Nurse Corps: Loan Repayment and Scholarship Rules for 2027 Applicants

According to HRSA, the Loan Repayment Program pays 60% of a nurse's qualifying nursing school loans over a two-year contract. After that contract, a participant may apply for a third year and another 25% of the original loan balance. The payments are subject to federal income and employment taxes.

Service must be full-time in one of two settings. RNs and APRNs work at a critical shortage facility (CSF), and nurse faculty work at an accredited school of nursing. HRSA defines a CSF as a public or private health care facility in or serving a Health Professional Shortage Area (HPSA). For 2026, Rural Emergency Hospitals were added as an eligible CSF type.

HRSA defines full-time at a CSF as at least 32 hours a week for at least 45 weeks of each service year. Nurses other than faculty must spend at least 8 of those hours on direct patient care.

Some work arrangements do not qualify under the 2026 guidance. Nurses employed by staffing or travel nurse agencies are excluded. So are nurses on as-needed schedules, such as PRN, per diem, on-call, float, or pool work. Self-employed nurses and nurses with a temporary, restricted, or inactive license are also excluded.

An applicant cannot hold a second service obligation at the same time. Examples include the National Health Service Corps, state loan repayment programs, and employer loan repayment or scholarship programs. Members of the military reserves and National Guard remain eligible. HRSA also runs a credit check and does not select applicants who have defaulted on federal debts or earlier service obligations.

Awards go first to the applicants with the greatest financial need. HRSA measures need as the debt-to-salary ratio, the total qualifying loan balance divided by base salary. For RNs and APRNs, there are four tiers. They depend on whether the ratio is at least 100% and whether the facility's HPSA score is 14 to 25 or 13 and below. In fiscal year 2026, HRSA planned about 380 awards to new applicants and about 283 to continuing participants.

Funds are also divided by category. Up to 15% goes to maternal health nurses, up to 15% to psychiatric mental health nurse practitioners, and up to 10% to nurse faculty. The remaining funds are split between RNs and APRNs at primary care CSFs and those at hospitals and other CSFs, with up to half of the remainder for each.

The Scholarship Program pays tuition, eligible fees, and other reasonable costs such as books, clinical supplies, and uniforms. It also pays a monthly stipend, set at $1,642 a month for full-time students in the 2026-2027 school year. According to HRSA, the entire award is taxable, and federal income and FICA taxes are withheld from the stipend.

In return, a scholar works full-time, or the part-time equivalent, at a CSF after graduation. One or two school years of support carry a two-year service commitment. Three years of support carry three years of service, and four years carry four. Support is renewed one school year at a time, up to four years.

Applicants must be US citizens, US nationals, or lawful permanent residents. They must be accepted or enrolled in a nursing degree program at an accredited US school and start classes by September 30 of the award year. They cannot have federal judgment liens, overdue federal debt, or another service commitment.

Preference goes to applicants with the greatest financial need, based on the Student Aid Index on the FAFSA Submission Summary. Tier 1 covers students in programs leading to an RN license or a nurse practitioner role, including nurse-midwives. Tier 2 covers graduate students training as nurse anesthetists or clinical nurse specialists. For 2026, HRSA reserved up to 25% of funds for women's health NP and nurse-midwife students, and up to 25% for students in two-year ADN programs.

Nurses planning to apply for loan repayment can check now whether their employer is a CSF. HRSA's HPSA Find tool answers this, as does the HRSA help line at 1-800-221-9393. Applicants also need a scheduled full-time job of at least 32 hours a week and current statements for every qualifying nursing loan. Any other service obligation must end before the application deadline.

Students planning to apply for the scholarship need a completed FAFSA, because HRSA measures financial need with the Student Aid Index. They also need letters of recommendation and proof of acceptance or enrollment. According to HRSA, application review takes about three to four months.

Both programs require a signed contract. A participant who does not finish the service must repay all payments received, including taxes withheld, plus interest.

Nurse Corps pays up to 85% of nursing school debt for RNs, APRNs, and nurse faculty in exchange for full-time service. RNs and APRNs serve at a critical shortage facility, and faculty serve at an accredited school of nursing. For students, it pays tuition, fees, and a monthly stipend in exchange for service after graduation. The 2026 cycles are closed. Applicants for the next cycle can confirm their facility's eligibility, organize loan records or file the FAFSA, and sign up for HRSA notices.