Maryland faces roughly 7,000 open registered nurse positions. On August 20, 2026, Governor Wes Moore and Social Finance announced a $3 million Pay It Forward Fund offering zero-interest loans to ADN students.
The fund covers tuition gaps and living expenses, with payments deferred until a nurse earns more than $50,000. The model's real test is whether its loan terms, eligibility rules, and scholarship stacking get more ADN students through clinical training.
What Is the Maryland Pay It Forward Fund?
The Maryland Pay It Forward Fund is a $3 million public-philanthropic partnership announced by Governor Wes Moore and Social Finance on August 20, 2026.1 It combines $2 million from the State's Talent Innovation Fund with $1 million from Blue Meridian Partners.
A different kind of education loan
For nursing students weighing how to afford nursing school, the fund is easy to misread. It is not an income-share agreement, a grant, or a traditional student loan. It is a zero-interest loan with income-contingent repayment: borrowers make no payments until their annual income after program completion exceeds $50,000.
Built for ADN students and Maryland's workforce gap
The initiative focuses exclusively on students in ADN programs, a two-year pathway to RN licensure that often serves students who cannot pause work for a four-year BSN. It does not currently serve BSN, RN to BSN, or advanced-degree nursing students. In its first year, the fund expects to support 80 ADN students. Maryland reports about 7,000 open nursing positions, and state leaders describe the fund as a way to remove financial barriers that prevent capable students from completing nursing training.
Why the design matters
By combining public and philanthropic capital, the fund carries no interest and spreads repayment risk according to future earnings. This structure shifts default risk away from students during the early, often lower-paying years of a nursing career. Maryland Department of Labor Secretary Portia Wu noted that the fund helps nursing students cover tuition and day-to-day expenses, a combination that often determines whether a student stays enrolled.
How the Fund's Loans Work: Tuition Gaps, Living Expenses, and Current ADN Costs
The Maryland Pay It Forward Fund splits support into two capped loans: one for tuition and fees, and one for daily living costs. Neither loan is designed to cover the full cost of an ADN on its own.
Tuition gap loan
The tuition gap loan covers up to $5,000 of remaining tuition and fees after all other gift aid has been applied, such as scholarships and grants. It is a bridge, not a replacement for financial aid. In Maryland community colleges, the cost of nursing programs 2026 often ranges from about $6,000 to $15,000, with some schools higher or lower depending on residency. Community College of Baltimore County does not publish a current itemized breakdown, but nearby programs offer useful benchmarks. College of Southern Maryland lists nursing courses at $140 per credit, with $4,900 in tuition and $1,272 in lab fees.1 Wor-Wic Community College lists nursing classes at $136 per credit and an in-county direct-progression total of $19,358 before living expenses.2 A student with $7,000 remaining after aid would receive the full $5,000 loan and still owe $2,000.
Living expense loan
The living expense loan provides up to $500 per month, capped at $12,000 over the two-year ADN program. That money can help with nursing school housing costs, food, and transportation, but the monthly cap makes it a supplement, not a full living stipend. In higher-cost parts of Maryland, $500 per month will not cover all costs.
What still comes out of pocket
Even with both loans maximized, students may still need to pay for books, uniforms, nursing supplies, licensure exam fees, travel to clinical rotations, and child care above the $500 monthly cap. At programs with higher out-of-county or out-of-state tuition, the tuition gap loan may also leave a larger unpaid balance.
Eligibility Requirements for Maryland ADN Students: Who Qualifies and Who Doesn't
Do I need to be a Maryland resident, enroll full time, or have no prior college credits to get a Pay It Forward loan? The official announcement answers fewer of these questions than many applicants expect.
The clearest stated requirement is enrollment in an Associate Degree in Nursing (ADN) nursing program. The first pilot will operate at Community College of Baltimore County during the 2026-2027 academic year, and the fund is expected to support roughly 80 nursing students.1 The loan can cover up to $5,000 in remaining tuition and fees after other aid and up to $500 per month for living expenses, capped at $12,000 over the two-year program.1
What official sources do and don't confirm
The announcement does not spell out Maryland residency rules, full-time or part-time enrollment minimums, prior-degree limits, or credit thresholds. It also does not state how non-completion is handled. Because these terms may shift from one participating school to the next, treat the published announcement as a starting point, not a complete eligibility checklist.
How to verify your own eligibility
- Check the Maryland Higher Education Commission (MHEC) website or the official Pay It Forward fund page for statute-based criteria.2
- Contact the financial aid office at the specific ADN program, especially Community College of Baltimore County for the pilot, to confirm program acceptance rules and any credit requirements.
- For long-term return on investment, review ADN career paths, BLS.gov salary data, and resources from the Maryland Nurses Association.
Maryland RN Salaries: Where the $50,000 Repayment Threshold Sits
The most recent U.S. Bureau of Labor Statistics data for Maryland registered nurses puts annual wages well above the Pay It Forward Fund's $50,000 repayment trigger. At the 25th percentile, nurses earn about $83,740, the median is $99,790, and the 75th percentile is $107,340. These figures are approximate and reflect the latest BLS state table.
| Metric | Value |
|---|---|
| Total Maryland RN employment | 52,910 |
| Mean annual wage | $99,010 |
| 25th percentile annual wage | $83,740 |
| Median annual wage | $99,790 |
| 75th percentile annual wage | $107,340 |
Income-Contingent Repayment: When and How You Pay It Forward
Income-contingent repayment in the Maryland Pay It Forward Fund has one clear trigger: after you complete an ADN program or withdraw from nursing school, you get a 3-month grace period and make no payments until your annual income exceeds $50,000.1
What happens when you cross the $50,000 threshold
Payments are fixed monthly amounts, not a percentage of your income.1 The fund has not published a monthly payment formula tied to salary, so a graduate earning $55,000 and a graduate earning $75,000 would owe the same scheduled payment for the same principal balance. The higher earner does not pay more each month, but may find the payment easier to budget. Total repayments are capped at the amount you borrowed, because the loan carries 0% interest and no fees.1
If your income falls below the trigger
Payment pauses are not automatic. If you drop below $50,000 per year, you must request an income-based deferment and receive approval. After approval, your payment is $0 during the approved period.1 The fund does not yet describe a detailed servicing process or how income is verified over time, so plan to document part-time work or temporary unemployment if you need a pause.
How this differs from federal income-driven repayment
Federal IDR plans calculate payments as a percentage of discretionary income and may forgive remaining balances after 20 or 25 years. Maryland's fund uses a binary $50,000 trigger, fixed monthly payments, and a repayment cap equal to principal. There is no Maryland-specific forgiveness beyond principal repayment, and no published automatic recalculation or alternative end date. Once the principal is fully repaid, the obligation ends.
Maryland Pay It Forward Fund Vs. Federal Student Loans: Cost, Risk, and Flexibility
The Maryland Pay It Forward Fund and federal student loans differ in interest, repayment timing, and risk. The fund offers zero-interest, income-contingent support for a specific set of ADN costs. Federal Direct Loans charge fixed interest and offer several repayment plans.
| Comparison Point | Maryland Pay It Forward Fund | Federal Student Loans (2026-2027 Award Year) |
|---|---|---|
| Interest rate | 0 percent | 6.52 percent fixed for undergraduate Direct Loans first disbursed on or after July 1, 2026 |
| Interest accrual while enrolled | No interest accrues | Unsubsidized loans accrue interest from disbursement; subsidized loans may not accrue while the student is in school at least half time |
| Origination fee | No origination fee is described in program materials | 1.057 percent on Direct Subsidized and Unsubsidized Loans |
| Payment trigger | No payments required until annual income exceeds $50,000 after program completion | Fixed monthly payments begin after the grace period; income-driven repayment plans are available |
| Coverage limits | Up to $5,000 for tuition and fee gaps; up to $12,000 in living expense loans over two years | Annual and aggregate limits vary by dependency status and year in school; specific dollar caps are not detailed in available policy summaries |
| Risk if you do not finish | Program does not specify a separate non-completer term; repayment is tied to income after program completion | You owe the full principal plus interest even if you do not complete the program |
| Payment flexibility when income changes | Repayments adjust with income; exact minimums and maximums are not detailed in the source | Income-driven plans such as RAP, PAYE, and IBR set payments based on income and family size; SAVE was eliminated in 2026 and RAP is available for new loans from July 1, 2026 |
Comparable Income-Contingent Nursing Loan Models: What Other States Are Testing
Several states and regional programs are testing income-contingent or zero-interest financing for nurses, but their structures and repayment relief differ. The table below compares Maryland's model against four other initiatives with published details. Readers should treat funding totals and application status as point-in-time information, since appropriations and program cycles can change.
| State / Initiative | Financing Model | Funding Source | Repayment Trigger | Outcome / Status |
|---|---|---|---|---|
| Michigan Nurse Loan Repayment Program (NLRP) | State nurse loan repayment incentive | $9,165,000 in appropriated funds | N/A | Launched in 2025; 1,310+ applications received; 396 nurses selected; full $9,165,000 obligated; no additional application cycles currently anticipated. |
| California HCAI Nurse Loan Repayment Program | State nurse loan repayment assistance | N/A | 12-month commitment in a qualified facility or underserved area | Eligible registered nurses may receive up to $15,000; active on HCAI site. |
| Rhode Island RISLA Nursing Rewards | Zero-interest loan / interest-rate reduction nursing benefit | RISLA Student Loan and RISLA Parent Loan | Licensed registered nurse employed by a licensed healthcare facility in Rhode Island and working at least 20 hours per week in direct patient care | 0% interest for up to 48 months; published expected potential cost saving of $1,008 to $2,208. |
| ReNEW Fund | Zero-interest, outcomes-based loan | N/A | If the student does not work for a participating employer for at least three years, or leaves before completing the three-year commitment; no repayment if income is below $60,000 annually | Operating through employer-partner milestones; no repayment obligation for nurses who earn less than $60,000 annually. |
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