4 programs that offer student loan forgiveness

M. Blake Miller

October 12, 2026

For many physicians, student loans are an unavoidable part of the journey through medical school. Between demanding coursework, clinical rotations, and long hours in the hospital, there is often little time to focus on personal finances. Residency is typically when your financial picture starts to come into focus, making it an ideal time to learn how federal student loans and loan forgiveness programs work.

A widespread forgiveness option

Public Service Loan Forgiveness (PSLF) is one of the most widely used student loan forgiveness programs available to physicians. Designed specifically for Federal Direct Loans, PSLF can forgive your remaining student loan balance after you make 120 qualifying monthly payments while working for a qualifying employer.

It’s important to note that private student loans and refinanced student loans are not eligible for PSLF.

Qualifying employers include:

Nonprofit hospitals with 501(c)(3) status

State, local, federal, tribal government hospitals

VA facilities

County hospitals

Nonprofit academic medical centers

If you enter private practice or work for a physician-owned practice, you generally will not qualify for PSLF. Likewise, employment with a for-profit hospital does not meet the program’s eligibility requirements.

How do I make sure I’m eligible for PSLF?

To remain eligible for PSLF, you’ll need to:

Enroll in an income-driven repayment (IDR) plan

Make qualifying monthly loan payments

Work full-time for a qualifying employer

Submit employment certification regularly

To help your payments start counting toward PSLF as early as possible during residency, consider your repayment options before the six-month grace period following medical school ends. With PSLF, qualified payments can occur within this grace period if you opt into an IDR plan sooner. Since IDR plans look at the prior year's tax return to set required payments, you could begin with a very low, or even $0 payment for the first 12 months that would still count as a qualifying PSLF payment.

Employment certification helps ensure your payments are accurately tracked and counted toward the 120-payment requirement. Should any requirements change, the team at Physician Financial Group has developed a process to stay on top of new developments, so you can too.

You should also be cautious about using loan forbearance or deferment. While both can provide valuable short-term relief, some periods of deferment or forbearance may not count toward the 120 qualifying payments required for PSLF. Admin forbearance, elected by the government, is the only option that typically does still count toward PSLF.

Other possible loan repayment and forgiveness opportunities

While PSLF often provides the greatest benefit for physicians, it is not the only program worth considering. Depending on your specialty, practice location, and career goals, you may qualify for additional loan repayment programs.

For more detailed information about available programs, the Association of American Medical Colleges maintains a comprehensive database of loan repayment, forgiveness, and scholarship opportunities.

National Health Service Corps (NHSC) Repayment Programs

The National Health Service Corps (NHSC) Loan Repayment Programs are designed for primary care physicians, psychiatrists, OB/GYNs, dentists, and certain advanced practice providers who agree to serve in communities with healthcare provider shortages.

Participants must commit to at least two years of full-time service at an NHSC-approved site located within a designated Health Professional Shortage Area (HPSA). Eligible practice settings may include:

Federally Qualified Health Centers

Community health centers

Rural clinics

Public health clinics

Depending on the specific program and service commitment, eligible physicians may receive up to $120,000 paid in annual installments over four years.

Indian Health Service (IHS) Loan Repayment Program

Physicians interested in serving American Indian or Alaska Native communities may qualify for the Indian Health Service (IHS) Loan Repayment Program.

This program offers up to $50,000 in student loan repayment assistance in exchange for a two-year service commitment at an IHS facility, tribal health program, or urban Indian health organization. Additional repayment assistance may be available for participants who extend their service beyond the initial commitment period.

State physician loan repayment programs

Many states offer student loan repayment programs designed to attract physicians to medically underserved areas.

While program details vary by state, participants generally agree to practice in an approved shortage area for a period of two to four years in exchange for student loan repayment assistance. Benefits can range from modest awards to substantial repayment opportunities depending on state and specialty.

If you have a preferred region where you plan to practice, researching state-specific programs early can help you identify opportunities that align with your specialty and career goals.

Specialties commonly prioritized by these programs include:

Family Medicine
Internal Medicine
Pediatrics
OB/GYN
Psychiatry

Combining loan repayment programs

For physicians with significant student loan balances, combining repayment programs may provide the greatest overall financial benefit.

In some cases, multiple programs can work together because they reward different activities. For example, PSLF rewards making qualified payments while employed by a qualified employer. Other programs, such as state repayment initiatives or NHSC programs, reward service in medically underserved communities. Because these benefits are often based on different eligibility criteria, it may be possible to participate in more than one program at the same time.

For many physicians, PSLF serves as the foundation of their repayment strategy because it offers the potential for the largest overall amount of loan forgiveness. Supplementing PSLF with another repayment program may reduce your outstanding loan balance more quickly, lower the amount of interest that accrues over time, and provide additional flexibility should your employment situation change.

Shape a repayment strategy early

Managing student loan debt can feel overwhelming, especially when balances continue to grow throughout medical school and residency. Fortunately, understanding your repayment and forgiveness options early can help you create a strategy that supports both your financial goals and your career plans.

Whether you're pursuing PSL, or a combination of opportunities, maintaining eligibility requirements and staying consistent with your repayment plan can help maximize available benefits while minimizing long-term costs.

If you have questions about student loans, repayment plans, or loan forgiveness opportunities, contact Physician Financial Group today. Our team can help you evaluate your options and build a repayment strategy tailored to your unique situation.

Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. This material is intended for general use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation. 9147198.1 (Exp. 10/28)