Student Loan Forgiveness for Healthcare Workers: How to Get It

Updated on September 24, 2026

Overview

For healthcare workers, student loan debt can feel like a weight that’s always there, shaping decisions and, in some cases, limiting options. But here’s the good news: there are several loan forgiveness and repayment assistance programs specifically designed for healthcare workers.

Each path has its own set of trade-offs. Here’s a quick breakdown:

Public Service Loan Forgiveness: Forgives remaining federal student loan debt for healthcare workers after 120 qualifying payments
IDR Forgiveness: Forgives the remaining balance after 20 to 30 years of income-based payments.
Service-based repayment programs: Federal and state programs pay down loans for clinicians who work in shortage areas or specific settings.
Refinancing: Best for high-income earners with a manageable loan balance.

Let’s explore some of these programs together so you can make an informed decision that supports your financial goals and professional dreams.

Forgiveness Options for Healthcare Workers

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is a good option if you’re working in a government or nonprofit role. Physicians in California and Texas paid as 1099 independent contractors at nonprofit hospitals can still qualify under a special rule—see PSLF for 1099 physicians in California and Texas. This program forgives the remainder of your student loan balance after 10 years of qualified work and payments. What’s really great? The forgiven balance is tax-free, which means no extra tax bill waiting for you.

Is PSLF for You? It is generally best for healthcare workers who feel comfortable staying with a nonprofit or government employer for the long term. If you’re working full-time in a public hospital, a nonprofit clinic, or perhaps even in public health, PSLF might be a strong fit.

Key Requirements

Employer: Your employer needs to be a government agency or a nonprofit. Learn more in our PSLF Qualifying Employers Guide.
Loan Type: Only Direct Loans are eligible, but there’s a workaround if you have other federal student loans—turn them into a Direct Consolidation Loan. Learn How to Consolidate Student Loans.
Payment Plan: Payments count under an income-driven plan (RAP, or IBR if you haven’t taken out a federal loan since July 1, 2026) or the 10-year Standard plan. An income-driven plan is usually the one that leaves a balance to forgive. The Tiered Standard plan created in 2026 does not count toward PSLF.
Commitment: You’ll need to make 120 qualifying monthly payments, which usually span 10 years of service.

You can download all necessary documents for your application process from our Forms and Application Guide.

IDR Forgiveness

Income-Driven Repayment (IDR) can be a helpful choice if you’re in a private-sector job where forgiveness options like PSLF aren’t on the table. IDR plans base your payments on your income and family size, which can make them more affordable. After 20 to 30 years of payments, depending on the plan, whatever’s left of your loan is forgiven.

Who’s It Best For? IDR can be a good option for healthcare workers in higher-paying jobs outside the nonprofit world, such as those in private practice, or for those looking for a flexible approach that allows them to increase their income over time.
Example Scenario: Let’s say you’re a traveling nurse, moving from one high-need location to another. IDR allows you the flexibility to adjust your payments as your income changes, and eventually, that remaining loan balance will be forgiven—though it’s wise to save a little each year for that tax bill down the road.

Note to Borrowers: There is a risk of a tax bill when the forgiven amount is considered taxable income after December 31, 2025. It’s worth discussing tax planning with a financial advisor to prepare for this, as it may vary depending on your retirement savings and other financial factors.

Related

State and Other Loan Forgiveness Program

You’re likely familiar with federal programs like PSLF and Income-Driven Repayment. But there are also other options that can provide debt relief, particularly if you’re open to working in underserved areas or specialized roles.

Here’s an overview of each program:

NHSC Loan Repayment Programs (LRPs): The National Health Service Corps pays up to $75,000 for a two-year, full-time commitment in primary care, or up to $50,000 in other disciplines, to clinicians working in Health Professional Shortage Areas (HPSAs). Half-time service earns half those amounts, and the award is tax-free. Separate NHSC programs focus on substance use disorder treatment, including in rural communities.
NIH Loan Repayment Programs: The National Institutes of Health Loan Repayment Programs help healthcare professionals in research fields. They repay up to a quarter of your eligible debt each year, capped at $50,000 a year. The award is taxable, but NIH also pays 39% of it toward your taxes.
Nurse Corps Loan Repayment Program: Designed to help registered nurses, nurse practitioners, and nurse faculty working in shortage areas or at eligible nursing schools. It covers 60% of loan balances for a two-year service commitment, with an additional 25% covered if extended for a third year, helping reduce loan burdens for nurses in high-need locations.
Department of Veterans Affairs (VA): For VA-employed healthcare workers, EDRP offers up to $40,000 a year and $200,000 over five years in student loan payments. Learn more in our VA Student Loan Forgiveness for Employees Guide
Indian Health Service Loan Repayment Program (IHS): This program provides up to $50,000 in student loan repayment for healthcare professionals who commit to a two-year term serving in American Indian or Alaska Native communities.

Beyond the major federal forgiveness options provided by the Department of Education, many states have their own loan repayment programs designed to attract healthcare professionals to underserved areas. Among these are New Mexico’s Allied Health Loan for Service Program, Iowa’s Health Professional Recruitment Program, and Alaska’s SHARP Program.

Each state program has its own eligibility requirements, benefit levels, and service commitments. If you’re open to working in a specific state, check with the state health department or relevant loan repayment office to see what unique opportunities might be available.

What Healthcare Jobs Qualify for Loan Forgiveness?

Student loan forgiveness programs are often tailored to support specific healthcare roles. Here are some of the most common qualifying professions:

Physicians and Pediatricians: Primary care physicians, including pediatricians, frequently qualify for PSLF, NHSC, and various state programs, particularly when serving in nonprofit hospitals or clinics in underserved areas. Physicians also face choices other roles don’t, from residency timing to employer repayment contracts. Learn more in our guide to medical student loan forgiveness for doctors.
Physician Assistants (PAs): PAs, especially those in primary care, may qualify for PSLF and NHSC programs if working in nonprofit or underserved areas. Learn more in our Physician Assistant Loan Forgiveness Guide.
Nurses and Advanced Practice Registered Nurses (APRNs): This includes registered nurses, nurse practitioners, clinical nurse specialists, certified nurse midwives, and nurse anesthetists. Nurses working in public or nonprofit hospitals can qualify for PSLF, while APRNs are often eligible for additional programs like NHSC and state-based loan repayment options. Learn more about Student Loan Forgiveness for Nurses.
Mental Health Professionals: Psychologists, counselors, and social workers working in nonprofit or public health settings may benefit from PSLF and NHSC programs. These programs provide mental health support in communities with limited resources. Learn more about Student Loan Forgiveness for Mental Health Professionals.
Physical Therapists, Occupational Therapists, and Allied Health Professionals: Physical therapists, occupational therapists, dietitians, and radiology technologists may qualify for PSLF, IDR forgiveness, and certain state programs if employed in nonprofit or high-need settings. Learn more in our Physical Therapist Student Loan Forgiveness Guide.
Chiropractors: Although limited in specific loan forgiveness programs, chiropractors working in nonprofit clinics may qualify for PSLF and IDR forgiveness plans. Learn more in our Chiropractor Student Loan Forgiveness Guide.
Pharmacists and Dentists: Pharmacists and dentists often qualify for PSLF and state repayment programs, particularly when serving in nonprofit healthcare facilities or designated shortage areas. Learn more in our Student Loan Forgiveness for Pharmacists Guide.

Eligibility Criteria for Healthcare Workers
Program	Eligibility	Best For
Public Service Loan Forgiveness	For healthcare workers in nonprofit/government roles; requires 120 payments over 10 years. Tax-free forgiveness.	Long-term nonprofit or government workers.
Income-Driven Repayment Forgiveness	For private-sector workers; forgiveness after 20–25 years (30 under RAP). Forgiveness is federally taxable starting in 2026.	Private-sector workers needing income-based plans.
NHSC Loan Repayment Programs	Up to $75,000 (primary care) or $50,000 (other disciplines) for 2 years of full-time service in a shortage area.	Those serving rural or underserved areas.
NIH Loan Repayment Programs	Up to a quarter of eligible debt, capped at $50,000 per year, for research roles.	Researchers with high loan balances.
Nurse Corps Loan Repayment Program	Covers up to 60% of loans for nurses in shortage areas; extra 25% for a third year.	Nurses in high-need locations.
Department of Veterans Affairs - EDRP	Up to $40,000 a year and $200,000 over 5 years for VA employees.	VA healthcare professionals.
Indian Health Service	Up to $50,000 for 2-year service in Native communities.	Healthcare workers serving Indigenous populations.

When Refinancing Might Make Sense

For some healthcare providers, refinancing can be a viable strategy, especially for those with private loans or those in high-income positions who do not rely on federal forgiveness programs.

Consider refinancing if you have:

A Favorable Income-to-Debt Ratio: Refinancing is most effective if your income is high relative to your debt.
Stable Employment: If you’re in a secure job, refinancing could help you reduce interest rates, potentially saving money over the life of the loan.
Private Loans: Private student loans generally don’t offer forgiveness options, so refinancing to secure better terms can make a big difference.

If you’re not counting on PSLF or IDR forgiveness and have a strong income-to-debt ratio, refinancing can be an effective way to manage your student debt faster and at a lower cost. Physicians are the harder case, because most residency and fellowship programs sit at nonprofit hospitals and those training years quietly earn PSLF credit that a refinance ends — what changed for medical borrowers on July 1, 2026 covers how that timing works.

Related: How to Refinance Student Loans

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FAQs

Can healthcare workers get their student loans forgiven?

Yes, healthcare workers can qualify for student loan forgiveness through programs such as Public Service Loan Forgiveness. This program forgives the remaining loan balance after making 120 qualifying monthly payments under an eligible repayment plan while working full-time for a qualifying employer, like a government or nonprofit healthcare organization.

How Does Student Loan Forgiveness Work for Healthcare Workers?

Healthcare workers can access loan forgiveness through programs like PSLF, which forgives remaining balances after 120 payments under a qualifying plan. IDR forgiveness is also available, forgiving balances after 20 to 30 years. Some states offer specific loan forgiveness programs tailored to healthcare professionals, varying by location and employer.

Are there any recent changes to student loan forgiveness for healthcare professionals?

PSLF is still open and still forgiving loans. The Education Department's court filings reported more than 10,000 PSLF discharges a month from February through April 2026, including about 11,500 in April. Those monthly reports stopped after May, and many borrowers say their summer payments have been slow to post to their PSLF count, which can push back forgiveness for anyone close to 120 payments. Two rule changes also matter. The Tiered Standard plan created on July 1, 2026 does not count toward PSLF, and taking out a new federal loan after that date generally ends access to IBR. A rule that would have let the Department disqualify some employers was vacated by federal courts before it took effect, so employer eligibility works the way it did before.