Nurse Practitioner school is expensive, and most of us graduate with student loans. Did you know there is a program out there that will repay your student loans while you are still making a full salary? As a Nurse Practitioner, you have two options for student loans repayment programs. Today we’ll be talking about one of the programs that I am currently participating in. This post is your National Health Service Corps (NHSC) loan repayment program guide.
This program is incredible. I have a job I love, I make a full salary all while my student loans are repaid. I can speak first hand about my experience as I am a participant. I’m excited to go over all the details today and hopefully help you learn more about this program!
What is the NHSC loan repayment program?
It is a federal program that will repay the student loans you took out to become a Nurse Practitioner. In exchange for loan repayment, you work at an eligible facility. For two years of service, you work full-time and get $50,000 dollars towards your student loans. Working part-time your award will be $25,000. You can apply for a continuation contract on a year-to-year basis until your student loans are fully repaid. You will be awarded $20,000 each year after the initial two-year contract which is pro-rated if you do part-time.
For more information check out their website.
Who is eligible?
There are several requirements:
- Be a US citizen
- You are a provider (or eligible to participate as a provider) in the Medicare, Medicaid, and the State Children’s Health Insurance Program
- You are a fully trained and licensed NP (or another eligible healthcare provider)
- Have qualified student loans aka federal student loans that were used to obtain your healthcare professional degree and license
- Work in an eligible facility (see below for more info)
What is the application timeline?
Late fall – The application opens. In 2021, it opened on November 2, 2021.
December-February – The deadline to submit your application. The exact date changes every year but usually, it closes sometime between December and February.
July – You must start your job by a specific date to be eligible – usually sometime in July.
August-September – If you are awarded funding, you’ll find out beginning in August but as late as the end of September. If you are not awarded funding, you will find out by September 30th.
The funding arrives in a lump sum in your bank account within 90 days of the contract start date.
What is the application process?
You complete the application process fully online. The program guide suggests giving yourself at least 3 weeks to complete the process. There are 3 main components:
- General application: all the basics – your name, address, license information, where you work, etc.
- Employer verification: Your employer will submit a verification that you are indeed employed at their organization.
- Loan information: The trickiest part of the application is providing information about each of your student loans. You will work with your lender to obtain all of this information.
Note: fortunately there are no essays required!
How do I find an eligible facility?
There are several types of eligible facilities. This website will help you find a Health Professional Shortage Area (HPSA). Your place of work must be included on this website for you to be eligible to apply.
Here are some types of sites that are likely to be eligible:
- Almost all Federally Qualified Health Centers (FQHCs) are eligible; these are otherwise known as community health centers.
- Rural health clinics
- American Indian Health facilities
- State or federal correctional sites
How do they decide who is awarded?
This year, 2022, they expect to give an award to everyone who is eligible and applies. In general, here is how awards are prioritized (taken directly from the program guidance):
- “Current (or former) NHSC Scholarship Awardees. We give priority to you if you are a former NHSC scholar who has completed your service commitment and continue to have eligible student loans.
- Applicants who have completed specialized training needed by the Corps.
- Applicants from a disadvantaged background.
We give priority to you if you (or your spouse, if applicable) have a higher likelihood of continuing to practice in an HPSA once you complete the service commitment and you come from a disadvantaged background.- To qualify for the latter, you must submit certification from your school where you:
- Identified as having a disadvantaged background based on environmental and/or economic factors; or
- Received a federal Exceptional Financial Need Scholarship.
- To qualify for the latter, you must submit certification from your school where you:
- Applicants with characteristics likely to remain in a HPSA.
We will also give priority if you (or your spouse, if applicable) indicate a higher likelihood of continuing to practice in a HPSA once you complete your service commitment.- Generally, we assess your experience in working with underserved populations. We then consider the following factors to determine your eligibility for this priority:
- Trainings completed in community-based underserved settings.
- Your time and work at your current NHSC-approved site; and
- Your spouse’s characteristics, if any, which demonstrate that they are likely to remain in a HPSA.”
What’s the difference between the Nurse Corps and NHSC Loan Repayment Programs?
The second loan repayment program for Nurse Practitioners is called the Nurse Corps loan repayment program. There are a few important differences to be aware of. The Nurse Corps program is only available for NPs, nurse faculty, and RNs, no other healthcare disciplines are eligible. This program pays up to 85% of your loans over 3 years instead of the 100% that is available for the NHSC program.
There are two huge differences between these programs. Firstly, the full award amount for the Nurse Corps program is taxable whereas the entire NHSC award is nontaxable. Finally, the other important difference is who is most likely to get awarded. Awards for the Nurse Corps program are based on financial need (aka how many loans you have compared to your annual salary). For the NHSC program, priority is given to the applicants with the highest HSPA score and is not based on your loan and/or salary amount.
For more information check out the Nurse Corps website or an article I wrote here describing the differences between the programs.
Other important things you should know:
- The loan repayment funds are exempt from federal income and employment taxes.
- After your initial two year commitment, you can apply every year for continued funding until you pay off all of your student loans.
- Must have a job at an eligible facility at the time of application.
- Must be fully licensed at the time of application, meaning you have to have taken your certification exam and have your state NP license.
- You can choose to work full or part-time. Full-time is considered more than 40 hours per week, part-time is anything less than 40.
- There are ways to increase your award amount up to $100,000 for a 2 year committment – if you provide treatment for substance use disorder or if you work in a rural community. You can learn more here.
I’ve heard that there’s no way out of the contract. Is that true?
You definitely want to read your contract and the program guide. It is critical to understand your commitment. While there are hefty consequences for simply not fulfilling your contract, there are ways to remedy problems that may pop up while in the contract. For example, you can change jobs if needed. As long as you find another eligible facility, you may transfer your job to a new organization, new city, a new state, or whatever is needed.
Summary: Loan Repayment Program Guide
This program can literally change your life by freeing up money you would otherwise be paying towards your student loans. We worked incredibly hard to become NPs. Now that we have a job and a steady paycheck, having your loans repaid can make a huge difference in your finances and ability to save. I hope this guide was helpful and encourages you to consider applying for loan repayment.
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