After graduation, your salary might not cover the cost of loan payments, especially if you want to be a nurse in a non-profit setting with low pay. You have a few options for how to pay off your student loans both for previous education and for your nursing school.
Existing Student Loans
When you have student loans for a degree you obtained before you began your nursing program, you will need to pay these off yourself. One idea is to spend a few years living with parents or a roommate to cut down on housing costs and apply most of your income to extra loan payments. The other option is to defer your student loans while you go to nursing school and work on paying them off after you finish nursing school and get a job.
Nursing Education Loan Repayment Program
The federal government sponsors a Nursing Education Loan Repayment Program that will repay up to 85 percent of the loans you took out specifically for your nursing education. In exchange, you must be a licensed nurse working in a full-time nursing position at a non-profit agency or nursing school. You get 60 percent of your loans repaid when you work for two years, and an additional 25 percent if you work a third year. You must apply for acceptance in this program, and the more debt you have in comparison to your income, the better your chances of having your loans repaid.
State Loan Forgiveness
Some states offer loan forgiveness programs to nurses who work in specific settings in the state. These might be high-need positions, jobs in rural areas or working with the underprivileged communities. The requirements and compensation vary by state. Find out if your state offers nursing loan forgiveness by contacting the state department of health.
Public Service Loan Forgiveness
The federal government offers guaranteed loan forgiveness of any remaining balance after 10 consecutive years of simultaneous employment in public service and payment on a Direct loan. After finishing nursing school, consolidate all of your student loans with a Direct consolidation loan and choose the payment plan with the lowest possible monthly payments. Make 120 consecutive payments while you are working full-time as a nurse and apply for loan forgiveness after 10 years. Although you must make some loan payments, this service ensures payment of the loans in no more than 10 years after you start working.
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