Health professions student loans: What they are and how to apply

While many student loans are open-ended, some are geared toward students entering specific industries, including health care. Health 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 the students through FAFSA and student aid letters. Because of this, not every school offers them. However, these loans come with unique benefits like lower interest and longer grace periods.

Types of health professions student loans

The Health Resources and Services Administration offers several health professions loans, each with its qualification requirements. In all cases, borrowers must demonstrate financial need.

Health Professions Student Loans (HPSL)

Health Professions Student Loans (HPSLs) are for full-time or part-time college students pursuing higher education in one of the following fields of study:

• Doctor of Dentistry
• Bachelor or 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 for full-time students from a disadvantaged background (as defined by the U.S. Department of Health and Human Services) seeking a degree in one of the following programs:

• Doctor of Allopathic Medicine
• Doctor of Osteopathic Medicine
• Doctor of Dentistry
• Bachelor or 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 for nursing students who are enrolled at least half-time and are pursuing a diploma in one of the following degree types:

• Associate degree
• Baccalaureate degree
• Graduate degree

Primary Care Loans (PCL)

Students who apply for Primary Care Loans (PCL) will need to commit to getting residency training in primary care and pursuing work as a primary care physician after graduation. They should also be pursuing a full-time degree in one of the following:

• Doctor of Allopathic Medicine
• Doctor of Osteopathic Medicine

Benefits and drawbacks of health professions student loans

Like any other type of student loan, there are advantages and disadvantages of these loans. Keep the following factors in mind before you apply.

Benefits of health professions student loans

With a health professions student loan, borrowers can benefit from zero interest and no payments during school and for 12 months after graduation — a grace period six months longer than with most other student loans. (One exception is NSL, which has a nine-month grace period.)

You can find a fixed-rate health professions student loan 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 come with a 10-year repayment plan, though they can be consolidated with federal Direct Loans if you’d like to extend your repayment period or sign up for repayment programs like income-driven repayment plans.

Drawbacks of health professions student loans

With that being said, loans in this category are need-based, which means that not everyone will qualify. Similarly, not all schools offer health professions student loans, and borrowing limits vary by institution. You should contact your financial aid office for specific information about how your school handles these loans.

On top of that, certain loan programs (including PCL) require you to commit to a certain career path in a high-need service area during repayment.

Finally, you must be a U.S. citizen or permanent resident to qualify for these loans.

How to get a health professions student loan

To apply for a health professions student loan, you’ll start by filling out the Free Application for Federal Student Aid (FAFSA). After you submit your FAFSA, you’ll receive your financial aid award letter from your school. If the school offers health professions student loans and you qualify for them, these options will be listed in your aid letter. The exact loan amount varies based on your need and availability of funds.

It’s worth noting that not all schools offer health professions student loans; they must meet specific requirements set forward by the federal government and send in applications to participate in the program. Reach out to your financial aid office before applying to confirm whether your school offers these loans and if there are any additional forms you’ll need to fill out to be considered.

Frequently asked questions about health professions student loans

• Can health care workers get student loan forgiveness?

  Widespread student loan forgiveness may not be on the books currently, and health professions student loans aren’t eligible 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 for Primary Care Loans), making them eligible for both options.

• Are health professions student loans federal loans?

  Health professions loans for students are not the same as federal student loans — they’re offered by the Health Resources and Services Administration rather than by the U.S. Department of Education. However, they can turn into federal student loans if you consolidate them with a Direct Consolidation Loan.

• Do private lenders offer health professions student loans?

  Private lenders may offer their own versions of health professions student loans, though these are not regulated by the U.S. government. However, there are some benefits to private loans; College Ave, for instance, offers health professions student loans with low interest rates and deferment options during residency.

• Can you consolidate a health professions student loan?

  You can use a federal Direct Consolidation Loan to consolidate health professions student loans, except for Primary Care Loans.