New Initiative Offers Tax-Free Educational Loan Relief for Nurses in Underserved Areas
WAYNE COUNTY, N.C. — The North Carolina Department of Health and Human Services has announced a new financial incentive program aimed at attracting registered nurses to rural and underserved communities across the state.
The North Carolina Nurse Initiative will provide tax-free educational loan repayments to qualifying nurses who commit to working in safety net organizations and private practices located in areas with critical healthcare shortages.
Addressing a Critical Healthcare Gap
“Nurses are the bedrock of the healthcare system and play a crucial role in improving health for all North Carolinians,” said North Carolina Health and Human Services Secretary Dev Sangvai. “This initiative will help ease the financial burden for those pursuing a career in nursing, particularly in rural communities.”
The program comes in response to stark healthcare disparities facing North Carolina’s rural population. With more than 4.6 million residents living in rural areas—the second largest rural population in the nation—these communities face significant barriers to accessing care. Recent data reveals that rural residents experience nearly twice the difficulty accessing healthcare services compared to their urban counterparts.
Currently, 91 of the state’s 100 counties face shortages in primary care, dental, and behavioral health services.
Program Details and Eligibility
The NC Nurse Initiative is part of a broader $50 million funding package allocated by the North Carolina General Assembly to support healthcare providers, including registered nurses and clinical nurse specialists.
The program represents a significant policy shift. Prior to 2025, independent private practices in rural, medically underserved areas were not automatically eligible for the state-funded North Carolina Loan Repayment Program. The NCDHHS Office of Rural Health received one-time funding in State Fiscal Year 2024 to launch this expanded initiative.
Eligible applicants include registered nurses and clinical nurse specialists who provide comprehensive primary care services in outpatient settings and other approved sites located in Health Professional Shortage Areas. Nurses serving in independent private practices within Tier 1 and Tier 2 counties—based on North Carolina’s County Distress Rankings—may also qualify.
Limited Funding Available
Applications for the North Carolina Nurse Initiative are now being accepted, though officials warn that funding is limited. Awards will be distributed on a first-come, first-served basis to eligible applicants who submit complete applications.
For more information about eligibility requirements and to access applications, interested nurses can visit the NCDHHS Office of Rural Health website. The Office of Rural Health also offers additional recruitment incentives for qualifying medical, dental, and behavioral health providers.
