💰 Student Loan Forgiveness for Nurses: 10 Myths You Should Stop Believing

“Maria, a registered nurse in Ohio, thought she was doing everything right.”
She’d been making steady student loan payments for nearly a decade, working full-time at a hospital, and assuming she’d qualify for forgiveness after 10 years of service. But when she finally checked her progress, she discovered most of her payments didn’t count toward forgiveness.

The reason? Her hospital wasn’t a qualifying employer — and no one had ever told her that Public Service Loan Forgiveness (PSLF) only applies to nonprofit or government work.

Stories like Maria’s are far too common. Nurses dedicate their lives to caring for others, but when it comes to their own financial well-being, misinformation about student loans can lead to years of unnecessary payments and stress.

Whether you’re a new nurse entering repayment or a seasoned professional planning your next career move, understanding how student loan forgiveness for nurses truly works is crucial. Let’s bust the most common myths — so you can make informed, financially confident decisions.

1. Is Student Loan Forgiveness Automatic After 10 Years?

Myth: “If I make payments for 10 years, my loans will be forgiven.”
Fact: Forgiveness under the Public Service Loan Forgiveness (PSLF) program isn’t automatic. You must:

• Work for a qualifying employer
• Have Direct Loans
• Make 120 qualifying payments under an eligible plan
• Submit the official PSLF application

Even if you’ve made payments for years, forgiveness won’t happen unless you meet all the criteria.

2. Do All Nursing Jobs Qualify for PSLF?

Myth: “Any nursing job counts toward forgiveness.”
Fact: Only full-time positions with qualifying employers—such as government organizations or 501(c)(3) nonprofits—count toward Public Service Loan Forgiveness (PSLF). Many private hospitals, staffing agencies, and travel nursing contracts do not qualify, even if your work is performed in a nonprofit facility.

If you’re a travel nurse, your payments typically won’t count toward PSLF because your employer is usually the staffing agency, not the hospital where you’re placed—and most agencies are for-profit.

Always confirm your employer’s eligibility through the PSLF Help Tool before assuming your work qualifies.

3. Do I Need to Certify My Employment Every Year?

Myth: “I can just certify once at the end.”
Fact: You should submit your Employment Certification Form annually (or when you change jobs). This ensures your qualifying payments are counted correctly and avoids surprises when you apply for forgiveness.

4. Can I Use Any Repayment Plan with PSLF?

Myth: “Standard repayment works for PSLF.”
Fact: PSLF works best with an income-driven repayment (IDR) plan, such as PAYE or IBR. The Standard Plan may pay off your loans before forgiveness even kicks in.

5. Are Private Loans Eligible for Forgiveness?

Myth: “All loans can be forgiven.”
Fact: Private student loans are not eligible for PSLF or other federal forgiveness programs. Only federal Direct Loans qualify for federal relief options.

6. Do I Have to Stay with the Same Employer for 10 Years?

Myth: “I need to stay at one hospital the whole time.”
Fact: You can change qualifying employers and still earn PSLF credit. What matters is that your employers are all eligible organizations, not that you stay in one place.

7. Will a Missed Payment Reset My Progress?

Myth: “One mistake and I start over.”
Fact: Missing a payment or entering forbearance pauses your progress—but it doesn’t erase qualifying payments you’ve already made. You’ll just need to make extra payments to reach 120 total.

8. Is Loan Forgiveness Guaranteed If I Apply?

Myth: “Everyone gets approved eventually.”
Fact: PSLF applications were often denied in the past due to paperwork errors or ineligible loans. Staying organized, submitting yearly certifications, and reviewing your loans regularly are key to approval.

9. Will I Owe Taxes on Forgiven Student Loans?

Myth: “I’ll get hit with a huge tax bill.”
Fact: PSLF forgiveness is tax-free under federal law. However, other programs—like state forgiveness or employer repayment benefits—might have tax implications, so check the details.

10. Is PSLF the Only Forgiveness Option for Nurses?

Myth: “There’s only one way to get forgiveness.”
Fact: Nurses may qualify for multiple programs, including:

• The NURSE Corps Loan Repayment Program
• State-level loan repayment assistance programs (LRAPs)
• Employer-sponsored student loan repayment benefits

Combining these strategically can help nurses save thousands of dollars.

💡 Bonus Myth: Refinancing Federal Loans Is Always Smart

Myth: “I should refinance to get a lower interest rate.”
Fact: Refinancing federal loans into private loans removes your eligibility for PSLF, IDR plans, and federal forbearance protections. While refinancing can lower interest for some borrowers, it’s rarely a good choice for nurses working in public service roles.

Nurses Deserve the Full Facts

Nurses give so much of themselves to their patients and communities. You deserve clear, accurate guidance that helps you achieve financial peace of mind.

Understanding the facts about PSLF, income-driven repayment, and nurse loan forgiveness programs can save you years of frustration — and thousands of dollars.

Before you refinance, consolidate, or change jobs, take a few minutes to:
✅ Verify your employer’s PSLF eligibility using the PSLF Help Tool.
✅ Submit your Employment Certification Form every year.
✅ Keep digital copies of all communications and payment records.

And if you’re still unsure where to start — you don’t have to figure it out alone.

At PeopleJoy, we help nurses navigate loan forgiveness with confidence.
From verifying employer eligibility to tracking PSLF progress, our advisors help you stay compliant, informed, and on the fastest path to forgiveness.

💬 Learn more about how PeopleJoy supports nurses with PSLF and loan repayment programs.