How To Get Out of Paying Your Nursing School Student Loans
Student loan forgiveness and discharge are programs instituted by the federal government (as well as some state governments, organizations, and businesses) that eliminate all or part of a student’s loans if he or she qualifies. These options exist to help borrowers shoulder the burden of student debt if they give back to their community, work in fields or areas of need, or face unpredicted, extenuating circumstances. The difference between loan forgiveness and discharge is the circumstances that can cancel the debt. Loan discharges usually occur if there is no way the borrower can pay a loan (e.g., a total and permanent disability or death) or if a borrower can no longer apply the education for which the loan was granted (e.g., the school the borrower was attending closed before they could finish their program). Loan forgiveness happens when the forgiving party (e.g., the government) determines that the borrower has given back to the community in a way they’ve specified, like through teaching or public service. Special repayment programs can act as a form of forgiveness as well. Federal and governments, as well as organizations, offer these programs to promote service in needed fields or high-need areas.
NURSE Corps Loan Repayment Program
To Be Eligible …
This program is for registered nurses and advanced-practice registered nurses working in a critical shortage facility or nurse faculty in return for working full time at an accredited school of nursing. Eligible applicants can receive up to 60% of their loans paid for them for a 2-year service agreement and up to 85% for service of 3 years.
LOANS THAT QUALIFY
• Stafford loans
• Grad PLUS loans
• Consolidation loans
• Perkins loans
• Private student loans
You must have obtained your loans to cover nursing educational expenses or living expenses while studying nursing. Non-nursing education expenses are ineligible.
Next Steps:
Borrowers can apply for this program here.
Perkins Loan Cancellation and Discharge
Perkins loan forgiveness programs now finally match the Stafford loan forgiveness programs. These low-rate, unsecured loans can be completely canceled under the right conditions. All federal Perkins loan cancellation programs require that you make a written request to your lender (with documentation). Perkins loans have unique requirements for loan cancellation based on the field you work in.
Here’s how it works:
• 15% of their principal balance and accrued interest can be cancelled after their 1st and 2nd year of qualifying service.
• 20% of their principal balance and accrued interest can be cancelled after their 3rd and 4th year of qualifying service
• 30% of their principal balance and accrued interest can be cancelled after their 5th year of qualifying service.
Nurse or Medical Technician
You must have served full-time as a nurse or medical technician who provided health care directly to patients.
Next Steps:
Find an application related to the nursing field.
Nursing Faculty Loan Forgiveness Incentive Program (New York)
To Be Eligible …
You must be a legal resident of New York for 1 year, a U.S. citizen or eligible non-citizen, and a registered nurse professionally licensed in New York. You must also have a master’s degree in nursing or a doctoral degree that qualifies you as nurse faculty, prior experience as a registered nurse, and qualified service (see site for more details). Eligible borrowers can receive up to $8,000 per year, with a maximum total of $40,000.
LOANS THAT QUALIFY
• Stafford loans
• Grad PLUS loans
• Consolidation loans
• NY student loans
• Private student loans
Your loans must have funded a nursing degree received after January 1, 2001. Also, if another forgiveness program can cancel your loans, they do not qualify for this forgiveness program.
Next Steps:
You can find applications on the website linked in the title of this section; however, applications are only available in August.
For a complete list of loan forgiveness and discharges, visit the source link below
Source: Saltmoney
