Nurse Practitioner School is expensive! It can cost anywhere from $20,000-100,000+ depending on whether you get an MSN or DNP and what university you attend. Here’s some good news if you’re anything like myself and hundreds of other NP students. There are two federal loan repayment programs available to Nurse Practitioners. This means the government will give you money to put towards your loan balance if you work in an eligible facility.
How does the loan repayment work?
If you’re willing to work in a medically underserved or rural area, you may be eligible to apply for one of these programs. You continue to get paid your full salary; the loan repayment award is on top of your work-paid salary and benefits. Eligible facilities get assigned a HSPA score – aka how great the need is for providers to work there. If you work or obtain a job at one of these places, you are most likely eligible to apply.
For both programs we are talking about today, you must be fully licensed as an APRN and have a job before the application deadline. The application is pretty straightforward – there are no essays to write, no resumes, and no letters of recommendation. For both programs, the application does include your personal demographics, licensure and job information, and a ton of information about your loans.
Just a note – other loan repayment programs are available – some specific to your state and others for those who provide substance use disorder treatment. I will not be talking about these today so make sure to do more research if you’re interested in those options.
What is an HSPA (Health Professional Shortage Area) score?
Healthcare facilities are given a score of 0-26 based on need. The higher the score, the greater the need. Most facilities provide outpatient primary care services. The HSPA score is determined based on geographic location, what populations are served (low income, migrant farmworkers, etc), and provider shortages.
You can check for eligible sites here.
Some examples of facilities with high HSPA scores:
- Federally Qualified Health Centers (FQHC)
- Critical Access Hospitals
- Indian Health Services clinics
- Rural health clinics
- School-based health programs
Comparing the two loan repayment programs
| NHSC Loan Repayment | HRSA Nurse Corps Loan Repayment | |
| Initial Award Amount | $50,000 – full-time $25,000 – half-time | 60% of your loan balance – full-time only |
| Service Obligation | 2 years | 2 years |
| Who Can Apply – Eligibility Criteria | U.S. Citizen Eligible to participate in Medicaid and Medicare Fully licensed in your state Working at an NHSC approved site Other healthcare professionals can apply for this program (MDs, DOs, Dentistry, etc.) | U.S. Citizen Eligible to participate in Medicaid and Medicare Fully licensed in your state Working at an NHSC approved site This program is limited to APRNs, RNs, or nurse faculty. |
| Application Period | February-April | January-March |
| Due Date | April | March |
| Notification | September | September |
| Employment Start Date | July 15th | July 15th |
| Funding Priority | Awards made in descending order starting with an HSPA score of 26 with consideration for if you’re from a disadvantaged background or likely to stay in the area once your commitment is done. | Applicants with the greatest financial need defined as a debt to salary ratio of greater than or equal to 100% who work in a facility with an HSPA score of 14-26. |
| Eligible Loans | Federal and private loans for the actual costs paid while pursuing nursing education (BSN and MSN or DNP). | Federal and private loans for the actual costs paid while pursuing nursing education (BSN and MSN or DNP). |
| Can you continue to re-apply to pay off more loans? | Yes, you can apply every year after your initial 2-year contract until your loan balance is paid off. The award for years 3 and 4 of service is $20,000 and $10,000 for year 5 and beyond. | Yes, you can re-apply until 85% of your loans have been repaid. For your third year of service, you will receive the remaining 25% towards your loans. |
| How are payments made? | One lump sum within 90 days of your service start date | Payments are made monthly and deposited in your bank account for you to pay towards your loans. |
| Taxes on the award | Not taxable – not counted as income on federal taxes | Taxable – not exempt from federal or employment taxes. Federal taxes are withheld from the total award amount. |
For more information:
This sounds too good to be true. What’s the catch?
It’s true, you can get help with repaying your loans! It’s an incredible program. The only catch, if you could even call it that, would be that you do not want to under any circumstances break the contract you sign by leaving your qualifying job. Leaving your eligible site has pretty severe consequences financially. Look at the program guidance linked above for more information. The good news is – you’re not stuck in a job you really dislike. Once you’re in the program, if needed and with approval, you can transfer to another eligible site in order to stay compliant with your contract.
Loan Repayment for Nurse Practitioners Summary
As you can see, the biggest differences between these two programs for Nurse Practitioners are the funding priorities and the tax burden. The NHSC loan repayment does not look at your total loan balance in consideration for whether you get an award; whereas, the Nurse Corps loan repayment program does consider your debt to salary ratio. The Nurse Corps loan repayment award is considered taxable income; whereas, the NHSC loan repayment award is nontaxable. The good news is you can apply to both programs and make your decision later!
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