Sponsors (3)
Introduced May 20, 2025 by Josh S. Gottheimer · Last progress May 20, 2025
The bill provides targeted funding and administrative support to train and place more school psychologists—improving student mental health capacity and easing cash flow for institutions—while creating recurring federal costs, increased paperwork, and potential financial downsides for some students (debt if service isn't completed, reduced awards for those with other aid, and smaller payments for part-time enrollees).
Students enrolled in eligible school psychology programs receive up to $8,000 per year while eligible, directly lowering their out-of-pocket tuition and housing costs.
Students and schools — by funding more school psychologists to serve high-need schools — could see lower student-to-psychologist ratios and improved student mental health supports.
Students who complete the required service have the awards treated as grant-like (avoiding loan repayment), protecting them from debt for the covered amount.
Students who fail to complete the service obligation have their award converted into a Stafford loan with interest charged from the award date, increasing their debt burden.
Recipients' grant amounts may be reduced because total grant plus other financial aid cannot exceed the student's cost of attendance, which can disproportionately affect students with significant other aid.
Part-time students receive prorated awards, so nontraditional or part-time enrollees may get substantially smaller benefits and face reduced access to support.
Based on analysis of 2 sections of legislative text.
Creates a grant program providing eligible school psychology students $8,000/year for tuition, fees, and institution-owned room/board, with payment rules and enrollment-based reductions.
Creates a federal grant program to pay eligible students training to become school psychologists up to $8,000 per year while they remain eligible. Payments are intended for tuition, fees, and institution-owned room and board, are funded subject to appropriations, and include rules on advance payments to institutions, pro rata reductions for part‑time enrollment, and caps so total aid cannot exceed the institution’s cost of attendance.