Pharmacist Student Loan Forgiveness: Federal, State, and Private Options

• If you work in retail pharmacy (CVS, Walgreens), IDR is likely your best path to forgiveness. If you’re in public service, PSLF is an option.

• Don’t make any big decisions yet with all the legal uncertainty around the SAVE Plan.

• If you’ve got private loans, look into refinancing or negotiating with your lender.

Pharmacist loan forgiveness is possible, but it often feels complicated with constant policy changes. If you’re overwhelmed by programs like PSLF, the SAVE Plan, or payment count adjustments, you’re not alone. The updates can make it hard to know where you stand, but you can still make progress.

Let’s cut through the confusion and focus on the main pharmacy school loan forgiveness options available today:

1. Public Service Loan Forgiveness: If you work for a not-for-profit hospital or government organization like the VA, PSLF could wipe out your debt in just 10 years.

2. Income-Driven Repayment Forgiveness: For retail pharmacists working at CVS, Walgreens, or other for-profit employers, IDR can offer relief. While it takes longer, it adjusts your payments based on your income and can lead to forgiveness.

Additionally, there are state-based forgiveness programs, the National Health Service Corps Loan Repayment Program, and the Indian Health Service Loan Repayment Program that may help with both federal and private student loans. If these don’t fit, refinancing might be worth exploring, but only if you’re sure it’s the right move for your situation.

Related: Biden Student Loan Forgiveness Programs

How it works: If you work full-time for a qualifying employer, you can make 120 monthly payments and have your remaining federal student loan balance forgiven—tax-free—after 10 years through the PSLF Program. Those payments don’t need to be consecutive, which can offer some flexibility if your career path changes along the way.

Who qualifies: Pharmacists working full-time (at least 30 hours per week) for government organizations at any level, 501(c)(3) non-profit organizations, or other non-profit organizations that provide qualifying public services are eligible. Examples include VA hospitals, non-profit community hospitals, and some academic institutions.

Does your loan qualify: All Direct Loans meet the eligibility requirements. But if you have other types of federal loans, like FFEL or Perkins Loans, you’ll need to consolidate them into a Direct Consolidation Loan to qualify.

How to apply: Make sure to submit the PSLF Form each year to certify your employment. When you’ve made 120 qualifying payments, you’ll be eligible to apply for forgiveness.

Read to apply?: Start certifying your employment as soon as you start working for a qualifying employer. Then, after your 120th qualifying payment, you can submit your final forgiveness application.

Where to apply: Submit all forms through the U.S. Department of Education’s PSLF Help Tool at StudentAid.gov.

While PSLF is a strong option for public service pharmacists, retail pharmacists like those working at CVS, Walgreens, or other for-profit pharmacies often find that IDR forgiveness is their best shot at relief. IDR may take longer, but it adjusts payments based on your income and provides a clear path to eventual forgiveness.

Here’s how it can help you:

How it works: You make payments based on your income for 20 or 25 years (depending on whether you have graduate school loans). After this period, any remaining balance is forgiven.

Recent changes: The Biden administration introduced the IDR account adjustment to fix long-standing issues with these plans, and this could be a game-changer for many borrowers. It may speed up your progress toward forgiveness, especially if you’ve already been in repayment for several years.

What the adjustment does: It retroactively credits borrowers with time that can count toward IDR loan forgiveness. This includes past repayment periods under non-IDR plans, certain deferment periods, and some forbearance periods.

Impact on forgiveness: Over 1 million borrowers have already received discharges under this program. Many others will see their remaining time in repayment shortened.

Deadline: The administration aimed to complete the implementation of this adjustment by September 1, 2023. But that date has been pushed back due to ongoing legal challenges.

Legal uncertainties: Recent legal challenges to the SAVE plan (the newest and most generous IDR option) may impact the timeline or delay relief. But even with these challenges, enrolling in an IDR plan now can set you up for future benefits.

How to qualify: All borrowers with federal Direct Loans or federally managed FFEL loans will receive the adjustment automatically. If you have commercially held FFEL loans, you need to consolidate into the Direct Loan program to benefit.

What to do next: If you haven’t already, consider enrolling in an IDR plan. The new SAVE plan offers the most generous terms for most borrowers. But that program is currently facing legal challenges — challenges that threaten to upend IDR Plans as a whole.

The recent legal challenges to IDR forgiveness programs, particularly the SAVE Plan, have created uncertainty for many borrowers, including pharmacists.

Related: SAVE Plan Blocked: What It Means

Here’s what you need to know:

• If you’re already enrolled in the SAVE Plan, your loans are in administrative forbearance. While no interest accrues, you’re also not getting credit toward forgiveness. This holding pattern is temporary.

• If you’ve applied for an IDR plan but haven’t been placed yet, your account will likely go into processing forbearance. Interest will accrue, but you’ll still receive credit toward forgiveness, meaning you’re still making progress despite the trade-off.

• If you’re considering switching from SAVE to another plan, it’s possible, but the timeline is uncertain. Be sure to evaluate whether you can afford the payments under another plan. While SAVE is often the most affordable option, plans like ICR may suit high-earning pharmacists with lower balances.

• If the SAVE Plan is eliminated, we may see a return to the REPAYE plan, or there could be no direct replacement. The outcome is unclear.

The situation is fluid. With political forces at play, it can feel like you’re at the mercy of external decisions. This uncertainty is the cost of pursuing forgiveness, but for many borrowers, it’s still the most viable path given the amount already paid or an inability to clear the balance.

My advice: Just chill for now. We likely won’t get clarity until after the presidential election. Keep making payments if you can, stay informed about updates, and avoid drastic moves like opting out or defaulting.

While PSLF and IDR are the most common forgiveness options for pharmacists, there are other programs that could provide relief if you’re open to exploring new career paths or locations.

These programs typically reward pharmacists working in underserved areas or specific healthcare settings, offering significant loan repayment opportunities. Whether you’re currently in retail or already in a public health role, it’s worth considering these programs if your situation changes or if you’re looking for a fresh start.

State Loan Repayment Programs (SLRPs)

Many states offer loan repayment programs for healthcare professionals working in Health Professional Shortage Areas (HPSAs). Benefits and qualifications vary, but here are a few examples:

• Washington Health Corps: Up to $75,000 in student loan forgiveness for a two- to three-year commitment in an HPSA.

• Colorado Health Service Corps: Full-time clinical pharmacists may qualify for up to $90,000 in loan forgiveness after three years.

• Oregon Partnership: Up to 50% of qualifying education debt may be forgiven for pharmacists working in approved HPSAs.

These state-based programs are worth exploring if you’re willing to relocate or change roles. For more information, visit the Health Resources and Services Administration (HRSA) website.

National Health Service Corps (NHSC) Loan Repayment Programs

The NHSC offers two programs specifically for pharmacists working in substance use disorder treatment or rural areas:

• Substance Use Disorder Workforce Loan Repayment Program: Up to $75,000 in loan repayment after a three-year commitment in an NHSC-approved treatment facility.

• Rural Community Loan Repayment Program: Up to $100,000 for a three-year full-time commitment in a rural NHSC-approved facility.

Both programs use the same application process, but you can only choose one. There’s also a bonus award of $5,000 for those fluent in Spanish to address language access barriers. You can apply through the NHSC website.

National Institutes of Health Loan Repayment Program

If you’re considering a career in biomedical or biobehavioral research, the NIH Loan Repayment Program could help. Pharmacists in eligible research positions at approved sites can receive up to $50,000 per year toward their student loan debt. To apply, visit the NIH Loan Repayment Program page.

Indian Health Service (IHS) Loan Repayment Program

Pharmacists working in facilities that serve American Indian or Alaska Native communities may be eligible for the IHS Loan Repayment Program. Up to $50,000 in loan repayment is available for an initial two-year commitment, with the potential for extensions to cover more debt.

To apply, complete the online application on the IHS website and submit transcripts, loan documentation, and proof of a current license. Applications are accepted October 1 through August 15 and are reviewed monthly. Visit IHS.gov for more details.

HRSA Faculty Loan Repayment Program

For pharmacists who come from disadvantaged backgrounds and serve as faculty at health professional schools, the HRSA Faculty Loan Repayment Program offers up to $40,000 in loan repayment for a two-year commitment. This program aims to diversify healthcare education by supporting professionals from economically or environmentally disadvantaged backgrounds. You can find more details on the HRSA website.

If you’re managing private student loans, you likely won’t qualify for the federal forgiveness programs or many of the LRAPs mentioned earlier. But there are still strategies that can help lighten the load:

1. Refinancing for Better Terms: If you’ve improved your credit score or financial situation, could help lower your interest rate and monthly payment. Look for lenders offering competitive rates, but be cautious about losing any benefits tied to your current loan.

2. Talk to Your Lender: Some private lenders offer hardship programs that may reduce your payments or defer them temporarily. This isn’t as common as with federal loans, but it’s worth exploring if you’re facing financial challenges.

3. State-Specific Programs: A few state-based repayment programs include private loans, though these are more limited. Check with your state to see if any repayment options are available for private loans. Related: State-Based Student Loan Forgiveness

4. Cosigner Release: If you have a cosigner on your loan, look into whether your lender offers cosigner release after a certain number of on-time payments. This can provide more financial flexibility for you and your cosigner.

Related: Can’t Pay Private Student Loans?

Managing student loans as a pharmacist can feel overwhelming, especially when the programs that offer relief seem out of reach. Whether you’re in retail, public service, or dealing with private loans, the path forward can be unclear—and that only adds to the frustration of carrying a six-figure balance.

But you don’t have to sort out alone. We’ve helped pharmacists in all roles develop customized strategies to manage their loans and find relief. Whether it’s figuring out how forgiveness programs apply to you or making the best choice between repayment plans, we can guide you through your options.

Ready for a plan that fits your life? Book a call with one of our student loan experts, and we’ll help you take control of your debt with a clear, personalized strategy.