Financial Friday Newsletter
I’ve been hearing a lot about Public Service Loan Forgiveness. I’m a doctor at a for-profit hospital and was told my employer doesn’t qualify. Are there any programs for people in the medical field besides PSLF?
That’s a great question. The name “Public Service Loan Forgiveness” can sound a little misleading since it is more dependent on who you work for (a government entity or 501c3 nonprofit) than having a career serving the public in a field like medicine. However, medical professionals who don’t work for one of these entities may not be completely out of luck. There are many other forgiveness programs that may allow them to get some of their debt forgiven. Consider if any of these might benefit your situation:
Dental Loan Repayment Revolving Fund: A revolving fund has been established by the State Department of Health to be designated as the Dental Loan Repayment Revolving Fund for the purpose of repaying dental student loans. Contact the State Department of Health, Dental Health Services at 405.271.5502 for details.
Faculty Loan Repayment Program: The Faculty Loan Repayment Program (FLRP) pays up to $40,000 for a two-year service obligation to eligible health professions faculty members from disadvantaged backgrounds. Participants should also receive matching funds from their employing educational institution. Visit the FLRP website for applications, deadlines and additional information.
Indian Health Service Loan Repayment Program: The Indian Health Service Loan Repayment Program (IHSLRP) pays up to $24,000 per year for two-years of continuous, full-time service at Commissioned Corps, Civil Service and Direct Tribal Hire facilities or in an approved Indian health program. Visit the IHSLRP website for applications, deadlines and additional information.
National Health Service Corps: The National Health Service Corps (NHSC) Loan Repayment Program pays up to $50,000 tax-free, to primary care medical, dental and mental health clinicians in exchange for two years of service at an approved site in a Health Professional Shortage Area. Visit the NHSC website for applications, deadlines and additional information.
Navy Health Professions Loan Repayment Program: The U.S. Navy’s Health Professions Loan Repayment Program (HPLRP) provides a maximum yearly loan repayment of $40,000 (minus about 25% federal income taxes). Payment is sent directly to the lending institution. More information is available on the HPLRP website.
Nursing Education Loan Repayment Program: The Nursing Education Loan Repayment Program (NELRP) aims to alleviate the critical shortage of registered nurses in non-profit health care facilities. The program pays 60% of an eligible participant’s qualifying education loan balance for two years of service. For an optional third year, participants receive an additional 25% of their original qualifying education loan balance. Visit the NELRP website for applications, deadlines and additional information.
Oklahoma Medical Loan Repayment Program: A loan repayment program for primary care physicians (family medicine, geriatrics, general internal medicine, general pediatrics, obstetrics/gynecology and emergency medicine) that provides financial assistance to physicians in repaying legitimate, documented educational loans. Visit the Physician Manpower Training Commission website to see if you qualify and to learn about other loan assistance programs available.
To learn more about student loan management — including forgiveness programs — check out ReadySetRepay.org. Ready Set Repay, the student loan management initiative of the Oklahoma College Assistance Program, works with student loan borrowers and Oklahoma higher education institutions to help students make smart borrowing decisions, and successfully repay their student loans.
