Key Points
- CMS opened enrollment on October 26, 2026, for Nurses for Nursing Homes, which pays RNs and LPNs/LVNs up to $40,000 in student loan repayment plus a $10,000 stipend.
- Nurses must commit to three years at a qualifying nursing home and average at least 30 hours a week each quarter.
- The payments are taxable, so the full $50,000 could add roughly $11,000 in federal income tax over three years for a nurse in the 22% bracket.
The Centers for Medicare & Medicaid Services launched Nurses for Nursing Homes, a $275 million program that pays registered nurses and licensed practical or vocational nurses up to $40,000 toward their student loans and a $10,000 stipend.
The first enrollment window opened October 26, 2026. In return, nurses commit to three years at a qualifying nursing home, a trade similar to other student loan forgiveness programs for nurses.
CMS is putting up $100 million, and states have committed at least $175 million more, enough to support more than 4,000 nurses. The money comes from civil monetary penalties that CMS and states collect from nursing homes, so HHS says the program costs taxpayers nothing.
For many new nurses, $40,000 covers a large share of what nursing school costs.
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Why It Matters
This program pays out in three years, far faster than Public Service Loan Forgiveness, which takes 120 qualifying payments and requires a government or nonprofit employer.
That employer rule shuts out most nursing home nurses, since 72% of nursing homes are for-profit according to KFF data. The CMS program has no ownership test.
Any Medicare-, Medicaid- or dually certified facility in an eligible area qualifies, which matters for nurses weighing a nursing home offer against a hospital job with its own repayment benefit.
The stipend also reaches nurses who never borrowed. HHS says nurses who graduated within the past two years can qualify for the $10,000 stipend without eligible loan debt, a group most state student loan repayment programs can’t help.
The Details
| Feature | Details |
|---|---|
| Loan Repayment | Up to $40,000 |
| Incentive Stipend | Up to $10,000 |
| Maximum Total | $50,000 |
| Eligible Licenses | RN, LPN, LVN |
| Service Commitment | 3 years at a qualifying nursing home |
| Hours Required | 30+ hours a week, averaged each quarter |
| Payment Schedule | Quarterly, after hours are verified |
| Tax Treatment | Taxable income |
| First Enrollment Window | Oct. 26, 2026 to Jan. 24, 2027 |
Beyond the headline numbers, the rules published in CMS’s program FAQ set these conditions:
- License: An active RN or LPN/LVN license is required when employment begins.
- Hours: Payments go out quarterly, and only after verification that the nurse averaged 30 hours a week over the quarter.
- The 60-day rule: Applicants generally can’t have worked in a nursing home during the 60 days before opening an application account. Nurses hired at an eligible facility between July 28 and October 25, 2026, are exempt during the first window.
- Eligible loans: Federal Direct, Stafford, Perkins and consolidation loans qualify, along with private and nursing school loans used for nursing education.
- Where you can work: Every rural nursing home qualifies, plus facilities in areas CMS ranked as having the fewest RNs per resident of the general population. A limited number of state inspector roles also count.
CMS’s announcement doesn’t spell out what happens to unpaid quarters if a nurse leaves before three years. Read the service agreement closely before signing, a step worth taking with any service-based repayment program.
The Tax Bill Nurses Should Plan For
CMS treats these payments as taxable income and sends them to the nurse, who is responsible for applying the money to the loans. That differs from employer student loan assistance, which is tax-free up to $5,250 a year.
If the full $50,000 is spread evenly over 12 quarters, a nurse would receive about $4,167 a quarter, or $16,667 a year. At a 22% federal rate, that’s about $3,667 a year in federal income tax, or roughly $11,000 over three years before state taxes. Setting aside part of each payment avoids the kind of surprise bill borrowers face with taxable student loan forgiveness.
The extra income also raises adjusted gross income. Borrowers on the Repayment Assistance Plan could see a higher monthly payment at their next recertification, and the RAP calculator can show how much.
How This Connects
Nurses already have service-based options, including the HRSA Nurse Corps program and PSLF, both covered in our nursing loan forgiveness breakdown. CMS hasn’t said whether its payments can be combined with Nurse Corps or how they interact with PSLF.
A nurse at a nonprofit or government-run nursing home should confirm both before signing, and our list of common PSLF mistakes is a good place to start.
What’s Next
The first 90-day window runs through January 24, 2027. CMS said it will monitor results and adjust its eligible-area method, so the list of qualifying facilities could change in later rounds. Nurses can check eligibility at the Nurses for Nursing Homes enrollment site or sign up for CMS program updates. Those outside an eligible area can compare state loan repayment options for nurses instead.
Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.