Nebraska Student Loan Forgiveness Programs
Nebraska offers student loan repayment assistance programs for health care providers in shortage areas and public-interest lawyers, plus service-based loans for health students and teachers that are forgiven if they work in the state. The two DHHS loan repayment programs carry the biggest dollars, and a 2025 law opened the state program to nurse anesthetists and dietitians. Everyone else should start with federal forgiveness programs, which cover far more jobs.
Nebraska Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Nebraska Loan Repayment Program (NLRP) | Physicians, dentists, PAs, NPs, CRNAs, psychologists, mental health practitioners, pharmacists, therapists, and dietitians in state shortage areas | $180,000 for doctors and dentists, $90,000 for others (half from DHHS, half from the local match) | 3 years | Rolling |
| NHSC Nebraska State Loan Repayment Program | Primary care, dental, and behavioral health providers at NHSC-approved sites | $50,000/year for doctors and dentists, $25,000/year for others, for 2–4 years | 2 to 4 years | Rolling |
| Legal Education For Public Service And Rural Practice LRAP | Attorneys at legal aid nonprofits or in designated legal shortage areas | Initially capped at $6,000/year by statute | 3 years | Annual Cycle |
| Rural Health Student Loan Program | Nebraska medical, dental, PA, and graduate mental health students | $30,000/year; $120,000 total for medical, dental, and doctoral students | 1 year of shortage-area practice per year of loan | Annual Cycle |
| Attracting Excellence To Teaching Program (AETP) | Students in Nebraska teacher education programs | $3,000/year for up to 5 years | Teach full time in a Nebraska school | Annual Cycle |
| Enhancing Excellence In Teaching Program (EETP) | Certified Nebraska teachers in graduate or endorsement programs | $175 per credit hour for up to 5 years | Keep teaching in Nebraska | Annual Cycle |
Programs That Help Repay Loans You Already Have
Nebraska borrowers carry roughly $32,900 in federal student debt on average, according to our Nebraska student loans and financial aid breakdown. These three programs send money toward that debt once you're working in a qualifying job. Many qualifying clinics and legal aid offices are also nonprofits, so compare each award with Public Service Loan Forgiveness.
Nebraska Loan Repayment Program (NLRP)
The state program pays up to $60,000 a year for three years to doctors and dentists and up to $30,000 a year to other professions, with the local employer or community covering half (Nebraska DHHS). State law caps the DHHS share at $30,000 a year ($90,000 total) for physicians, psychiatrists, dentists, and psychologists, and $15,000 a year ($45,000 total) for PAs, nurse practitioners, and other practitioners (Neb. Rev. Stat. 71-5663). Doctors comparing it with federal offers can use our breakdown of student loan forgiveness for doctors.
LB 312, signed in 2025, added nurse anesthetists and dietitian nutritionists to the professions eligible for loan repayment (Neb. Rev. Stat. 71-5662). The law also covers occupational and physical therapists, which the federal NHSC program doesn't, so allied health workers should see our nursing and health care forgiveness roundup for other options.
| Administered by | Nebraska DHHS Office of Rural Health, with recipients selected under the Rural Health Systems and Professional Incentive Act |
| Who qualifies | Nebraska-licensed physicians in approved specialties, psychiatrists, dentists, PAs, nurse practitioners, nurse anesthetists, psychologists, mental health practitioners, pharmacists, physical and occupational therapists, and dietitian nutritionists who aren't in residency |
| Award | Up to $180,000 over three years for doctors and dentists and up to $90,000 for other professions, split 50/50 between DHHS and a local match |
| Eligible loans | Government or commercial educational loans in your name; Parent PLUS loans, personal lines of credit, and credit cards don't qualify |
| Commitment | Three years in a state-designated shortage area, with at least 32 hours of scheduled patient time a week |
| Status | DHHS reviews applications as they come in; you need a job offer at a qualifying site first |
| Official source | DHHS Loan Repayment Programs |
NHSC Nebraska State Loan Repayment Program
This federally backed program, run by DHHS, pays up to $50,000 a year to doctors and dentists and up to $25,000 a year to other professions for two to four years of service (Nebraska DHHS). Four years at the top rate adds up to $200,000, and it pairs well with the PSLF rules for medical group workers at nonprofit clinics.
| Administered by | Nebraska DHHS Office of Rural Health |
| Who qualifies | Primary care, dental, and behavioral health providers, pharmacists, and bachelor's-level registered nurses at NHSC-designated sites; applicants must be U.S. citizens or nationals (DHHS) |
| Award | Up to $50,000 a year for doctors and dentists or $25,000 a year for other professions, split 50/50 between DHHS and the employer |
| Commitment | Two years minimum, up to four |
| Status | DHHS reviews applications as they come in and tells applicants which program fits |
| Official source | DHHS Loan Repayment FAQ |
Legal Education For Public Service And Rural Practice Loan Repayment Assistance Program
Nebraska helps repay law school debt for attorneys who work full time at tax-exempt legal aid organizations or practice in a designated legal profession shortage area (Neb. Rev. Stat. 7-206). The statute set the first annual cap at $6,000 per recipient and lets the board adjust it for inflation, and legal aid attorneys can also count that work toward nonprofit student loan forgiveness through PSLF.
| Administered by | Nebraska Commission on Public Advocacy, on recommendations from a program board |
| Who qualifies | Full-time salaried attorneys at tax-exempt public legal service organizations, or full-time attorneys in designated legal profession shortage areas |
| Award | Statute set the initial cap at $6,000 a year; the commission doesn't publish the current amount |
| Commitment | The equivalent of three years of full-time public legal service or shortage-area practice |
| Status | Annual applications; the commission has posted a 2026 application packet |
| Official source | Commission on Public Advocacy Applications |
Service-Based Funding For Students In Training
These three programs lend money for school and cancel it through service after graduation. They count as forgiveness only if you complete the service, and the health program charges 150% of principal plus interest if you leave, so weigh them against a private student loan with no strings attached.
Rural Health Student Loan Program
DHHS lends Nebraska health students up to $30,000 per academic year, capped at $120,000 for medical, dental, and doctoral mental health students and $30,000 for master's-level mental health and PA students (Neb. Rev. Stat. 71-5663). Borrowers practice one year in a Nebraska shortage area for each year of loan, and forgiveness happens quarterly as they work (Neb. Rev. Stat. 71-5666). Compare the terms with a standard medical school student loan before signing.
| Administered by | Nebraska DHHS Office of Rural Health and the Rural Health Advisory Commission |
| Who qualifies | Nebraska residents enrolled in a Nebraska medical, dental, PA, or approved graduate mental health program |
| Service | One year of full-time practice in an approved specialty in a designated shortage area per year of loan, starting within three months of finishing training |
| Penalties | Practicing outside a shortage area or outside Nebraska means repaying 150% of the outstanding principal plus 8% simple interest |
| Deadlines | DHHS rules set an annual application window of April 1 to June 1 |
| Official source | Neb. Rev. Stat. 71-5666 |
Attracting Excellence To Teaching Program (AETP)
AETP lends students in Nebraska teacher education programs $3,000 a year for up to five consecutive years (Nebraska CCPE). After the first two years of full-time teaching, the loan is forgiven at $3,000 a year, or $6,000 a year in very sparse districts and schools where at least 40% of students qualify for poverty assistance. It's Nebraska's main teacher program, so pair it with our list of student loan forgiveness options for teachers.
| Administered by | Nebraska Coordinating Commission for Postsecondary Education (moved from the Department of Education July 1, 2024) |
| Who qualifies | Undergraduate or graduate students in teacher education programs at eligible Nebraska institutions working toward an initial certificate |
| Award | $3,000 a year for up to five years; a separate $3,000 AETP loan is available during the student teaching semester (CCPE) |
| Service | Teach full time in an accredited or approved public or private Nebraska school |
| Deadlines | 2026 applications opened April 15, with a June 1 institutional review deadline; awards are first-come, first-served |
| Official source | CCPE AETP page |
Enhancing Excellence In Teaching Program (EETP)
EETP lends certified Nebraska teachers up to $175 per credit hour for graduate degrees or added endorsements, for up to five consecutive years (Neb. Rev. Stat. 85-3109). The loan is forgiven starting after the first two years of full-time teaching under the borrower's contract (Nebraska CCPE), which makes it an alternative to the graduate school forgiveness options most teachers rely on.
| Administered by | Nebraska Coordinating Commission for Postsecondary Education |
| Who qualifies | Certificated teachers employed at an accredited or approved Nebraska school who enroll in an eligible graduate or endorsement program, with shortage areas a focus of the program |
| Award | Up to $175 per credit hour |
| Service | Keep teaching in an accredited or approved Nebraska school after finishing the program |
| Deadlines | 2026 applications opened April 15, with a May 15 institutional review deadline; awards are first-come, first-served |
| Official source | CCPE EETP page |
Federal Forgiveness Options For Nebraska Borrowers
Federal programs reach far more Nebraska borrowers than the six state programs, and each one sets its own rules for stacking with a state award. Our full list of forgiveness programs covers every federal option.
Public Service Loan Forgiveness (PSLF). Borrowers who make 120 qualifying payments while working full time for a government agency or qualifying nonprofit get their remaining Direct Loan balance forgiven tax-free (StudentAid.gov). Nebraska public school teachers, state and county employees, and University of Nebraska staff all work for qualifying employers, and our PSLF breakdown covers the 2026 employer rule litigation.
Teacher Loan Forgiveness. Teachers with five consecutive years at a low-income school can receive up to $17,500 if they teach secondary math, science, or special education, or up to $5,000 in other subjects (StudentAid.gov). The same years can't count toward both Teacher Loan Forgiveness and PSLF, which our teacher forgiveness breakdown walks through.
Repayment Assistance Plan (RAP) and IBR. RAP launched July 1, 2026, and forgives any remaining balance after 360 qualifying payments (How RAP Works). Borrowers deciding between plans can run the numbers in our RAP vs. IBR comparison.
Health care programs. The National Health Service Corps pays full-time primary care providers up to $75,000 for a two-year commitment in its 2026 cycle, plus a $5,000 Spanish-language bonus (HRSA). Nurse Corps pays 60% of qualifying nursing debt for two years of service and another 25% for a third year (HRSA), and the STAR program pays up to $250,000 for six years in substance use disorder treatment (HRSA). Nebraska runs a HRSA-backed State Loan Repayment Program, covered above, and our nursing and health care forgiveness roundup covers eligibility for each federal option.
Veterinarians. None of Nebraska's six state programs covers veterinarians, but the USDA Veterinary Medicine Loan Repayment Program pays up to $25,000 a year for service in designated shortage areas (USDA NIFA). Vets carrying private loans should also check our list of private student loan forgiveness options.
Is Student Loan Forgiveness Taxed In Nebraska?
Nebraska ties its definition of income to federal adjusted gross income and updates automatically when federal law changes, so it follows federal treatment of forgiven student loans (The College Investor). PSLF, Teacher Loan Forgiveness, and death and disability discharges stay tax-free at both levels.
Forgiveness under income-driven plans became federally taxable again on January 1, 2026, when the American Rescue Plan exclusion expired, and Nebraska follows that treatment (Taxes And Student Loan Forgiveness). Borrowers expecting IBR or RAP forgiveness can estimate the bill with our student loan tax bomb calculator.
DHHS says its loan repayment awards aren't taxable income under the Affordable Care Act (Nebraska DHHS). Ask the Commission on Public Advocacy or CCPE how their awards are reported, and read our explainer on the 1099-C and student loan forgiveness before filing.
If Your Job Isn't Covered
Borrowers outside health care, teaching, and legal aid won't find a Nebraska program, but three options remain. Employers can pay up to $5,250 a year toward your student loans tax-free, and our list of companies that offer student loan repayment assistance shows who offers it.
Borrowers with private loans or high-rate federal loans they don't plan to have forgiven can lower their rate through student loan refinancing. Refinancing federal loans into a private loan ends eligibility for PSLF, RAP, and IBR, so don't refinance a balance you expect to have forgiven.
Families with leftover 529 money can put up to $10,000 per beneficiary toward student loans, which our 529 plan for student loan repayment explainer covers. Nebraska savers should also review the Nebraska Education Savings Trust (NEST) 529 plan.
Frequently Asked Questions
Does Nebraska Have A Student Loan Forgiveness Program?
Nebraska offers student loan repayment assistance programs rather than broad loan forgiveness. It runs six service-based programs for health care providers, legal aid and rural attorneys, health students, and teachers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
What's The Difference Between Nebraska's Two Health Care Loan Repayment Programs?
The state NLRP requires three years in a state-designated shortage area and covers allied health professions, while the NHSC Nebraska SLRP uses federal site designations and runs two to four years (Nebraska DHHS). DHHS reviews each application for both, and our nursing and health care forgiveness roundup covers the federal programs you can add.
Can Nebraska Teachers Get Their Student Loans Forgiven?
Nebraska's teacher programs work up front: AETP and EETP lend money during school and forgive it after two years of full-time teaching in the state (Nebraska CCPE). Teachers already carrying loans should look at federal Teacher Loan Forgiveness and PSLF, covered in our teacher forgiveness breakdown.
Is Nebraska Loan Repayment Still Capped At $40,000?
No, the DHHS programs now pay up to $180,000 (state program) or $200,000 (NHSC Nebraska SLRP) for doctors and dentists, counting the local match (Nebraska DHHS). Physicians can compare those totals with the federal options in our breakdown of student loan forgiveness for doctors.
Is Student Loan Forgiveness Taxable In Nebraska?
Nebraska follows federal treatment, so PSLF and Teacher Loan Forgiveness are tax-free while income-driven plan forgiveness granted after 2025 is taxable (The College Investor). Use our tax bomb calculator to estimate what you'd owe.
Related Nebraska Resources
How We Sourced This Data
Program details on this page come from the administering agencies and state law: the Nebraska Department of Health and Human Services Office of Rural Health (program pages, FAQ, and a December 11, 2024 release), the Rural Health Systems and Professional Incentive Act (Neb. Rev. Stat. 71-5662, 71-5663, and 71-5666, including LB 312 of 2025), 183 NAC 1, the Nebraska Commission on Public Advocacy and Neb. Rev. Stat. 7-206 and 7-207, and the Nebraska Coordinating Commission for Postsecondary Education and Neb. Rev. Stat. 85-3106 and 85-3109. Federal program details come from StudentAid.gov, HRSA, and USDA NIFA. Read more about how we fact-check and update content.
Page refreshed annually in August, after Nebraska's legislative session and agency rule approvals, and reviewed in January for tax season. Last full refresh: September 23, 2026.
Editor: Clint Proctor Reviewed by: Claire Tak