What Healthcare Borrowers Should Know About Loan Repayment In 2022
As, we have already discussed what is loan forgiveness, its benefits, and who is eligible to apply in our last article DirectShifts' Overview: Student loan Forgiveness For Healthcare Workers 2022. Let's now run through the top programs for loan repayment and dig into which one you are eligible for.
Public Service Loan Forgiveness (PSLF)
Benefit- The biggest and best-known loan forgiveness program is the Public Service Loan Forgiveness Program. This initiative will pay off your debt if you commit to working in the public sector, which means if you are employed in a government or nonprofit organization.
Eligibility- In order to qualify, you'll have to make monthly payments for 10 years under an Income-driven repayment plan, then the government will cover the remaining loan balance. This program is specifically for those with certain types of federal student loans. You will need to have Direct Loans to qualify for this program.
Disadvantage- The disadvantage is that it requires a lot of commitment. Plus, getting approval can be difficult as only 2.1% of applications have got approved since the program began.
National Health Service Corps (NHSC) Loan Repayment Programs
Benefit- The NHSC programs offer assistance toward your loans if you work for two or three years in a Health Professional Shortage Area (HPSA) approved by the NHSC. The program is available for both full-time and part-time workers.
There are three loan forgiveness options in this program:
- NHSC Loan Repayment Program
- NHSC Substance Use Disorder (SUD) Workforce Loan Repayment Program
- NHSC Rural Community Loan Repayment Program
Eligibility- Each option has different eligibility requirements and offers a different amount of money. Private student loan borrowers are also eligible. Amongst them all, a wide variety of health care providers can receive help, including physician assistants, midwives, social workers, dentists, pharmacists, psychologists, and registered nurses (RNs).
Benefits and Eligibility- There are plenty of state-specific programs, so make sure to do a quick search for your area and profession. For example, the Ohio Physician Loan Repayment Program offers up to $35,000 of loan forgiveness to eligible healthcare workers in the state. Whereas, Iowa's Health Professional Recruitment Program awards up to $50,000 to certain health professionals, including occupational therapists and podiatrists. It also offers other loan repayment programs for health care workers from primary care doctors and nurse practitioners to veterinarians. As another example, Alaska's SHARP Program extends support to medical, dental, and behavioral health professionals.
Perkins Loan Cancellation
Benefit- If you opt for a Perkins Loan, you would be eligible for its dedicated loan cancellation program. The Perkins program is open to other professions, including nurses and medical technicians.
Eligibility- If you work in a full-time position for five years, you could get 100% of your loan balance forgiven.
Centers for Disease Control and Prevention (CDC) Epidemic Intelligence Service
Benefit- The CDC forgiveness program is a postgraduate fellowship for two years, during which you'll research public health issues, including pandemics like Covid-19. The program offers you an amount of up to $50,000 toward student loan repayment.
Eligibility- The fellowship is open to health care workers, including veterinarians, nurses, physicians, and doctoral-level professionals (like pharmacists and scientists).
National Institutes of Health (NIH) Loan Repayment Programs
Benefit- Even if you're not a frontline health care worker, you will qualify for support toward your student debt. The NIH programs are focused on clinical researchers working in an NIH lab or for another qualifying employer focusing on a relevant field.
Eligibility- To be eligible under this program, you need a doctoral degree and for your student loan debt to be at least 20% greater than your salary.
Indian Health Service Loan Repayment Program
Benefit- Health care professionals who work with American Indian and Alaska Native communities can receive up to $40,000 of support for loan payments through the Indian Health Service (IHS). You'll need to commit to service for at least two years.
Eligibility- This program is open to a variety of professionals, including licensed acupuncturists.
Regardless of the type of care you provide, you can most likely find a program that will reward you for working in places that especially need your talents. DirectShifts is one such marketplace which appreciates your talent. It is a modern way of finding healthcare job and applying to your dream company. At DirectShifts, we help healthcare professionals find jobs that are the right fit for them. We adore our clinicians and are honored to be a part of their journey, and our team is available 24 hours a day, seven days a week. So, what are you waiting for. Get started today!