Your Guide To The Nurse Corps Loan Repayment Program
According to the Bureau of Labor Statistics, the amount of nursing jobs is expected to rise by 15% in the coming years. It’s a well-paid career option. However, its high tuition costs have left many graduates with a large amount of student loan debt.
Luckily, there are a few forgiveness programs such as the Nurse Corps Loan Repayment Program (Nurse Corps LRP) that can help registered practitioners address a chunk of their unpaid student loan with debt relief.
Read on to learn how this program works, its eligibility requirements, and its application process.
What Is the Nurse Corps Loan Repayment Program?
The Nurse Corps LRP is a program managed by the Bureau of Health Workforce under the Health Resources and Services Administration (HRSA). All records and data regarding the program remain with the Department of Health and Human Services.
This repayment program addresses the needs of healthcare professionals in underserved areas by incentivizing registered nurses, faculty, and students who work in such communities. The Bureau of Health Workforce helps these individuals pay off a major portion of their student loan debts in return for their work in low-income communities.
Eligibility Requirements
To benefit from the Nurse Corps LRP, student loan borrowers need to meet the following eligibility requirements:
- Be an American citizen, U.S. national, or a permanent resident with substantial proof of residency status
- Have or earn an Associate or Bachelor degree in nursing, a diploma in nursing, or Ph.D. in nursing
- Have an eligible and outstanding student loan related to the nursing degree
- Hold a current and unrestricted license to continue as an Advanced Practice Registered Nurse (APRN) or a Registered Nurse (RN). Additionally, the license should be from the state that you practice in
- Have completed or are pursuing a nursing degree from an accredited school of nursing within a U.S. state or territory
In addition to the above, applicants must also meet one of the criteria listed below:
- Work full-time in an eligible CSF (private nonprofit healthcare facility that’s either located in, designated as, or serving an HPSA (any area that’s lacking in primary healthcare or mental health professionals)
- Have qualifying nursing school debt and work as a nursing faculty member in an accredited school
Application Process
To apply to the Nurse Corps LRP, all you must do is fill in an online application form and submit the following required documents:
- Proof of citizenship (National resident, lawful permanent resident, or US citizen)
- Approved form for release with a handwritten signature
- Transcripts
- Curriculum Vitae (CV) or Resume
- Verification of the CSF site
- All papers related to the student loan as found on the National Student Loan Data System (NSLDS)
You may be required to submit additional verification documents depending on your application. If selected for the program, you’ll receive a confirmation email directing you to log in and confirm your application. That said, keep in mind that your funding preference depends on your financial needs.
Contract Requirements
Qualified practitioners applying for the Nurse Corps LRP will need to sign a contract for the service. Through the contract, the applicant agrees to work full time for a minimum of two years to become eligible for forgiveness.
There are two different contracts:
- A contract for Nurse Corps LRP in which the participant serves as an APRN or RN at a designated CSF
- A contract for Nurse Corps LRP in which the participant serves at an eligible nursing school as a faculty member
Benefits Of The Program
The program provides funds to participants so that they’re able to pay off loans. Here’s how your student loan debts get repaid:
- Firstly, the Nurse Corps LRP helps with 60% of the total education loan balance. The time of the education loan being qualified must overlap with the time of the qualifying nursing education of the applicant. Hence, all the loans getting qualified must be incurred before the application is submitted
- Secondly, for the third year of the service, the program helps by awarding an additional 25% of the total verified education loan balance that’s qualified as on the effective date of the initial contract of two years
Participants will join thousands of Nurse Corps LRP members around the country to meet the health needs of underserved populations and maintain a viable nursing workforce for the future.
How Much Of Your Debt Can Be Forgiven?
The program pays off almost 60% of the student loan debt in the first two years of practice. Each qualifying individual will be paid 30% each year for two years of the contract. Award payments are processed every month during this period and deposited into an account approved by the recipient.
In some cases, eligible candidates may also qualify for a continuation of the contract for an additional year of service. In this case, they’ll receive another 25% of the qualifying loan.
The Bottom Line
The Nurse Corps LRP helps you get a major portion of your student loan debt forgiven. That said, make sure to check out all of the available options, including programs that are state-sponsored, to figure out which one best fits your financial situation.
