If you decide to become a nurse, you are getting into a highly rewarding and sought-after career in healthcare. Nevertheless, a typical financial hardship linked with becoming a nurse is the debt from nursing school. Learn about the several types of nursing student loans, your repayment options, debt forgiveness programs, and more in this comprehensive guide.
What Exactly is a Nursing Student Loan?
Financial aid in the form of nursing student loans is available to students enrolled in nursing programs to help cover expenses such as tuition, fees for clinical rotations, books, and living expenses. Students seeking a bachelor’s or master’s degree in nursing, in particular, rely heavily on these loans, which may be acquired from either private or public lenders.
What Are the Commonalities of Student Loans for Nurses?
Those aiming for a Doctor of Nursing Practice (DNP), Master of Science in Nursing (MSN), or Bachelor of Science in Nursing (BSN) degree should expect to spend tens of thousands of dollars on their nursing education. Scholarships and grants are great, but they won’t cover all of your expenses. Therefore, student loans are necessary for the majority of nursing students.
Types of Student Loans for Nurses
There are primarily two sources for funding nursing education: federal and private student loans.
Nursing Degrees Offered by the Federal Government
Federal loans are often the greatest option due to their flexible repayment periods and the chance of forgiveness. Common varieties consist of:
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Direct Subsidized Loans: You may have the interest paid for by the government on direct subsidised loans while you’re in school if you qualify, provided you have a low income.
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Direct Unsubsidized Loans: Direct unsubsidised loans are accessible to anybody, regardless of financial need; interest begins to accrue immediately.
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PLUS Loans: Graduate students and parents of undergraduate students are eligible for these loans, which have higher interest rates but bigger borrowing limits.
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Perkins Loans: Even though the Perkins Loan program is being phased down for new borrowers, some nurses still have outstanding balances with favourable forgiveness terms.
Financing Options for Private Registered Nurses
Private lenders, such as banks and credit unions, provide student loans with variable interest rates, eligibility is dependent on credit, and less borrower protections.
Benefits:
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Can cover the whole cost of attendance.
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May allow customers access to better credit at lower interest rates.
Negatives:
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Repayment options are limited.
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Limited access to programs that are based on income or waive debt.
How Much Money Do Nursing Students Borrow on Average?
At the time of graduation, the average nursing student has a balance of $40,000 to $55,000 in student loans, according to the American Association of Colleges of Nursing (AACN). Individuals pursuing advanced degrees (MSN, DNP, or NP) may incur much larger amounts, occasionally exceeding $100,000.
Loan Forgiveness Programs for Nursing Students
Fortunately, there are a variety of nursing loan forgiveness programs that you may apply to in 2025 that might reduce or eliminate your debt entirely. These programs provide incentives to nurses who work in underserved or high-need areas.
1. Public Service Loan Forgiveness (PSLF)
You may have your remaining balance forgiven tax-free if you work full-time for the government or a charity and make 120 payments that qualify under an income-driven repayment plan.
Eligible occupations include those of public health nurses, nurse practitioners, and registered nurses working in recognised circumstances.
2. Nursing Corps Loan Repayment Program (NCLRP)
The Health Resources and Services Administration (HRSA) has a program that will refund up to 85% of your nursing school expenses if you work for two to three years at an institution that is experiencing a significant shortage.
3. National Health Service Corps (NHSC)
This curriculum is designed for the National Health Service Corps (NHSC) nurse practitioners and certified nurse midwives who serve in Health Professional Shortage Areas (HPSAs). Help with competitive debt repayment is available.
4. State-Based Loan Forgiveness Programs
Nursing debt forgiveness programs are state-specific, and many of these states are located in economically disadvantaged or rural areas. As an example:
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California State Loan Repayment Program
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Help with Repaying Nursing School Debt in Texas
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An Incentive Program to Forgive Student Loans for Nursing Faculty in the Empire State
Alternatives to Paying Off Nursing School Debt
If you’re struggling to make your payments on your nursing student loans, you have a few options:
1. Income-Driven Repayment (IDR) Programs
These government programs set a monthly limit based on your family’s income and size. The remaining amount is fully waived after twenty-five to thirty years.
Common components of IDR programs include:
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The SAVE Program for Savings on a Worthy Education
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PAYE (Pay As You Earn)
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IBR (Interest-Based Repayment)
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ICR (Contingent Repayment of Income)
2. Loan Consolidation
You may be able to lower your monthly payment by merging several federal loans into one. Plus, it opens doors to certain forgiveness programs.
3. Refinancing
Refinancing your nursing student loans with private lenders might result in a lower interest rate. Unfortunately, government assistance programs like IDR and PSLF are no longer available to you.
The Best Ways to Manage Debt from Nursing School
Taking charge of your nursing student loans might alleviate stress and save you money in the long run. Consider these realistic recommendations:
1. Apply for Scholarships and Grants
Seek for “free money” sources first, such as:
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Academic Awards from AACN
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Nursing Scholarships Offered by HRSA
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State and hospital-specific funds
2. Simply Remove Necessary Items
Simply because you were approved for the loan doesn’t mean you should borrow the whole amount. Make smarter financial choices or get a part-time job to cut down on borrowing.
3. Set Up Autopay
Most lenders will offer you a small interest rate reduction—about 0.25%—if you agree to set up automatic payments.
4. Reassess Annually
Take a look at your financial situation and loan terms once a year. A new repayment plan or forgiveness program may become available to you as your employment progresses.
Obtaining a Loan as a Graduate-Level Nurse
Advanced practice nurses, including nurse practitioners (NPs) and certified registered nurse anaesthetists (CRNAs), often carry larger levels of debt despite higher earning potential. It is imperative that these professionals thoroughly consider:
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PSLF if you work for a charity hospital
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Refinance if you aren’t eligible for government assistance
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Loan Repayment for NHSC Primary Care NP
The Future of Nursing Student Loans
The unfilled nursing positions in the United States in 2025 will continue to open doors for nurses everywhere. As a result, healthcare companies and government agencies are stepping up their efforts to provide financial aid to students via schemes like:
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Signing bonuses available for use towards student debt repayment
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The company offers help in paying off debt
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SAVE enhancements and expanded federal forgiveness opportunities
Finally, Would Borrowing Money for Nursing School Be Beneficial?
Taking out a nursing student loan, as intimidating as it may seem, is frequently a smart move. Nurses may successfully manage their debt and have a long and fulfilling career if they follow the right technique. Some examples of this approach include forgiveness programs, judicious borrowing, and repayment arrangements that are based on income.
Earning a degree in nursing is still an excellent way to secure a high-demand career path. Having a solid understanding of nursing student loans may also help you make educated financial decisions that align with your career goals.