Images by GettyImages; Illustration by Hunter Newton/Bankrate
Key learning points
-
Healthcare Professions Student Loans are offered by the Health Resources and Services Administration to students pursuing a designated career in healthcare.
-
These types of loans offer benefits such as zero interest and a grace period that lasts 12 months after graduation
-
Student loans for healthcare professions are based on financial need
While many student loans are open-ended, some are geared toward students entering specific industries, including healthcare. Healthcare Professions Student Loans (HPSLs) are loans offered by the Health Resources and Services Administration (HRSA). Schools actually apply for these loans and then offer them to students through FAFSA and student aid letters. Because of this, not every school offers them. However, these loans do have unique benefits, such as lower interest rates and longer grace periods.
Types of Student Loans for Healthcare Professions
The Health Resources and Services Administration offers several loans for health care professions, each with its own qualification requirements. In all cases, borrowers must demonstrate financial need.
Health Care Professions Student Loans (HPSL)
Health Care Student Loans (HPSLs) are intended for full-time or part-time students pursuing higher education in one of the following fields of study:
- Doctor of Dentistry
- Bachelor of Doctor of Science in Pharmacy
- Doctor of Podiatric Medicine
- Doctor of Optometry
- Doctor of Veterinary Medicine
Loans for disadvantaged students (LDS)
Loans for disadvantaged students (LDS) are intended for full-time students from a disadvantaged background (as defined by the U.S. Department of Health and Human Services) who are pursuing a degree in one of the following programs:
- Doctor of Allopathic Medicine
- Doctor of Osteopathy
- Doctor of Dentistry
- Bachelor of Doctor of Science in Pharmacy
- Doctor of Podiatric Medicine
- Doctor of Optometry
- Doctor of Veterinary Medicine
Nursing Student Loans (NSL)
Nursing Student Loans (NSL) are intended for nursing students who are enrolled at least part-time and pursue a diploma in one of the following degree types:
- Associate degree
- Bachelor’s degree
- Diploma
Primary Care Loans (PCL)
Students applying for a Primary Care Loan (PCL) must commit to pursuing a degree in primary care and work as a primary care provider after graduation. They should also be pursuing a full-time degree in one of the following fields:
- Doctor of Allopathic Medicine
- Doctor of Osteopathy
Advantages and Disadvantages of Student Loans for Healthcare Professions
Like any other type of student loan, these loans have pros and cons. Consider the following factors before applying.
Benefits of Student Loans for Healthcare Professions
With a healthcare-related student loan, borrowers can take advantage of zero interest and no payments during their studies and for 12 months after graduation — a grace period that’s six months longer than most other student loans. (One exception is NSL, which has a nine-month grace period.)
You can find a fixed-rate student loan for healthcare professions with an interest rate of 5 percent, compared to the current interest rates of 6.53 percent to 8.08 percent for Direct Unsubsidized Loans and 9.08 percent for Direct PLUS Loans.
Loans in this program typically have a 10-year repayment plan, but you can also consolidate them with Federal Direct Loans if you want to extend your repayment period or enroll in repayment programs such as income-driven repayment plans.
Disadvantages of Student Loans for Healthcare Professions
That said, loans in this category are need-based, meaning that not everyone will qualify. Likewise, not all schools offer healthcare professions student loans, and loan limits vary by institution. You should contact your financial aid office for specific information on how your school handles these loans.
Additionally, certain loan programs (including PCL) require you to commit to a specific career path in a high-demand service area during repayment.
Finally, you must be a US citizen or permanent resident to qualify for these loans.
How do you get a student loan for a healthcare career?
To apply for a health care profession student loan, start by filling out the Free Application for Federal Student Aid (FAFSA). After you submit your FAFSA, you will receive your financial aid letter from your school. If the school offers health care profession student loans and you qualify, these options will be listed on your aid letter. The exact loan amount varies depending on your needs and the availability of funds.
It’s worth noting that not all schools offer health professions student loans; they must meet specific requirements set by the federal government and submit applications to participate in the program. Check with your financial aid office before applying to confirm whether your school offers these loans and whether there are any additional forms you’ll need to fill out to qualify.
Frequently Asked Questions About Student Loans for Healthcare Professions
-
Can healthcare workers have their student debt forgiven?
Widespread student loan forgiveness may not be on the books right now, and student loans for health care professions don’t qualify for income-driven repayment plans or Public Service Loan Forgiveness (PSLF) on their own. But you can use a federal Direct Consolidation Loan to consolidate these debts (except Primary Care Loans), making them eligible for both options.
-
Are healthcare student loans federal loans?
Student health loans are not the same as federal student loans: they are offered by the Health Resources and Services Administration rather than the U.S. Department of Education. However, they can become federal student loans if you consolidate them with a Direct Consolidation Loan.
-
Do private lenders offer student loans for healthcare professionals?
Private lenders can offer their own versions of healthcare professions student loans, although these are not regulated by the U.S. government. There are some advantages to private loans, however; for example, College Ave offers healthcare professions student loans with low interest rates and deferment options during residency.
-
Can you consolidate a healthcare career student loan?
You can use a federal Direct Consolidation Loan to consolidate student loans for health care professions, except for primary care loans.
