Nursing student loan forgiveness program assists professionally qualified personnel to repay the nurse education loan.
This program was introduced to encourage nurses to find suitable employment opportunities in the states where critical nursing shortages are present.
This way there is mutual growth – professionals are placed where they are needed, and an urgent need is filled in a community that needs it.
Many hospitals have enrolled them under this policy in order to get the maximum benefit. The nurses who avail loan forgiveness program either Federal or State loans should make sure that the hospital is been registered under this program.
Debt repayment needs to be done in correct monthly bases, no matter what your condition is. This could be tough when you don’t have a job or when you don’t want to complete your education. In such cases if you don’t repay the debt at regular bases, you should be ready to deal with serious legal issues.
Why Nursing Student Loan Forgiveness Program is been introduced?
To make the repayment easier and also to relieve you from the repayment process, few student loan forgiveness programs have been introduced. These programs help not only the students of various departments to gain financial support from the government but also help in the improvement of the poor rural areas.
Usually people do not prefer to work in such places and they are often neglected and do not have any emergency services accessible to them. There is no place which is immune to critical emergencies that need immediate responses, and the government has introduced a scheme that solves this problem without too much fuss.
Any scheme that aids the poor and needy is a boost in favor of the government. There is no point in favoring only rich communities, especially when it comes to access to good medical care. A small improvement in poor rural areas is a positive boost for the government.
Since nurses generally do not consider working at these places, the government has indirectly motivated them to work at these so-called underprivileged communities in order to avail the student loan forgiveness. The hospitals at these locations are only registered under this loan forgiveness programs. Hence, these loan forgiveness programs have generated a very good improvement in the health sector at the underserved urban and rural areas.
Also, this helps the nurses to close their debts in a certain period of time. The government also gets an appreciation for efficient management of the basic needs at critical shortage facility areas.
Federal Loan Forgiveness for Nurses
In 2016, the good news is that as a nurse you can avail the program in some form to help the repayment of your nurse educational debt. The benefits depends on the area where they live, their position in hospitals (RN or nurse practitioner) and their level of educational qualification. There are three federal funded programs which aids the nursing loan forgiveness benefits.
This program enables benefits for nursing professionals who work in the underserved locations both urban and rural areas in America’s critical communities. The locations that are under the radar, so to speak, aren’t usually the first pick, so there is always a shortage of qualified professionals in these places.
With the introduction of this program and the valuable benefits it provides, it has actually created a huge competition. Now there are applications and selection process for availing the benefits of this program. The application process takes around three months – which begins in January and goes on until March.
This program could give a big relief for the nurses since it covers the maximum part of your nurse educational debt.2 years of work at hospitals at underserved areas gives a benefit of 60% repayment by the Federal government. An additional 1 year of work in similar localities gives additional 25% repayment of your original loan balance amount.
Before you apply make sure you are eligible for applying. Online applications are available for you to check the eligibility. The application raises a contract that makes sure you agree to work full time (32 hours a week) in Critical Shortage Facility for 2 years. In case of non-fulfillment of the agreement will cause serious repercussions.
This program is introduced to create healthy communities in poor urban and rural areas. By this policy non-profit health and medical institutions in the underserved areas get the chances of improvement. Nurses aren’t the only ones eligible for this program:
This program is not known by many since it is more famous by the name “Teacher Loan Cancellation Program”. Hence there are not many people who had availed Perkin’s loan for their nurse education. Now that you know the terminologies of this program, you should know the it’s valuable benefits too.
If you are eligible to avail the Perkin’s loan forgiveness, then your complete Perkin’s loan can be discharged with your service for five years. The best part of it being the incremental forgiveness which means a part of your student loan is forgiven every year. This is the only program which gives the qualified and eligible nurses such a benefit.
Eligibility conditions for nurses is been restructured in 2016, and the following applicants can take the complete benefit of this program.
Any licensed Medical Assistants who work in medical fields like therapy, dental hygiene etc. can also avail this Loan cancellation program. Below is the eligibility list:
Thus the program covers more people since it’s not only for nurses. This also gives full loan forgiveness by the end of 5 years of service. No other program had this advantage.
When you are trying to consolidate a loan, you need to think twice since the advantages of Perkin’s loan would get faded away. So loan consolidation would be a problem. Still you can work on the options. You just have to figure out which is more advantageous – Perkin’s loan forgiveness program or debt consolidation.
If you are expecting a job which would provide loan forgiveness then you should get the advantages of it. Else there is no need to think much about it since debt consolidation has more benefits.
The Public Service Loan Forgiveness Program was initially created by Congress in 2007. Later President Obama’s Loan Forgiveness Program was introduced which consisted of three major changes.
As per the recent update in 2016, President Obama has announced that 400,000 Americans who are permanently disabled will be receiving a complete forgiveness. The best part of this program is that the Federal Government will be sending the applications to those who are qualified for this PSLF program so that none of the permanently disabled Americans gets missed out.
This program can only be availed by the students who have taken Federal Student Loan The rest of the students who have taken non-federal student loans will have to face the problem of dealing with their debt. Few state level student loan forgiveness programs are available for the rest. They are not eligible for the complete forgiveness.
Many are not aware if they are eligible to this program. Applicants must be in Direct Loan Program and also in one of the correct repayment plans to avail this public service loan forgiveness program. This program is often confused with Obama’s student loan forgiveness while the updates in the later also affect the PSLF.
Advantages of President Obama’s Plan:
Disadvantages of President Obama’s Plan:
New borrower means the applicant should be utilizing the loan forgiveness option only after or on October 1st 2007. Nurses who have availed the educational loan earlier to this particular date do not have the eligibility to avail the loan forgiveness program.
Partial hardship means the applicant of the loan gets to bear the debt amount repayment till a certain period of time. In this case it is reduced to 10 years from initial 20 years. Post 10 years the long is completely forgiven and the federal government takes care of it.
If you are a qualified nurse who is looking for a loan forgiveness, we hope this post helped you with your quest!