If you have federal student loans and qualify for student loan forgiveness – like many nurses – it’s likely that you’re feeling uncertain about how new laws and policies will impact your loans and potential forgiveness.

If these changes are leaving you feeling confused and frustrated, you’re not alone.

Laurel Road, a digital banking platform that can help nurses find financial freedom, recently conducted a survey in partnership with Luminary which found that 76% of people with student loan debt feel overwhelmed by excessive information and 70% feel overwhelmed by repayment options. 

It is clear that borrowers are seeking guidance for navigating the maze of options and information around federal loan repayment. Below, Alyssa Schaefer, Chief Experience Officer and General Manager at Laurel Road, shares her expert insights to help you on your repayment journey. 

Q: How can nurses better understand their financial options?

A: It can be tough to figure out all available financial options alone, especially as a nurse with a demanding schedule and little extra time to navigate the complex world of student loans. At Laurel Road, we understand the uncertainties that come along with navigating student loan repayment, which is why we recommend borrowers take advantage of our free student loan consultation where a student loan specialist can help provide financial guidance on repayment and forgiveness options. 

Q: How does a forbearance period work?

A: A forbearance period gives borrowers temporary relief by pausing or reducing student loan payments during times of financial hardship. Forbearance can give borrowers a chance to catch up and help them through difficult financial situations. Although it can work well for short periods, forbearance isn’t a long-term solution and shouldn’t be your only plan.

For borrowers pursuing forgiveness, it’s also important to remember that participating in forbearance means you aren’t making qualifying payments and may extend the time it takes for you to meet requirements for forgiveness.

Q: What do nurses with federal student loans need to know about PSLF?

A: Some nurses are considered public service workers, like those who work for government or not-for-profit organizations. Nurses who work full-time in this setting could be eligible for a Public Service Loan Forgiveness (PSLF) program, which can erase some or all student loan debt. 

To be eligible for a PSLF program, you must also have Federal Direct Loans, be enrolled in a qualifying repayment plan, and make 120 qualifying payments (10 years).

If you’re working in public service, it’s crucial to maximize payments under the PSLF program – don’t wait several months (or years!) to start making payments! Making qualifying payments now is crucial so you don’t risk potential changes to PSLF down the road.

Q: Can you explain Income-Driven Repayment (IDR) options?

A: IDR plans base monthly student loan payments on socioeconomic factors such as income and family size. Unlike PSLF, you do not have to work in the public sector to be eligible for eventual forgiveness through IDR, though nurses pursuing PSLF are typically enrolled in an IDR plan.

IDR plans allow lower monthly payment amounts and include plans such as Income-Based Repayment (IBR), Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR). A Laurel Road student loan specialist can help you navigate the ever-changing student loan landscape and find the right plan for your situation. 

Q: What should borrowers who are currently enrolled in “SAVE” be doing to prepare should the program be eliminated?

A: If you are currently enrolled in in the Saving on A Valuable Education (SAVE) plan, you have been placed on interest-free forbearance until September 2025 and are not earning credit toward the PSLF program. You should start to think about what your monthly payment would be in a different IDR such as ICR, or PAYE. These plans count toward PSLF and will help you meet the 10-year requirement faster. 

However, note that as  a result of the injunction preventing the U.S. Department of Education from implementing SAVE and parts of other Income-Driven Repayment (IDR) plans, IDR and online loan consolidation applications are temporarily unavailable.

Q: How can nurses navigate policy changes that affect loans?

A: With any new administration, it’s expected to see changes to various reforms to existing policies. As talk around altering student loan policies continues, it is common to feel a degree of unpredictability and uncertainty, which is why it is crucial that you continue to monitor studentaid.gov for information on changes to repayment and forgiveness programs. 

Again, speaking with a Laurel Road student loan specialist will help ensure you’re taking the right approach for your situation. For the best financial outcome, stay flexible and up-to-date on policy changes to make adjustments where needed. 

Q: How can nurses best understand their financial situation and get on the best path forward? 

A: To best understand your financial situation, you must first take an inventory of your debt. This can feel overwhelming, but understanding financial specifics is vital to improving fiscal wellbeing.

As a nurse, you should reach out to your employer and ask if they offer any employee benefit programs that can help you achieve your financial goals. Programs like Laurel Road for Healthcare Employers can offer employees the financial resources they need. 

You can also take advantage of Laurel Road Student Loan Freedom^SM, a program designed to help you get on the right track and find freedom from the stress of student loan debt. You can schedule a free consultation with one of our experts to take the first step on the path to financial success!