Forgiving student loans could keep thousands of NHS nurses in their roles for up to 10 extra years, helping to ease critical staffing shortages and deliver better patient care, according to a new report published by the Royal College of Nursing (RCN).
The research, conducted by London Economics, found that a targeted loan forgiveness scheme would retain over 14,000 nurses over a decade—filling more than half of the current vacancies in England. The additional work this would unlock is estimated to be worth £1.162 billion per year, based on the value of increased productivity and reduced turnover.
The RCN is calling on the government to urgently consider the scheme as part of wider reforms to stabilise the NHS workforce and address the growing challenges in recruiting and retaining nursing staff.
“A loan forgiveness model for those who commit to working in the NHS and public services would make nursing a much more attractive career,” said Professor Nicola Ranger, RCN General Secretary and Chief Executive.
“There is a clear economic case for this policy, providing great value for money to both the taxpayer and our public services.”
Retention in Crisis
The report comes amid a sharp increase in nurses leaving the profession early. Between 2021 and 2024, the number of registrants leaving the Nursing and Midwifery Council (NMC) within five years of joining rose by 67%, while those leaving within 10 years increased by 43%.
If current trends continue, more than 11,000 nurses could leave the NHS without completing a decade of service by the end of the next parliament.
Surveys carried out as part of the report show that nurses would be willing to remain in their NHS roles for seven to ten more years if their student loans were forgiven. This could result in 65,000 additional nurse-years worked in the NHS per graduating cohort.
“Last week, ministers announced they will take direct control of the health service,” added Ranger.
“They must now apply the same logic by undoing failed nurse education reforms and investing in the future supply of highly skilled professionals.”
Cost of Study Pushing Students Out
In addition to retention issues, the report highlights a steep decline in the number of people entering the profession. Applications to nursing degrees in England have dropped by 35% since 2021, while course acceptances are down 19%. Around 21% of students are not completing their degrees, with 70% citing financial hardship as a primary reason.
The financial burden of study is set to grow further, with tuition fees for nursing degrees increasing to £9,535 per year from the 2025–26 academic year. The RCN argues that scrapping student bursaries in 2016 has had a lasting impact on recruitment and must be urgently revisited.
“Nursing and patients are being failed by a broken education system,” said Ranger.
“The prospect of huge debt continues to put off the nurses of the future, whilst those that do enter the profession are given little reason to stay.”
A Proven, Cost-Effective Solution
Loan forgiveness in exchange for public service is not a new idea, but the RCN’s report provides compelling evidence of its specific benefits for the NHS. Not only would it help retain skilled staff, but it would also reduce reliance on costly agency workers and limit the disruption caused by high turnover.
The RCN is urging the government to give the proposal serious consideration as part of its long-term workforce plan, noting that it aligns with the wider goals of economic efficiency, service sustainability, and patient-centred care.
“Nursing is an incredible career, but we cannot afford to keep losing dedicated professionals to debt, burnout, and poor planning.
This policy has the potential to change lives—both for nurses and for the people they care for,” Ranger said.