Sponsors (4)
The bill incentivizes mental/behavioral health providers from minority‑serving institutions to work in shortage areas—improving access and easing near‑term student debt—while concentrating benefits on a limited group and creating fiscal costs, career constraints, and potential out‑of‑pocket interest burdens.
People in mental/behavioral health shortage areas (including rural and underserved communities) could gain greater access to care because new providers commit to five years of full‑time local service.
Students and supervised trainees at minority-serving institutions can receive up to $200,000 (or 100%) of qualifying federal student loan principal and interest forgiven after five years of full‑time service in designated shortage areas.
Eligible trainees can postpone principal payments during their service, reducing near‑term out‑of‑pocket financial burden while they work in shortage areas.
Taxpayers and the federal budget could incur substantial costs if many participants claim up to $200,000 each in loan forgiveness, increasing federal spending.
Limiting eligibility to students at minority‑serving institutions and to specified federal loan types excludes other needy trainees and holders of private or other non‑qualifying loans, reducing the program's reach and equity.
Participants face reduced flexibility in career choice because they must commit to five consecutive years of full‑time service in designated areas to receive forgiveness, which may limit job mobility or specialization.
Based on analysis of 2 sections of legislative text.
Creates a loan deferment and forgiveness program allowing eligible students at minority-serving institutions to get up to $200,000 forgiven after five years of qualifying mental health service in shortage areas.
Introduced March 4, 2026 by Troy Carter · Last progress March 4, 2026
Creates a federal program that lets eligible students and supervised trainees at minority-serving institutions who are training in mental or behavioral health professions postpone loan principal payments while they work and, after completing five years of qualifying full‑time service in federally designated mental health shortage areas, receive forgiveness of up to $200,000 (or 100% if less). The program is run by the Secretary and defines who qualifies, which loans count, and which mental health professions are covered.