What Is NHSC Loan Repayment?
The National Health Service Corps (NHSC) Loan Repayment Program is a federal program administered by the Health Resources and Services Administration (HRSA). It provides student loan repayment assistance to licensed primary care providers who agree to work in underserved communities at NHSC-approved sites.
For Advanced Practice Providers like Nurse Practitioners, Physician Assistants, Certified Nurse Midwives, and CRNAs, this program offers one of the most generous loan repayment benefits available anywhere — up to $50,000 for a two-year full-time commitment, with additional continuation awards possible after that.
Unlike income-driven repayment plans that take 20–25 years, NHSC loan repayment delivers a large, direct payment toward your debt in a short time frame. And unlike many employer-sponsored benefits, NHSC funds go directly to your loan servicer — they are not taxable as income.
Who Qualifies?
The NHSC Loan Repayment Program is open to a specific set of primary care disciplines. Advanced Practice Providers are well-represented:
Eligible APP Disciplines
- •Nurse Practitioners (NPs) — Family, Adult, Pediatric, Psychiatric-Mental Health, Women's Health
- •Physician Assistants (PAs) — all primary care specialties
- •Certified Nurse Midwives (CNMs)
- •Mental/Behavioral Health Providers — including Psychiatric NPs, Clinical Psychologists, Licensed Clinical Social Workers
Other Requirements
- •U.S. citizen or U.S. national
- •Current, unrestricted, full-scope clinical license in the state of practice
- •Outstanding qualifying educational loans (federal or commercial)
- •Employment (or accepted offer) at an NHSC-approved site located in a Health Professional Shortage Area (HPSA)
- •Not in breach of any other health-professional service obligation
Award Amounts
The NHSC offers different award levels depending on your commitment type. Sites in higher-need HPSAs receive priority during the competitive application process.
| Commitment Type | Duration | Award Amount |
|---|---|---|
| Full-Time | 2 years (min. 40 hrs/wk) | Up to $50,000 |
| Part-Time (Half-Time) | 2 years (20–39 hrs/wk) | Up to $25,000 |
| Continuation (per year) | 1 year | Up to $20,000 |
Note: NHSC loan repayment funds are paid directly to your loan servicer and are not subject to federal income tax.
How to Apply
The NHSC LRP application opens once per year, typically in the spring. The process is competitive — higher-need HPSA sites score better. Here's the step-by-step process:
Verify your eligibility
Confirm your discipline is eligible, you have qualifying loans, and you meet citizenship and license requirements.
Find an NHSC-approved site
Search the NHSC Job Center or browse FQHC positions on Health Center Careers. Most FQHCs are NHSC-approved.
Secure employment
You must be employed or have a signed offer letter from an NHSC-approved site before applying for the LRP.
Submit your application
Apply through the NHSC BHW Portal during the annual application window. You'll need loan statements, license info, and employment verification.
Begin your service commitment
Once accepted, your two-year service obligation begins. NHSC disburses payments directly to your loan servicer.
NHSC vs. PSLF: Which Is Better?
Both programs can help eliminate student debt, but they work differently. The good news: you can use both simultaneously.
| Feature | NHSC LRP | PSLF |
|---|---|---|
| Time to Full Benefit | 2 years | 10 years (120 payments) |
| Max Benefit | $50K + continuations | Full remaining balance forgiven |
| Employer Requirement | NHSC-approved site in HPSA | Any 501(c)(3) or government employer |
| Eligible Loans | Federal + commercial | Federal Direct Loans only |
| Taxable? | No | No (through 2025; may change) |
| Competitive? | Yes (annual application) | No (entitlement-based) |
Pro tip: Many providers stack both programs. While serving at an NHSC site, your qualifying monthly payments count toward PSLF. If your loans exceed $50K, PSLF can forgive the rest after 10 years of payments.