PSLF: A Powerful Tool for Retaining Healthcare Talent

Addressing Workforce Retention Through Student Loan Relief

The healthcare industry is grappling with persistent workforce shortages, making employee retention a critical focus for hospital administrators. One major factor driving turnover? Student loan debt. The burden of education costs influences career decisions and fuels burnout across the healthcare workforce.

Public Service Loan Forgiveness (PSLF) Assist is proving to be a powerful retention tool. By reducing financial stress and promoting long-term stability, this program helps nonprofit hospitals attract and retain top talent in a competitive labor market.

The Student Debt Crisis in Healthcare: A Barrier to Retention

Student loan debt remains one of the top stressors for healthcare professionals. According to the Association of American Medical Colleges (AAMC), the median medical school debt hit $205,000 in 2024. PeopleJoy’s recent survey of over 1,000 healthcare employees found:

• 30% carry between $25,000–$50,000 in student loans
  
• 14% owe over $100,000
  
• More than 2 in 3 of those considering a job change cited student loan assistance—including PSLF Assist—as a key factor in their employment decisions

This isn’t just a financial problem—it’s a retention emergency. When debt influences career mobility and satisfaction, healthcare employers must respond with meaningful solutions. PSLF Assist offers one.

How PSLF Assist Directly Impacts Job Satisfaction and Retention

The numbers speak for themselves. PeopleJoy’s internal survey data shows that PSLF Assist significantly improves both job satisfaction and employee retention in nonprofit health systems:

• Nearly 4 in 5 PSLF Assist users report reduced financial stress, compared to only 1 in 2 non-users
  
• 3 out of 5 PSLF Assist participants have stayed in their roles for five years or more, while just 2 in 5 non-participants can say the same
  
• Hospitals offering PSLF Assist report 30% lower vacancy rates than those without any student loan support

By reducing anxiety around loan repayment, PSLF Assist allows professionals to focus on patient care and career growth—not debt.

By reducing financial anxiety, PSLF Assist allows employees to focus on their careers and commit to their organizations, leading to higher engagement and reduced turnover.

Reducing the High Cost of Healthcare Turnover

High turnover is costly—and avoidable. According to NSI Nursing Solutions (2023):

• The bedside RN turnover rate remains at 22.5%
  
• Replacing a single nurse costs between $46,100 and $88,000

Integrating PSLF Assist into benefits packages helps lower recruitment and training expenses, while fostering a stable and more experienced workforce. It’s not just about retention—it’s about protecting your bottom line.

Positioning PSLF Assist as a Recruitment and Retention Advantage

Many healthcare employees aren’t aware they qualify for PSLF. That’s why strategic communication is key.

Hospitals that succeed with PSLF Assist:

• Offer hands-on enrollment help and compliance tracking
  
• Feature PSLF Assist prominently in job listings and onboarding
  
• Promote the benefit across internal communication channels
  
• Align the program with mission-driven values that attract purpose-oriented professionals

Making PSLF Assist a cornerstone of your recruitment strategy differentiates your organization in a saturated job market.

Unlock the Full Potential of PSLF Assist in Your Workforce Strategy

As the healthcare sector continues to evolve, retention strategies must evolve too. PSLF Assist isn’t just a benefit—it’s a competitive advantage.

By integrating PSLF Assist into your HR and talent strategies, you create a more engaged, financially secure, and loyal workforce. The payoff? Lower turnover, higher morale, and stronger patient care continuity.

📩 Download PeopleJoy’s latest white paper to explore survey insights and best practices for leveraging PSLF Assist in your workforce strategy.

References

• NSI Nursing Solutions, 2023. 2023 NSI National Health Care Retention & RN Staffing Report.
• Association of American Medical Colleges (AAMC), 2024. Medical Student Debt Report.
• PeopleJoy, 2024. Survey on PSLF Assist and Healthcare Employee Retention.