Nurse Loan Forgiveness 2026: NURSE Corps vs PSLF vs State

Part 2 of 2: Which roles and workplaces qualify, taxes, timing and a checklist

General information, not legal, financial or immigration advice. Rules vary by state/province; check the official source or a licensed professional.

NURSE Corps LRP

According to HRSA, you must be a licensed RN, an advanced practice registered nurse (such as a nurse practitioner) or a nurse faculty member with qualifying nursing debt. Your nursing education must be from an accredited school in a US state or territory. You must work full-time in an eligible critical shortage facility (CSF) in a high-need area (RNs and APRNs) or at an accredited school of nursing (faculty).

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HRSA defines a CSF as a public or private health care facility located in, designated as, or serving a Health Professional Shortage Area (HPSA). HRSA gives funding preference to applicants with the greatest financial need.

PSLF

Under 34 CFR 685.219, qualifying employers include:

federal, state, local or tribal government organisations, agencies or entities (including the US Armed Forces and National Guard);
public child or family service agencies;
501(c)(3) tax-exempt organisations;
tribal colleges and universities;
certain other nonprofits that provide qualifying public services, if they aren’t businesses organised for profit, labour unions or partisan political organisations.

Many nurses work for nonprofit or public hospitals, which can qualify. The employer’s tax status matters, not the type of work. A nurse at a for-profit hospital doesn’t qualify on that job, even when the work is identical.

A rule change to know: under the current regulation, the Secretary of Education can determine that an employer engaged in activities on or after 1 July 2026 that amount to a “substantial illegal purpose”. If that happens, payments made after that determination don’t count as qualifying payments for that employer.

Repayment plans: the Department of Education’s 1 May 2026 final rule says repaying under the new Repayment Assistance Plan (RAP) qualifies for PSLF if all other requirements are met. Other qualifying plans are listed in the regulation.

PSLF details that trip up nurses

The regulation (34 CFR 685.219) has three definitions worth checking before you count on PSLF:

Full-time means a minimum average of 30 hours a week in qualifying employment during the period being certified. You can combine more than one qualifying job to reach it.
Employer generally means the organisation that issues your IRS Form W-2. If you’re placed at a nonprofit hospital by a for-profit staffing agency that pays you, the agency is usually your employer for PSLF. The regulation makes limited exceptions, such as a payroll provider contracted by a qualifying employer, or a contracted role that state law says the qualifying employer can’t fill with a direct employee.
Eligible loans are Direct Subsidized, Direct Unsubsidized, Direct PLUS and Direct Consolidation Loans. If you consolidate Direct Loans, the regulation counts a weighted average of the qualifying payments you’d already made.

You must be working full-time for a qualifying employer both when you complete the 120 payments and when you apply for forgiveness.

NURSE Corps: practical points

HRSA says the program pays up to 85% of unpaid nursing education debt across the initial contract and an optional third year. Applicants in the 2026 cycle were to be told their award status by 30 September 2026. Before the next cycle opens, read HRSA’s Application and Program Guidance and its application checklist, and confirm that your facility is a critical shortage facility using HRSA’s shortage-area tools.

NHSC programs

The NHSC SUD Workforce LRP lists registered nurses, nurse practitioners, certified nurse-midwives and psychiatric nurse specialists among its eligible disciplines. Service must be at an NHSC-approved SUD treatment facility in a HPSA, for at least three years. The main NHSC Loan Repayment Program focuses on primary care, dental, behavioural health and maternity care clinicians. Check HRSA’s current guidance for the nursing roles it includes and its award amounts.

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Quick fit check

Your situation	Programs to look at first
RN at a nonprofit or public hospital, with federal Direct Loans	PSLF; NURSE Corps if the facility is a CSF
RN at a facility in a shortage area	NURSE Corps LRP; state programs
RN or NP in addiction treatment	NHSC SUD Workforce LRP
Nurse faculty	NURSE Corps LRP (faculty track); state faculty programs
Nurse at a for-profit employer, outside shortage areas	State programs; employer benefits

In short: NURSE Corps is about where you work (a shortage facility), PSLF is about who employs you (government or nonprofit), and NHSC SUD is about what you do (addiction treatment).

Taxes differ by program

Program	Tax treatment, as stated by the administering agency
NURSE Corps Loan Repayment Program	“These funds are not exempt from federal income and employment taxes.” (HRSA)
NURSE Corps Scholarship	“Your entire scholarship award is taxable.” (HRSA)
NHSC loan repayment (including SUD Workforce LRP)	“NHSC loan repayment funds are exempt from federal income and employment taxes.” (HRSA)
PSLF	Check studentaid.gov and IRS guidance, or ask a tax professional
State programs	Varies; ask the program administrator

The NURSE Corps and NHSC difference can be large on a big award, so budget for any tax bill before you accept. HRSA notes that it can’t give tax advice.

Timing

HRSA cycles are annual. The 2026 NURSE Corps LRP and NHSC SUD Workforce LRP cycles are closed. In 2026, the SUD program opened on 30 January and closed on 31 March, with awards notified by 30 September. Future dates may differ, so sign up for HRSA’s email updates.
PSLF runs continuously. Use the PSLF Help Tool on studentaid.gov to certify employment regularly. Don’t wait until the 120th payment.

The four programs side by side: tax, timing and where to apply

Program	Taxable? (per the agency)	When you can apply	Where
NURSE Corps LRP	Yes: not exempt from federal income and employment taxes	Annual HRSA cycle; 2026 cycle closed	HRSA’s My BHW portal
PSLF	Check studentaid.gov and IRS guidance	Any time; certify employment regularly	studentaid.gov or your loan servicer
NHSC SUD Workforce LRP	No: exempt from federal income and employment taxes	Annual HRSA cycle; 2026 cycle ran 30 January to 31 March	HRSA’s My BHW portal
State programs	Varies; ask the administrator	Set by each state	Usually your state health department

Where to apply: PSLF through studentaid.gov or your loan servicer, and NURSE Corps and NHSC through HRSA’s My BHW portal.

Before you apply: a short checklist

List every loan, with its type (federal Direct, other federal, private), servicer and balance.
Confirm your employer’s legal status (government, 501(c)(3) or other) and whether your facility is a critical shortage facility or in a HPSA.
Download the current HRSA Application and Program Guidance (APG) and read the service and default terms.
Calculate the tax effect of any taxable award before you accept it.

How to apply: official application pages

Each program has its own application, and the federal programs below don’t charge an application fee. Use the official pages only:

NURSE Corps Loan Repayment Program: apply through HRSA’s NURSE Corps LRP page during the annual application window. Check that your facility qualifies with the HPSA Find tool first.
Public Service Loan Forgiveness: certify your employment and track qualifying payments with the PSLF Help Tool on studentaid.gov. The PSLF overview explains which loans and repayment plans count.
State programs: many states run their loan repayment through the federally supported State Loan Repayment Program, which links to each state’s contact. Some states also run separate programs through their health department.
NHSC programs: the NHSC SUD Workforce LRP is open to RNs who work at approved substance use disorder treatment sites; details are on the HRSA page in the Sources list.

Your servicer, HRSA and studentaid.gov will never ask you to pay a third party to apply. If someone offers to file for you for a fee, you can do the same steps yourself for free on these pages.

Nurse loan forgiveness FAQs

Can an LPN get NURSE Corps loan repayment?

HRSA lists licensed RNs, APRNs and nurse faculty as eligible for the LRP, not LPNs. Some state programs may include LPNs, so check your state’s list.

Does travel or agency nursing count for PSLF?

Only if your W-2 employer is a qualifying employer, or one of the regulation’s narrow exceptions applies. Working at a nonprofit hospital isn’t enough on its own.

Do PSLF payments have to be consecutive?

The regulation requires the equivalent of 120 qualifying monthly payments after 1 October 2007, while employed full-time by a qualifying employer. It doesn’t require them to be consecutive.

Is NURSE Corps money taxable?

Yes. HRSA says the funds are not exempt from federal income and employment taxes. NHSC loan repayment funds are exempt.

In short: the relief is real but conditional and taxed differently by program. Check your loan type and employer first, then apply through the official portal for each program.