Michigan is taking bold action to combat the ongoing nursing shortage with a powerful incentive: up to $300,000 in tax-free student loan repayment for registered and licensed practical nurses who serve in eligible health care settings across the state.
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Announced on April 3, 2025, by the Michigan Department of Health and Human Services (MDHHS), the Nurse Loan Repayment Program (NLRP) is designed to recruit and retain qualified nurses in critical care roles at psychiatric facilities, nonprofit clinics, public schools, and other underserved health care locations.
Here’s everything you need to know about how Michigan nurses can benefit from this $300,000 nurse loan forgiveness opportunity, including application steps, eligibility rules, and important deadlines.
What Is the Michigan Nurse Loan Repayment Program (NLRP)?
The NLRP is a newly launched initiative by MDHHS that offers tax-free student loan repayment for qualified nurses who commit to working full-time in Michigan’s most urgently needed care settings.
Key Program Highlights:
- Up to $300,000 in loan repayment available over multiple service terms.
- Payments are in addition to your salary – employers cannot reduce your compensation in exchange for NLRP benefits.
- Funded by a $9 million allocation for student loan relief across Michigan.
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Who Can Get the $300K Student Loan Repayment in Michigan?
To qualify, applicants must hold either a:
- Registered Nurse (RN) license
- Licensed Practical Nurse (LPN) license
Note: Certified Nurse Assistants (CNA), medical assistants, and those with temporary licenses are not eligible.
Basic Eligibility Criteria:
- Must work full-time (40+ hours per week) for at least 45 weeks per year.
- Must commit to a two-year service period, renewable for up to:
- Four years at state psychiatric hospitals
- Ten years at other eligible nonprofit practice sites
- Must not be in default on any federal student loans.
- Cannot currently participate in another loan repayment program (except Public Service Loan Forgiveness).
Where Do You Have to Work to Qualify for the NLRP?
The program supports placements at nonprofit or public sector health care facilities, including:
- State psychiatric hospitals
- Public K–12 schools
- Nursing schools (for full-time nurse educators)
- Eligible nonprofit clinics or health centers
For the full list of approved practice sites, nurses should visit the official MDHHS NLRP page or contact their student loan servicer directly.
How the $300,000 Loan Repayment Works
- Payments are made in two-year service increments.
- The total amount over a full term can add up to $300,000.
- Nurses working in psychiatric facilities can serve up to 4 years, while others can reapply for up to 10 years total repayment.
This is a tax-free benefit, meaning recipients will not owe federal or state taxes on the repayment amounts.
How to Apply for Michigan’s Nurse Loan Forgiveness Program
Application Deadline:
June 4, 2025
Steps to Apply:
- Visit the official application portal:
Apply here through the MDHHS website - Complete Part A of the application form online.
- Contact your student loan servicer to complete Nurse Application Part B.
- Submit all required documentation before the deadline.
Applicants are encouraged to apply early due to high demand and limited funding.
Why This Program Matters for Michigan Nurses
With more than 19,000 open health care positions in Michigan and 4,700+ nursing vacancies still unfilled in 2024, this ambitious loan forgiveness program is a game-changer.
MDHHS Director Elizabeth Hertel emphasized that nurses are the “backbone of the health care system,” and this financial relief will help rebuild the workforce while providing essential care to vulnerable communities.
FAQs: $300,000 Michigan Nurse Loan Repayment Program
Q: Is this loan repayment available to nurse educators?
Yes – full-time faculty at eligible nursing schools qualify.
Q: Are CNA or temporary license holders eligible?
No – only RNs and LPNs are eligible.
Q: Can I apply if I’ve defaulted on a student loan?
No – applicants must be in good standing with their student loans.
Q: Does this impact my salary?
No – employers cannot offset your compensation with this benefit.
Final Takeaway: A Life-Changing Opportunity for Michigan Nurses
If you’re a licensed RN or LPN in Michigan with student loans, the $300K Nurse Loan Repayment Program is one of the most impactful opportunities to get debt-free while doing meaningful work. With an application deadline of June 4, now is the time to act.
Apply today, spread the word to your fellow nurses, and take advantage of this historic investment in Michigan’s nursing workforce.