Note that the government is allowing an interest-free pause for repayment on most federal student loans through the end of September 2020 to help ease the impact of the coronavirus pandemic. Many other lenders and servicers are also offering relief options during this time. Check out our Student Loan Hero Coronavirus Information Center for more.
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A career in nursing is a great choice for many reasons: You get to help people and earn a good salary. In fact, the mean salary for a registered nurse in May 2019 was around $77,460 a year, according to the Bureau of Labor Statistics.
But despite those positives, there’s one major drawback: nursing school loans. According to a 2017 report from the American Association of Colleges of Nursing (AACN), graduate-level nursing students said they expected to leave their program with a median debt of $40,000 to $54,999.
If you’re feeling the burden of paying off your student loans, know you have options. Here are some general tips and nursing school loan repayment options to consider.
In 2016, 69% of graduate nursing students took out federal loans, according to the AACN report. These loans are put on a 10-year Standard Repayment plan. But you have other ways of repaying your federal debt.
Graduated Repayment Plan
With this plan, your payments start at a lower amount and then increase about every two years. Although you’ll still pay off your loan in 10 years, this repayment plan makes it easier to afford your payments when you’re first starting out.
Extended Repayment Plan
You must have over $30,000 worth of Direct Loans or Federal Family Education Loans (FFEL) to qualify for this repayment plan. Payments can either be fixed or graduated. Although you’ll end up paying more overall, your loan will be paid off within 25 years.
Income-driven repayment (IDR) plans
Among graduate nursing students who took out federal student loans, only 22% surveyed by the AACN planned to take advantage of an IDR plan.
Enrolling in an IDR plan could lower your monthly payments since the amount you pay would be based on a percentage of your discretionary income. You might not even have to make a payment. This is especially helpful if you’re just starting your nursing career and don’t have extra cash available.
Here are the four main options available:
Remember that eligibility requirements vary by option. Your repayment period would also become either 20 or 25 years. That could mean you’ll be in debt longer and pay more in interest over time.
Direct Consolidation Loan
If you took out multiple federal loans, you could combine them with a Direct Consolidation Loan. That way, you’d have only one monthly payment to make. Although you’d lower your monthly payments, your interest rate could rise with a Direct Consolidation Loan.
Further, if you’ve been working toward loan forgiveness under an IDR plan or through another program, consolidating your loans would erase your progress.
Refinancing nursing school loans
Even if you scored some grants and scholarships, you might have taken out nursing loans to fill a funding gap. Whether you have federal or private student loans, refinancing can help you reduce your payments and interest charges.
With student loan refinancing, you take out a new loan with a private lender to pay off existing education debt. You could get a better interest rate or repayment schedule on the new loan. But there are many pros and cons of refinancing to consider.
Here are some benefits to refinancing your nursing loans:
- You could get a lower interest rate: One of the main reasons to refinance your loans is to reduce the interest you pay over time. Shopping around to find a lender who will give you a lower rate than your current one could lead to major savings.
- Consolidate monthly payments: If you have multiple student loans, you could combine them into one loan. You’d then have only one monthly payment to manage.
But, you should consider some drawbacks before taking out a new loan:
- Repayment terms aren’t as flexible: Federal student loans have many repayment plan options. If you refinanced your federal education debt into a private loan, you’d lose access to IDR plans.
- You lose access to federal protections: Private loans aren’t eligible for federal forbearance, deferment or forgiveness programs.
If you have federal education debt from nursing school, you could qualify for these student loan forgiveness programs:
- Public Service Loan Forgiveness (PSLF)
- Federal Perkins Loan cancellation
- Military repayment programs for nursing loans
- Other government-sponsored repayment programs
The AACN report found that 57% of surveyed nurses planned to take advantage of Public Service Loan Forgiveness. Under this program, you could have certain federal debt forgiven after you make 120 qualifying payments.
To be eligible for this program, you must work full time for a qualifying employer, such as a government or nonprofit organization. You should also be making payments under an IDR plan.
Only Direct Loans qualify for PSLF. If you have an FFEL or Perkins Loan, you’ll need to consolidate it into a Direct Consolidation Loan before the payments you make would qualify for PSLF. Note that any payments you made on an FFEL or Perkins Loan before consolidation won’t count toward PSLF.
Be sure that using this program is worth the 10 years of service. You can do this by using our PSLF calculator.
Have a Federal Perkins Loan? Work full time as a nurse? Then 100% of your loan could be canceled or discharged.
To qualify for Perkins Loan cancellation, you must work full time as a nurse or medical technician and provide services directly to patients.
To have your Perkins Loan discharged, you must meet one of these conditions:
- School closure
- Total and permanent disability
- Disability due to military service
- Spouse of a victim of 9/11
It’s important to note that the Perkins Loan program expired on Sept. 30, 2017. So, you must have borrowed before that date to be eligible.
Members of the armed forces could qualify for certain military repayment programs. Consider the following.
Air Force Active Duty Health Professions Loan Repayment Program (ADHPLRP)
The Air Force needs medical professionals and seeks out nurses. To incentivize nurses into the military, the ADHPLRP offers student loan repayment up to $40,000. This is in exchange for a minimum of two years of active-duty obligation or one year for each annual payment, whichever is greater.
Health Professionals Loan Repayment Program (HPLRP)
Nurses can get repayment assistance of a maximum of $40,000 per year minus taxes. Among other criteria, you’ll need to serve in the armed forces as an officer in the selected reserve. Only certain loans, such as those in the Direct Loan Program, are eligible. Be sure to check if your loans qualify.
Active Duty Health Professions Loan Repayment Program
Through the Army, nurses can get up to $120,000 (or $40,000 a year) of loan repayment for three years of service. You can also get a sign-up bonus of up to $10,000. That will certainly make a dent in your student loan debt.
Healthcare Professional Loan Repayment Program
As a member of the health care team for the U.S. Army Reserve, you could earn up to $50,000 in nursing loans repayment. Only selected specialties who enlist for six years meet the criteria. You might also be eligible to participate in another incentive program.
In addition to offering loan forgiveness and repayment for military service, the government has other programs to help you repay your nursing school debt.
National Health Service Corps (NHSC) Loan Repayment Program
In an attempt to bring better medical care to underserved areas, the NHSC has a program that pays up to $50,000 toward your loans in exchange for two years of service. The amount repaid on your nursing loans is dependent on the area you serve.
The Indian Health Service (IHS) Loan Repayment Program
IHS clinicians who serve American Indian or Alaska Native communities can get help repaying student debt. In exchange for two years of service, you can earn up to $40,000 in loan repayment. You might be eligible for more money with additional service.
NURSE Corps Loan Repayment Program
In exchange for working full time for two years in a high-need facility, you can get up to 60% of your student loan debt forgiven. An additional 25% of your original balance can be forgiven for your third year of service.
There are many state-sponsored programs that help nurses pay back student loans. Check out these student loan forgiveness programs for nurses. Just know that these programs can change and are dependent on funding.
In addition, seek out hospitals and other medical industry employers that offer student loan repayment assistance, either as a signing bonus to entice you to accept a job offer or as a 401(k)-style matching benefit. Consult Johnson & Johnson’s directory of such employers.
Although you might be overwhelmed with student loan debt from nursing school, you should feel more confident knowing that there are a ton of loan repayment options. Whether you choose a federal repayment plan, refinance or consolidate your loans or sign up for a military program, reducing your debt is possible.
Andrew Pentis contributed to this report.
Interested in refinancing student loans?Here are the top 9 lenders of 2021!
|Lender||Variable APR||Eligible Degrees|
|1.89% – 6.15%1||Undergrad & Graduate|
|1.99% – 5.64%2||Undergrad & Graduate|
|1.99% – 6.84%3||Undergrad & Graduate|
|1.91% – 5.25%4||Undergrad & Graduate|
|2.25% – 6.53%5||Undergrad & Graduate|
|2.15% – 4.42%6||Undergrad & Graduate|
|1.89% – 5.90%7||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|2.00% – 5.63%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews! |
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To 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.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2021.
2 Important Disclosures for Earnest.
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 will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.49% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.34% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 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% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of October 26, 2020, and are subject to change based on market conditions and borrower eligibility.
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.
The information provided on this page is updated as of 10/26/2020. 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 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 02/17/2021 student loan refinancing rates range from 1.91% APR – 5.25% Variable APR with AutoPay and 2.95% APR – 7.63% Fixed APR with AutoPay.
5 Important Disclosures for SoFi.
6 Important Disclosures for PenFed.
Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.89%-4.78% APR and Variable Rates range from 2.15%-4.42% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
7 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of January 4, 2021. Information and rates are subject to change without notice.
8 Important Disclosures for Nelnet.
Checking your rate results in a soft credit pull, which will not affect your credit score. If you continue with your application, Nelnet Bank will request your permission to obtain your full credit report from one or more consumer reporting agencies. This is a hard credit pull and may affect your credit score.
Interest rate reduction of .25% for automatically withdrawn payments from any designated bank account (“auto debit discount”). Auto debit discount applies when full payments (including both principal and interest) are automatically drafted from a bank account. The auto debit discount will continue to apply during periods of approved forbearance or deferment if the auto debit discount was in effect at the time of receiving the forbearance or deferment. Auto debit discount will remain on the account unless (1) the automatic deduction of payments is canceled or (2) there are three consecutive automatic deductions returned for insufficient funds at any time during the term of the loan.
Request for the cosigner to be released can be made by the borrower after 24 consecutive, on-time payments (not later than 15 days after the due date) of principal and interest have been made. Borrowers in deferment or forbearance must make 24 consecutive, on-time payments after re-entering repayment to qualify for the release. The borrower must be current on their payments at the time of the cosigner release request and show the ability to assume full responsibility of the loan(s) by meeting certain credit criteria on their own at the time of the request, including, but not limited to, being a U.S. citizen or having permanent residency in the United States, being the age of majority in their permanent state of residency, providing sufficient proof of income, and having no student loans in default.
Hardship forbearance allows you to temporarily suspend payments on your loan(s) while you are experiencing financial hardship. It is offered in increments of two or three months, with a maximum of 12 months available, in aggregate, over the life of the loan. If your loan(s) are in good standing at the time of your request, you will be eligible for forbearance in increments of two monthly payments. If, at the time of your initial request, your loan(s) are considered past-due, you will be eligible for forbearance in increments of three monthly payments. Future increments of forbearance, up to a life-time maximum of 12 months, may be requested upon the completion of making a certain number of principal and interest payments. During the two- or three-month forbearance period, you will not be required to make payments; however, any unpaid interest will continue to accrue and will be capitalized (added) onto your principal balance at the end of the forbearance period. You may continue making payments in any amount without penalty during the forbearance period. Your loan repayment term will be extended by the number of months in the forbearance period.
Refinance Loan Eligibility: You must be a U.S. citizen or permanent resident alien with a valid U.S. Social Security number, and be the legal age to enter into binding contracts in your permanent state/territory of residency, or be at least 17 years of age and apply with a cosigner who is at least the age of majority in their state/territory. Non-residents can apply with an eligible cosigner who is a U.S. citizen or permanent resident alien with a valid U.S. Social Security number. The student loans you refinance must be in their grace or repayment period, and you can no longer be enrolled in school on a half-time or more basis. You must have at least $5,000 in student loans to refinance. You, or your eligible cosigner, must have an annual income of at least $36,000. Approval subject to credit review. Other credit criteria may apply.
Refinance Loan Limits:
Loan Refinancing Risks: Federal student loans include benefits that may not be offered with private student loans. Carefully review any potential benefits that may be lost by refinancing federal and private education loans, such as the loss of any remaining grace periods. To learn more about what to take into consideration when refinancing federal student loans with private education loans, click here
Selecting ‘Get Started’ results in a soft credit pull, which will not affect your credit score. If you continue with your application, Nelnet Bank will request your permission to obtain your full credit report from one or more consumer reporting agencies. This is a hard credit pull and may affect your credit score.
Fixed interest rates range from 2.99% APR (with auto debit discount) to 6.25% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. The fixed interest rate will remain the same for the life of the loan.
Variable interest rates range from 2.00% APR (with auto debit discount) to 5.63% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. Variable rates may increase after consummation. The variable interest rate is equal to the One-Month London Interbank Offered Rate (“One-Month LIBOR”) plus a margin. The One-Month LIBOR in effect for each monthly period (from the first day of the month through and including the last day of the same month) will be the highest One-Month LIBOR published in The Wall Street Journal “Money Rates” table on the twenty-fifth (25th) day (or if such day is not a business day, the next business day thereafter) of the month immediately preceding such calendar month. The Annual Percentage Rate (APR) for a variable interest rate loan will change monthly on the first day of each month if the One-Month LIBOR index changes. This may result in higher monthly payments. The current One-Month LIBOR index is 0.15% as of 5/4/2021.
The lowest interest rate for each loan type requires automatically withdrawn (“auto debit”) payments, a five-year repayment term, and the borrower making immediate principal and interest payments. Not all borrowers will receive the lowest rate. The interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the borrower and, if applicable, the cosigner, (2) the repayment option and loan term selected, (3) the loan type selected, and (4) the highest level of education attained. If approved, applicants will be notified of the rate qualified for within the stated range.
*Checking your rate results in a soft credit pull, which will not affect your credit score. If you continue with your application, Nelnet Bank will request your permission to obtain your full credit report from one or more consumer reporting agencies. This is a hard credit pull and may affect your credit score. **Your actual savings may vary based on interest rates, outstanding balances, remaining repayment terms, and other factors.