Congress·In Committee·H.R. 7787

Rep. Carter Proposes $200,000 Loan Forgiveness for Mental Health Workers in Underserved Areas

To amend title VII of the Public Health Service Act to strengthen the mental health workforce, and for other purposes.

19 days ago·View on Congress.gov

Legislative Progress

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Key Points

This bill creates a new federal loan deferment and forgiveness program for mental health providers who commit to working full-time for at least five years in areas designated as having a shortage of mental health professionals.
From policy text
“The Secretary shall establish and carry out a mental health provider loan deferment and forgiveness program under which an eligible individual agrees to be employed full-time as a qualified mental health provider for a period of at least 5 years”
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Eligible providers can have up to $200,000 in student loan principal and interest forgiven after completing five consecutive years of service. During the service period, loan principal payments are deferred, though interest continues to accrue.
From policy text
“the Secretary, through the holder of the loan, will assume the obligation to repay the lesser of 100 percent or $200,000 of the total amount of principal and interest of an eligible loan, that are outstanding as of the day immediately preceding the first day of the first year of service”
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The program specifically targets students enrolled at or accepted to minority-serving institutions who are pursuing degrees or certificates in mental or behavioral health professions, including substance use prevention and treatment.
From policy text
“has been accepted for enrollment, or is enrolled, as a student in a minority-serving institution eligible to receive funding under section 371 of the Higher Education Act of 1965 in a course of study or program leading to a mental or behavioral health professions degree or certificate”
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A wide range of mental health professionals qualify, including psychiatrists, psychologists, clinical social workers, marriage and family therapists, mental health counselors, psychiatric nurse specialists, and certain physician assistants and nurse practitioners.
From policy text
“The term `qualified mental health provider' means a provider of mental and behavioral health care services, including substance use prevention and treatment services”
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Providers must work either as solo practitioners in designated shortage areas or at institutions serving patients located in those areas, addressing mental health care access gaps in underserved communities.

HealthcareEducationLabor Employment

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Mar 4, 2026House

Referred to the House Committee on Energy and Commerce.

Mar 4, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

6-18 months after enactment

If enacted, the Secretary of HHS would need to establish the loan deferment and forgiveness program, set up application processes, and begin entering contracts with eligible individuals

Students at minority-serving institutions studying mental health could begin applying, but it would take time for HHS to build the infrastructure. No benefits would flow immediately upon signing.

5-7 years after program launch

First participants would complete their 5-year service commitments and become eligible for full loan forgiveness of up to $200,000

The earliest wave of providers would have their remaining student debt eliminated, and shortage areas would have gained five years of mental health services from those providers.

Related News

3 articles

Behavioral Health Business·3 days ago

New Bill Could Give Mental Health Professionals Up to $200k in Loan Forgiveness

A bipartisan group of Congressional representatives introduced a bill aimed at alleviating the behavioral health workforce shortage through a student loan repayment program. The legislation proposes that qualified mental health providers could have up to $200,000 of debt repaid after 5 years.

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Becker's Behavioral Health·4 days ago

Lawmakers push bill to boost mental health workforce, diversity

Lawmakers introduced the Mental Health Workforce Act to address shortages and expand diversity. The bill includes student loan forgiveness for individuals who attend HBCUs and Minority Serving Institutions in exchange for a five-year service commitment in shortage areas.

RamaOnHealthcare·3 days ago

Lawmakers push bill to boost mental health workforce, diversity

The Mental Health Workforce Act aims to increase the number of providers and expand the pipeline of diverse professionals. It includes student loan forgiveness for graduates of Minority Serving Institutions who serve in federally designated shortage areas for five years.