Student Loan Forgiveness: A Retention Strategy Healthcare HR Can't Afford to Ignore

By Joy Silvern, Executive Director, Public Service Promise

Healthcare human resources professionals are no strangers to the retention crisis. Turnover is costly, burnout is widespread, and the competition for talent shows no signs of easing. But one powerful retention tool may already be available to your workforce, and many employees don't know it exists.

The Public Service Loan Forgiveness (PSLF) program, administered by the U.S. Department of Education, forgives the remaining direct loan student loan balances of employees working for qualifying government or nonprofit organizations. To date, more than $87.6 billion has been forgiven through the program, with average relief of nearly $70,000 per borrower, benefiting over 1 million people, according to the Department’s Office of Federal Student Aid.

The healthcare sector is well positioned to benefit. An estimated 4.8 million healthcare workers in the U.S. carry student debt that qualifies for PSLF — including doctors, nurses and hospital staff employed by government entities or 501(c)(3) health systems. Research indicates that up to 68% of all health system employers qualify as nonprofits for PSLF purposes. Yet awareness and successful enrollment remain persistently low.

The financial stakes are significant. The median medical school debt reached $205,000 in 2024, according to the Association of American Medical Colleges, and 14% of healthcare employees overall owe more than $100,000. More telling for HR teams: more than two in three healthcare employees considering a job change cited student loan assistance as a key factor in their employment decisions. Employees who receive help navigating PSLF report measurable results — nearly four in five report reduced financial stress, and three in five have remained in their roles for five years or more, compared to two in five among those without access to that support.
That's where healthcare HR teams can make a meaningful difference. Simple, proactive steps can move the needle:

• Feature PSLF eligibility in job postings and onboarding materials. Many candidates don't know their future employer qualifies.
• Host a free, expert-led educational webinar with Public Service Promise. Employees need clear, accurate guidance on how to apply and what to track.
• Include PSLF in annual benefits communications alongside health insurance and retirement options.

Public Service Promise is a non-profit organization that was created to help eligible borrowers successfully navigate the PSLF process. The organization partners with nonprofit employers and membership associations to offer free, expert-led webinars that give public servants the information they need to submit successful applications. There is no cost to the employer or the employee.

For healthcare HR teams looking for a high-impact, no-cost addition to their retention and benefits strategy, educating your workforce about PSLF is a strong place to start. Employee who understand and access this benefit are more financially secure, more engaged and more likely to stay. ♦

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Author bio:

Joy Silvern is the Executive Director of Public Service Promise. She served as the Deputy Chief of Staff at the US Department of Education for Secretaries Duncan and King. Prior to working for the Department, Joy was the Vice President for Advocacy, Organizing and Engagement at Leadership for Educational Equity.  Joy also served as Legislative Assistant and chief education advisor to U.S. Senator Michael Bennet. Prior to her work with Senator Bennet, Joy served as the Policy Director for Obama's Campaign for Change in Colorado; worked on several other political campaigns; and as a Community Organizer for the Industrial Areas Foundation in Los Angeles. Joy taught 5th Grade in the Denver Public Schools, and was a Teach For America Corps member in Washington DC. She holds an MSW from the University of Michigan and a BA in Urban Studies from the University of Pennsylvania.

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