How to Pay for Nursing School

Nursing school costs real money, but you have more ways to pay for it than you probably think. The U.S. Department of Education's Federal Student Aid office alone awards more than $120 billion in grants, work-study, and low-interest loans each year, and that is before you count grants and scholarships from private lenders and smaller organizations. This guide walks through how the money works so you can build a plan instead of guessing.

How to Approach Paying for Nursing School

Aid exists for students at every level, whether you just finished high school or you are returning to school after decades in the workforce. There are scholarships, loans, and grants tailored to different kinds of students, available from both private lenders and the federal government.

Start with the Free Application for Federal Student Aid (FAFSA). It determines what government assistance you qualify for, and most schools use it to build your aid package.

Terms worth knowing

• Financial aid package: The total of all the help given to a student. A package can combine loans, grants, and scholarships depending on what you qualify for.
• Financial need: The gap between what you are expected to pay and what your program costs. If you can pay $3,000 a year and the program costs $10,000, your financial need is $7,000.
• Interest: The fee you pay for borrowing money, applied to a loan at a rate set by the lender.
• Scholarship: Money awarded for achievement. It can come from private organizations, schools, the government, or other groups. A church or nonprofit might cover $500 of general expenses, while a school scholarship might cover thousands but apply only to tuition.
• Grant: Money to pay for school or related costs, usually need-based. You might qualify if you fall below a certain income level or meet other financial requirements.
• Federal loan: A loan from the federal government, part of a need-based aid package. Rates are generally lower than private loans, and most federal loans need no credit check or cosigner.
• Private loan: A loan from a bank or other lender. These carry credit and financial requirements, often need a cosigner if your credit is weak, and usually charge higher interest.
• Qualification: Every type of aid has a qualification process that can ask for your credit score, income, tax records, or prior schooling.

FAFSA: Start Here

Every student entering a nursing program should file the FAFSA, even if you do not expect to need loans. It is the only way to find out what need-based assistance you qualify for. The government uses your income and other financial details to calculate what you can be expected to contribute. Until you file, you are working blind.

Nursing Scholarships

Many scholarships exist for nursing students. Some are open to nearly anyone; others target specific specialties, cultural identities, medical situations, and more. See our nursing scholarships page for current options.

Grants for Nursing School

Grants are based on financial need and can cover tuition, housing, books, transportation, uniforms, and even childcare or other dependent care. The amount depends on your situation.

You usually do not repay a grant, as long as you finish your program on time. If you drop out, you might have to repay any portion considered an overpayment.

Nursing Student Loans

Unlike a grant, a loan has to be paid back, with interest, so you will repay more than you borrowed. The rate and repayment window depend on the lender and on factors like your credit history.

Federal student loans

Federal loans are the better option for most students:

• They do not have to be repaid while you are in school.
• They charge lower interest than private lenders.
• If you struggle to repay, you can qualify for help: deferment, an income-based payment plan, a temporary lower payment, consolidation, or even forgiveness.
• They require no credit history, so you can borrow even with bad credit or none at all.

Direct subsidized loans come from the U.S. Department of Education for students who meet income requirements and demonstrate financial need. The government pays the interest while you are in school.

Direct unsubsidized loans are also federal, but you do not have to meet income requirements. You are responsible for the interest that accrues while you are in school.

Both are often called Stafford loans.

Note on Perkins loans: the Federal Perkins Loan program ended on September 30, 2017, with final disbursements through June 2018, so it is no longer available to new borrowers. If you took one out earlier, you still repay it and keep its benefits. Today, very low-income students rely on direct subsidized loans and the Pell Grant instead.

Private student loans

Private loans come from banks, credit unions, and some schools. They tend to carry higher rates and fewer repayment options than federal loans, and payments are often required while you are still in school. High-interest private loans can leave you repaying more than double what you borrowed, which is a hard hole to climb out of. Use them as a last resort.

Loans for living expenses

Federal loans usually go straight to the school to cover your costs. Private loans are typically deposited into your bank account and can cover living expenses. Before reaching for a high-interest private loan, see whether grant money or scholarships can cover those costs instead.

Student Loan Forgiveness for Nurses

Nurses may qualify for loan forgiveness programs built for health professionals, applied to federal student loans. You will need to meet specific requirements to qualify.

Payment Deferrals

Like forgiveness, deferrals apply only to federal loans. You can use them during financial hardship such as a job loss.

Tuition Reimbursement

Many large employers, including hospitals and medical centers, reimburse tuition. They may pay for an employee to start a nursing program or advance a degree, such as going from RN to BSN. You will usually need to work for the employer for an agreed period before they reimburse you.

"Grow Your Own" Programs

Some hospitals run their own nursing programs. If you get in, they are generally free as long as you agree to work for the hospital for a set period after graduating. These programs usually grant diplomas rather than degrees.

The Bottom Line

Nursing is a growing field. RN jobs are projected to grow 5% from 2024 to 2034, with about 189,100 openings each year, and licensed practical and vocational nurse jobs are projected to grow 3%, according to the U.S. Bureau of Labor Statistics. Sorting out how to pay for school is the first real step toward that career, and the aid is there to take the stress off the tuition bill.

Frequently Asked Questions

Where should I start when paying for nursing school? File the FAFSA. It is the only way to find out what federal grants, work-study, and loans you qualify for, and most schools use it to build your aid package. File even if you do not expect to need loans.

What is the difference between a grant and a loan? A grant usually does not have to be repaid as long as you finish your program, and most are need-based. A loan has to be paid back with interest, so you repay more than you borrowed. Reach for grants and scholarships first.

Are federal or private loans better? Federal loans are the better option for most students. They carry lower interest, need no credit check or cosigner, do not require payments while you are in school, and offer relief options like income-based repayment, deferment, and forgiveness. Use private loans only as a last resort.

Are Federal Perkins loans still available? No. The program ended in 2017, with final disbursements in 2018. Very low-income students now use direct subsidized loans and the Pell Grant instead.

Can nurses get student loan forgiveness? Yes. Nurses may qualify for forgiveness programs built for health professionals, applied to federal student loans, if they meet the program's service and employment requirements.

Will an employer help pay for school? Often. Many hospitals and medical centers reimburse tuition or run their own "grow your own" programs, usually in exchange for a commitment to work there for a set period after you finish.