student_loan Archives

Feb

2025

Smart Medical School Loan Repayment Strategies

By Amanda Holden | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

If you’re a doctor or studying to be one, chances are you have student loans. A typical medical school graduate has an average student loan debt of $202,450, according to the Education Data Initiative. That’s seven times as much as the average college student owes.

Paying back the loans can be a challenge for doctors during residency and the early part of their career. But the good news is, the profession tends to pay well. In 2023, a typical entry-level doctor earned around $210,000 per year.

Key Points

• High medical school debt can be a challenge for many new doctors. The average medical school graduate holds an average of $234,597 in student loan debt.

• Income-driven repayment (IDR) plans can help manage and lower monthly payments based on discretionary income and family size.

• Public service loan forgiveness may be an option for those in qualifying public service roles.

• A Federal Direct Consolidation Loan allows borrowers the option to choose a new loan term, which could make payments more manageable.

• Student loan refinancing may result in lower interest rates for those who qualify and reduce monthly payments. But borrowers who refinance federal student loans lose access to federal benefits.

Ways to Pay Off Medical School

No matter how much you owe, it’s smart to have the right student loan repayment strategy in place. This can help ensure your monthly loan payments are manageable and your financial health is protected.

Let’s take a closer look at the various student loan payment options available.

Choose a Repayment Plan

When it comes to federal student loans, borrowers have four different repayment options. Fixed repayment plans give you a fixed monthly payment. Income-driven Repayment (IDR) plans base your monthly loan payment on your discretionary income and family size.

• Standard Repayment Plan. This fixed plan spreads out payments evenly over 10 years. For example, if you have a loan balance of $200,000 at 6.54%, your monthly payment will be about $2,275.

• Graduated Repayment Plan. With a graduated plan, your payments start out lower and then gradually increase over time, typically every two years. Repayment takes place over 10 years.

• Extended Repayment Plan. You can choose either fixed or graduated payments, and repayment takes place over 25 years. To qualify for this plan, you must have more than $30,000 in outstanding Direct Loans or Federal Family Education Loans (FFEL).

• Income-Driven Repayment Plans. There are four types of income-driven repayment plans: Income-Contingent Repayment (ICR), Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE). However, the SAVE plan has been blocked in court and is on hold.

Repayment on these plans takes place over 20 or 25 years, depending on your income and the plan you choose. At the end of the repayment period, the remaining balance is forgiven, though this amount may be taxable.

As you weigh your options, think about the length of the repayment term and the monthly payment amount. With a longer repayment term, your monthly bill is lower but the amount of interest you pay over the life of the loan is higher. With a shorter term, you pay less in interest over the life of the loan but your monthly payment is higher. A student loan payoff calculator will give you an idea of your monthly payment for different repayment terms.

Loan Forgiveness Programs

Loan forgiveness programs can wipe out some or all of your medical student loan debt, provided you meet certain criteria. If you work for an eligible nonprofit or public service agency, for example, you may qualify for the Public Service Loan Forgiveness (PSLF) program. With this program, med school grads considering a job with a local, state, tribal, or federal government organization or a nonprofit organization could be eligible for federal Direct Loan forgiveness after 10 years of qualifying payments under an IDR plan.

You may also qualify for a federal or state loan-repayment assistance program if you provide service to certain areas or segments of the population. For instance, the National Health Service Corps Loan Repayment program will erase as much as $75,000 of eligible student debt, tax-free, if you work full-time for at least two years in an approved medical facility.

Student loans from private lenders do not qualify for PSLF.

Student Loan Consolidation

If you’re paying off more than one federal loan, a Federal Direct Consolidation Loan may be an option worth exploring. Consolidation lets you combine different federal student loans into a single new loan with a fixed rate. The new rate is a weighted average of all your federal loan rates, rounded up to the nearest eighth of a percent. This may result in a slightly higher rate than you were paying before on some loans.

When you consolidate, you have the option to choose a new repayment plan that extends the life of the new loan up to 30 years. That can lower your monthly payment, but result in a longer loan repayment term and more interest overall. Keep in mind that you can’t include any private student loans in this type of consolidation loan.

Student Loan Refinancing

With student loan refinancing, you replace your current student loans with one new loan from a private lender. Ideally, the new loan will have a lower interest rate, if you qualify. This, in turn, could lower how much you pay in interest over the life of your loan. Refinancing can also make it easier to manage student loan payments. Instead of bills from different lenders, you get one bill each month from one lender.

You can choose a new length for your loan, which lets you adjust your monthly payments. This may be especially helpful if you choose to refinance during your residency.

It’s important to note, however, that refinancing federal student loans makes them ineligible for federal benefits such as income-driven repayment plans and forgiveness.

Recommended: A Guide to Private Student Loans

The Takeaway

Attending medical school isn’t cheap, and it’s common to graduate with significant student loan debt. The good news is, there are several repayment options that can help you tackle your debt more efficiently and protect your financial health. For example, under an income-driven repayment plan, your monthly payments are based on your discretionary income and family size. You may also qualify for a forgiveness program, which could erase part or all of your balance.

Other options for managing your student loan payments after medical school include federal Direct Loan Consolidation and student loan refinancing.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What repayment options are available for medical school loans during residency?

Medical residents may have several repayment options, including income-driven repayment plans that base monthly payments on discretionary income and family size. These plans can help keep payments more manageable during lower-earning years and may count toward certain federal forgiveness programs, if eligible.

How do doctors decide between income-driven repayment and refinancing?

The right approach depends on factors such as loan type, income stability, and long-term career plans. Income-driven repayment may be appropriate for borrowers who want to retain access to federal benefits, while refinancing may be considered by those looking to change their interest rate or repayment term. Refinancing federal loans removes eligibility for federal protections and forgiveness programs.

Are there forgiveness programs for medical school loans?

Some borrowers may qualify for federal or state loan forgiveness or repayment assistance programs. For example, Public Service Loan Forgiveness is available to eligible borrowers working for qualifying employers after meeting specific payment and employment requirements. Private student loans do not qualify for federal forgiveness programs.

What are some ways to reduce monthly medical school loan payments?

Borrowers may be able to reduce monthly payments by enrolling in an income-driven repayment plan, extending the repayment term through federal consolidation, or refinancing with a longer loan term. While these options can lower monthly payments, they may result in higher total interest paid over time.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOSLR-Q125-003

Feb

2025

Nurse Practitioner vs. Physician Assistant: Key Differences

By Melissa Brock | Going to College, Life & Career, student_loan | Comments Off

Health-care jobs are projected to grow faster than average for all occupations through 2033, resulting in about 1.9 million openings each year, according to the Bureau of Labor Statistics. If heath care is a field you’re interested in, two positions to consider that are expected to see substantial employment growth are nurse practitioner (NP) and physician assistant (PA).

NPs and PAs are advanced practitioners with similar job responsibilities but also some key differences. If you’re trying to decide between the two, read on to learn what you need to know about the difference between a PA vs NP.

Key Points

• Both nurse practitioners and physician assistants are advanced health-care professionals with similar responsibilities but different educational and practice approaches.

• Nurse practitioners emphasize patient-centered care while physician assistants focus on a disease-centered approach.

• Nurse practitioners can operate independently in many states, whereas physician assistants must collaborate with supervising physicians.

• Salaries for both professions are comparable, with physician assistants typically earning slightly more.

• Employment growth is expected to be robust for both professions, with nurse practitioners projected to see faster growth.

Physician Assistant vs Nurse Practitioner: Key Similarities and Differences

PAs and NPs are both important health-care professionals. They work in similar settings, including hospitals, clinics, and physicians’ offices. Here’s how the two specialties are alike and how they differ.

What Is a Physician Assistant?

A physician assistant is a licensed medical professional with an advanced degree who provides direct patient care in primary-care settings, performing many of the same jobs a physician does. This includes doing medical exams, diagnosing conditions, prescribing medication, and treating illnesses. PAs work in collaboration with a supervising physician as determined by state law.

A PA’s education is in general medicine, and their training is disease-centered and similar to that of a physician.

Recommended: Budgeting as a New Doctor

What Is a Nurse Practitioner?

Nurse practitioners are registered nurses (RNs) with advanced education and training for patient care. They typically choose a primary specialty before they enter their graduate program.

NPs provide comprehensive health care and can examine patients, diagnose conditions, prescribe medication, and treat illnesses. In approximately 28 states, NPs can practice without a doctor’s supervision.

Physician Assistant vs. Nurse Practitioner: Key Responsibilities

One of the major differences between an NP and PA is their approach to health care, which is based on different medical models. PAs focus on disease treatment, while NPs focus on patient treatment. So while many of their responsibilities may be similar, the context in which they perform them is not.

The duties of NPs revolve around the patient and include:

• Recording health histories

• Conducting physical exams

• Diagnosing and treating health problems

• Interpreting lab results and X-rays

• Prescribing medications and therapies

• Referring patients to other health professionals if needed

• Patient education

By comparison, PAs take a biology-based approach to diagnose and treat diseases. They perform such duties as:

• Doing hospital rounds

• Performing patient exams

• Diagnosing illnesses

• Assisting with surgeries

• Ordering and interpreting lab tests and X-rays

• Prescribing medications

• Developing and managing treatment plans

• Advising patients on preventative care and treatments

Recommended: Budgeting as a New Nurse

What Is a Nurse Practitioner’s Scope of Practice?

NPs choose a primary specialty, concentrating on a specific patient population. They can specialize in such areas as acute care, family care, neonatal, pediatric, oncology, gerontology, and women’s health.

As mentioned, in 28 states, NPs can treat patients and prescribe medications without a physician’s supervision.

What Is a Physician Assistant’s Scope of Practice?

PAs typically collaborate with supervising physicians as determined by state law. They are trained as generalists, meaning they can practice in almost any medical field. Many PAs have a variety of specialties and sub-specialties, which might include emergency medicine, internal medicine, radiology, pediatrics, surgery, and orthopedics.

Nurse Practitioner vs. Physician Assistant: Education and Certification

PAs and NPs must earn advanced degrees and become licensed and certified. Here’s what’s required for each role.

How to Become a Nurse Practitioner

It typically takes six to eight years to become an NP, including undergraduate and graduate school. The first step is to become an RN by earning a bachelor of science in nursing (BSN) degree. After that, a student can choose to pursue a master of science in nursing (MSN), which usually takes two years to complete, or a doctor of nursing practice (DNP), which typically takes four years to complete.

After earning an MSN or DNP, an NP must receive accreditation from a certification board, such as the American Academy of Nurse Practitioners (AANP-CP), which confirms that their coursework and clinical training meets the licensure board’s requirements. They then get licensed.

How to Become a Physician Assistant

It takes about six to eight years to become a PA. First, an aspiring PA must earn a bachelor’s degree with an emphasis on science. Then they must complete a PA program accredited by the Accreditation Review Commission on Education for the Physician Assistant (ARC-PA), which involves classes and clinical rotations. Students graduate with a master’s in PA studies.

Finally, a PA needs to take the Physician Assistant National Certifying Exam (PANCE), and get licensed in the state(s) where they wish to practice.

Nurse Practitioner and Physician Assistant Specializations

As noted, NPs specialize in certain practice areas, while PAs have a more general medical education.

Types of Nurse Practitioners

There are many different types of NPs with different specializations. Some types of NP you may want to consider include:

• Family nurse practitioner (FNP): FNPs specialize in family medicine and work with people of all ages. They perform physical exams and health screenings, monitor patients, and develop treatment plans. They also provide continuing education and support.

• Pediatric nurse practitioner (PNP): PNPs work with children and conduct physical exams, health screenings, and diagnosis and treatment. They may work in private practice, public health centers, pediatric ICUs, emergency departments, and specialty-based clinics.

• Adult-gerontology nurse practitioner (AGNP): AGNPs work with patients ranging in age from adolescence to the elderly, offering continuing comprehensive care for a broad spectrum of needs. They may work in private practice, hospital settings, nursing homes, or in the homes of patients.

• Psychiatric nurse practitioner (PMHNP): These mental health professionals treat mental illnesses, disorders, and substance abuse problems. They may work in private psychiatric practices, schools, and community mental health centers.

• Neonatal nurse practitioner (NNP): NNPs work with premature and sick infants and babies with birth defects and other health conditions. They often work in neonatal ICUs.

• Women’s health nurse practitioner (WHNP): NPs who work in women’s health advise women on reproductive and sexual health and treat reproductive system disorders. They may work in fertility clinics, hospitals, or private practices.

Types of Physician Assistants

PAs work in primary care or in specialty and subspecialty roles. Those in primary care positions may work in family medicine, internal medicine, or pediatrics, for instance.

If they specialize in internal medicine, the subspecialties they could focus on include:

• Cardiology

• Critical care

• Endocrinology

• Gastroenterology

• Hematology and oncology

• Infectious disease

• Nephrology

• Neurology

• Pulmonology

• Rheumatology

There are also surgical subspecialties a PA might choose, such as:

• Cardiovascular or cardiothoracic surgery

• Bariatric surgery

• General surgery

• Neurosurgery

• Oncology surgery

• Orthopedic surgery

• Pediatric surgery

• Plastic surgery

• Transplant surgery

• Trauma surgery

Other specialties a PA might pursue include: allergy and immunology, dermatology, geriatrics, obstetrics and gynecology, pain management, emergency medicine, psychiatry, and radiology.

Nurse Practitioner vs. Physician Assistant: Salary and Career Outlooks

As you’re deciding between nurse practitioner vs physician assistant, it’s important to consider the career and salary opportunities for each.

Average Annual Salary

PAs and NPs earn similar salaries, with PAs making slightly more. However, employment for NPs is projected to be higher than that of PAs.

Nurse Practitioner Salary and Career Outlook

When it comes to salary opportunities as a nurse, the median annual salary for an NP in 2023 was $129,480 per year, or $62.25 per hour. The overall employment for nurse practitioners is projected to grow 40% between 2023 and 2033.

About 31,900 NP openings are projected on average for each year over the next decade.

Physician Assistant Salary and Career Outlook

The median annual salary for a PA was $130,020 in 2023, and the overall employment for these medical professionals is expected to grow 28% from 2023 to 2033.

Approximately 12,900 openings for PAs are projected on average each year over the next 10 years.

Nurse Practitioner vs. Physician Assistant: Which Career Is Right For Me?

PAs and NPs are equally important roles in the health-care system. They make similar salaries and the employment outlook for each is strong.

As you debate which career is the best fit for you, think about your interests and goals. If you are drawn to the patient-centered model of care, an NP might be the right choice for you. If you prefer a disease-centered model, a PA could be the job you’re looking for.

In addition, consider the cost of college for each. An NP may spend as much as $78,820 on their education. In contrast, a PA might spend up to $95,165.

Whether you decide to pursue a NP or PA degree, there are a variety of funding options to help you pay for school, including federal student loans, scholarships and grants, and private student loans.

In addition, there are ways to make paying your student loans more affordable or manageable, including income-driven repayment (IDR) plans for federal student loans, loan repayment assistance programs offered by states and organizations, and student loan refinancing.

By refinancing student loans, you replace your current loans with a new loan from a private lender that ideally will have a lower interest rate and more favorable loan terms.

If you can secure a lower interest rate, refinancing student loans to save money may make sense for you to help pay for schooling to become an NP or PA. Just be aware that refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment.

Using a student loan refinancing calculator can help you see what your monthly payment might be if you choose to refinance.

If you need more information, our student loan refinancing guide can give you additional details about the process and whether it’s right for you.

The Takeaway

Nursing practitioner and physician assistant are both rewarding careers in the medical field. The main difference between the two is their approach to health care. An NP’s approach is patient-centered, while a PA’s is disease-centered. Think carefully about which role offers the best career path — and the most rewarding type of work — for you.

And while schooling to become a PA or an NP can be expensive, remember that there are a multitude of ways to help pay for it including federal and private student loans.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQs

Who goes to school longer, a PA or a nurse practitioner?

It takes about the same amount of time to become an NP and a PA — approximately six to eight years, including graduate school. However, to become an NP, some universities require at least one year of experience as an RN before a student can pursue their master of science in nursing.

Is it harder to become a nurse practitioner or a PA?

The schooling and experience necessary to become both a nurse practitioner and a PA is challenging. Which one is more difficult for you depends on your unique skills and strengths. If you’re good at patient care, an NP might be a better fit for you. If you’re drawn to a more traditional medical school approach, you may find that it makes sense for you to become a PA.

Is a nurse practitioner higher than a PA?

As licensed health-care professionals who play important roles in medical care, neither a nurse practitioner nor physician assistant is higher than the other. One thing to keep in mind, however, is that NPs can work independently in many states, while PAs work in collaboration with a physician.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/SDI Productions

SOSLR-Q424-011

Jan

2025

Are The Art Institutes Loans Being Forgiven?

By Melissa Brock | Fresh Out of School, Student Loans, student_loan | Comments Off

If you attended The Art Institutes between 2004 and 2017, you may qualify for federal student loan forgiveness. During that time, according to an investigation by the U.S. Department of Education (DOE), The Art Institutes made “substantial misrepresentations” about students’ chances of employment after graduation.

In 2024, the Biden-Harris administration announced more than $6.1 billion in immediate and automatic student loan relief to nearly 317,000 borrowers who were enrolled in The Art Institutes school system during that 13-year period.

Students who attended after 2017 may have some recourse as well. In September 2023, The Art Institutes closed their doors for good. Borrowers impacted by the schools’ closure may be eligible for discharge of their student loans through closed school loan discharge.

Learn more about The Art Institutes loan forgiveness, closed school loan discharge, and other options for dealing with your student loan debt.

Key Points

• Nearly 317,000 borrowers who attended The Arts Institutes between 2004 and 2017 are eligible for forgiveness of their federal student loans.

• Qualifying borrowers receive automatic student loan forgiveness without having to take any action.

• Borrowers affected by The Arts Institutes’ permanent closure in 2023 may apply for closed school loan discharge.

• Application for closed school loan discharge requires logging into StudentAid.gov and providing specific documentation.

• Those not eligible for Art Institutes loan discharge may consider income-driven repayment plans, Public Service Loan Forgiveness, and student loan refinancing to help manage student debt.

Background on The Art Institutes’ Closures

The Art Institutes was a private, for-profit art school system with 50 campuses. Between 2004 and 2017, the institution engaged in what the DOE called “substantial misrepresentations related to employment rates, salaries, and career services,” and distributed false information to prospective students, the DOE said.

Many of The Art Institutes’ schools closed in 2019 or earlier. On September 30, 2023, the remaining eight schools permanently shut down. Students affected by the closure can apply for discharge of their federal student loans.

On May 1, 2024, the Biden-Harris administration announced the automatic $6.1 billion in Art Institutes student loan forgiveness for students with federal loans who attended the schools between January 1, 2004 and October 16, 2017.

Private student loans are not eligible for this federal forgiveness or discharge.

Current Status of Loan Forgiveness Programs

If you attended The Art Institutes between 2004 and 2017, your federal student loans should be automatically forgiven, with no action needed by you. Separately, if you were affected by the 2023 closure and you’re wondering can student loans be discharged in this instance, the answer is generally yes.

Federal student loans can be forgiven due to certain actions by a school, including school closure if you were attending the school at the time it closed, or if it closed soon after you withdrew. If you meet that criteria, your federal loans may be discharged under a process called borrower defense to repayment. You can apply for closed school discharge through the Federal Student Aid office.

It’s important to note that in 2023, a federal court delayed the effective date of the latest regulations for borrower defense and closed school loan discharges. No applications can be processed until the effective date is reinstated. However, you can still apply for a closed school discharge in the meantime.

Eligibility Criteria for Loan Forgiveness

Students who are eligible to receive The Art Institutes loan forgiveness announced in May 2024 must meet the following criteria:

• Enrollment in one of The Art Institutes schools between January 1, 2004 and October 16, 2017

• Borrowed Federal Direct student loans (or loans that can be consolidated into a Federal Direct Consolidation loan) to attend The Art Institutes

Students impacted by The Art Institutes’ 2023 closure may be eligible for closed loan discharge to relieve their student loan debt through borrower defense to repayment if:

• Their school closed while they were enrolled, on an approved leave of absence, or within 180 days after they withdrew

• They borrowed Federal Direct student loans (or loans that can be consolidated into a Federal Direct Consolidation loan) to attend the school

Recommended: Who Pays for Student Loan Forgiveness?

Types of Loans Eligible for Forgiveness

The types of federal student loans eligible for forgiveness through borrower defense are Direct Loans such as Federal Direct Subsidized and Unsubsidized Loans. Other federal loans that can be consolidated into a Federal Direct Consolidation Loan — including Federal Family Education (FFEL) Loans, Federal Perkins Loans, and Parent Loans for Undergraduate Students (Direct PLUS loans) — are also eligible.

Recommended: Federal Student Loan Interest Rates

Application Process for Loan Forgiveness

Students who attended The Art Institutes between 2004 and 2017 should have been contacted about forgiveness without having to take any action. If you have not been contacted, reach out to your loan servicer.

Those affected by the 2023 closure of The Art Institutes can apply for borrower defense to repayment. To apply, log into your account at StudentAid.gov and be sure to have on hand:

• School name(s) and program of study

• Your enrollment dates

• Documentation to support why you believe you qualify for borrower defense and to demonstrate the harm you suffered

Alternative Options for Art Institutes Borrowers

If you are not eligible for The Art Institutes student loan forgiveness, there are some other methods that can help you manage your student debt.

Income-Driven Repayment Plans

Borrowers with federal student loans may want to consider income-driven repayment (IDR). These plans base your federal student loan payments on your discretionary income and family size. This typically results in a lower monthly loan payment. There are several different IDR plans to choose from.

Under an IDR plan, you could qualify for forgiveness of your remaining debt after 20 or 25 years.

Public Student Loan Forgiveness

If you work full-time in public service for a qualifying employer like the government or a nonprofit organization, you may be eligible for Public Service Loan Forgiveness (PSLF). This program forgives the remaining balance on most Federal Direct loans.

Qualifying borrowers can get PSLF after making the equivalent of 120 qualifying monthly payments under an IDR plan or the Standard Repayment Plan.

Student Loan Refinancing

Refinancing is another option you might consider. With student loan refinancing, you replace your old loans with a new private loan, ideally one that has a lower interest rate and more favorable terms, which could lower your monthly payments.

Borrowers interested in refinancing student loans to save money should compare lenders and offers. Also, be aware that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment.

A student loan refinancing calculator can help you decide whether refinancing makes sense for your situation.

The Takeaway

If you attended The Art Institutes between January 1, 2004 and October 16, 2017, you may be eligible for automatic federal student loan forgiveness. You should be contacted about forgiveness without having to take any action. If you haven’t been notified, reach out to your loan servicer.

Students attending The Art Institutes in 2023, when it permanently closed its doors, may be eligible for closed school discharge through borrower defense to repayment. You can apply for a loan discharge at StudentAid.gov.

If you are not eligible for Art Institutes loan forgiveness, you can explore other debt relief options such as income-driven repayment, Public Service Loan Forgiveness, and student loan refinancing.

FAQ

How can I check if my loans from The Art Institutes qualify for forgiveness?

If you have federal student loans and attended The Art Institutes between January 1, 2004 and October 16, 2017, forgiveness should be automatic without any action needed on your part. However, if you haven’t received any notification, you can contact your loan servicer to ask for information on the status of your loan forgiveness.

If you were impacted by the 2023 closure of The Art Institutes, you can apply for closed school discharge. Just be aware that this discharge is on hold per a court order until the effective date on regulations is reinstated. Check with StudentAid.gov for updates on the situation.

What government programs are involved in forgiving The Art Institutes loans?

In May 2024, the Biden-Harris administration announced that the U.S. Department of Education (DOE) would forgive Art Institutes loans for borrowers of federal student loans who attended the school between January 1, 2004 and October 16, 2017. At that time, the DOE took steps to automatically approve individuals for loan discharge.

If you were impacted by the 2023 closure of The Arts Institutes, you may qualify for the DOE’s closed school discharge.

Are private loans taken for attending The Art Institutes eligible for forgiveness?

Only federal student loans taken out to attend The Art Institutes qualify for forgiveness. Private student loans are not eligible.

How long does it take to receive loan forgiveness for Art Institutes loans?

If you were eligible for the forgiveness announced by the Biden administration in May 2024, that forgiveness was automatic and you should have received notification. If you didn’t, check with your loan servicer.

If you were affected by The Art Institutes’ 2023 closure and you filed for closed school discharge, a federal court has delayed the effective date of the latest regulations for borrower defense and closed school loan discharges. You can check with StudentAid.gov for updates on the situation.

Are former Art Institutes students eligible for borrower defense to repayment?

Yes. While borrowers who enrolled at The Art Institutes between January 1, 2004 and October 16, 2017 should automatically receive 100% discharge of their eligible student loans, you can apply for borrower defense to repayment through closed school discharge if you were affected by the schools’ 2023 closure.

About the author

Melissa Brock

Photo credit: iStock/chanakon laorob

SOSLR-Q424-025

Jan

2025

DeVry University Student Loan Forgiveness

By Marcy Lovitch | Debt Payoff, Fresh Out of School, Student Loans, student_loan | Comments Off

Students who attended DeVry University between 2008 and 2015 may be entitled to federal and private student loan forgiveness. During that time period, the school made deceptive claims, according to the Federal Trade Commission (FTC), which brought a lawsuit against the school.

Read on to learn about the options regarding DeVry University student loan forgiveness, including who’s eligible and how to apply for loan cancellation.

Key Points

• Students who enrolled in DeVry University between January 1, 2008, and October 1, 2015, may be eligible for federal student loan forgiveness because of misleading claims the university was found to have made.

• Those eligible must have paid at least $5,000 via cash, loans, or military benefits and completed at least one class credit, among other requirements.

• To apply, complete a Borrower Defense Loan Discharge application at StudentAid.gov.

• Decisions are currently not being made on applications due to a court injunction on borrower defense regulations.

• Filing the application is still recommended despite the delay.

Background on DeVry University Settlement

DeVry University, a for-profit college with locations in 11 states, offers online and in-person courses in various areas of business, health care and technology, with undergraduate and graduate degree programs and certificate programs for students.

Between 2008 and 2015, DeVry advertised a 90% employment success rate and 15% higher income levels for students after graduation. The FTC alleged that those claims were deceptive, and in January 2016, the agency brought a lawsuit against DeVry for $100 million dollars.

In December of that year, DeVry settled with the FTC, agreeing to a $100 million settlement. Under the settlement terms, DeVry was ordered to pay qualifying students who attended their schools between September 2008 and September 2015 and were harmed by the deceptive ads.

As part of the DeVry University student loan forgiveness, DeVry agreed to pay $49.4 million to the FTC to be distributed to students for partial refunds, and provide $50.6 million in debt relief for those who took out private student loans and any other outstanding debts related to attending DeVry.

Types of Loan Forgiveness Available

As part of the FTC settlement terms, DeVry agreed to forgive student loan debt that included the full balance owed on all private student loans ($30.35 million) and any other student debts such as tuition, books, and lab fees ($20.25 million).

In June 2017, The FTC began mailing refund checks to the eligible DeVry students. However, in May 2024, the FTC reported there were 5,942 checks that had not been cashed. As a result, the FTC announced it was resending those payments, and instructed students to cash their check within 90 days.

Students who took out federal student loans to attend DeVry were not part of the FTC settlement. In February 2022, the U.S. Department of Education (DOE) announced it would forgive $71.7 million in federal student loan debt through borrower defense to repayment regulation, holding DeVry liable for $24 million.

That means if you took out federal loans to attend DeVry, you could apply for federal loan forgiveness.

However, DeVry challenged the DOE’s decision. In 2023, a court issued an injunction delaying the effective date of the DOE’s borrower defense regulation until there is a final judgment on it. As of mid-January 2025, the injunction is still in place. On January 10, the Supreme Court agreed to review the case, though no date for the review has been announced. In the meantime, borrowers may still apply online for borrower defense relief.

On January 16, 2025, the DOE announced they had approved forgiveness through borrower repayment to defense for 4,100 DeVry borrowers as part of the Biden administration’s final student loan debt relief approvals, though nothing can move forward while the injunction is in place.

Recommended: Who Pays for Student Loan Forgiveness?

Eligibility Criteria for Loan Forgiveness

Students who are eligible to receive private or federal student loan forgiveness related to attending DeVry need to fulfill all of the following criteria:

• Enrollment in a bachelor’s or associate degree program at DeVry University between January 1, 2008 and October 1, 2015

• Paid at least $5,000 in cash, loans, or military benefits

• Did not get debt or loan forgiveness as part of this settlement

• Completed at least one class credit

How to Apply for DeVry Loan Forgiveness

If you meet the criteria above, you’ll need to complete a Borrower Defense Loan Discharge application to start the process of having your DeVry federal student loans forgiven. As noted, while the injunction is in place, individuals can continue to file applications.

Under the law, to be eligible for borrower defense, your school must have engaged in misleading activities or other misconduct directly related to the loan or to the educational services for which the loan was given. If you attended DeVry during the specified time period and took out a federal student loan, you may qualify for a student loan discharge.

When applying for borrower defense repayment, be sure to have the following information:

• Verified account username and password (FSA ID)

• School name(s) and program of study

• Your enrollment dates

• Documentation to support why you believe you qualify for borrower defense and to demonstrate the harm you suffered

Alternative Debt Relief Options

Besides DeVry student loan forgiveness, there are some other options for getting out of student loan debt and managing student loan payments that you can explore.

Income-Driven Repayment Plans

If you have federal student loans, you may want to consider income-driven repayment (IDR). These plans base your federal student loan payments on your discretionary income and family size. This typically results in a lower monthly loan payment. There are several different IDR plans to choose from.

Under an IDR plan, you could qualify for forgiveness of your remaining debt after 20 or 25 years.

Public Student Loan Forgiveness

Qualifying borrowers can get PSLF after making the equivalent of 120 qualifying monthly payments under an IDR plan or the Standard Repayment Plan.

State Loan Repayment Programs

Some states help pay off student loans through state loan repayment assistance programs (LRAPs). These programs can assist borrowers with both private and federal student loans, depending on the program. Check with your state’s department of education to see what opportunities are available.

Student Loan Refinancing

When you refinance student loans, you replace your old loans with a new private loan, ideally one that has a lower interest rate and more favorable terms, which could lower your monthly payments.

Borrowers interested in refinancing student loans to save money should compare lenders and offers to choose the best one. But be aware that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment.

A student loan refinancing calculator can help you decide whether refinancing makes sense for your situation.

Impact of Forgiveness on Credit and Taxes

Student loan forgiveness may affect your credit in surprising ways. For instance, having DeVry student loan debt forgiven could cause your credit score to dip temporarily.

One reason for this is that if you wipe out student loan debt, you’re no longer building a payment history for it. And a history of repayment makes up 35% of your credit score, according to FICO, the credit scoring company.

In addition, eliminating student loan debt can impact the mix of credit you have. Lenders like to see a diverse mix of credit because it shows you can responsibly manage different types of credit accounts.

On the other hand, not having a monthly student loan payment improves your debt-to-income ratio, which creditors view as a positive. Plus, you can use the extra money for other expenses or to build up your savings.

Forgiveness may also have some tax implications. The IRS generally requires that you report forgiven or canceled debt as income. However, thanks to a provision in the American Rescue Plan, if your federal or private student loans are dismissed between December 31, 2020 and January 1, 2026, those forgiven student loans won’t be taxed by the federal government.

You may need to pay state taxes on forgiven student loans, however, so it’s a good idea to consult a tax professional or contact your state’s tax department to find out.

The Takeaway

If you attended DeVry University between September 2008 and September 2015, you may be eligible for federal student loan forgiveness through “borrower defense to repayment.” You can start the process of getting your DeVry student loan forgiven by applying for a borrower defense loan discharge at StudentAid.gov.

Borrowers who are not eligible for DeVry forgiveness can explore alternative debt relief options such as income-driven repayment, state loan repayment assistance programs, Public Service Loan Forgiveness, and student loan refinancing.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Who is eligible for DeVry University loan forgiveness?

DeVry University students who were enrolled in an undergraduate (bachelor’s or associate degree) program between January 1, 2008 and October 1, 2015, paid at least $5,000 with cash, loans or military benefits to attend the school, completed at least one class credit, and didn’t receive debt or loan forgiveness as part of DeVry’s settlement with the FTC.

What types of loans qualify for forgiveness?

Through the federal government, borrower defense discharges apply to the following federal student loans: Direct Loans or those that can be consolidated into a Federal Direct Consolidation Loan. These discharges don’t apply to private student loans or loans that can’t be consolidated into a Federal Direct Consolidation Loan.

How long does the forgiveness process take?

Unfortunately, it might take a while. Because of a 2023 federal court injunction, no decisions may be made on applications until there is a final judgment on borrower defense regulations. The Supreme Court has agreed to review the case, though no date for the review has been given.

Will I owe taxes on forgiven DeVry loans?

Under the American Rescue Plan, federal or private student loans dismissed between December 31, 2020 and January 1, 2026, are not subject to federal taxes. However, you may have to pay state taxes on the forgiven loans, depending on the rules in your state. Consult a qualified tax professional for more information.

What if I’ve already paid off my DeVry loans?

If you have already paid off your DeVry loans, forgiveness through borrower defense is not an option. According to the Office of Federal Student Aid, in order to be eligible to apply for borrower defense, you must have at least one outstanding federal student loan associated with the school.

Photo credit: iStock/South_agency

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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This article is not intended to be legal advice. Please consult an attorney for advice.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Jan

2025

Student Loan Forgiveness for Nurses

By Melissa Brock | Fresh Out of School, Student Loans, student_loan | Comments Off

Almost 70% of nurses graduate with student loan debt, according to the American Association of Colleges of Nursing, and many of them owe a substantial amount. Nurses have a median student loan debt of more than $40,000, reports the Education Data Initiative.

Fortunately, there are a number of programs that offer student loan forgiveness for nurses, typically in return for a specific service commitment. Depending on the program, a nurse might have their student loan debt partially or fully forgiven.

Read on to learn more about loan forgiveness for nurses and the programs that may help you get relief from nursing student loan debt.

Key Points

• About 70% of nurses have student loans to repay, and the median student loan debt for nurses is more than $40,000.

• Nurses may qualify for student loan forgiveness in exchange for working in high-need or shortage areas for a specific number of years.

• Eligibility for the Nurse Corps Loan Repayment Program includes RNs, APRNs, and nurse faculty members with a two-year service commitment. The program pays up to 85% of a nurse’s student loan debt.

• The Faculty Loan Repayment Program provides up to $40,000 for nurses from disadvantaged backgrounds who teach at an eligible school for two years.

• The National Health Service Corps Loan Repayment Program offers nurses up to $75,000 for two years of full-time service in designated shortage areas.

What Is Loan Forgiveness and How Does It Work?

If you borrowed student loans to pay for nursing school, student loan forgiveness can eliminate some or all of your debt, relieving you of the responsibility of repaying it.

It’s possible to receive nursing loan forgiveness for both federal and private student loans.

You must apply for forgiveness through one of several programs, and agree to the program’s terms, which may include working in a high-need area and committing to a certain number of years of service.

In the meantime, you will typically continue to make your student loan payments until you achieve forgiveness. You can factor those monthly loan payments into your financial plans as you’re creating a budget as a nurse.

Student Loan Forgiveness Programs for Nurses

Many of the forgiveness programs for nurses are available at the federal level. These are some of the top programs and their eligibility requirements.

Nurse Corps Loan Repayment

Offered through the Health Resources and Services Administration (HRSA), the Nurse Corps Loan Repayment program pays up to 85% of eligible federal and private student loan debt for qualifying nurses.

To be eligible, you must be a registered nurse (RN), an advanced practice registered nurse (APRN), or a nurse faculty member who attended an accredited nursing school. In addition, you must agree to a full-time two-year service commitment at an eligible critical shortage facility or nursing school.

During the two years that you work, you’ll receive 60% toward your qualifying student loan debt. After you complete your service, you will have the opportunity to serve for an additional year and receive another 25% of your student loan balance.

Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on federal Direct loans, which include Direct Subsidized loans, Direct Unsubsidized loans, Direct PLUS loans, and Direct Consolidation loans.

To be eligible, borrowers must work full-time in public service for an eligible employer such as a federal, state, local, tribal, or military government organization or qualifying nonprofit, and make the equivalent of 120 qualifying monthly payments under an income-driven repayment (IDR) plan.

If you are a nurse working for a qualifying employer, you may be eligible for PSLF. To apply, log onto StudentAid.gov and sign up for an IDR plan if you are not currently on one. Then you can submit an application. The PSLF Help Tool can walk you through the process.

Perkins Loan Cancellation

Nurses with federal Perkins loans may be eligible for up to 100% cancellation of their loans after five years in a public service job through Perkins Loan cancellation.

Perkins loans are subsidized low-interest federal student loans for students with exceptional financial need. Although the Perkins loan program ended in 2017, the loans are still eligible for forgiveness.

To qualify for Perkins Loan cancellation, you must work full-time as a nurse and provide direct care to patients.

Perkins Loan cancellation takes place in increasing percentages for each year worked:

• Years 1 and 2: 15% of the loan amount

• Years 3 and 4: 20% of the loan amount

• Year 5: 30% of the loan amount

To apply for Perkins student loan forgiveness for nurses, contact the school that issued your Perkins loans or reach out to your loan servicer to get the application forms.

Active Duty Army Nurse Loan Repayment Program/Health Professions Loan Repayment Program

The Army offers student loan forgiveness for nurses, including the following programs:

• Active Duty Health Professions Loan Repayment program (ADHPLRP): Nurses on active duty for a minimum of two years can get up to $40,000 of their qualified loans repaid annually for a maximum of three years through the ADHPLRP program.

• Health Professions Loan Repayment Program (HPLRP): Nurses in the Army Reserves Troop Program Unit (TPU), Army Medical Department Professional Management Command (APMC), or Individual Mobilization Augmentation (IMA) program may be eligible for loan repayment if they are a psychiatric nurse practitioner; family nurse practitioner; operating room nurse; or a nurse anesthetist, critical care and public health. Those who qualify can receive a maximum of $20,000 annually applied to their education loans for a total of $60,000.

Find out more about these Army loan repayment programs for nurses, including how to apply.

Faculty Loan Repayment Program

Nurses (RNs and APRNs) from disadvantaged backgrounds who are faculty members may be eligible for the Faculty Loan Repayment Program from the HRSA.

Those who qualify can get up to $40,000 of forgiveness for their federal and private student loan debt. In return, they must serve for at least two years as faculty at an eligible health professions school in a U.S. state or territory.

National Health Service Corps — Indian Health Service

Nurse practitioners and certified nurse midwives who work at Indian health service facilities, tribally operated 638 health programs, and urban Indian health programs may be eligible for student loan repayment through this program.

Because of the critical shortage of nursing professionals who provide primary care services in high-need areas, the National Health Service Corps (NHSC) has increased the award amount. Qualifying nurses can now receive up to $75,000 for a full-time, two-year service commitment, or up to $37,500 for a half-time, two-year service commitment.

You can get additional information and application instructions from the NHSC.

National Health Service Corps (NHSC) Loan Repayment Program

The NHSC Loan Repayment Program offers loan repayment assistance to qualifying nurses who serve at least two years at an NHSC-approved site in a health professional shortage area or designated maternity care target area.

Nurses can choose a full-time or half-time clinical practice at an NHSC-approved site for their two years. Those who provide full-time primary care can receive up to $75,000 for their federal or private student loans, while those in other nursing roles can receive up to $50,000 for a two-year term. Nurses who work half-time providing primary care can receive up to $37,500, and those in other qualifying roles can receive up to $25,000.

If you have Spanish-language proficiency, you may also be eligible for a one-time enhancement award of $5,000, in addition to your loan repayment award.

NHSC Substance Use Disorder Workforce Loan Repayment Program

To help fight the opioid crisis by recruiting and retaining health professionals to work in underserved areas and expand substance use disorder treatment and prevent overdose deaths, the NHSC launched this program.

To be eligible, nurses must work in primary care or behavioral health. Those who provide full-time direct clinical care can receive up to $75,000 toward their federal and private loans for a three-year service commitment, while those who work half-time providing direct clinical care can receive up to $37,500.

Any nurse interested in applying to the NHSC Substance Use Disorder Loan Repayment Program must also meet the following requirements:

• U.S. citizenship (U.S.-born or naturalized) or a U.S. national

• In an eligible discipline with qualified student loan debt for your nursing education

• A provider in the Medicare, Medicaid, and the State Children’s Health Insurance Program

• Fully trained and licensed to practice in the NHSC-eligible discipline and state you’re applying to serve

• Work at an approved treatment facility

Nurses with Spanish-language proficiency may qualify for a $5,000 one-time award enhancement for a total loan repayment award up to $80,000 for full-time participants and up to $42,500 for half-time participants.

NHSC Rural Community LRP

This loan repayment program from the National Health Service Corps (NHSC) Rural Community Loan Repayment program in conjunction with the Rural Communities Opioid Response Program (RCORP) is for nurses who work to combat the opioid epidemic in rural communities.

Eligible nurses may receive up to $100,000 for full-time service and up to $50,000 for half-time service to repay qualifying federal and private student loans. In exchange for loan repayment, nurses must serve three years at an NHSC-approved substance abuse disorder treatment facility in a shortage area.

If you have Spanish-language proficiency, you may receive a one-time enhancement award of up to $5,000 for a total loan repayment of up to $105,000 for full-time service, and up to $55,000 for half-time service.

Alternatives to Student Loan Forgiveness for Nurses

If you don’t qualify for nursing loan forgiveness, there are other ways to make repaying your student loans more manageable. Options to explore include:

Income-Driven Repayment

Income-driven repayment (IDR) plans base your federal loan payments on your discretionary income and family size. This often results in a lower monthly loan payment. Under an IDR plan, you could qualify for forgiveness of your remaining student debt after 20 or 25 years.

You can apply for one of the income-driven repayment plans online through your loan servicer. You can select the IDR plan you’d like or ask your servicer to choose a plan for you based on the lowest monthly payment possible.

Student Loan Refinancing

With student loan refinancing, you replace your current loan with a new loan from a private lender. Ideally, the new loan will have a lower interest rate and more favorable terms that could reduce your monthly loan payments.

You can refinance federal student loans, private student loans, or both. However, be aware that when you refinance federal loans, they become ineligible for federal benefits like income-based repayment plans and forgiveness.

Using a student loan refinancing calculator can help you determine whether refinancing makes sense for your situation.

Borrowers interested in refinancing student loans to save money should compare lenders and offers to see what they can qualify for, and then choose the best option.

Recommended: Student Loan Refinancing Guide

The Takeaway

Nurses with student loan debt may be able to have some or all of their debt canceled through one of the many available programs that offer student loan forgiveness for nurses. To qualify, nurses generally must be employed in an eligible job in a designated location and make a commitment to work for a certain number of years.

Borrowers who don’t qualify for forgiveness programs still have options to help manage their nursing student loan debt. Methods to explore include income driven repayment plans and student loan refinancing to potentially help lower monthly loan payments.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Will student loans be forgiven for nurses?

There are a variety of student loan forgiveness programs for nurses. For instance, the Health Resources and Services Administration offers the Nurse Corps Loan Forgiveness Program for qualifying nurses who commit to working two years in a critical shortage area. The National Health Service Corps has several different loan repayment programs that nurses may apply for. And nurses who work in public service may qualify for the Public Service Loan Forgiveness program. Do some research to see what forgiveness programs you may be eligible for.

Do nurses qualify for student loan forgiveness?

Nurses may qualify for student loan forgiveness as long as they meet the eligibility requirements for one of the nursing student loan forgiveness programs. Many of these programs require you to work in certain types of jobs for a specific period of time in return for partial or full cancellation of your student loans. You can explore some of the popular loan forgiveness programs for nurses, such as the Nurse Corps Loan Repayment Program and the nursing forgiveness options offered by the National Health Service Corps Loan Repayment Program.

Can my student loan be forgiven due to COVID?

While your student loan cannot be forgiven due to COVID, your student loan payments that were paused from March 13, 2020 until September 1, 2023 because of the COVID-19 pandemic do count toward Public Service Loan Forgiveness as well as forgiveness under income-driven repayment plans.

Photo credit: iStock/Delmaine Donson

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