Student Loan Forgiveness for Healthcare Workers

Last Updated on May 16, 2024 by Wade

You have reason to smile if you’re a healthcare worker who is struggling with student loans because this article will help you find student loan forgiveness for healthcare workers.

These programs can help you have a better financial future and make it easier for you to pay off student loans. You can reduce your monthly payment rate and loan term, as well as receive total forgiveness of your student loan. This is possible in just 10 years.

As nerve-wracking and stressful as applying for student loan forgiveness programs, it can also be nerve-wracking to apply for loan forgiveness programs. Student loan forgiveness programs can be a great option for healthcare workers who are concerned about loan repayment during a pandemic.

Where to seek student loan forgiveness for healthcare workers?

President Biden’s “payment suspension and waiver” initiative for healthcare workers who have federal student loans that are still unpaid can be used to their advantage. This applies to all Department of Education loans. This is a part of the COVID-19 relief program. The expectation for it to take effect is on 30 September 2021.

After the completion of the relief period, and payment of at least 120 qualifying installments you will be eligible for PSLF (Public Student Loan Forgiveness). Students with loan debt will be eligible for credit towards PSLF if they make on-time monthly payments of the amount specified in the payment pause.

What is Public Service Loan Forgiveness (PSLF)?

Public Service Loan Forgiveness (PSLF), a program that forgives student loans cancels the remaining federal debt of the healthcare worker. The program requires a set number of monthly payments before the cancellation of the remaining federal debt.

You can get your entire debt forgiven by back-end loan forgiveness programs. However, you must meet the service requirements to be eligible for loan forgiveness.

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. This program is only available to federal loans. These include Unsubsidized Loans and Direct Subsidized loans, grad PLUS loans as well as parent PLUS loans and direct consolidation loans. You can also join the FFEL loan program or a federal Perkins loan with the Direct Loan program as a borrower.

What is income-driven repayment?

As part of its back-end loan forgiveness program, the federal government offers income-driven repayment options. Eligible borrowers have the option to adjust their student loan payments according to their net income. After you have repaid a specific amount of the total amount owed, any student loan balance will be canceled.

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
The income-contingent Repayment (ICR) Plan

Nearly anyone can qualify for at least one of the repayment plans under federal student loans.

The eligibility criteria for REPAYE and PAYE repayment plan 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 easier 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

Income-driven repayment plans reduce your monthly student loan repayments based on your discretionary income and the size of your family. Each plan uses a different method of calculating your monthly repayment amount. The monthly payment is then revised each year.

After 25 years of repayment, your student loan debt will be canceled under the Income-Contingent Repayment plan (ICR) and the Income-Based Repayment (IBR) plans. You must have at most 20 years of repayment history to qualify for the Pay-As You-Earn (PAYE), plan. However, relief may be available under the revised Pay–As-You–Earn Repayment program (REPAYE). You will need at least a 20-year undergraduate repayment record and at least 25 years of graduate repayment record.

Healthcare workers can apply for income-driven repayment plans through this Student Aid page, but only after consulting with their loan servicer.