Last Updated on August 24, 2023 by Lori Pace
Students may be eligible for Medical School loan forgiveness programs that can help reduce the financial burden of student loan debt.
While medical school can give you the opportunity to help others, it is costly. Although student loans might be able to help you cover the cost of your medical education, that’s only the beginning. You may wonder how to repay student loan debt when you are preparing for a career in medicine or just graduated from a degree program. If you are struggling to pay your student loan debt, there may be medical school loan forgiveness programs that can help.
Can Medical School Loans Be Forgiven?
As mentioned above, the answer is YES.
Due to the exceptional need for primary care physicians, loan forgiveness programs in these fields are more widely available than for any other specialties. Loan forgiveness and/or repayment programs are sponsored by national, state, and local governments, as well as some private organizations.
How to Qualify for Medical School Loan Forgiveness Programs For Students?
After qualifying with respect to the eligibility criteria, loan forgiveness programs for medical students can help to reduce or pay all of your medical school debt. Here are some points to remember in order to be eligible for loan forgiveness.
- You must ensure that you get a federal loan to pay for medical school. You must also choose a payment plan that is eligible for forgiveness after 120 payments.
- Follow the rules of the loan forgiveness program and make timely payments according to the qualifying repayment plan.
- You must have received a federal loan that is eligible for forgiveness and have a qualified repayment plan.
Loan Forgiveness Programs For Medical Students – Steps To Consider
Each program of loan forgiveness for medical students is unique. So, make sure you research all options and speak to your financial aid office to learn more. These steps will help you make loan forgiveness part of your repayment plan for student debt.
- Choose the allied medical field you wish to study.
- You can apply for financial aid via the Free Application for Federal Student Aid
- Choose a Loan Repayment Plan that qualifies for loan forgiveness from a Federal Student Loan.
- Choose an organization from the approved list.
- To qualify, it will take 10 years. You must make 120 qualifying payments on your loan.
- Payback plans should be followed to the letter
- Apply for loan forgiveness after 120 payments.
Where To Apply?
There are many types of loan forgiveness programs that the federal government and other organizations can offer. So, below are the options available to you after selecting a federal loan.
Public Service Loan Forgiveness
Public Service Loan Forgiveness, a loan forgiveness program that is tax-free for medical students, can be a smart way to save money. It is open to qualified professionals working for non-profit organizations or government agencies and medical school graduates.
Federal Perkins Loans, Federal Family Education Loans (FFEL), and private student loans are not eligible. Direct loans are the only eligible loans for forgiveness. However, you might be able to consolidate Perkins or FFEL loans in order to take part in the program. You will need to make ten-year payments towards your student debt.
National Health Service Corps Loan Repayment Program
HRSA offers a student loan repayment plan. The NHSC loan repayment program offers tax-free forgiveness for qualified full-time or part-time medical professionals. It would help if you were licensed in an eligible discipline to be eligible for the program. This includes Physicians (DO/MD), Physician assistants, Certified Nurse-Midwives and Nurse Practitioners, and psychiatric nurse specialists.
Even if you work part-time at a critical-need hospital facility, a service commitment could help erase up to $50,000 of student debt. You may be eligible for higher student loan repayment support if you are a member of underserved communities.
Armed Forces Loan Repayment Programs
In exchange for their service, medical school students and doctors serving in the U.S. Army may be eligible to receive student loan assistance. There are many repayment options available in different branches of the armed forces. However, the benefits can vary.
State Student Loan Forgiveness Programs
Many states offer student loan assistance to medical professionals. There are different requirements for loan forgiveness programs that apply to medical students. For information on student loan forgiveness programs, you can consult the AAMC database.
You might reduce some of your student debt by making a commitment to a community that has a shortage of healthcare professionals for two to four years.
Conclusion About Loan Forgiveness Programs For Medical Students
To reduce medical school debt, it is worth looking into loan forgiveness programs that are right for you. This approach may not be right for everyone. Make sure you choose wisely your loans for medical school.