TThe US government recognizes the importance of healthcare workers during a pandemic, and as the country tries to navigate the crisis, it is also looking to recognize their work.
One measure that gained momentum in the first weeks of 2022 is helping workers forgive their student loans.
The bill was supported by congresswoman Caroline Maloney where she introduced legislation to write off student loans for frontline healthcare workers so that workers who have been on the front lines since the start of the pandemic could be helped.
However, there are various programs that could help nurses and medical staff pay off their debts as soon as possible. Here is a list of programs you can apply:
Public Service Loan Forgiveness
Public Service Loan Forgiveness it is a federal program designed to encourage students to pursue relatively low-paying careers such as firefighting, teaching, administration, nursing, public interest law, military, and religious activities.
You must make payments for 10 years, 120 payments in total, while working for a government or non-profit organization before you qualify for tax exemption.
To make the most of PSLF, switch to an income-focused repayment plan. This will keep your payments as low as possible and forgive the largest amount of debt. Income-focused plans limit monthly payments to a percentage of your income and extend the repayment period to 20 or 25 years.
Nurse Loan Repayment Program
The Nurse Corps Loan Repayment Program offers loan repayment assistance to Registered Nurses, Nurse Practitioners, Advanced Practice Nurses, and Nursing School Educators who agree to work at a critical shortage center or an eligible nursing school.
The program repays 60% of the balance of the qualifying student loan in exchange for 2 years of service. Members may be eligible to work for a third year and receive an additional 25% of the loan balance.
NHSC Loan Repayment Program
NHSC and the Nurse Corps are programs administered by the Health Resources and Services Administration (HRSA) to provide essential health services in underserved areas. Both Corps programs offer scholarships and loan repayments to healthcare providers in exchange for services in these areas.
Cancellation of Perkins loan
The Federal Perkins Loan Cancellation Program is not for everyone because not all Perkins loans are eligible for forgiveness. Even if you meet all eligibility requirements, cancellation is not automatic.