Health Professions Loans (HRSA-Administered)
Campus-based, need-based federal loans for eligible health professions students — administered by HRSA through participating schools, at a fixed 5% rate, with interest not accruing while in school.
Health Professions Loans are federal student loans administered by the Health Resources and Services Administration through participating schools. These campus-based, need-based loans are available to students enrolled in eligible health professions programs, such as medicine, dentistry, nursing, and other healthcare fields. The loans carry a fixed interest rate, and interest does not accrue while the borrower is in school. Because these loans are limited to certain schools and programs, eligibility depends on both the student's financial need and their institution's participation in the program. Specific terms and conditions are subject to change, so borrowers should verify current details at studentaid.gov.
Who it's for
Students enrolled at least half-time in eligible health professions programs at participating U.S. schools. These are campus-based loans: the school applies for the federal allocation and awards them to eligible students through the financial aid process. FAFSA completion is required. Specific programs include: Health Professions Student Loans (HPSL) — for students in medicine, dentistry, pharmacy, osteopathic medicine, optometry, podiatry, and veterinary medicine; Loans for Disadvantaged Students (LDS) — for full-time students from financially and educationally disadvantaged backgrounds in qualifying health professions programs; and Nursing Student Loan (NSL) — for students pursuing a Registered Nurse (RN) degree at an eligible nursing school. Not all schools participate. Contact your school's financial aid office to confirm availability.
How the interest rate is set
HRSA Health Professions loans carry a fixed 5% interest rate set by the program. Interest does not accrue while the borrower is enrolled (in-school and grace periods), making these loans functionally subsidized. Interest does accrue during forbearances and renegotiated repayment schedules. Source: HRSA Bureau of Health Workforce (bhw.hrsa.gov); confirm the current rate with your school's financial aid office or at hrsa.gov.
How much you can borrow
Loan amounts are determined by the school, based on financial need, the school's available HRSA allocation, and cost of attendance. There is no single fixed annual cap; the school decides how much each eligible student can receive from its allocation. Amounts are limited by the student's demonstrated need.
Key terms at a glance
| Loan type | Federal (HRSA/HHS campus-based program — NOT a Direct Loan) |
| Programs | HPSL, LDS (Loans for Disadvantaged Students), Nursing Student Loan (NSL) |
| Administered by | HRSA Bureau of Health Workforce through participating schools |
| Interest rate | Fixed 5% (verify with your school — source: bhw.hrsa.gov) |
| Interest while in school | Does not accrue (subsidized feature) |
| Financial need required | Yes — need-based; FAFSA required |
| Credit check | Not required (school-administered, needs-based) |
| Income-driven repayment | NOT eligible for federal IDR plans (not Direct Loans) |
| Repayment period | Up to 10 years (NSL); up to 25 years (HPSL, LDS) |
Pros and cons
Potential advantages
- Fixed 5% interest rate — lower than current Direct Loan rates for graduate/professional students in many years.
- Interest does not accrue while enrolled and during the grace period, functioning like a subsidized loan.
- No credit check required — eligibility is need-based.
- Deferments are available for certain activities (confirm with your school).
Things to watch
- NOT eligible for federal income-driven repayment (IDR) plans, PSLF, or most federal forgiveness programs — these are not Direct Loans. You cannot enroll in RAP, IBR, or other federal IDR plans with these loans.
- Campus-based: not all schools participate, and amounts depend on each school's available HRSA allocation — your school may not have funds available.
- Available only to students in specific health professions programs at participating schools; not a general-purpose student loan.
- Separate from the federal Direct Loan system; managed by your school, not a federal servicer.
Sources: HRSA Bureau of Health Workforce — Health Professions Student Loans; Federal Student Aid — Federal Student Loans; CFPB — Student Loans. Federal loan details follow U.S. Federal Student Aid (studentaid.gov); always confirm current rates and limits there.
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Compare student loan & refinance options →Frequently asked questions
Are HRSA Health Professions loans the same as federal Direct Loans?
No. HPSL, LDS, and NSL loans are campus-based federal loans administered through your school under HRSA (part of the U.S. Dept. of Health and Human Services), not through the U.S. Dept. of Education's Direct Loan Program. This means they are NOT eligible for federal income-driven repayment plans (like IBR or RAP), PSLF, or most federal forgiveness programs. If you need those options, you would typically borrow Direct Loans alongside or instead of HRSA loans.
How do I apply for an HRSA Health Professions loan?
Through your school's financial aid office. Your school must participate in the HRSA program and have an available allocation. Complete the FAFSA and ask your financial aid office whether HPSL, LDS, or NSL funds are available and whether you qualify based on need and enrollment in an eligible program.
Is the 5% interest rate guaranteed for the life of the loan?
The rate is set by the HRSA program at 5% and is fixed. Verify the current applicable rate with your school's financial aid office or at bhw.hrsa.gov, as program rules can change. This page is informational only — always confirm current terms with your school and at the official HRSA source.