Sponsors (4)
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Creates a federal program run by HHS that lets eligible mental and behavioral health students or trainees at minority-serving institutions defer loan payments while they work, and receive loan forgiveness after completing five years of full-time service as a qualified mental health provider in federally designated shortage areas or at institutions serving patients in those areas. The program allows interest to continue accruing (the participant must pay interest during service) and authorizes repayment of up to the lesser of 100% or $200,000 of outstanding principal and interest for participants who complete the full five-year commitment without default.
The bill trades substantial, targeted federal loan‑repayment incentives for mental‑health providers trained at minority‑serving institutions — boosting access and workforce diversity in shortage areas — against increased federal spending, limits on who is eligible, potential exclusions for some loans, and constraints and added costs for participating providers.
People in mental‑health shortage areas (including rural communities and patients needing behavioral health/substance‑use care) will likely gain greater access to services because providers are incentivized to commit to 5 years of full‑time service, and hospitals/clinics in those areas will be more able to hire qualified staff.
Students enrolled at minority‑serving institutions (MSIs) pursuing mental/behavioral health degrees can receive up to $200,000 in federal loan repayment after completing 5 years of qualifying service, substantially lowering their long‑term debt burden if they complete the commitment.
Early‑career providers working in qualifying service can defer periodic principal payments while employed, easing near‑term cash flow and making it easier to afford living expenses early in their careers.
Borrowers who defer principal while serving still accrue and must pay interest during the deferral period, which increases their total repayment costs over time.
Participants are required to complete 5 years of full‑time service, which limits provider mobility and career flexibility and may discourage some from participating.
Taxpayers and the federal budget could bear large costs (up to $200,000 per participant), increasing federal spending commitments for each provider who completes the program.
Introduced March 4, 2026 by Troy Carter · Last progress March 4, 2026