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Becoming a nurse can be a rewarding career path, but the cost of nursing school is a major obstacle for many students. Between tuition, books, clinical fees, and living expenses, costs can quickly add up.

Fortunately, nursing students have access to a wide range of funding options. From federal aid and scholarships to employer-sponsored programs and military service, there are many ways to reduce out-of-pocket costs and long-term debt. Many students use a combination of funding sources rather than relying on just one. Understanding your options can help you reduce debt and make smarter financial decisions as you pursue your nursing degree.

1. Start With the FAFSA

The Free Application for Federal Student Aid (FAFSA®) is a key first step for anyone planning to attend nursing school. Completing the FAFSA determines your eligibility for federal student aid, including grants, federal student loans, work-study programs, and some state-based aid. Many nursing schools also use the FAFSA to award their own institutional grants and scholarships.

If you are a dependent undergraduate, you’ll need to report your parent’s financial information. For federal student aid purposes, all graduate or professional students are automatically considered independent. Because of this independent status, you generally do not need to provide parental information on your graduate school FAFSA, even if you still live with them or they claim you as a dependent on their taxes.

You can list up to 20 schools on the online FAFSA form. Be sure to add any nursing colleges you’re considering, even if you haven’t applied or been accepted yet.

💡 Quick Tip: Fund your education with a competitive-rate, no-fees-required SoFi private student loan that covers up to 100% of school-certified costs.

2. Nursing School Scholarships

Scholarships are one of the most effective ways to pay for nursing school because they do not need to be repaid. There are thousands of scholarships available specifically for nursing students, offered by professional associations, health care organizations, nonprofit foundations, private companies, and educational institutions.

Some nursing scholarships reward academic excellence and leadership, while others assist students with financial need or focus on specific groups, such as veterans, first-generation students, and those seeking to work in underserved communities.

Scholarships can range anywhere from a few hundred to $10,000-plus. While individual awards may not cover all costs, applying for multiple scholarships can significantly reduce reliance on loans. Many students underestimate how much scholarship funding they can accumulate by consistently applying each year.

3. Grants for Nursing School

Grants are another valuable source of funding that does not require repayment. The most common federal grant is the Pell Grant, which is awarded to undergraduate students with exceptional financial need, with a lifetime eligibility limit equivalent to six years (12 semesters).

In addition to federal grants, many states offer grant programs designed to encourage students to enter high-demand fields like nursing. Some schools also provide institutional grants based on financial need or academic performance.

Unlike loans, grants are limited by available funding, making it important to submit the FAFSA as early as possible. Grants can be used to cover tuition, fees, books, and sometimes housing costs, and can help students minimize debt.

4. Federal Student Loans

When scholarships and grants aren’t enough to cover the full cost of nursing school, federal student loans are often the next option. These loans typically offer lower interest rates, more flexible repayment options, and better borrower protections than private loans. You apply for federal student loans by submitting the FAFSA.

Types of Federal Loans

There are three main types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

Direct Subsidized Loans

Direct Subsidized Loans are available to undergraduate students with demonstrated financial need. The key benefit of subsidized loans is that the federal government pays the interest while you’re in school at least half-time, during the six-month grace period after you graduate, and during approved deferments. This can save nursing students a significant amount of money over time.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to undergraduate and graduate nursing students regardless of financial need. Interest begins accruing as soon as the loan is disbursed, but students can choose to defer payments while in school. These loans offer fixed interest rates and access to federal repayment programs.

Direct PLUS Loans

Direct PLUS Loans have traditionally been available to graduate and professional students, as well as to parents of dependent undergraduate students. However, as of July 2026, Grad PLUS loans will no longer be available to new borrowers. Students pursuing graduate nursing degrees — such as a Master of Science in Nursing (MSN) or Doctor of Nursing Practice (DNP) — will have access only to Direct Unsubsidized Loans.

Direct PLUS loans remain available to parents of undergraduate students. The maximum amount they can borrow is the cost of attendance at the nursing school you attend minus any financial aid you receive. However, PLUS loans have relatively high interest rates and fees compared to other federal loans.

💡 Quick Tip: Parents and sponsors with strong credit and income may find more-competitive rates on no-fees-required private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Student Loan Forgiveness for Nurses

One major advantage of federal student loans is access to loan forgiveness programs. Nurses working in nonprofit hospitals, government facilities, or public health organizations may qualify for Public Service Loan Forgiveness (PSLF). Under PSLF, remaining loan balances can be forgiven after 120 qualifying monthly payments (typically 10 years) while working for an eligible employer.

Some state and federal programs offer loan repayment assistance or forgiveness for nurses who work in high-need or underserved areas, making federal loans more attractive for those committed to public service. For example, the federal Nurse Corps Loan Repayment Program repays a significant portion of education loans for nurses in exchange for two years of service at a critical shortage facility or eligible nursing school (more on this program below).

Student Loan Payment Deferrals

Federal loans allow for payment deferrals while you’re enrolled in school at least half-time. After graduation, borrowers typically receive a six-month grace period before payments are due. In certain circumstances, such as economic hardship or further education, additional deferment may be available.

Income-Driven Repayment Plan for Nurses

Income-driven repayment (IDR) plans base your monthly loan payments on your income and household size rather than the total loan balance. After 20 to 30 years of qualifying payments, any remaining balance may be forgiven, depending on the plan.

Beginning in July 2026, new federal student loan borrowers will only have access to the Repayment Assistance Plan (RAP). RAP is designed to cap payments at an affordable percentage of income and provides forgiveness after 30 years of repayment. For nurses entering the workforce with high debt levels and modest salaries, IDR plans can make payments more manageable.

5. Private Student Loans

Private student loans can help fill funding gaps when federal aid does not fully cover nursing school costs. These loans are offered by banks, credit unions, and online lenders, and terms vary widely based on credit and income. You can find private undergraduate loans, as well as graduate student loans.

Private Student Loans vs Federal Student Loans

While federal student loans offer fixed interest rates and robust protections — such as income-driven repayment, deferment, and forgiveness — their annual and lifetime limits may not cover the full cost of nursing school.

In contrast, private loans can bridge these funding gaps by allowing students to borrow up to the total cost of attendance. However, private loan approval and rates depend heavily on creditworthiness and often require a cosigner to secure competitive terms. They also lack the flexible safety nets found in federal programs.

Choosing the Right Lender for Nursing School

If you decide to use private loans, it’s important to compare lenders carefully. Look at interest rates, repayment terms, borrower benefits, and customer reviews. Some lenders offer specialized rates, discounts, or specific loan products for students in health care professions. Taking time to shop around can help reduce the long-term cost of borrowing.

Recommended: Student Loan Payment Calculator

6. Tuition Reimbursement Programs

A tuition reimbursement program is an employer-provided benefit that allows students to receive partial or full reimbursement for education costs after completing coursework. These programs are often offered by health care employers and can significantly reduce nursing school expenses.

Reimbursement amounts and eligibility rules vary, but many programs require you to work for the employer while in school or commit to continued employment after graduation. While reimbursement may not cover upfront costs, it can ease the financial burden over time

7. Hospitals/Employers That Pay for Nursing School

Many hospitals and health care systems actively invest in educating future nurses to address staffing shortages and improve patient care. These employer-sponsored programs can cover a large portion — or even all — of nursing school tuition up front or help employees repay their nursing school loans.

Health System Partnerships With Nursing Programs

Some hospitals partner directly with nursing schools to create pipeline programs. Students may receive discounted tuition, guaranteed clinical placements, or job offers upon graduation. These partnerships can benefit both students and employers by ensuring a steady supply of trained nurses.

Work Commitments in Exchange for Tuition Coverage

Tuition assistance programs typically come with a work commitment. Graduates may be required to work for the employer or sponsoring hospital for a set number of years. While this limits short-term job flexibility, it provides financial stability and guaranteed employment after graduation.

8. Getting a Nursing Degree Abroad

Another option some students consider is earning a nursing degree abroad. In certain countries, tuition and living costs may be significantly lower than in the U.S. Many international nursing programs are also shorter (such as three years instead of four for a Bachelor of Nursing degree), allowing you to enter the workforce faster.

Cost Comparisons and Accreditation Considerations

If you’re thinking about getting a nursing degree abroad, you’ll want to make sure the program meets U.S. licensing requirements and prepares you to pass the NCLEX-RN exam. It’s also important to factor in additional costs — such as credential evaluations and moving expenses (e.g., visas and flights) — to accurately compare the cost to a U.S. program.

9. Military Service

The U.S. military heavily subsidizes or fully pays for nursing school in exchange for service commitments. Options include:

•   The Army Health Care Education Reimbursement Program

•   Navy Nurse Candidate Program (NCP)

•   Air Force Health Professional Scholarship Program

These programs are designed to recruit and train nurses and other health care professionals, and many offer 100% of tuition and fees, sign-on bonuses, and monthly stipends.

ROTC and Nursing Student Incentives

Army ROTC Nursing scholarships provide comprehensive financial support, including full tuition and fees (or room and board), $1,200 annually for books, and a $420 monthly tax-free stipend. Nursing-specific benefits include paid NCLEX-RN review fees, test fees, uniforms, and clinical supplies.

If you’re interested in ROTC, it’s recommended that you join the program as a freshman or sophomore in nursing school. Upon graduation, you are required to serve as an army nurse and officer for four years.

10. Nurse Corps Program

The Nurse Corps program is a federal initiative aimed at addressing nursing shortages in underserved communities. It includes two programs that can help you pay for nursing school:

•   The Nurse Corps Scholarship Program covers tuition, fees, and other educational costs for eligible nursing students. In return, after graduation, you work at an eligible health care facility with a critical shortage of nurses for two years. To apply, you must be an accepted or enrolled student in a nursing degree program at a U.S. accredited school of nursing.

•   The Nurse Corps Loan Repayment Program will pay up to 85% of unpaid nursing education debt in exchange for at least two years of service at an eligible health care facility with a critical shortage of nurses or an eligible school of nursing. You can apply to the Nurse Corps Loan Repayment Program if you are a registered nurse (RN), advanced practice registered nurse (APRN), or nurse faculty.

Deciding Which Route to Pursue

With so many options available, choosing how to pay for nursing school can feel overwhelming. The right approach will depend on your financial situation, career goals, and willingness to make service or work commitments

Comparing Costs, Commitments, and Career Goals

Some funding options reduce costs upfront but require long-term commitments, while others offer flexibility but lead to higher debt. Weighing total costs, repayment obligations, and career preferences can help you choose the best path.

Combining Multiple Funding Sources

Many nursing students use a mix of scholarships, grants, federal loans, and employer assistance. Strategically combining multiple funding sources can minimize debt while still covering the full cost of education.

Private Student Loans From SoFi

Nursing school is a significant investment, but there are a number of financial aid and career-based programs that can significantly reduce the cost. By starting with the FAFSA, seeking out scholarships and grants, understanding federal and private loan options, and exploring employer, military, or service-based programs, you can build a smart, flexible funding strategy that fits your goals. With careful planning, it’s possible to earn your nursing degree while keeping long-term financial stress to a minimum.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Can FAFSA be used for nursing school financial aid?

Yes, the Free Application for Federal Student Aid (FAFSA®) is essential for nursing school financial aid. By completing the FAFSA, you determine your eligibility for various federal student aid options, including grants (like the Pell Grant), federal student loans (subsidized and unsubsidized), and work-study programs.

Beyond federal aid, many nursing schools require a FAFSA on file to award their own institutional scholarships and need-based grants. To maximize your financial assistance, aim to file as early as possible.

Can an employer pay for you to attend nursing school?

Yes, many hospitals and health care employers offer tuition reimbursement programs and other forms of financial assistance for nursing students. These programs are often designed to address staffing shortages by helping current or future employees pay for school, often in exchange for a work commitment after graduation. This can significantly reduce the out-of-pocket cost of a nursing degree.

Can you use private student loans for nursing school?

Yes, you can use private student loans to pay for nursing school. Private loans, offered by banks, credit unions, and online lenders, are often used when federal aid, scholarships, and grants do not fully cover the cost of attendance.

Just keep in mind that interest rates are based on your (or your cosigner’s) credit score and may be higher than federal loans. Private loans also lack federal protections like income-driven repayment and forgiveness programs. As a result, it’s wise to max out federal options before going private.

What Is the Nurse Corps Loan Repayment Program?

The Nurse Corps Loan Repayment Program pays up to 85% of qualifying nursing education debt in exchange for a commitment to work for at least two years at an eligible health care facility experiencing a critical shortage of nurses, or at an eligible nursing school. The program is open to registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty.

Are there loan forgiveness programs specifically for nurses?

Yes, there are loan forgiveness programs for nurses, including:

•   Public Service Loan Forgiveness (PSLF): Available to nurses working full-time for eligible nonprofit or government organizations, PSLF forgives your remaining federal student loan balance after 120 qualifying payments.

•   Nurse Corps Loan Repayment Program: This program repays up to 85% of qualifying nursing education debt in exchange for a commitment to work for at least two years at an eligible critical shortage facility or nursing school.

•   State programs: Many states offer loan repayment assistance or forgiveness to nurses who agree to work in high-need or underserved areas within the state.

Photo credit: iStock/FatCamera

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 Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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.

SOISL-Q126-001

It may seem as if droves of college students collect diplomas every year, but of the students who start college, how many actually graduate?

The most recent data from the National Student Clearinghouse (NSC) Research Center reports that the six-year graduation rate for bachelor’s-degree-seeking full-time undergraduate students who enrolled in fall 2019 was 61.1%.

The graduation rate refers to the percentage of students who complete their program within 150% of the published time for that program. The NSC Research Center’s averages include students who transferred institutions, but individual schools’ figures don’t include those students. It’s important not to confuse graduation rates with retention rates, which refer to the percentage of students who continued at a particular school the next year.

Here, we’ll walk you through what the college graduation rate can tell you about a school and why it’s important, as well as outline a good graduation rate. We’ll also break down graduation rates by state and college, discuss some reasons why students might not graduate, and let you know how to overcome some of those obstacles.

What Do College Graduation Rates Tell Us?

If you’re a prospective student, understanding the difference between graduation rates and retention rates leaves you better prepared to work out how the schools on your list compare. Checking out the graduation rate of your first-choice college gives you a definite indication of whether that school is better or worse than average at getting students to the finish line. Average graduation rates also tell you which types of institutions are best at that key task. Based on the available statistics, private, nonprofit institutions graduate students at the highest rate.

Why Is Knowing the Graduation Rate Important for Selecting a College?

When it comes to researching colleges, different things matter to different students. Athletes may want to know more about athletic programs. English majors may want to know how many professors are published writers.

However, among all the different factors you can research, the graduation rate remains one of the most important for all prospective students to understand.

Why? The graduation rate not only lets you know how many students graduate in a timely manner but also serves as a gauge of other important points, such as student satisfaction. Still, it’s not the only metric you’ll want to consider when you’re choosing a college. Other priority considerations include teacher-to-student ratio, retention rate, loan default rates (which could indicate low incomes after graduation), and selectivity.

Two trusted websites compile information on graduation rates for individual schools: College Navigator and College Results Online.

•   College Navigator: College Navigator compiles information from about 7,000 colleges and universities across the United States. The site breaks down both retention rates and graduation rates, and you can also filter rates by race/ethnicity and gender.

•   College Results Online: College Results Online also lists both graduation and retention rates for institutions. You can cross-index certain peer institutions against each other to compare rates.

What Is a Good Graduation Rate for a College?

The best graduation rates in the U.S. are over 90%, with many of the Ivy League schools falling into this bracket. For example, let’s take a look at a few graduation rates based on College Navigator data for the cohort that enrolled in fall 2017:

•   Harvard University: 97%

•   Yale University: 96%

•   Cornell University: 95%

You can also find high graduation rates within highly selective liberal arts colleges:

•   Claremont McKenna College: 95%

•   Amherst College: 93%

•   Davidson College: 92%

It’s important to remember that since these highly selective schools only admit students with top-tier credentials, they naturally attract some of the most driven students on the planet, resulting in a high graduation rate.

So, what’s a good graduation rate for a college? Do these figures mean that a college with a graduation rate in the 80s or even the 70s isn’t a good school or that it isn’t the right school for you? Absolutely not. As we mentioned above, there are other factors in the mix as well, including your personal preferences and interests. The right fit for you may be a school with a 70% graduation rate. The better the fit, the more likely you are to graduate on time.

Lowest College Graduation Rates in the United States

Unfortunately, the colleges with the lowest graduation rates in the U.S. aren’t highly publicized. However, if, during your own research, you see a school that graduates students at or below 60%, you may want to probe the admissions counselor at that college for the reasons why rates are so low and find out more about how the college plans to improve.

Average College Graduation Rates in the United States

If we dig a bit further into the 2025 NSC Research Center report, it states that the average college graduation rate for the fall 2019 cohort was:

•   70.9% at public four-year institutions

•   74.6% at private nonprofit institutions

•   35.9% at private for-profit four-year institutions

Overall, 58.1% of male students and 64.3% of female students graduated within six years, with female students having a higher graduation rate at the following types of institutions:

•   Public institutions (74.3% female versus 67.7% male)

•   Private nonprofit institutions (77.6% female versus 71.3% male)

The National Student Clearinghouse (NSC) Research Center calculates graduation rates by tracking cohorts of first-time, degree-seeking college students to compile its report. Using data from over 3,750 colleges, it considers completion the earning of a certificate, associate, or bachelor’s degree, which could be at the starting school or any other institution.

College Graduation Rates by State

Here are the college graduation rates for the fall 2019 cohort by state, according to the NSC Research Center:

Numbers of College Graduates in the 21st Century

In the past 20 or so years, the number of college graduates has increased by a huge amount. According to information published by the Education Data Initiative, in 2000, approximately 1.24 million students graduated from college with a bachelor’s degree. In 2025, that number reached nearly 2.17 million.

Reasons Why College Students Don’t Graduate

Let’s turn the tables a bit and take a look at a few reasons why students might not graduate. Depending on the student, these may include issues such as the high cost of tuition, trying to balance work and school, or poor academic performance.

Cost

Increasing price tags aren’t a new reason for students to drop out of school. When it gets too expensive, they may feel there’s no solution but to leave. The 2025 affordability report of the National College Attainment Network found that for the average in-state student in the 2022-2023 academic year, a little over a third of public bachelor’s-granting institutions were affordable. Researchers based this on total tuition and living costs and an emergency expenses constant measured against grants, federal loans, federal work study income, an estimated family contribution, and estimated summer wages.

Recommended: What Is the Average Cost of College Tuition?

Balancing Work and School

Many undergraduates work part-time jobs to help pay their way through college. A lot of them get stuck in the quagmire of trying to keep up with both work and school, which can be a challenging balancing act. Many seasonal jobs for college students exist, which means you may be able to get a job during the summer instead of working during the school year.

Recommended: 3 Summer Jobs Ideas for College Students

Transferring

Transferring colleges sometimes means credits can get lost in translation. When colleges force transfer students to retake classes, it not only costs those students more financially, but they also have to spend extra time pursuing their degree. This sometimes means that students can face difficulty getting enough credits to graduate.

Poor Grades

Sometimes, students simply can’t make the grade. Even if it happens during just one semester, it can cause them to shy away from college altogether. In particular, first-generation college students, low-income students, and minority students are vulnerable and may question whether they really belong in college.

Being Denied a Student Loan

Being denied a student loan or other types of financial aid can be a huge deterrent to continuing in college. If you haven’t secured enough financial aid, remember that there are ways around it — including seeking a loan through a different lender.

Overcoming the Obstacles as a College Student

What can you do to overcome these obstacles and successfully graduate from college? Let’s find out. Here are a few things you can do to help you stay the course:

•   Get organized with everything — schoolwork, athletics, homework, and anything else that takes your time and attention.

•   Get support from family and friends.

•   Create healthy habits. Eat nutrient-dense meals, get enough sleep, and stay healthy.

•   Carefully consider the best ways to pay for college, and focus on managing your money.

•   Get to know professors and academic support professionals at your college or university.

•   Work on your time management skills so you have the time you need for important assignments.

•   Take care of your mental health. If you’re struggling to balance the many priorities of being a college student, reach out to family or friends for help. If you need additional support, contact your campus’s health and wellness center to see what counseling resources are available to students.

•   If you’re attending community college to begin with, investigate transfer options early on so you know how to make the transition as smooth as possible.

Ways to Fund College

Making sure you have a concrete plan to pay for college is one of the best ways to make sure you successfully graduate. Let’s walk through a few tips to make sure you have all your ducks in a row.

•   Fill out the Free Application for Federal Student Aid (FAFSA®). This is the first step in applying for federal financial aid, including grants, scholarships, and low-interest-rate federal student loan options.

•   Search for scholarships. Ask the college or university you plan to attend about the scholarships they offer. Don’t forget to search around in your community as well.

•   Get a work-study job. If you qualify for work-study, this can be an opportunity to earn some money for college expenses. In this federal program, you work to earn money, and your school pays you for that work, which it must do at least monthly.

•   Look into private loans. If you need to fill the gap between scholarships, grants, and federal student loans, look into private loans to help you make it across the graduation stage. These may lack the borrower protections afforded to federal student loans (such as deferment options or income-driven repayment plans) and are therefore generally considered only after you’ve exhausted other financing sources.

The Takeaway

A school’s graduation rate reflects the percentage of students who graduate within 150% of the published time frame. This is different from a school’s retention rate, which measures the percentage of students who remain at that school from year to year. A school’s graduation rate can be an informative benchmark as you evaluate and compare schools during the application process.

If you are a current college student, you can do a lot to make sure you stay the course, including taking care of yourself, using scholarships and grants to your advantage, getting academic help, and making sure (if necessary) that you have the right private loans to make it all happen.

Ready to find private student loans to make sure you get to throw your cap at graduation? Visit SoFi and learn more about private student loans and the low rates we have to offer. Our friendly experts can also help you decide on your best course of action.

FAQ

What is the average college graduation rate in the U.S.?

According to the NSC Research Center Yearly Progress and Completion report published in December 2025, the average graduation rate for the 2019 U.S. cohort was 61.1%. This rate can help you evaluate prospective institutions, comparing individual college graduation rates to the national average.

Which schools have the best graduation rates?

Private nonprofit schools tend to have the highest graduation rates, followed closely by public schools. Private for-profit schools have lower rates, while Ivy League universities, such as Harvard and Yale, have particularly high rates.

How can students increase their chances of graduating?

Key reasons why students leave college without graduating include cost, academic difficulties, and administrative problems with transferred credits or loans. The best way to avoid these problems is to plan carefully and stay organized. Consider different colleges and their benefits, look at various options for funding, and build a network for practical and emotional support.

Photo credit: iStock/digitalskillet

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.

SOISL-Q126-016

If you work in public service for a government agency or nonprofit, you may be able to have the remaining balance on your federal student loan forgiven after a certain number of payments through the Public Service Loan Forgiveness Program (PSLF).

Created by the Education Department (ED) in 2007, PSLF is intended to help public-service professionals who may earn lower salaries and struggle to repay their federal student loans. In this context, many teachers, firefighters, and social workers qualify.

However, it’s important to be aware that on October 2025, acting on an executive order signed by President Trump, the ED announced a final rule to the PSLF program, which may exclude some borrowers starting on July 1, 2026.

Below is the latest information borrowers need to know about PSLF eligibility and student debt forgiveness.

What Is Public Service Loan Forgiveness?

The PSLF program provides professionals working full-time in public service with a way to ease the burden of their student loan debt. After making 120 qualifying monthly payments under an eligible repayment plan, such as income-driven repayment, and by working full-time for a qualifying employer, the remaining balance of a borrower’s federal Direct Loans will be forgiven.

What Are Public Service Loan Forgiveness Jobs?

Borrowers working as teachers, firefighters, first-responders, nurses, military members, and doctors may qualify for PSLF. But with this program, it is not only the type of job you have that determines if you can get forgiveness, but also the type of employer.

Currently, qualifying employers include federal, state, local, tribal government and non-profit organizations. (As noted above, the new final rule may affect which organizations qualify, starting July 1, 2026.)

To find out if your employer currently qualifies for PSLF, you can use the Federal Student Aid employer eligibility search tool.

Who Is Eligible for the Public Service Loan Forgiveness Program?

The way that PSLF works is that borrowers must meet certain eligibility criteria to qualify. These criteria include:

Work for a Qualified Employer

Part of PSLF eligibility requires working for a qualified government organization (municipal, state, federal, military, or tribal) or a qualified 501(c)(3) non-profit organization. Full-time AmeriCorps or Peace Corps volunteers are also currently eligible for PSLF.

Some other types of non-profits also qualify, but labor unions, political organizations, and many other non-profits that don’t have 501(c)(3) status do not qualify. Working for a government contractor doesn’t count; you have to work directly for the qualifying organization.

Only full-time workers are eligible — that is, workers who meet their employer’s definition of full-time or work a minimum of 30 hours per week. People employed at multiple qualifying organizations in a part-time capacity can be considered full-time as long as they’re working a combined 30 hours per week.

Having Eligible Loans

Only federal Direct loans, including Stafford loans, Grad PLUS loans (but not Parent PLUS loans), and Federal Direct Consolidation loans, are eligible for PSLF.

If you hold Federal Family Education Loans (FFEL) or Perkins loans, you need to first consolidate them into a Direct Consolidation Loan for them to be eligible for PSLF. Just be aware that unless your Direct Consolidation loan was disbursed on or before October 1, 2024, any payments you made on the FFEL Program loans or Perkins Loans before you consolidated will not count toward the 120 qualifying payments for PSLF.

Private student loans are not eligible for PSLF.

Recommended: Student Loan Forgiveness Guide

Applying for Public Service Loan Forgiveness

To apply for the PSLF program, you’ll need to take the following steps:

1. Consolidate FFEL Program and Perkins Loans

As noted above, borrowers with FFEL Program and Perkins Loans must consolidate them with a Direct Consolidation Loan to be eligible for PSLF.

However, as mentioned, payments on FFEL and Perkins loans included in a Direct Consolidation Loan that was disbursed on or after October 1, 2024, will not count toward PSLF. Your payment count on the new Direct Consolidation Loan will start at zero.

2. Sign Up for an Income-Driven Repayment Plan

There are now three available income-driven repayment plans to choose from — Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), and Income-Based Repayment. These plans are designed to make student loan debt more manageable by giving you a monthly payment based on your discretionary income and family size. You must enroll in one of these plans to qualify for PSLF.

Note that any borrowers on the SAVE (Saving on a Valuable Education) plan have been placed in forbearance due to a court injunction; the time in forbearance does not count toward PSLF. Those who are eligible need to switch to one of the other three IDR plans to continue making qualifying PSLF payments.

3. Certify Your Employment

To certify your employment, use the PSLF Help Tool. You can either print out the form for you and your employer to sign and then send it in for approval, or you can sign the form electronically and the Education Department will email your employer and request their electronic signature.

4. Make 120 Qualifying Monthly Payments

You must make these qualifying payments while you’re employed by a qualified public service employer. If you switch employers you can still qualify as long as you continue to work for a qualifying organization — but you will have to certify your employment with your new employer.

5. Apply for Forgiveness

After you make your final payment toward PSLF, you will need to fill out and submit a PSLF form for forgiveness.

Current State of the Program

Because the program was created in 2007, the first borrowers to qualify for loan forgiveness applied in 2017. However, early estimates by the Government Accountability Office (GAO) reported the denial rate as more than 99%. At the same time, many borrowers weren’t even aware that the forgiveness program existed.

In 2022, the Biden administration worked to address these issues by introducing a “limited PSLF waiver,” which allowed student loan holders to receive credit for payments that previously didn’t qualify for PSLF. That was later followed by an IDR account adjustment program. In October 2024, the administration said that more than 1 million public servants had received debt relief through PSLF.

In March 2025, President Trump signed an executive order directing the Education Department to revise the PSLF program. In October 2025, the department announced the final rule to exclude organizations that have a “substantial illegal purpose.” Because the new rule changes the definition of a qualifying employer, it could restrict eligibility for PSLF. The rule is scheduled to go into effect on July 1, 2026, though legal challenges to the rule have been filed. For now, the PSLF program is not changing, and those enrolled in PSLF do not have to take any action, according to the ED.

Pros and Cons of the Public Service Loan Forgiveness Program

There are a number of advantages of the PSLF program, but there are some drawbacks as well. These are some of the benefits and disadvantages to consider.

Pros of PSLF

1.   The balance of your student loans is forgiven after a set period of time. This can result in significant debt relief for qualifying borrowers working in the public sector.

2.   The amount forgiven is typically tax-free when it comes to federal taxes. Because it generally isn’t considered taxable income, the amount forgiven under PSLF isn’t subject to federal taxes, unlike other loan forgiveness programs. (Some states may tax the amount, however.)

3.   By offering forgiveness, PSLF encourages professionals to work in public service roles. Professionals in qualifying jobs are making a difference, and your government appreciates it enough to give you a break on your federal student loans.

4.   Those pursuing PSLF may have lower monthly student loan payments than they would otherwise because they are on an income-driven repayment plan that bases their payments on their discretionary income and family size.

Cons of PSLF

1.   The rules regarding PSLF— including the types of loans, employers, and repayment plans that qualify — are strict.

2.   The time commitment is long-term. Borrowers in the program must be employed with a qualifying public service employer — potentially earning a lower salary than they would in the private sector — for at least 10 years.

3.   The process to enroll in PSLF and achieve forgiveness can be quite time-consuming and complex.

4.   There is some uncertainty regarding the program. The new final rule scheduled to be implemented by the Education Department on July 1, 2026 could restrict some public service organizations and their employees from PSLF.

Alternatives to the Public Service Loan Forgiveness Program

For borrowers looking for student loan debt relief, there are other options besides PSLF. For example, the Teacher Loan Forgiveness program is available to full-time teachers who have completed five consecutive years of teaching in a low-income school. And borrowers reaping their loans under an IDR plan are also eligible for forgiveness after 20 or 25 years.

These federal forgiveness programs do not apply to private student loans. If you are looking for ways to reduce your interest rate or lower your monthly payments for private student loans, refinancing your student loans with a private lender may be an option to explore. When you refinance, you replace your existing loans with a new loan that, ideally, has a lower interest rate, which could reduce your monthly payments potentially saving you money.

However, it is important to be aware that refinancing federal student loans with a private lender may make you ineligible for the Public Service Loan Forgiveness program as well as other federal benefits, such as income-driven repayment and student loan deferment.

The Takeaway

The Public Service Loan Forgiveness program is one way that eligible borrowers working in public service may be able to have their federal student loans forgiven. Although changes to the program are scheduled to take place in July 2026, for now, the program is proceeding as usual.

Borrowers whose student loans aren’t eligible for PSLF may want to consider different options, including other forgiveness programs or 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.

FAQ

Who qualifies for PSLF?

To qualify for PSLF, borrowers must have federal Direct loans and work full-time in public service for a qualifying non-profit or government agency. They must make 120 qualifying payments under an eligible repayment plan, such as income-driven repayment.

What types of loans are eligible for Public Service Loan Forgiveness?

Only federal Direct loans are eligible for PSLF. Other federal loans, such as Perkins Loans and Federal Family Education Loans (FFEL) must be consolidated into a federal Direct Consolidation Loan to be eligible.

What is the downside of Public Service Loan Forgiveness?

Some downsides of Public Service Loan Forgiveness include strict eligibility rules and a long-term commitment to working in public service — typically at least 10 years — before forgiveness may be achieved. Additionally, those employed in public service jobs may earn lower salaries than individuals employed in private sector jobs.

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