Why Nurses Are Rethinking Travel Roles—and What Smart Hospital Leaders Are Doing About It

Nurses: PSLF May Be the Most Valuable Benefit You're Overlooking

Travel nursing has exploded in popularity over the last several years, offering tempting benefits like flexible contracts and high pay. But there’s one major drawback: these roles don’t qualify for the federal Public Service Loan Forgiveness (PSLF) program.

If you’re a nurse with student debt, this matters—a lot.

Recent survey data shows:

• 62% of nurses say they’re not interested in travel nursing.
  
• Of those initially open to it, 30% dropped the idea after learning it disqualifies them from PSLF.
  
• Another 43% said they’d wait to complete PSLF before making a move.
  

That means nearly three out of four nurses who considered travel nursing ultimately delay or forgo it once they understand the PSLF implications.

What Is PSLF and Why Should You Care?

PSLF forgives your remaining federal student loan balance after 10 years of qualifying payments while working full-time for a nonprofit or government employer—like most hospitals, health systems, and public clinics.

For many, this adds up to tens of thousands of dollars in tax-free forgiveness. And unlike income-driven repayment forgiveness, PSLF kicks in sooner and without extra tax liability.

Why Travel Assignments Fall Short

Travel roles often mean switching employers every few months. Because PSLF requires each employer to be a qualifying nonprofit or government organization, travel nurses lose out—even if the pay seems better upfront.

Most travel nurses are employed by for-profit staffing agencies, even if they’re placed at nonprofit hospitals. Because the paycheck comes from a for-profit entity, that time doesn’t count toward PSLF—even when the actual work is performed in a qualifying facility.

So even though travel assignments may offer higher short-term pay, for nurses with significant student loan debt, the math becomes clear: short-term earnings can’t compete with long-term loan forgiveness.

For Hospital CHROs and CEOs: PSLF Is More Than a Perk—It’s a Retention Lever

High turnover is costly. Reliance on travel contracts disrupts continuity of care. And in a post-COVID landscape, the competition for top clinical talent is fiercer than ever.

But PSLF is a hidden strategic advantage—and smart health systems are leaning in.

What the Data Shows

Among healthcare professionals with student loan debt over $100,000:

• 43% have no interest in locum tenens or travel assignments.
  
• 39% would wait until PSLF forgiveness is complete before making a job change.
  

These professionals aren’t just making career moves—they’re making calculated financial decisions. PSLF is the anchor.

Insights from Dwaine Duckett: PSLF as a Systemwide Strategy

Dwaine Duckett, former SVP of HR at Penn Medicine and VP of HR for the University of California System, has led workforce strategy for over 45,000 employees and managed billions in benefits and retirement assets. Known for transforming HR in large organizations, he champions PSLF as a key retention lever.

Duckett emphasizes that PSLF is not just a federal program—it's a workforce stabilizer.

“We were able to convert quite a few expensive travel nurses into regular employees because they couldn’t access PSLF unless they joined a qualifying employer like Penn Medicine. That shift not only reduced our reliance on costly contractors but gave us nearly a 10x return on what we spent supporting the program.”

How Nonprofit Systems Can Take Action

If you’re a CHRO, CEO, or HR leader at a nonprofit healthcare organization, here’s how to turn PSLF into a competitive edge:

• Educate your workforce on how PSLF works and who qualifies.
  
• Provide dedicated support—whether that’s internal staff, tech tools, or partners like PeopleJoy—to help employees stay compliant.
  
• Integrate PSLF into your EVP (Employee Value Proposition) alongside traditional benefits.
  
• Highlight PSLF in recruitment and onboarding, especially for high-debt roles like nursing and early-career physicians.
  

Bottom Line

PSLF isn’t just helping nurses make better financial decisions—it’s helping hospitals keep them. And in a tight labor market, that’s a difference-maker.

Partnering with PeopleJoy

PeopleJoy helps healthcare systems:

• Guide employees through PSLF eligibility and documentation.
  
• Offer loan coaching and digital tools to manage repayment.
  
• Use PSLF as a recruitment and retention engine for nurses, physicians, and clinical staff.
  

Whether you're a nurse planning your next move or a health system looking to reduce attrition, PSLF is the bridge between purpose and payoff.

Ready to activate PSLF for your team or your future? Let’s talk.

🎥 Want to hear more from Dwaine Duckett?
Watch the full Becker’s Webinar here