What Repayment Programs Qualify For Pslf
In order to qualify for Public Service Loan Forgiveness, you have to be on a qualifying repayment plan. All income-driven repayment plans–which are plans that use your income to determine what your monthly payment will be–qualify.
Technically speaking, payments under the 10-year Standard Repayment Plan do qualify, but by the time you made the required 120 qualifying payments necessary to qualify for the PSLF, you would have actually paid off your loan–so you will have to change to an IDR plan if youre currently on a standard 10-year repayment plan.
Switching over could increase your payments if your income is higher, so youll have to be sure you carefully look into if switching your repayment plan makes sense for you.
All other repayment plans DO NOT qualify for PSLF and include:
- Standard Repayment Plan for Direct Consolidation Loans
- Graduated Repayment Plan
- Alternative Repayment Plan
Student Loan Forgiveness Vs Student Loan Cancellation
The key difference between student loan forgiveness versus loan cancellation is the effect it has on your taxable income for the year in which the loan was forgiven or canceled.
If your loans are forgiven, the amount of forgiven debt does not count towards calculating your taxable income during that year. Meaning, you will not have to pay taxes on the amount of the loan that has been forgiven. Thus, student loan forgiveness may be an attractive option for you because you will not have to make a lump sum tax payment after your education loan is forgiven.
However, if your loans are canceled, the amount of loan that is canceled counts toward your taxable income – the amount canceled will be taxed. This may affect how much money you owe to the federal government after you file your tax return.
Understanding the effects of student loan forgiveness versus student loan cancellation helps with effective planning for the future. Before choosing a payment plan, you may want to weigh whether your loan or loans qualify for student loan forgiveness, cancellation, or neither of these options. If you do not meet the requirements for loan forgiveness, you may qualify for a loan cancellation. This will depend on how many payments you’ve made and the period of time you have been paying your loans.
Army Nurse Corps Benefits
Candidates who meet the requirements can receive $40,000 per year over three years to repay student loans. Army nurses can also receive benefits, salaries, and housing allowances. Crowley mentions that nurses who enlist part-time in the Army Reserve can receive prorated student loan forgiveness. Some nurses also receive a signing bonus.
Who Is Eligible: Nurses who agree to enlist in the U.S. Army Nurse Corps and complete at least three years of service can receive up to $120,000 in funding to repay their student loans.
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What The Bill Included
Her initial bill was in two parts for student loans. The first part involved the federal student loan forgiveness programthis program in 2020 required forgiveness both for the interest and the principal debt amount for eligible loans. Eligible loans included those with parts B, D, and E of Title IV of Higher Education Act which means the forgiveness could include Perkins, Federal PLUS, and Direct loans. Besides, consolidation loans would qualify for student loan forgiveness for frontline workers. The program does not involve any refunding for the prior payments. Moreover, the bill highlighted the exclusion of the forgiveness amount from income taxes.
What Are Qualifying Organizations
- Any federal, state, local or tribal government organization
- OR not-for-profit organizations that are tax-exempt under Section 501 of the Internal Revenue Code
- OR other types of not-for-profit organizations that are not tax-exempt under Section 501 of the Internal Revenue Code, if their primary purpose is to provide certain types of qualifying public services
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Things To Keep In Mind
It is crucial to stay up-to-date on programs you are interested in, especially if you have not yet finished school. All programs for student loan forgiveness for nurses have specific eligibility requirements and application deadlines. Read through all program information to confirm your eligibility and apply as soon as possibleremember, some programs are on a first-come, first-serve basis. Plus, many repayment programs also change year to year as state and federal funding changes.
National Health Service Corps Loan Repayment Program
Licensed nurse practitioners can qualify for student loan repayment assistance through the National Health Service Corps Loan Repayment Program.
Eligible nurses can receive up to $50,000 to repay their student loans. In return, they have to work full-time for two years at an NHSC-approved service site in a designated Health Professional Shortage Area .
After the initial two-year contract, you may be eligible for additional loan repayment funds if you agree to one-year service contracts.
Both federal and private student loans are eligible for this repayment assistance program.
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Disadvantaged Faculty Loan Repayment Program
The FLRP benefits nursing instructors who devote their careers to education in the field. Qualified recipients receive up to $40,000 to repay their student loans.
Who Is Eligible: Requirements for this program include proof of a college degree or certificate in a healthcare field. Applicants must work at approved colleges for at least two years. This repayment program accepts U.S. citizens from disadvantaged backgrounds. RNs and APRNs can apply.
Are Nurses Eligible For Student Loan Forgiveness
- Nurses who work in underserved areas with high need could be eligible for student loan forgiveness.
- There’s no cap to the amount of money that can be forgiven through Public Service Loan Forgiveness.
- Individual states may also have their own loan forgiveness programs for nurses.
- Read more of Personal Finance Insider’s student loan coverage here.
The pandemic has taken a significant toll on healthcare professionals, particularly nurses, and student loans only add to the stress. Luckily, there are programs in place to help you get some or all of your student loan debt repaid or forgiven.
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What Additional Programs Exist
Your list of programs is not restricted to the options mentioned above if you do not want to wait for student loan forgiveness for frontline workers to get accepted. There exist many other federal student aid options that can grant forgiveness.
For example, Borrowers Defense to Repayment is available to borrowers whom the schools misled. If you were lied to about the true cost of education or education quality, you could apply for this program. However, you need to prove your claims with proper evidence.
Additionally, discharge programs due to closed school, total and permanent disability of death exist. If you cannot eliminate the debt, you can also check repayment plans to help you repay the debt easily and fast. For example, if you have financial challenges, you can move to an Income-driven repayment plan. Borrowers with low income pay low monthly amounts for debt repayment under this program.
Unfortunately, the options are limited for private loan borrowers. If you have private student loans, you can check student loan refinancing. Refinancing happens when the borrower gets a new loan and uses the money to cover the previous loan. If a new loan has better terms like a reduced interest rate, this option can be effective.
Navy Nurse Candidate Program
According to the Navy, If youre a nursing student opting to serve full time in the Navy, you could get up to $34,000 to help pay your way through nursing school through the Nurse Candidate Program . The program provides accepted candidates with an initial $10,000 grant. Further, there is a $1,000 monthly stipend for up to 24 months.
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Pros And Cons Of Student Loan Forgiveness Programs
While student loan forgiveness programs sound incredible at first glance–and for many individuals say they can be life-changing–they do warrant consideration over the pros and cons.
Relying on a student loan forgiveness program for your nursing education may not always be the best route for you, depending on your individual situation.
How To Apply For Pslf
Applying for the PSLF can be confusing so the federal government has developed a specific tool to aid individuals in the application process. The tool accomplishes the following:
- Helps you understand more about the PSLF Program and what you need to do to participate and possibly have your loans forgiven
- Helps you assess whether your employer qualifies for PSLF
- Helps you assess whether your loans qualify for PSLF
- Helps you decide which PSLF form to submit
- Uses the information we have about your federal student loans to explain other actions you should or must take if you want to receive PSLF
In addition to using the tool, here are the basics you need to know before you can apply:
- The 120 qualifying monthly payments = 10 years, so you will need at least 10 years of qualifying payments before youre eligible to apply.
- You have to be still working for the qualifying employer when you apply.
- U.S. Department of Education
- P.O. Box 69184
- Harrisburg, PA 17106-9184
One note: If you already use FedLoan Servicing for your loan, you can upload both forms directly on their website instead of mailing your paperwork.
Another option for nurses is the Nurse Corps Loan Repayment Program.
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Army Active Duty Health Professions Loan Repayment Program
Through the Army Active Duty Health Professions Loan Repayment Program, nurses who enlist for at least three years of active duty can get 33.3% of their loan principal balance paid for by the Army. But you must score 50 or higher on the Armed Services Vocational Aptitude Battery to qualify for loan repayment.
According to the Armys website, As a participant in this program, you may qualify for up to $120,000 to repay your nursing school loans. Under this three-year program, you may receive up to $40,000 annually for qualifying educational loans.
First, its important to note that only federal loans qualify for loan repayment through the Army. Second, nurses should know that joining the Army Nurse Corps as an officer can earn you a sign-on bonus of up to $30,000.
Refinance Your Student Loans
If you have private student loans or would prefer to pay off loans faster, another option is to refinance your student loan debt. With this approach, you apply for a refinancing loan from a private lender that has different terms than your existing loans. The new loan is used to pay off the old ones, and it may have a lower interest rate or smaller monthly payment than you had before.
If you qualify for a lower interest rate, you can save a significant amount of money over the life of your loans. You also can decide to extend your repayment term to reduce your monthly payments and get more breathing room in your budget.
Keep in mind that there are some drawbacks to refinancing federal student loans. Once you refinance, your loans will become private loans, and youll no longer qualify for federal benefits. For example, refinancing your federal loans would make you ineligible for the CARES Act student loan relief measures, including the loan payment suspension and interest waiver that are in effect until September 30, 2021.
If you decide that refinancing is right for your needs, here are our picks for the top student loan refinancing lenders.
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Whats A Qualifying Employer
- A qualifying employer means that you work for:
- A government organization at any level
- A not-for-profit organization that is tax-exempt under Section 501 of the Internal Revenue Code
- Other types of not-for-profit organizations that are not tax-exempt under Section 501 of the Internal Revenue Code
- AmeriCorps or Peace Corps serving as a full-time volunteer
It is very important to note for this type of loan forgiveness that the owner of the healthcare system must be a not-for-profit organization. At times, a hospital will be not-for-profit or serve an underprivileged population but will be owned by a larger for-profit corporation.
Province Closes Student Assistance Gap For Dalhousie University Nursing Students
Eligible Dalhousie University nursing students will have immediate access to additional student assistance funding to help cover costs for the entire duration of their program.
Currently, students in Dalhousies accelerated nursing program qualify for funding to cover only 28 weeks of their 34-week program. Students have said the funding gap is one of the main hardships in completing their training.
We need more nurses, and we need those already here to study and stay in Nova Scotia, said Premier Tim Houston. I want our nursing students to know we are listening to their concerns. Were addressing barriers to completing their studies and giving them the support they need to build a guaranteed and successful career right here at home.
This change will take effect immediately. The amount of assistance for which students qualify will be based on their need, and assessments of all 250 students will begin today, November 5. The assessments are automatic students do not need to apply or call the student assistance program.
Students are expected to receive additional funds based on their assessed need within two weeks.
The funding shortfall is unique to the Dalhousie nursing program because of the length of the program. Cape Breton University and St. Francis Xavier University nursing students currently have access to student assistance for the entire duration of their programs.
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Teacher Loan Forgiveness Program
The Teacher Loan Forgiveness program was created in 1998 to encourage teachers to take jobs at elementary schools, secondary schools and educational service agencies that serve low-income families. The U.S. Department of Education publishes the list of low-income elementary schools and secondary schools each year.
You need to teach full-time at a qualifying school for five full and consecutive years. Then you are eligible to have from $5,000 to up to $17,500 in loans forgiven.
Only direct subsidized and unsubsidized loans qualify. PLUS loans do not qualify. There are 13 states that offer some form of loan forgiveness for teachers, with varying requirements.
Apply to the program by completing the Teacher Loan Forgiveness Application and submitting it to your loan servicer.
National Institute Of Health Loan Repayment Programs
If you are interested in biomedical or biobehavioral research, you can apply for the National Institute of Health Loan Repayment program. Successful applicants can get rid of $50,000 worth of debt, but a cap is around ¼ of the total debt balance. It means the yearly award amount cannot exceed 25% of the total debt.
Borrowers with loans from Health and Human Services loans have the highest chance to receive the repayment. They are followed by loans from the Education Department, states, and schools. As noticeable, private student loans are covered last.
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Military Loan Forgiveness For Nurses
Nurses who agree to military service may see tens of thousands of dollars of their student loans forgiven. With U.S. Army nurse benefits, for example, you may be eligible for a sign-on bonus of up to $30,000, and you can qualify for up to $120,000 in nursing school loan repayment, doled out in increments of up to $40,000 for three years in a row.
If you agree to serve as a nurse in the U.S. Army Reserve, you can qualify for up to $50,000 in student loan forgiveness over a three-year commitment.
The United States Navy also promises a loan repayment incentive for nurses. The United States Navy website says that nursing students who serve full time in the Navy can qualify for up to $34,000 in loan repayment to help pay for nursing school through the Nurse Candidate Program . This aid is given out as an initial grant of $10,000, plus a stipend of $1,000 per month for up to 24 months.
Meanwhile, nurses can participate in the Air Force Active Duty Health Professions Loan Repayment Program , which is available for eligible specialties within the Medical Corps, Nurse Corps and Biomedical Sciences Corps. This program offers up to $40,000 in loan repayment assistance, although taxes are assessed on forgiven amounts. Loan forgiveness can be used for principal and interest payments, as well as reasonable educational and living expenses.
How to apply: Talk to your military recruiter for more information.