Student Loan Debt Forgiveness for Medical Workers
ByLyle Daly
UpdatedJul 27, 2025
- Some medical workers could qualify for Public Service Loan Forgiveness of federal student loans.
- Another option with federal student loans is an income-driven repayment plan.
- Several organizations have programs that offer student debt forgiveness for medical workers.
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Medical work is rewarding, but the education required is typically extremely expensive. The average medical school debt is $234,597 as of 2024, according to the Education Data Initiative, and that figure doesn’t include a pre-med undergraduate degree or any other educational debt. Debt forgiveness for medical workers could help with discharging at least a portion of your student loans.
There are several student loan forgiveness programs available. Some are open to a range of occupations, including medical workers, some are open to anyone who meets certain income requirements, and some are intended only for medical workers. If you’re in the medical field and paying back student loans, one of these debt forgiveness programs could get you debt relief ahead of schedule.
Public Service Loan Forgiveness
You may qualify for the Public Service Loan Forgiveness (PSLF) program if you’re employed by the government or a non-profit organization. Any eligible public service workers, including eligible medical workers, can apply. This government debt relief program forgives federal student loan debt, specifically Direct Loans, when you meet the following conditions:
Work full-time for an eligible employer
Make 120 qualifying monthly payments (10 years’ worth of payments) under an accepted repayment plan
The 120 qualifying payments don’t need to be consecutive. You just need to make a total of 120 payments.
To apply for this loan forgiveness program, use the PSLF Help Tool online. You can check if your current employer is already in the database. If not, you can request that your employer be reviewed for eligibility. The tool also lets you prepare, sign, and generate your PSLF form, which you can then submit.
Income-Driven Repayment Plans
With an income-driven repayment (IDR) plan, your monthly federal student loan payment is a percentage of your discretionary income. You must provide your income and family size every year so that your loan servicer can calculate the correct payment amount. Anyone can apply for an IDR plan, including medical workers. If you qualify, an IDR plan is usually a smart way to pay off student loans.
There are a few types of IDR plans:
Income-Based Repayment (IBR) Plan
Income-Contingent Repayment (ICR) Plan
Pay As You Earn (PAYE) Repayment Plan
Saving on a Valuable Education (SAVE) Plan
The exact percentage of your discretionary income that you pay depends on the plan you have. Each plan also has a repayment period of either 20 or 25 years. If your federal student loans aren’t repaid by the end of that period, then your remaining balance is forgiven. Here are the payment amounts and repayment periods for each type of plan.
| Plan | Payment Amount (as percentage of discretionary income) | Repayment Period |
|---|---|---|
| IBR Plan (first borrowed after July 1, 2014) | 10% | 20 |
| IBR Plan (first borrowed before July 1, 2014) | 15% | 25 |
| ICR Plan | 20% | 25 |
| PAYE Plan | 10% | 20 |
| SAVE Plan | 10% | 20 for only undergraduate loans; 25 if you have any graduate or professional loans |
Student Debt Forgiveness for Medical Workers
The following debt forgiveness programs are available specifically to people with health careers.
National Health Service Corps Loan Repayment Programs
The National Health Service Corps (NHSC) offers multiple repayment assistance programs for clinicians working in areas with a health professional shortage. It has programs for:
Primary care medical providers (up to $75,000)
Dental and behavioral health providers (up to $50,000)
Clinicians providing substance-use disorder treatment (up to $75,000)
Clinicians serving rural areas with a health professional shortage (up to $100,000)
There is a two- or three-year commitment required, depending on the program.
National Institutes of Health Loan Repayment Programs
The National Institutes of Health (NIH) offers repayment assistance for health professionals in research careers. Medical workers who qualify can have up to $50,000 of repayment each year toward qualified educational debt.
Check the website for application dates. If you missed the deadline for 2025,
Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program pays up to 85% of unpaid nursing education debt for registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty. Applicants who receive an award must work for two years in either an eligible healthcare facility with a critical shortage of nurses or an eligible nursing school as nurse faculty.
This program pays 60% of your total outstanding, qualifying, nursing education loans over your two-year service contract. When the contract ends, you may be eligible for a third year, which would pay another 25% of your loans.
The program’s annual application cycle closed May 1. You’ll likely be able to apply in early 2026. Check their website for the schedule.
Indian Health Service Loan Repayment Program
The Indian Health Service Loan Repayment Program repays up to $50,000 in eligible health profession student loans. The loan assistance is provided in exchange for a two-year commitment to practice in health facilities serving American Indian or Alaska Native communities.
The deadline for the program’s monthly award cycles is the 15th of every month.
Health Resources & Services Administration Loan Repayment Programs
The Health Resources & Services Administration (HRSA) offers multiple repayment assistance programs. These programs include assistance for clinicians with a pediatric specialty, substance-use disorder treatment clinicians and community health workers, and faculty members from disadvantaged backgrounds.
The program’s application cycle closed May 1. You’ll likely be able to apply in early 2026. Check their website for the schedule.
Take Action on Your Student Loans and Other Debts
If you’re a medical worker with student loans, look into the debt forgiveness and repayment assistance options that could be available for you. In addition to the options listed above, there are also some state-specific programs that could be of interest. Debt forgiveness for medical workers could make a huge difference if you’re struggling with student loan debt. And even if you can manage your student loans just fine, getting debt canceled is always nice.
Although we don’t handle federal student loan debt relief, Freedom Debt Relief is here to help you understand all your options for dealing with your other types of unsecured debt. Our Certified Debt Consultants can help you find a solution that'll put you on the path to a better financial future. Find out if you qualify right now.
Insights into debt relief demographics
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during June 2025. The data provides insights about key characteristics of debt relief seekers.
Credit utilization and debt relief
How are people using their credit before seeking help? Credit utilization measures how much of a credit line is being used. For example, if you have a credit line of $10,000 and your balance is $3,000, that is a credit utilization of 30%. High credit utilization often signals financial stress. We have looked at people who are seeking debt relief and their credit utilization. (Low credit utilization is 30% or less, medium is between 31% and 50%, high is between 51% and 75%, very high is between 76% to 100%, and over-utilized over 100%). In June 2025, people seeking debt relief had an average of 75% credit utilization.
Here are some interesting numbers:
| Credit utilization bucket | Percent of debt relief seekers |
|---|---|
| Over utilized | 30% |
| Very high | 32% |
| High | 19% |
| Medium | 10% |
| Low | 9% |
The statistics refer to people who had a credit card balance greater than $0.
You don't have to have high credit utilization to look for a debt relief solution. There are a number of solutions for people, whether they have maxed out their credit cards or still have a significant part available.
Personal loan balances – average debt by selected states
Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.
In June 2025, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.
Here's a quick look at the top five states by average personal loan balance.
| State | % with personal loan | Avg personal loan balance | Average personal loan original amount | Avg personal loan monthly payment |
|---|---|---|---|---|
| Massachusetts | 42% | $14,653 | $21,431 | $474 |
| Connecticut | 44% | $13,546 | $21,163 | $475 |
| New York | 37% | $13,499 | $20,464 | $447 |
| New Hampshire | 49% | $13,206 | $18,625 | $410 |
| Minnesota | 44% | $12,944 | $18,836 | $470 |
Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.
Tackle Financial Challenges
Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.
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Author Information
Written by
Lyle Daly
Lyle is a financial writer for Freedom Debt Relief. He also covers investing research and analysis for The Motley Fool and has contributed to Evergreen Wealth and Monarch Money.
Do healthcare workers qualify for loan forgiveness?
Some healthcare workers can qualify for student loan forgiveness programs. The Public Service Loan Forgiveness (PSLF) program and income-driven repayment plans are federal repayment assistance options available to healthcare workers. There are also several programs specifically for healthcare workers, including programs with the National Health Service Corps and National Institutes of Health.
Is there nurse debt relief available?
Yes, nurse debt relief is available through the Nurse Corps Loan Repayment program. The program pays for up to 85% in qualified education debt for eligible nurses and nurse faculty. To qualify, applicants must work for two years at an eligible healthcare facility with a nursing shortage or at an eligible nursing school. Applications generally open annually in February.
Who qualifies for the NHSC Loan Repayment Program?
The NHSC Loan Repayment Program is for clinicians in primary care medical, dental, or behavioral health disciplines. Clinicians must serve for two years in an area with a health professional shortage to qualify for repayment assistance. The NHSC has an annual application process.
