Student Loans for Nursing Students

Thinking about becoming a nurse? Don't let the worry of debt stop you. Here is an in dept study of student loans for nursing students, find out which loan is best suited for you. Learn about the student loan forgiveness programs for nurses.

Updated by Kirtika Acharya on 9th September 2020

Nursing is one of the fastest-growing professions. If you want to be a nurse, you’ve picked a great time to enter the field. The Bureau Of Labour Statistics estimates that the nursing field will grow by 15% over the next ten years. The United States has a critical shortage of qualified nursing professionals at both regional and national levels.

The high demand for qualified nurses has produced a wide range of low-cost loans designed to address the educational needs and to help students meet the career goals entering the healthcare profession. These Student loans for nursing students typically have low-interest rates. They offer flexible repayment plans that include loan deferment options. This gives nursing students the time they need to secure a permanent position in a hospital, doctor’s office, or primary care facility. 

Many state governments offer loan forgiveness programs. These programs provide repayment opportunities for licensed nursing professionals. To those nurses who agree to take positions in designated critical need facilities or communities.

Depending on your situation, you may have to take student loans for your nursing degree. If so, you’ll want to make sure that you’re getting the best deal.

Table of Contents

U.S. Department Of Health Loans For Nursing

Health Resources and Services Administration (HRSA) -- is a division of the US Department of Health and Human Services student loans. They help students with health professions, including nursing. The Federal government funds all loans and loan repayment programs.

The following program is accessible to nursing students through the HRSA:

HRSA Nursing Student Loan

  1. The HRSA Nursing Student Loan program offers long term, low-interest loans to financially needy students pursuing an associate, graduate degree in nursing.

  2. Eligibility for this loan is determined by the financial aid department of the candidate’s school for attendance. Loan amounts are determined by financial need and total tuition cost.

  3. In exchange for a two-year commitment, participants may nearly get 60% of their outstanding qualifying student loans repaid by the Federal government. A further 25% in loan repayment funds may be available for an additional third year of service. 

  4. HRSA Faculty Loan Repayment Program -- Partner with schools to provide graduate nursing students with affordable nursing school loans at an interest rate of 3% and partial loan forgiveness of up to 85% of the loan amount over four years. To qualify for the loan forgiveness, nurses need to obtain full-time employment as a teacher or instructor at an accredited nursing school or health facility after graduation.


Federal Student Loans

If neither of the HRSA nursing school loans seems appealing to you or you don’t qualify for them, federal student loans may be your next-best option. 

The first choice on any search for student loans is the Federal government. Federal Direct Student Loans emphasized the financial need, as opposed to credit history, and such will be available to a broader range of applicants.

Government-supported college loans offer much better items than their private-sector counterparts, and most offer loan deferment options that allow students to postpone repayment until after they have graduated.

Direct Subsidized Loans    

If you have financial need, you may be able to qualify for a direct subsidized loan after you’ve sent in the necessary paperwork, the nursing school you’re attending will determine the amount you can borrow.

With Direct Subsidized Loans, U.S. Department of Education pays the interest on your nursing student loans during the following three periods:

  • While you’re in school at least half-time

  • During your six month grace period after graduation

  • While you’re in a period of deferment

If you qualify for a Direct Subsidized loan, this could be the most appropriate option available to you.

Direct Unsubsidized Loans 

Direct Unsubsidized Loans come with the same interest rates as their subsidized counterparts. These loans are available to both undergraduate and graduate students enrolled at an accredited college or university. The Direct-Unsubsidized Loan has no financial need requirements. Unlike the Subsidized Loan, students are responsible for all accruing interest. 

Federal Direct Unsubsidized Loans offer low-interest rates, and flexible repayment plans, including a loan deferment option that allows students to postpone repayment of their loan for up to six months following graduation.

Pros

  • Almost anyone can get federal unsubsidized loans

  • Interest is set by the government and offered to all borrowers

  • You can put off repayment until graduate

  • Eligible for income driven-payment and federal loan forgiveness

  • If you qualify for subsidized loans, the government pays your interest while you’re in school

Cons

  • Not everyone qualifies for subsidized loans

  • Interest on subsidized loans begins accruing immediately

  • You have limits on how much you can borrow

  • Those with excellent credit might find better interest rates elsewhere

Plus Loans

Direct plus loans could be helpful for borrowers for pursuing their nursing degree. Parent Plus Loans allow parents to help pay for the degree of their child. In addition to it, Grad Plus Loans are available for graduate students who have already borrowed up to the maximum amount via the Direct Loan program.


Private Student Loans 

It’s also possible to pay for your nursing degree using private student loans. Many education lenders are willing to fund their expenses. Some private lenders such as Ascent, even specialize in providing loans to students pursuing a career in a health profession.

Each private lender sets its credit and income qualifications but borrowers must meet. Additionally, you might have to start repaying the loan immediately, rather than waiting until you finish your nursing degree. However, you can provide lenders that offer a grace period and allow you to postpone payments until after graduation.

Private student loans are a great option to fund your education for a bright future. But it is advised to have an in-depth knowledge of what you are getting and choose the Private Student Loans based on your financial condition.

If you don’t meet the criteria for a private student loan on your own, a cosigner can help. With a qualified cosigner, you can get the fund for education.

You might also get an interest lower rate that’s lower than current federal rates. Additionally, some lenders offer variable rates on their loans and provide other perks, such as hardship programs and rate discounts for autopay.

Pros of private student loans

  • You might qualify for rates that are lower than those on federal student loans

  • You can borrow more than what’s allowed with a few federal loans

  • Some lenders offer special repayment programs

  •  You don’t need to qualify for federal aid to apply

Cons of private student loans

  • Excellent credit and healthy income are required for the good rates

  • These loans don’t qualify for Income Driven-Repayment (IDR) plans or loan forgiveness programs

  • Variable rates can increase over time

Private student loan options for nurses

With the rise in banks providing student loans for undergraduate and graduate students, the loans provided are now tailored for professional degree-seeking students, including those who wish to pursue a career in the healthcare industry. These private loans are provided based on the credit history of the borrower.

Credit history has proved to be a major obstacle during borrowing private loans, which are tackled by providing a cosigner option that can help them strengthen their loan application. By increasing their application they have a higher chance of getting approved for a loan.

Several private lenders provide competitive student loan packages to help aspiring nursing students while finalizing their college financial plans. Here is a list of the lenders, the loans offered and the interest rates offered with them - 

Private Lender

Loan Name

APR offered

Wells Fargo

MedCAP Medical School Loans

Fixed - 4.82% to 9.54%, Variable - 3.88% to 8.67%

Sallie Mae

Graduate School Loans for Health Professionals

Fixed - 5.50% to 10.23%, Variable - 3.75% to 9.40%

PNC

Health & Medical Professions Student Loan

Rates depend on the repayment term selected

Discover

Health Professions Loan

Fixed - 4.99% to 9.74%, Variable - 3.74% to 9.62%

As shown in the table above, PNC offers the APRs based on the repayment plan selected. They offer 5,10 and 15-year repayment terms.


Worried about your college tuition? Learn more about student loans


State Supported Loan Forgiveness program For Nursing Students

Many students across the country are experiencing the same critical shortage of licensed nurses that are affecting the nation at large. To fight these regional limitations, many states have instigated a variety of loan forgiveness programs designed to encourage and support students pursuing careers in nursing. 

While these are not direct student loans, they do offer additional support to students pursuing careers in nursing. As with all state-supported financial aid, programs are subject to change according to the availability of funding. Nursing students should contact their state’s Department of Higher Education and the Department of Health Services for information on available programs.

The following examples should illustrate the types of loan forgiveness programs that are available for nursing students at the state level.

  1. The state of Florida offers the Nursing Student Loan Forgiveness Program for licensed LPN’s, RN’S, and ARPN’s who agree to work within the state at a designed critical need facility. Approved participants in this program will be eligible to receive up to $4000 in loan repayment for every year of employment at a state-authorized healthcare facility. Participants may take advantage of Florida’s Nursing Student Loan Forgiveness Program for up to four years 

  2. The Illinois Student Assistance Commission offers the Nurse Educator Loan Repayment Program. This program offers loan forgiveness opportunities to licensed nursing instructors who are working at an approved Illinois institution. Participants may receive up to $5000 in loan repayment funds for every year of teaching service. The award is renewable for as long as the applicant meets the state’s eligibility requirements

  3. The New York State Higher Education Services Corporation supports the NYSY Nursing Faculty Loan Forgiveness Incentive Program. To be eligible, applicants must hold a master’s or doctoral degree in nursing and must be licensed to practice in New york. For each year of qualified service teaching at a designated state institution, participants may receive $8000 in loan forgiveness. Total loan forgiveness may not exceed $40,000

Student loans are helpful to handle your educational cost, but never take loans that you cannot manage and fail to make repayments. By attending affordable programs (example:  Georgia Student Access Loan ), online classes, applying for grants, and scholarships, you can reduce the amount you want to borrow for student loans.

Tuition reimbursement is possible if you work in the field of health care. Nursing, teaching, and similar professions can help you qualify for multiple loan forgiveness programs. Example: Nurse Corps program, a program offered by HRSA. They provide loan repayment in exchange for such service and other scholarships. The above financial aid programs are a smarter way to approach your educational costs without having to take student loans.