On Oct. 6, 2021, the U.S. Department of Education (ED) announced a time-limited waiver opportunity to its PSLF program rules. Under the time- limited waiver opportunity, borrowers could receive credit for past payments which would not have been previously classified as qualifying payments or instances in which payments were not made, specifically, servicemembers who were advised to put their loans in a deferment or forbearance status and did not make payments while on active duty. The months the borrower spent on active duty can be counted toward the PSLF.
Borrowers will need to submit a PSLF form—the single application used for a review of employment certification, payment counts, and processing of forgiveness—on or before October 31, 2022 to have previously ineligible payments counted.
The time- limited waiver essentially waives all requirements except the employment requirement. If you have Federal Family Education Loans (FFEL) or Perkins loans, you will still be required to consolidate your loan with a Direct Consolidation Loan by Oct. 31, 2022. However, any payments made on your federal student loans, under any repayment plan (partial, full, or late), on any FFEL, Perkins, or Direct Loan, will count towards your 120 qualifying payments.
Under the new time-limited waiver, you need to have been employed or are currently employed by an eligible employer (government, 501(c)(3) not-for-profit, or other not-for-profit organization which qualifies), and working full-time. You can still qualify for the full-time requirement if you are working multiple part-time jobs (that totals at least 30 hours per week) with eligible employers. For more information on which employers meet PSLF Program requirements visit the PSLF Help Tool.
Nursing School
Public service as a healthcare professional is an honorable choice. Nursing is a popular career with varying levels of education for students considering this path. From LPN’s (Licensed Practical Nurse) & LVN’s (Licensed Vocational Nurse) to RN’s (Registered Nurse) you have options. Licensed Practical and Vocational Nurses will require on average a year of schooling, while a Registered Nurse needs at least 2 and up to 4 years of school.
Nursing school can be costly, but thankfully there are several programs to help with the cost, including some that will forgive all or part of your loans.
What is Loan Forgiveness
Loan forgiveness is when all or part of your student loan is just that – forgiven. With a student loan forgiveness program you don’t have to pay it back. This could be amazing if you find yourself struggling to make loan payments. For nurses there are several options to look into such as Public Student Loan Forgiveness (PSLF) to the Nurse Corps Loan Repayment Program to National Health Service Corps and more. There are even some options for those who opt to join the military.
Read on to learn more about these programs and determine if there’s a solution to help you manage your nursing student loan debt.
Public Student Loan Forgiveness
Public Student Loan Forgiveness (PSLF) if a federal program to assist students with Federal Direct Loans. This program is for people employed by the U.S. federal, state, local or tribal government, as well as those working for non-profit organizations.
Some health care facilities are non-profit organizations, making this a viable program for nurses with federal student Loans. To qualify for this program, you must make 120 qualifying payments in an eligible repayment plan on your Direct Loans, while working full-time at an eligible employer. To see benefits of this program, you must enroll in the income-driven repayment plan. If you have a FFEL or Perkins loan, you can consolidate your loan with a Direct Consolidation loan to qualify for the program.
After successfully making 120 qualifying payments and submitting proof that the 120 qualifying payments were made while an employee of an eligible employer , you could be approved to have the remaining balance of your eligible loan(s) forgiven, tax free.
More>>>Public Service Loan Forgiveness Details and Eligibility
Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program (LRP) is limited to RN’s, APRN’s (Advanced Practice Registered Nurses) and NF (Nurse Faculty) who received their nursing education from an accredited school located within the U.S and it’s territories. To qualify nurse practitioners must be working full time at least two-years in either a Critical Shortage Facility or an eligible nursing school as nurse faculty.
A Critical Shortage Facility is a public or private health care facility serving in a Health Professional Shortage Area (HPSA), which means that it is located in an area lacking enough health professionals.
An eligible nursing school is one that is accredited by a national or state nursing agency that is recognized by the Secretary of the U.S. Department of Education.
If you meet these qualifications, you could have up to 85% of your unpaid nursing school debt paid. For more information visit BHW.HRSA.gov.
National Health Service Corps
The National Health Service Corps (NHSC) exists to reduce healthcare shortages in underserved areas. One of their incentive programs is the NHSC Loan Repayment Program. In exchange for a 2-year commitment of service at an approved health facility, they will repay your loan for you.
- To be eligible, aside from the two years of service, you must:
- Be a U.S. citizen or national
- A healthcare provider in the Medicare, Medicaid, or State Children’s Health Insurance program
- Fully trained and licensed to practice primary medical care, dental care or behavioral & mental health
- A health professional with qualified student loan debt that led to your degree
- Working at a NHSC approved location
If you are looking to apply to this program, be sure to fully complete the application or you can be disqualified for missing information. Submit the application by the deadline. If approved, you will be asked to sign a contract and your committed service will begin once the HHS Secretary countersigns your contract. Further information on this program can be found at NHSC.HRSA.gov
Federal Perkins Loan Cancellation
Traditionally thought of as a loan cancellation program for teachers, the Federal Perkins Loan Cancellation and Discharge program can also be applied to full-time nurses and medical technicians. This program will only cancel Federal Perkins Loan debt based upon a schedule for years of qualified service.
For the first and second years of service 15% of your loan will be cancelled. Another 20% each year will be cancelled for the third and fourth years of service. Finally, the last 30% will be cancelled in the fifth year of service.
That being said, you must still continue to make payments on your loan while a balance exists. You don’t want to go into default and potentially jeopardize your ability to have more of your loan cancelled with continued qualified service.
More>>>Federal Perkins Loan Cancellation
When you don’t Qualify for Loan Forgiveness:
Income Driven Repayment Plans
An income-driven repayment plan is a program for students with federal loans, where your monthly payment is based upon the amount you earn. If your income is low enough, there’s a possibility you could pay nothing each month.
There are 4 income-driven repayment plans offered by the federal government. These plans also offer their own respective forgiveness after 20-25 years of eligible payments, depending on the plan.
- Revised Pay As You Earn Repayment Plan (REPAYE Plan)
- Income-Based Repayment Plan (IBR Plan)
- Pay As You Earn Repayment Plan (PAYE Plan)
- Income-Contingent Repayment Plan (ICR Plan)
For more information on income-driven repayment options>>> Student Loan Repayment Options
Student Loan Refinance
When all federal options have been exhausted and you are still in need of student loan payment relief, a student loan refinance might be a good solution if you can qualify. When refinancing the loan, you may be able to find more favorable terms to help you efficiently repay your student loan debt. This option, only available by private lenders, will forfeit your federal benefits but the new terms might be worthwhile.
Refinanced student loans will allow you to shop for and secure an attractive interest rate that could be less than your current rate. The lower interest rate will translate into savings over the life of your loan. To qualify for the very best interest rate excellent credit is needed, along with a strong credit history and at-least two years of work history. If you don’t have the credit needed to qualify for the best rates, you will want to find a cosigner.
A cosigner with a strong credit history and an excellent credit score will help you both qualify for the best rates. The cosigner will also be responsible for the loan, so if you the long-term plan is to transition the loan to you as the primary borrower, look for a lender that offers a cosigner release option.
The cosigner release option will allow the cosigner to be taken off the loan if you are able to qualify based on your lenders terms and after you have made a designated number of consecutive on-time and in-full payments are made. This can be as few as 12 payments but is generally around 24 payments.
In addition to a great interest rate from a student loan refinance, this option also allows you to change the length of the loan. You can shorten the term which might increase your payments but will allow you pay it off sooner if that’s your goal.
You can also extend the term which paired with a lower interest rate could significantly reduce your monthly payment. This might sound attractive but remember the longer you pay the more money in interest you pay, making the loan more expensive in the long run. However, if you think you will be in a better financial position later on and could possibly pay it off early, this could be the perfect solution to make your loan more manageable now.
Best Student Loan Refinance Lenders
College Ave Student Loans
- Variable rate range: 3.44% – 7.99% APR1
- Fixed rate range: 3.99% – 7.99% APR1
- No application or prepayment fees
- Apply in 3 minutes or less for instant credit decision
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a refi borrower who selects the Full Principal & Interest Repayment Option with a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $250,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
Information advertised valid as of 8/11/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
ELFI Student Loan Refinance
- Customers are saving an average of $309 every month and an average of $20,936 in total savings after refinancing their student loans with Education Loan Finance1
- Variable and fixed rates starting from 2.48% APR and 4.29% APR2
- Prequalify in as little as two minutes
- Award winning customer service from your dedicated Student Loan Advisor who is matched to you from the moment you sign up
1Average savings calculations are based on information provided by SouthEast Bank/ Education Loan Finance customers who refinanced their student loans between 8/16/2016 and 10/25/2018. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.
2Rates accurate as of 9/23/22. The interest rate and monthly payment for variable rate loans may increase after closing. Your actual interest rate may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. To qualify for refinancing or student loan consolidation through Education Loan Finance, you must have at least $10,000 in qualified student loan debt and must have earned a bachelor’s degree or higher from an approved post-secondary Education Loan Finance institution. Education Loan Finance Parent Loans are limited to a maximum of the 10-year term.
SoFi Student Loans
- Rates as low as 3.24% variable and 3.99% fixed1
- No fees or prepayment penalties
- Unemployment protection
1Fixed rates range from 3.99% APR to 8.24% APR with a 0.25% autopay discount. Variable rates from 3.24% APR to 8.24% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
Splash Financial Refinance Loan
- Rates as low as 2.49%1 Variable APR and 2.59%1 Fixed APR
- No pre-payment penalties, origination, or application fees
- See rates in 3 minutes without affecting your credit score2
1The rates displayed may include a 0.25% autopay discount.
2To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Earnest Student Loan Refinancing
- Variable rates starting at 2.49% APR (including 0.25% Auto Pay discount)*
- Fixed rates starting at 3.74% APR (including 0.25% Auto Pay discount)*
- Choose your own monthly payment
- No fees of any kind and exceptional customer service for the life of your loan
- Check your rate in under 2 minutes
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.99% APR to 8.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 2.74% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
*Auto Pay Discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance. Not all borrowers will qualify for our lowest rates, and your rate will be based on creditworthiness at time of application.
The information provided on this page is updated as of 8/25/2022. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 303 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.