Student Loan Forgiveness For Healthcare Workers: Recent Updates 2022

As the United States recovers from the devastating effects of the COVID-19 pandemic, a measure has been filed that gives student loan forgiveness for healthcare workers.


According to the Front Line Healthcare Workers Act, private and federal student loan forgiveness programs will be implemented in the healthcare industry for loans taken out to fund medical and professional education.

A portion of this bill will be used to reimburse the costs of medical and nursing school expenses as well as individuals who have made significant contributions to the COVID-19 epidemic.

There is more student loan forgiveness for healthcare workers updates you need to know, including available options for you.

Let’s get started.

Student Loan Forgiveness For Healthcare Workers: Payments Start on September 1, 2022.

CARES Act’s administrative forbearance period began in March 2020, and millions of borrowers have taken advantage of it. In addition to federally guaranteed student loans, those in default on private FFEL loans are also included in the pool of eligible loans.

Borrowers who haven’t made payments after the forbearance period ends on August 31 should get their finances to make payments again.

For at least 21 days before the first payment is due, the U.S. Education Department says that borrowers should expect information and services on how to resume payments.

For now, you can check the Federal Student Aid and your loan servicer’s websites to ensure that your contact information is up to date. That way, you can be alerted when payments resume.

Student Loan Forgiveness For Healthcare Workers: Why Was The Pause In Loan Payments Extended?

As recently as April 2022, the payment halt was announced to be prolonged for another year. The Biden administration has said that this prolongation of the payment freeze was required to provide loan servicers and borrowers more time to plan for the resumption of the payment.

In the interim, Education Secretary Miguel Cardona said they’d continue their preparations to give borrowers a fresh start. And also, make sure that borrowers have the repayment programs available to them that match their financial situations and demands.

The Department of Education has announced that federal borrowers who have defaulted loans or are overdue on their payments will be in good standing when repayment begins.


An Update On Student Loan Forgiveness For Healthcare Workers

Rep. Carolyn Maloney (D-NY) and other members of Congress have attempted to enact the Frontline Health Workers Act, which would provide student loan forgiveness for healthcare workers, but to no avail.

Nevertheless, on October 6, 2021, the U.S. Education Department announced the release of a PSLF Waiver program, which may allow you to receive forgiveness years sooner or wipe off all of your loan debts completely!

Here’s what the Student Loan Forgiveness for Frontline Health Workers Act would do:

  • The act includes frontline health care employees who helped with the medical response (for example, patient care, medical research, or testing)
  • Healthcare employees who made “major contributions during the Covid-19 pandemic” would have their education loans forgiven; and
  • Both private and federal student loans would be affected.

The change is because of the pandemic, so you must act quickly. It works like this:

  • You must complete the ECF form on the official student aid website if you have FFEL loans (borrowed before 2010).
  • It’s necessary to combine Direct Loans with different terms since the new consolidation loan will be given credit for the longest-term Direct Loan.
  • Ensure you’ve completed the ECF form on the student assistance page above for Direct Loans with the same number of credit months.

You have until October 31, 2022, to apply for this.

The good news is that, in addition to PSLF, healthcare workers (and medical professionals) can qualify for the best loan forgiveness programs available.

Some of these programs forgive loans, while others offer debtors money through a loan payback plan (LRP). We’ll go over them in the subsequent sections.

Student Loan Forgiveness For Healthcare Workers: Will You Get Loan Forgiveness?

President Joe Biden has forgiven over $15 billion in student loan debt since he took office. As a result of Biden’s revisions to loan forgiveness, $6.2 billion in student loan debt will be canceled.

PSLF has a limited waiver that allows you to “credit” formerly ineligible loan payments toward your loan cancellation requirements. Senate Democratic Leader Patty Murray has proposed extending the loan forgiveness limited waiver until 2023.

If Congress accepts Whitehouse’s two proposals, teachers and frontline health care workers can qualify for further student loan forgiveness.

As White House Chief of Staff Ron Klain has indicated, it’s feasible that Vice President Biden would extend the moratorium on new student loan payments for the fourth time. In addition, Biden is also contemplating the cancellation of student loans on a large scale for those who have taken out student loans.

After September 1, 2022, federal student loan payments will begin again. So pay off your college loans as soon as possible. In other words, it’s time to weigh your options.

Now, here are some options to consider.

How Does Student Loan Forgiveness For Healthcare Workers Work?

Healthcare professionals who work for the government or nonprofit organizations may be eligible for PSLF, much like other public service employees. You can also enroll in an income-driven repayment plan to pay off your federal loans.

Your monthly payments are reduced to a percentage of your salary, with any residual balance erased after 20 or 25 years. Other alternatives specialized to healthcare workers are available in addition to these publicly available programs:

To qualify for student loan forgiveness based on service, healthcare graduates must often agree to work in an underprivileged area, for a particular government agency, or in a high-demand specialty.

Several states have loan forgiveness or repayment programs for healthcare practitioners who serve in areas with a shortage of healthcare professionals (HPSA).

They may cancel a portion of your debt after a term of service. But the states frequently offer repayment assistance for a specified length of time to help balance your loan burden.

4 Student Loan Forgiveness For Healthcare Workers To Consider

Forgiveness programs and student loan repayments might help you reduce your debt. And it’s not just physicians who can be eligible for loan forgiveness because of their work in the healthcare field.

Certified nurse midwives, nurses, licensed clinical social workers, practitioners, dentists, veterinarians, researchers, and others can benefit from student loan forgiveness programs.

Here are a few to think about.

1. NHSC Loan Repayment Programs

The National Health Service Corps LRP is an excellent alternative. Health care professionals are being brought to individuals with limited access to health care, generally at community health centers.

It has three programs to choose from as an incentive. Loan repayments range from $50,000 to $75,000 and are spread out over a two- or three-year commitment.

The National Health Service Corps (NHSC) offers three types of loan payback schemes (LRPs):

  • NHSC Rural Community LRP. This program provides more student loan relief if you agree to work in a rural location. Full-time employees can get up to $100,000 in aid, while part-time employees can receive up to $50,000.
  • NHSC Loan Repayment Program. General practitioners, dentists, and mental health professionals can use this option. Two years of full-time or part-time work at an HPSA may entitle you to up to $50,000 in loan forgiveness or $25,000 in partial forgiveness. If you have a lingering loan sum, a contract extension beyond two years is available.
  • NHSC Substance Use Disorder Workplace LRP. A qualified and skilled substance abuse treatment provider can employ this method, particularly for opiate addiction. An NHSC-approved substance use disorder treatment center in an HPSA is required for primary care medical, dental, or mental health work. For three years of full-time work, you can earn up to $75,000; for part-time work, you can earn up to $37,500 per year.

These programs are available to various healthcare professionals such as:

  • Nurse Practitioners (NP)
  • Certified Nurse-Midwives
  • Physicians (MD/DO)
  • Health Service Psychologists
  • Psychiatric Nurse Specialists
  • Marriage & Family Therapists
  • Licenced Clinical Social Workers
  • Physician Assistants
  • Licensed Professional Counselor

This is an excellent program for healthcare providers who want to help those who cannot afford or get quality care. In addition, if the LRP doesn’t fully pay off your student loans, numerous clinics offer PSLF-eligible employers.

2. NIH Loan Repayment Programs

The National Institutes of Health (NIH) aims to attract health professionals. Here’s how it works: the program alleviates some student loan pressures and makes this area more appealing.

Researchers can receive up to $50,000 annually in NIH loan repayment programs, regardless of whether the debt is private, federal, or HHS.

Everyone from pharmacists, physicians, nurse practitioners, dentists, and physician assistants is eligible. In addition, a job outside of the NIH or inside the NIH can qualify as extra-mural (inside the NIH).

3. Nurse Corps Loan Repayment Program

Nurse Corps, a loan repayment aid program administered by the NHSC, is another option for nurses. You might have up to 85% of your outstanding nursing school debt forgiven if you’re an advanced practice registered nurse, registered nurse, or nurse faculty.

You must work at least 32 hours each week at an authorized nursing school or a qualifying critical shortage facility to be eligible. The repayment award is for 60 percent of the debt to be paid off over two years and a further 25% for a third year if desired.

Remember that this benefit is subject to taxes. 

4. Indian Health Services Loan Repayment Program

A medical professional can help the American Indian communities or Alaska Natives and get a two-year term in exchange for $40,000 in student loan repayment.

After the initial two-year commitment, you can join for as many one-year terms as you choose. Any healthcare practitioner is eligible to apply. However, those from the service communities are given preference.

IDR Plans And Student Loan Forgiveness For Healthcare Workers

Income-driven repayment is a student loan option that gives taxable loan forgiveness even if you don’t qualify for any other programs.

IDRs such as PAYEREPAYE, and IBR may be familiar to you.

If you owe $125,000 or more on your annual salary and have a yearly income of less than $100,000, one of these repayment options is ideal for you. It’s the most flexible repayment option accessible.

Part-time or full-time employment with any form of business is possible. Even though you’ve lost your work, you can still maintain income-driven repayment. Even if you don’t go into forbearance, you can reduce your payments to zero and still qualify for loan forgiveness after 20 to 25 years.

There is an aim here of minimizing monthly payments and maximizing loan forgiveness. As a result, you’ll be able to put more money aside to accomplish other financial objectives, such as funding your retirement accounts to their full potential or purchasing a home.

Additionally, you keep the door open for PSLF if you work for a qualified company for 120 months.

What To Do If Repayments Starts In August

Create A Budget

You don’t need a lot of money to start budgeting. It’s simple, effective, and free. A good budgeting habit should be established as soon as possible if you didn’t develop one while in college.

Using budgeting techniques, you can pay off your student loans more quickly without raising your salary.

The 50/30/20 rule is a popular way of budgeting. 50% of your income is allocated to necessities, 30% to extras, and 20% to savings.

Student loan repayments are included in savings when creating a budget this way. As a result, one option is to use some of your savings to pay down your student loans. If you haven’t started saving yet, you must divide your income into necessities and wants before making any cuts.

This isn’t the only budgeting strategy out there, but it’s a simple one for newbies to follow and an excellent way to see how much money you’ve already spent.

Inquire As To How To Make Payments

Student loan repayment is a task that might be difficult if you haven’t done it for a while. Contacting the financial assistance office at your school is a brilliant place to start.

If you ask your school, they should be able to tell you how much money you originally borrowed and who your loan providers are. To pay your student loans, you’ll need to know the names of your loan providers and their websites.

Additionally, you can get information about your loan on the provider’s website, such as the interest rate, current balance, and more.

Start With Your Monthly Payments

Setting up automatic payments is the simplest way to ensure you never miss a payment. This can be accomplished through the website of your student loan servicer. In addition, student loan debt can be paid off more quickly if you make all of your payments in full and on time.

Remember that you don’t have to pay the total amount owed at once. You have the option of paying extra if you so desire, which might expedite your debt repayment and reduce your interest costs.

Know Your Student Loan Servicer

Student loan forgiveness for healthcare workers

Navient, Granite State, and the Pennsylvania Higher Education Assistance Agency (known as FedLoan) stated that they would no longer be servicing federal student loans for the U.S. Education Department.

As a result, around 16 million borrowers will be dealing with a new organization when payments resume or shortly after


It’s advisable to double-check your service provider’s contact information to ensure you receive all notifications regarding the imminent change.

More than one warning should be sent to anyone affected by this decision. The money you submit to your old servicer now should be sent to your new one.

If You’re Struggling Financially, Search For Alternatives

You can explore your choices if you’re still struggling to get a job.

It’s advisable to first apply for unemployment deferment or economic hardship. To postpone your federal student loan payments, those are the best options.

However, if you’re not eligible for either of these options, you can use forbearance to keep your expenses suspended. Remember that when you resume payments, your amount will be higher — sometimes significantly higher — due to interest accrual.

Final Thoughts

There’s a high chance that the student loan pause extension will extend again. But regardless of what happens, you must take control of your student loans. Then, you can use the student loan forgiveness for healthcare workers to pay off your debts. You can go through this guide and choose the loan forgiveness options that work for your current situation. If you don’t know what to do, contact a student loan expert to help you make the right decision.



Leave a Reply

Your email address will not be published. Required fields are marked *