau of Health Workforce and the Rural Health Information Hub are also reliable starting points for identifying shortage-area facilities and state-level programs by discipline. Programs vary significantly by state, and eligibility criteria change, so go to the source rather than relying on third-party summaries.
Key Takeaways
- PSLF is the broadest federal option — Any nurse with Direct Loans on an IDR plan who works full-time for a nonprofit or government employer can qualify. After 120 payments, the remaining balance is forgiven tax-free.
- Nurse Corps LRP is faster but taxable — Two years of service at a Critical Shortage Facility pays up to 60% of eligible nursing debt, with a third year bringing the total to up to 85%. Awards count as taxable income.
- NHSC targets primary care NPs and CNMs before debt accumulates — The NHSC Scholarship covers tuition and a living stipend for students committing to HPSA service. It’s highly competitive and limited to primary care disciplines.
- Most states have their own programs — Nearly every state has some form of nurse loan repayment tied to service in shortage settings. Many go undersubscribed because nurses don’t know they exist.
- Accreditation is a baseline requirement — HRSA programs, the NHSC Scholarship, and most state LRPs all require that your nursing degree come from a U.S.-accredited program.
All major federal loan forgiveness programs require graduation from a U.S.-accredited nursing program. Find accredited RN and APRN programs in your state.