Nursing school is an incredible investment, but it can also come with a pretty hefty price tag. And for many of us, that means taking out student loans. But not all loans are created equal, and student loan interest rates for nurses can vary wildly depending on the type of loan, your credit history, and whether it’s federal or private.
So… what’s considered a good student loan interest rate for nurses? And how do you know if you’re getting a fair deal? Let’s break it all down in plain English.
Table of Contents
What is an interest rate, and why does it matter?
When you take out a student loan, you’re borrowing money that needs to be repaid… with interest. The interest rate is the percentage you’re charged on the total amount you borrow. That means the higher your interest rate, the more you’ll ultimately pay back over time.
Let’s say you borrow $30,000 for nursing school. A difference of just 2–3% in your interest rate could mean thousands of dollars more (or less) in total repayment. So yes, your interest rate definitely matters.
Federal vs. private student loans for nursing students
Before we get into the numbers, it’s important to understand the two main types of student loans you might have:
🏛️ Federal student loans
- Backed by the U.S. government
- Fixed interest rates set annually by Congress
- Typically lower interest rates than private loans
- Offer borrower protections like deferment, forbearance, and income-driven repayment plans
For the 2024–2025 school year, the federal Direct Unsubsidized Loan for undergrad students has an interest rate of 6.53%, and graduate loans are at 8.08% (subject to change each year).
💡 If you’re currently in nursing school, these are likely the loans you’re working with. They’re also eligible for forgiveness programs, which we’ll cover shortly.
🏦 Private student loans
- Offered by banks, credit unions, or online lenders
- Interest rates vary based on your credit score, loan term, and lender policies
- Can be either fixed or variable
- Fewer repayment and forgiveness options
Private student loan interest rates for nurses can range anywhere from 4% to over 13%, depending on the lender and your financial profile.
What’s a good student loan interest rate for nurses?
Here’s the part you came for 👇
A “good” interest rate depends on what kind of loan you’re dealing with:
| Loan Type | Interest Rate Range | Good Rate |
|---|---|---|
| Federal Direct Loans (undergrad) | ~6.5% | That’s the standard |
| Federal Grad PLUS Loans | ~8% | That’s the standard |
| Private Loans (fixed) | 4–13%+ | Under 6% is considered good |
| Private Loans (variable) | 5–14%+ | Under 6–7% (but riskier) |
🚨 Be careful with variable rates. They may start lower than fixed rates, but they can climb significantly over time, especially if interest rates rise nationally.
So, if you’re shopping for a private loan and find a fixed rate under 6%, that’s generally considered a solid deal. But you’ll also want to look at loan terms, repayment flexibility, and whether there’s a cosigner release.
Pro Tip ➡️ Looking into private loans? Before you sign anything, check out my partner Juno. They basically negotiate lower interest rates for student loans by pooling borrowers together. It’s really cool, free to sign up, and you could score a much better rate than going it alone (which means you save thousands).
Juno just released their 2025–2026 private student loan rates, and they’re some of the lowest available, starting at just 3.47%. For comparison, most private lenders on the open market are currently advertising starting rates closer to 7–8%.
💡 Now what does that actually mean?
Let’s say you borrow $25,000 and repay it over 10 years:
- At 3.47%, you’d pay about $4,616 in total interest
- At 7.00%, you’d pay about $9,834 in interest
That’s $5,200 in savings, just from a better rate.
Special considerations for nurses
Here’s where things get interesting. Nurses may qualify for specific loan forgiveness or repayment programs, which could affect your loan strategy:
🏥 Public Service Loan Forgiveness (PSLF)
- If you work full-time for a nonprofit hospital or government facility
- Make 120 qualifying payments under an income-driven repayment plan
- Remaining balance is forgiven, tax-free
💼 Nurse Corps Loan Repayment Program
- Pays up to 85% of your unpaid nursing education debt
- You must work for a critical shortage facility or eligible nursing school
🧾 State-specific repayment programs
Many states have their own loan repayment programs for nurses working in underserved areas. Some examples:
- California: Bachelor of Science in Nursing Loan Repayment Program
- Texas: Rural Communities Health Care Investment Program
- Illinois: Nurse Educator Loan Repayment Program
👉 So, while student loan interest rates for nurses are important, don’t forget to factor in forgiveness opportunities based on where and how you practice.
Tips for managing student loan debt as a nurse
Before we dive into the nitty-gritty tips, here’s how I always recommend approaching how you pay for nursing school. In this order:
- 🎓 Use scholarships and grants first – This is free money you don’t have to pay back. Start here, ALWAYS.
- 💰 Tap into personal savings or family contributions – If this is an option for you, use it wisely to reduce your borrowing needs.
- 🏛️ Take federal loans next – These come with built-in protections, flexible repayment options, and eligibility for forgiveness programs.
- 🏦 Use private loans only if needed – And if you do, shop for the lowest fixed rate possible with flexible terms. My partner Juno helps nurses and students get access to negotiated loan deals with trusted lenders, often with way better rates than going solo. It’s free to sign up and see what you qualify for.
You can get through nursing school without being crushed by debt. Here are a few strategies to help:
- Stick with federal loans first. They offer the most protections and forgiveness options.
- Avoid borrowing more than you need. Just because you’re approved for $25,000 doesn’t mean you need to take all of it.
- Compare private lenders carefully. Look for lower fixed rates, borrower perks, and no prepayment penalties.
- Use nursing-specific scholarships and grants. Check out the HRSA and local hospitals for financial aid resources.
- Refinance only when it makes sense. If your income is solid and you’re not relying on forgiveness programs, refinancing could reduce your rate, but it’s a one-way street (federal loans become private loans permanently).
Final thoughts on student loan interest rates for nurses
Understanding student loan interest rates for nurses is a key part of protecting your financial future, especially at the start of your career. While you can’t control tuition costs, you can make smart choices about how you borrow and repay that money.
Remember ➡️ A good rate isn’t just about the number, it’s about the terms, flexibility, and your career path. With the right strategy (and maybe a little loan forgiveness!), you can keep your student loans from becoming a long-term burden.
🧭 Still exploring programs? Check out these accredited nursing program options below. It’s a great way to map out your options and compare schools before committing. 👇
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