The average nurse graduates with $47,321 in student loan debt. But two new bills from Senator Sheldon Whitehouse (RI-D), who serves on the U.S. Senate Finance Committee, would cancel student debt for teachers and healthcare workers. The bills are designed to support essential workers and encourage more aspiring professionals to enter the field. Show
“We owe so much to our health care workers and teachers – something we grew to appreciate even more during the COVID-19 crisis,” Whitehouse said. “This legislation honors the contributions of these public servants by helping them to wipe the slate clean of student loan debt.” If passed, the Student Loan Forgiveness for Frontline Health Workers Act would make several sweeping changes to the country’s student debt program. It would cancel student loans for healthcare workers who have made “significant contributions during the COVID-19 pandemic.” This includes healthcare workers who contributed to the medical response (e.g., patient care, medical research, or testing). It would apply to both private and federal student loans. Meanwhile, the Teacher Loan Forgiveness Improvement Act would increase the amount of student loan forgiveness available to teachers, provide $30,000 in student loan relief rather than the current $17,500, would apply to “highly qualified” teachers as defined by the Department of Education, and give out $15,000 instead of $5,000 for other teachers. The Biden Administration has paused the national student loan repayment program three times throughout the COVID-19 pandemic to give borrowers a break while the economy recovers. The President is also weighing federal action on student loans. Payments are set to resume after August 31st, but the President could pause the repayment schedule for a fourth time. Officials recognize that record-high inflation is making it difficult for people to resume making payments on their student loans. “We recognize that while the economy has improved, many Americans are still struggling to make ends meet,” said Education Secretary Miguel Cardona, indicating that the student loan pause could be further extended as a result. But borrowers say they are still in the dark about the status of their student loans. Borrowers need time to prepare their finances and it’s not clear if payments will resume in September. The Education Department said it will give borrowers “ample notice” prior to payments resuming, and a “long on-ramp” to ensure borrowers have enough time to get ready to make payments. But time is running out. Around 180 advocacy organizations recently sent a letter to President Biden, urging him to again extend the student loan repayment program. The letter came amid reports that the White House is considering restarting student loan payments as a way of combating inflation. “We…strongly urge your administration not to collect money from people with student debt as a tactic to fight inflation,” the coalition wrote in the letter. “The pause on most federal student loan payments during the pandemic has provided much-needed breathing room for… over 1.7 million educators, nurses and public employees, along with millions of other borrowers who feel pauperized by crushing student loan debt,” said Randi Weingarten, the President of the American Federation of Teachers. “A hasty restart of payments now, in this time of rising costs, and while thousands are still waiting for their loan forgiveness applications to be processed, would be devastating.” President Biden has already canceled over $15 billion in student loans since taking office. He is also canceling $6.5 billion in additional student loans by beefing up the country’s Public Service Loan Forgiveness program, which lets borrowers in public service “count” previously ineligible student loan payments toward the requirements to get their student loans canceled. Nurses and healthcare workers may see additional relief through the Student Loan Forgiveness for Frontline Health Workers Act, but it’s not clear if it has enough political support to get through Congress. Post Views: 11,507 Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Nearly 70% of medical school graduates left school with debt in 2021, according to the Association of American Medical Colleges. The median debt—not including undergraduate study—was $200,000 per student. That’s a hefty sum to pay back. If you, like most med school grads, took on debt to attend school, it’s likely you’d benefit from student loan forgiveness. A healthcare worker’s salary, especially at the beginning of a career, doesn’t always make it easy to keep up with payments. How Does Student Loan Forgiveness Work for Healthcare Workers?Like other public service employees, healthcare providers who work at nonprofit or government organizations can qualify for Public Service Loan Forgiveness. You can also sign up for an income-driven repayment plan to pay off your federal loans. This lowers monthly payments to a percentage of your income—resulting in forgiveness of any remaining balance after 20 or 25 years. Beyond these widely available programs, there are other options specific to healthcare workers, as well:
8 Loan Forgiveness Options for Healthcare WorkersStudent loan repayment and forgiveness programs can limit the amount you’re required to pay back. And it’s not just physicians who may qualify for student loan forgiveness based on their healthcare service. Student loan forgiveness for nurses, nurse practitioners, certified nurse midwives, licensed clinical social workers, dentists, veterinarians, researchers and more all have programs available. Here are some you should consider. National Health Service Corps (NHSC) Loan Repayment ProgramsThe National Health Service Corps, run by the federal Health Resources & Services Administration, offers three different loan repayment programs for healthcare providers. These offer loan repayment assistance in exchange for at least two or three years of service in certain locations:
The same application applies to all three programs, but you can only apply for one program in total. NHSC Nurse Corps Loan Repayment ProgramNurses have an additional NHSC-run loan repayment assistance program to choose from: Nurse Corps. If you’re a registered nurse, advanced practice registered nurse or nurse faculty, you could have up to 85% of your outstanding nursing school debt paid off. To qualify, you must work in an eligible critical shortage facility or an accredited school of nursing at least 32 hours per week. The student loan repayment award is 60% of debt paid off over two years plus another 25% paid off for an optional third year. National Institutes of Health (NIH) Loan Repayment ProgramsClinical researchers focused on biomedical or biobehavioral research can receive up to $50,000 in loan repayment per year from the NIH—whether they’re working at an NIH lab or for an external employer on research deemed critical for the NIH. You must have a doctoral degree, such as an M.D., Ph.D., Pharm.D., Psy.D. or D.D.S., and your student loan debt must equal or exceed 20% of your salary. Indian Health Service Loan Repayment ProgramThe federal Indian Health Service awards up to $40,000 in loan repayment to clinicians who commit to two years of service in healthcare facilities focused on serving American Indian and Alaska Native communities. A wide range of professions can qualify, from advanced practice nurses to physical therapists (with a master’s or doctoral degree) to licensed acupuncturists. Centers for Disease Control and Prevention (CDC) Epidemic Intelligence Service ProgramThis two-year postgraduate fellowship is an opportunity for physicians, nurses, veterinarians, pharmacists and more to investigate epidemiological outbreaks, natural disasters or other public health issues for the CDC. You may be assigned to a state or local office or to the CDC headquarters. One of the benefits is up to $50,000 per year in student loan repayment, depending on funding availability. Only federal student loans qualify for repayment. State-specific ProgramsIn addition to federal agencies, many states offer forgiveness programs for healthcare workers. These programs often require participants to work in rural communities, HPSAs or other high-need areas. Here are a couple examples of state-specific programs for healthcare workers:
Award amounts and service commitments vary—and whether or not the award amount is taxable as income depends on the program. To find state opportunities specific to your discipline, check with your school or explore lists maintained by industry organizations like the Association of American Medical Colleges and the American Dental Education Association. No matter the type of care you provide, you’ll most likely find a program that will reward you for working in locations particularly in need of your talents. Check Out: Student Loan Forgiveness Calculator Best Student Loan Refinance Lenders Of 2022Find the best Student Loan Refinance Lenders for your needs. Can frontline workers get student loan forgiveness?The Student Debt Forgiveness for Frontline Health Workers Act would create a program through the Department of Education to forgive the federal loan debt, and in collaboration with the Treasury Department, create a program to forgive private loans.
Is there student loan forgiveness for health care workers?Like other public service employees, healthcare providers who work at nonprofit or government organizations can qualify for Public Service Loan Forgiveness. You can also sign up for an income-driven repayment plan to pay off your federal loans.
Who qualifies for student loan forgiveness under Heroes Act?Single borrowers whose incomes are under $125,000 a year and married couples who earn less than $250,000 a year are eligible to have $10,000 of federal student loans forgiven. Current students are only eligible if they took out their loans before July 1, 2022.
What jobs now qualify for student loan forgiveness?Public Service Loan Forgiveness (PSLF) is a federal program that forgives student loan debt for borrowers who work for a government or non-profit employer. This includes teachers, firefighters, first-responders, nurses, military members, and other public service workers.
|