Student Loans for Nursing School: The Sourced Basics

Reviewed June 1, 2026 by the ScrubScope editorial team.

For nursing school, the administrative basics of borrowing are the same as for any degree: federal student loans, accessed through the FAFSA, generally come before private loans because they carry fixed interest rates, flexible repayment options, and borrower protections that private loans lack. Federal options include subsidized and unsubsidized Direct Loans for the student, plus PLUS loans for graduate students or parents, each with annual and aggregate limits. Private loans from banks or lenders fill gaps but are priced on credit and have fewer protections. This guide explains the loan types administratively so you can borrow in the right order; it is not financial advice, and we make no eligibility determinations.

The short answer

The standard guidance is to exhaust federal student loans before private ones, because federal loans offer fixed interest rates, income-driven repayment, deferment, and forgiveness eligibility that private loans generally do not^[1]. You access federal loans by filing the FAFSA, which is also the gateway to grants and the broader funding plan in the how to pay for nursing school guide^[2]. Federal Direct Loans come in subsidized and unsubsidized forms with set annual and total limits, and graduate students may add Grad PLUS loans up to the cost of attendance^[3]. Private loans should fill only what federal aid and grants leave.

Federal Direct Loans: the first stop

Federal Direct Loans are the foundation of student borrowing, and the subsidized-versus-unsubsidized distinction is the one to understand.

Direct Subsidized Loans are for undergraduates with demonstrated financial need, and the key benefit is that the government covers the interest while you are in school at least half-time, so the balance does not grow during enrollment^[3]. Direct Unsubsidized Loans are available to undergraduate and graduate students regardless of need, but interest accrues from disbursement, including while you are in school, so the balance grows unless you pay the interest as it accrues. Both carry fixed interest rates set by federal law for the year you borrow.

These loans have annual and aggregate (lifetime) limits that cap how much you can borrow, with dependent and independent undergraduates subject to different caps and graduate students to their own^[4]. Because subsidized loans cost less over time, borrow them first when eligible, then unsubsidized, and only then look beyond.

PLUS loans and the graduate picture

For graduate nursing students whose costs exceed the Direct Loan caps, federal PLUS loans are the next federal option.

Grad PLUS loans let graduate and professional students borrow up to the school's cost of attendance minus other aid received, which can cover the gap a master's or doctoral nursing program leaves after Direct Loans^[5]. PLUS loans require a credit check (though the standard is an absence of adverse credit history rather than a high score) and carry their own fixed rate, typically higher than Direct Loan rates, plus an origination fee. Parent PLUS loans serve a similar role for parents of dependent undergraduates.

Because PLUS loans cost more than Direct Loans but remain federal, they sit between Direct Loans and private loans in the borrowing order: use them after exhausting Direct Loans but before turning to private lenders, since they keep federal protections and forgiveness eligibility. For graduate nursing students weighing whether the added borrowing is worth it, the nursing school ROI guide gives the framework.

Private loans: the last layer

Private loans have a place, but it is at the bottom of the order for clear reasons.

Private student loans come from banks, credit unions, and online lenders, are priced on your (or a cosigner's) credit, and may carry fixed or variable rates, so a strong-credit borrower can sometimes find a competitive rate^[1]. The tradeoff is that they generally lack the federal protections, income-driven repayment, broad deferment, and eligibility for federal loan forgiveness, so a private loan cannot be cancelled through the federal nurse-forgiveness programs covered in the nursing loan forgiveness guide.

That missing forgiveness eligibility is a specific reason nurses should prefer federal loans: many nurse-targeted forgiveness and repayment programs apply only to federal debt. Use private loans to fill what grants, scholarships, employer support, and federal loans do not, and compare terms carefully if you do, since they vary by lender. We do not recommend specific lenders or make eligibility determinations.

If you do consider a private loan, the comparison points that matter are the interest rate (and whether it is fixed or variable), any origination or other fees, the repayment term, whether interest accrues while you are in school, and whether a cosigner is required or would lower the rate. A variable rate can start lower than a fixed one but rise over the life of the loan, which adds uncertainty a federal fixed rate avoids. Reading the full terms before signing, rather than the advertised rate alone, is the difference between an informed private-loan decision and an expensive surprise later.

How to borrow in the right order

The basics reduce to a sequence that minimizes cost and preserves options.

File the FAFSA to unlock federal aid. Take grants and scholarships first, since they are not repaid. Then borrow federal Direct Subsidized Loans, then Direct Unsubsidized, up to their limits. Use Grad PLUS loans next if you are a graduate student with remaining need. Turn to private loans only to fill what is left, knowing they lack federal protections and forgiveness eligibility^[1]. Borrow only what you need, since every dollar is repaid with interest, and confirm your specific limits and rates with your school's financial-aid office. This is administrative information, not financial advice.

Bottom line

For nursing school, borrow federal before private: Direct Subsidized Loans first (the government covers in-school interest), then Direct Unsubsidized, then Grad PLUS for graduate students, with private loans filling only the remainder^[3]. Federal loans carry fixed rates, flexible repayment, and forgiveness eligibility that private loans lack, which matters for nurses targeting federal forgiveness programs^[1]. File the FAFSA, borrow only what you need, and confirm limits with your school.

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