These States Offer Student Debt Forgiveness, Repayment Options for Social Workers
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Editor & Writer
Writer
Editor & Writer
- Some states will cover any remaining student loan debt if social workers work in underserved communities.
- Student debt is often seen as a barrier to social work since jobs in the field are perceived as low-paying.
- One study found that the country may face a national shortfall of nearly 200,000 social workers by 2030.
In the aftermath of the COVID-19 pandemic, the need for social workers is acute. But many states and rural communities are facing social worker shortages.
In 2016, researchers at the Cleveland Clinic and Villanova University predicted that 38 states would experience social worker shortages by 2030 and the country would see a national shortfall of nearly 200,000 workers. But even that estimate may understate the shortage, since there is little to no regular gathering of comprehensive data on workforce needs.
To fill their respective workforces, some states are going above and beyond the federal programs providing debt forgiveness and repayment options for social work students. Thirty states now offer their own debt repayment programs that aim to entice social workers into working in underserved communities.
States with debt repayment programs include:
- Alaska
- Arizona
- California
- Colorado
- Delaware
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Michigan
- Minnesota
- Montana
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Oregon
- Pennsylvania
- Rhode Island
- South Dakota
- Tennessee
- Utah
- Virginia
- Washington
Alaska
Social workers in Alaska may have up to $27,000 in student loans paid off each year through the state's SHARP Program.
Licensed clinical social workers are considered a Tier-2
profession under the SHARP Program. With this designation, participants in the program are eligible for up to $20,000 per year in regular-fill positions
and up to $27,000 per year in very-hard-to-fill positions
if they work full time.
Part-time social workers can qualify for between $10,000 and $13,500 annually, depending on the position.
Participants must agree to work in a Healthcare Shortage Service Area (HSSA) defined by the state. They must work there for a minimum of two years at 40 hours per week for full-time participation, and 20 hours per week for part-time.
Employers must agree to match a certain percentage of SHARP's contributions. That percentage, however, depends on the type of employer.
Arizona
The Arizona State Loan Repayment Program applies to clinical social workers and professional counselors.
The program differs from options in other states as the amount of student loan debt repaid depends on where a participant practices and their contract year. The sliding scale hinges on what Health Professional Shortage Areas (HPSA) a borrower works in.
| Contract year | HPSA 18-26 | HPSA 14-17 | HPSA 0-13 |
|---|---|---|---|
| Years one and two | $50,000 | $45,000 | $40,000 |
| Year three | $25,000 | $22,500 | $20,000 |
| Year four | $20,000 | $18,000 | $16,000 |
| Years five and continuing | $10,000 | $9,000 | $8,000 |
The higher-rated HPSAs have more severe coverage shortages.
California
California's State Loan Repayment Program closely resembles the National Health Service Corps program.
The California program rewards service in Health Professional Shortage Areas (HPSA) across California. Those who work in one of these areas for at least two years will have $50,000 in student loan debt forgiven for full-time work (40 hours weekly) or $25,000 for part-time work (20 hours).
Participants in the program can earn another $20,000 in debt repayment annually if they extend their full-time contract for a third or fourth year ($10,000 annually for part-time). Any time beyond the fourth year earns them $10,000 annually for full-time employment and $5,000 for part-time.
Licensed clinical social workers, licensed professional counselors, and substance use disorder counselors qualify.
California's program applies to government and commercial loans.
Colorado
Colorado has two programs that could benefit social workers in the state.
First, the Colorado Health Service Corps has a loan repayment program that could grant up to $90,000 for social workers who serve at an approved Health Professional Shortage Area (HPSA) for at least three years. Only social workers and professional counselors with a master's or doctoral degree in their field can qualify.
Those funds can be used to pay back either government or commercial student loans that were used to fund education in the corresponding field of work.
Here's the breakdown of how much a participant can qualify for after three years:
- Full-time (40 hours per week): $90,000
- Three-quarters-time (30 hours): $67,500
- Part-time (20 hours): $45,000
Colorado also has the Rural Essential Access Provider (REAP) Loan Repayment Program.
REAP rewards social workers and counselors who work at select private practices in rural areas of the state. Participants in this program can have up to $15,000 in student loans repaid if they work in this area for at least two years full time. They can get $7,500 for part-time work.
Delaware
The Delaware State Loan Repayment Program is unique among similar state programs as it rewards participants based on their qualifications.
Social workers, professional counselors, and alcohol and drug misuse counselors all qualify for the state program under mid-level disciplines.
Participants must work in a designated Health Professional Shortage Area (HPSA) for at least two consecutive years to qualify.
How much the state's program pays depends on a qualitative evaluation
conducted with each application.
Here's how much social workers could gain depending on the outcome of that evaluation:
- Meets qualifications: $30,000 over two years
- Exceeds qualifications: $45,000
- Distinguished qualifications: $60,000
The awards can go toward any government or commercial student loans used for eligible professions and disciplines.
Idaho
The Idaho State Loan Repayment Program repays part or all of a participant's student loans if they work in a federally designated Health Professional Shortage Area (HPSA) for at least two years.
Licensed social workers and licensed professional counselors are eligible for the program.
Participants who work at least 40 hours per week are eligible for up to $25,000 in payments that must go toward paying off their student loans each year. They must have at least $10,000 in debt before the start of their two-year contract, however, to qualify.
The program's funds can be applied to any government, commercial, or foundation loan.
Illinois
Illinois features two loan repayment programs.
The Community Behavioral Health Care Professional Loan Repayment Program applies to behavioral health professions. Participants must work at an approved community mental health center in an underserved or rural Health Professional Shortage Area (HPSA).
Social workers, professional counselors, and substance misuse professionals can qualify.
There is no set amount that borrowers would qualify for through this program. The annual award amount is determined by a borrower's position and can be received for up to four years.
Awards cannot exceed $6,500 per year for social workers and counselors.
Illinois also hosts the School and Municipal Social Work Shortage Loan Repayment Program.
This program aims to place social workers in the city's public school districts. It applies to social workers who work for a city as long as they did not report directly to a police department.
A one-time award of up to $6,500 is available.
Indiana
The Indiana State Loan Repayment Program (IN-SLRP) mirrors other state loan repayment programs.
Licensed clinical social workers and professional counselors can qualify for $20,000 to repay their outstanding student loans with a two-year commitment to work in a federally designated Health Professional Shortage Area (HPSA). Participants can then reapply for another two-year commitment for an additional $20,000.
IN-SLRP caps out after $40,000 across four years of service.
Participants must also be involved with the Extension for Community Healthcare Outcomes (ECHO) learning project. They must attend live sessions geared around improving treatment for specific populations, diseases, or conditions.
Iowa
The state's Primary Care Provider Loan Repayment Program applies to the following social work categories:
- Licensed clinical social worker
- Licensed independent social worker
- Licensed master social worker
Social workers with these titles are eligible for funds that can be used to repay their government and commercial student loans.
In order to apply, a participant must complete a two-year full-time, two-year half-time, or four-year half-time obligation in a Health Professional Shortage Area (HPSA). The maximum award for a social worker is $30,000 after two years.
Kansas
Through the Kansas State Loan Repayment Program, social workers can have up to $70,000 in loans repaid by serving in a Health Professional Shortage Area (HPSA).
The program scales yearly awards based on time of service, but all participants must agree to serve at least two years in an HPSA.
Clinical social workers, addiction counselors, and professional counselors can receive up to $20,000 each of their first two years of service. A third-year continuation will net them another $15,000. They can earn another $10,000 in their fourth year, and $5,000 in their fifth.
The maximum amount available means Kansas has one of the more lucrative state loan repayment programs in the U.S.
Funds may only be used to pay back loans accrued for social-work-related education.
Kentucky
The Kentucky State Loan Repayment Program (KSLRP) rewards social workers and other healthcare workers who work in rural and underserved communities.
Social workers can benefit from the program if they commit to working full time (40 hours per week) for two years at an eligible site in the state. However, participants must find a sponsor to match any state contributions one-to-one.
Sponsors can include a participant's employer or any outside organization like a nonprofit.
KSLRP covers both government loans and private student loans.
The maximum award amount depends on what type of job a participant is employed in. Licensed clinical social workers, licensed professional clinical counselors, health service psychologists, and marriage and family therapists fall under Tier 2
jobs, so participants are eligible for up to $15,000 from the state each year, plus another $15,000 from their sponsor.
Alcohol and substance misuse counselors, meanwhile, are in Tier 3,
so they are eligible for up to $10,000 from the state.
Louisiana
Louisiana's State Loan Repayment Program applies to licensed clinical social workers, alcohol and substance misuse counselors, and licensed professional counselors.
People must have a master's or Ph.D. to qualify.
Those that meet that criteria must agree to work for at least three years in a Health Professional Shortage Area (HPSA).
Social workers can earn up to $20,000 per year in funds that must be used to pay off student loan debt. After three years of service, workers can apply to extend with a two-year commitment that will net them $15,000 annually.
Awards are limited, so the Louisiana Department of Health will prioritize the following applicants:
- Those who work in facilities with the highest percentage of underserved patients
- Those who agree to serve in HPSAs with the highest degree of shortage
- Those who agree to accept referrals and provide services to a significant portion of HIV/AIDS patient base
- Those who treat targeted populations like migrant farm workers
- Providers working in a facility that has an opioid treatment program
Massachusetts
The Massachusetts Loan Repayment Program (MLRP) rewards social workers and other healthcare professionals who work in underserved communities.
Licensed independent clinical social workers, licensed professional counselors, and mental health counselors are eligible for MLRP.
Social workers are eligible for between $15,000 and $20,000 per year. They must agree to a two-year contract, so they can receive up to $40,000 for the full contract. Repeat applicants may not receive more than $100,000 in total MLRP funding over time.
The program's guidelines do not specify when a social worker or counselor would qualify for $15,000 or $20,000 annually.
Michigan
The Michigan State Loan Repayment Program (MSLRP) is unique among state repayment programs.
MSLRP assists those serving in Health Professional Shortage Areas (HPSAs) by forgiving up to $300,000 in student loan debt over a 10-year period. In order to enter the program, an applicant must have at least $20,000 in outstanding student loan debt to enter into a two-year commitment to serve in an HPSA.
The actual amount awarded to pay off debt is dependent on how much debt a participant has.
MSLRP only applies to clinical social workers, mental health counselors, and licensed professional counselors with at least a master's degree. Those with a bachelor's degree cannot participate.
Michigan's program only applies to full-time social workers who work at least 40 hours per week.
Minnesota
Minnesota's State Loan Repayment Program (MN SLRP) aims to improve population access to outpatient clinic-based primary health care,
particularly in underserved communities.
Licensed clinical social workers with a master's or doctoral degree in social work are eligible for the program. Licensed professional clinical counselors with a master's or doctorate are also eligible.
Social workers must work in rural and urban Health Professional Shortage Areas (HPSAs) in Minnesota to qualify.
If they work two years in an HPSA, Minnesota will award $20,000 annually to repay student loan debt for full-time work (40 hours weekly) or $10,000 per year for part-time work (20 hours). The awards can be applied to either government or commercial loans, and any loan repayments made using MN SLRP funds are tax-exempt.
The state has limited funds for this program, so not all applicants will be approved.
Montana
The Montana State Loan Repayment Program incentivizes healthcare providers to work in Health Professional Shortage Areas (HPSAs).
The program applies to licensed clinical social workers and professional counselors.
Participants can earn up to $37,500 annually if they work full time in an HPSA. They must, however, agree to an initial two-year service obligation. They can apply for a one-year extension after their initial contract is over, but their application won't be accepted if the state doesn't have enough funds for additional awards.
Part-time providers are eligible to receive funds up to 50% of their qualifying debt, but for no more than $37,500 per year over their two-year contract.
Full-time work is 40 hours per week, and part-time is 20.
Applications are reviewed and accepted on a first-come, first-served basis.
New Hampshire
The New Hampshire State Loan Repayment Program provides funds to healthcare professionals working in areas the state designates as medically underserved.
Licensed independent clinical social workers with a master's or doctoral degree can qualify. Those who are under supervision toward licensure may also apply for the program.
Social workers are grouped into Tier 2 for healthcare professionals. That means they can receive up to $45,000 for a minimum service obligation of 36 months. They can then apply for a 24-month extension to receive another $20,000.
All funds must go toward student loan debt.
The state also rewards part-time social workers with up to $17,500 over a two-year contract.
New Jersey
New Jersey has six loan repayment programs, including one that impacts social workers: the Behavioral Healthcare Provider Loan Redemption Program.
This program awards funds to people serving in behavioral health fields. That includes licensed clinical social workers, certified behavior analysts, licensed clinical alcohol and drug counselors, and licensed professional counselors.
New Jersey will award up to $50,000 for every two years of service at an approved site, which includes community providers of behavioral and mental health services. A participant can have a maximum of $150,000 reimbursed to pay off student loan debt after six years of working at an approved site.
Participants who work primarily with children or adolescents are eligible to receive up to six incentive grants. They can only receive up to $5,000 annually through these grants.
Government and commercial student loans are eligible to be paid off through this program. However, the loan must have been taken out to fund education toward the participant's mental or behavioral healthcare profession.
New Mexico
The New Mexico Health Professional Loan Repayment Program (HPLRP) is one of the few state loan repayment programs without defined payment amounts.
Licensed clinical social workers can qualify for the program. However, the state does not specify how much money social workers can receive to pay off student loan debt. Instead, awards are based on how much funding the program has for the year, as well as the strength of individual applications.
HPLRP takes into account the following information in an application:
- Health Professional Shortage Area (HPSA) score
- Service area
- Area health statistics key indicators
- Population served
Essentially, the program scales awards based on whether applicants are serving areas of greatest need.
New Mexico will make payments directly to a participant's loan servicer on a quarterly basis. This is also unique among state loan repayment programs, as most distribute money to participants with the condition that they use funds to pay off student loans.
New York
The NYS Licensed Social Worker Loan Forgiveness (LSWLF) Program focuses on necessary social work jobs as well as aiding underserved communities.
The program aims to increase the number of licensed social workers working in critical human services areas,
including:
- Home care
- Mental health
- Substance misuse
- Child welfare
- HIV/AIDS care
Participants are eligible for up to $26,000 in total awards to pay off outstanding student loans. Each participant will receive a $6,500 award at the end of each year of service as part of LSWLF for a maximum of four years.
Full-time work is defined as at least 35 hours per week through this program.
LSWLF applies to both government and private student loans.
Only people who are New York residents and have been living in the state for at least 12 continuous months can apply for the program.
North Carolina
The North Carolina State Loan Repayment Program focuses on mental health services.
This program requires a three-year commitment from participants to work in rural communities with a Health Professional Shortage Area (HPSA) score of 15 or above. According to the Department of Health and Human Services, there are 95 shortage areas that fit this description in North Carolina, as of mid-May 2023.
Full-time participants (40 hours per week) can have up to $50,000 in student loans repaid with three years of service.
Licensed clinical social workers, licensed clinical mental health counselors, and licensed clinical addiction specialists are eligible for the North Carolina program. They may work at sites including alcohol and drug misuse treatment centers, community mental health facilities, and state-designated rural health centers.
North Dakota
This state features one of the lowest-paying programs in the country.
The ND Healthcare Professional Loan Repayment Program allows people in behavioral health professions to participate in the program. That includes licensed clinical social workers, addiction counselors, and professional counselors.
The total amount that can be awarded to social workers pales in comparison to other states.
North Dakota's program awards behavioral health participants who work in small-population cities or a Health Professional Shortage Area (HPSA). Social workers can qualify for $4,000 per year to be used toward repaying student loan debt. They can receive up to $20,000 over five years.
Participants must also find an organization to match 10% of all funds distributed by the state.
That means social workers can earn a combined $22,000 over five years of service.
Oregon
Oregon has two loan repayment programs.
The first is the Oregon Partnership State Loan Repayment Program.
This program applies to clinical social workers and professional counselors. In order to qualify, a person must work in approved practice sites in Health Professional Shortage Areas (HPSAs) for a minimum of two years for full-time workers and four years for part-time workers.
Full-time is 40 hours per week, and part-time is 20 hours.
Full-time social workers may receive up to 50% of their outstanding loan balance for a maximum of $35,000 per year during their initial two-year commitment. Part-time providers can receive a max of $17,500 per year.
A worker's practice site must match all funds one-to-one.
Participants can apply for two-year extensions to their contract, but cannot receive more than $100,000 in their lifetime.
Oregon's second repayment program that applies to social workers is the Oregon Behavioral Health Loan Repayment Program.
This program rewards workers serving residents of rural communities, people of color, and tribal areas. Providers must also agree to serve people regardless of their ability to pay for their healthcare coverage.
Full-time workers (32 hours per week) can receive up to 70% of their educational loan balance per year, with a maximum of $50,000 per year. Part-time employees (16-31 hours) are capped at 35% of their balance, with a maximum of $25,000 per year.
Participants must commit to two years of service.
This program also covers school counselors and alcohol and drug counselors.
Pennsylvania
Pennsylvania's Primary Care Loan Repayment Program offers loan repayment to people who serve in a designated Health Professional Shortage Area (HPSA) or serve a minimum of 30% low-income patients.
Licensed clinical social workers and professional counselors are included in the program.
People in these professions must agree to a two-year full-time or half-time service agreement. Full-time participants are eligible to receive up to $48,000 to repay their student loan debt after two years. Half-time participants can receive up to $24,000.
Full-time employment is at least 40 hours per week.
Rhode Island
The Rhode Island Health Professional Loan Repayment Program rewards social workers who serve in a public or nonprofit outpatient facility in a Health Professional Shortage Area (HPSA).
Unlike most state programs, Rhode Island's repayment program does not state how much money participants would receive to repay their student loan debt. Instead, the state's fact sheet says the state will pay the participant's servicer the full award amount stipulated in the service contract
once they meet the service obligation.
Licensed clinical social workers, licensed professional counselors, and master's level alcohol and substance misuse counselors can qualify for the program.
All participants must agree to a two-year service contract.
Full-time participants must work at least 40 hours per week, while part-time workers must work 20 hours weekly for a four-year contract.
South Dakota
South Dakota's State Loan Repayment Program applies to licensed clinical social workers, professional counselors, and alcohol and substance misuse counselors.
The program awards people in various health professions that serve in Health Professional Shortage Areas (HPSAs). Work sites must be public facilities or private, nonprofit organizations.
Participants must agree to a minimum of two years of service at an HPSA to qualify.
Those accepted into the program can receive up to $25,000 annually for full-time work, or $12,500 annually for part-time work.
Applications are reviewed and approved on a first-come, first-served basis.
Tennessee
The Tennessee State Loan Repayment Program (TSLRP) awards funds to professionals that agree to work in Health Professional Shortage Areas (HPSAs) across the state.
Licensed clinical social workers and professional counselors are eligible to participate in TSLRP.
They must agree to work at least two years within an HPSA. An eligible site is an ambulatory primary care public, nonprofit, or private not-for-profit facility.
The maximum TSLRP award is up to $50,000 for an initial two-year obligation, dependent on funding availability. Recipients of an award can then apply for a contract extension to receive another $20,000 per year to pay back their student loans.
Utah
The Utah Health Care Workforce Financial Assistance Program (HCWFAP) is a student loan repayment assistance program for healthcare professionals who practice in underserved areas.
Licensed clinical social workers can receive up to $37,500 from the state to repay their loans.
They must, however, work in an underserved area full time for three years.
Another important part of HCWFAP is that the site participants work for must agree to match 20% of all funds distributed by the state. That means participants would receive up to $45,000 including the employer match after three years of service.
Participants will see their first award amount six months after the start of their contract.
HCWFAP funds can be applied to commercial, governmental, or personal loans used toward a professional degree approved by the Utah Department of Health and Human Services.
Virginia
Virginia has two loan repayment options that apply to social workers.
The first is the Virginia State Loan Repayment Program. This program rewards both full-time and part-time licensed clinical social workers, professional counselors, and alcohol and abuse counselors with a master's degree.
Participants must work in a Health Professional Shortage Area (HPSA) in Virginia.
This repayment program requires a one-to-one community match. The state will pay a maximum of $50,000 for a two-year commitment to work in an HPSA. That means with a full community match, participants can earn up to $100,000 in two years to pay off student loan debt.
The state may award another $20,000 for the third and fourth years if an applicant seeks a contract extension.
Total awards for all four years cannot exceed $140,000.
Social workers in Virginia can also pursue debt repayment through the Virginia Behavioral Health Student Loan Repayment Program.
It applies to the same professions, but prioritizes those who provide counseling and treatment to underserved populations.
The total award amount may not exceed 25% of a borrower's student loan debt. The annual limit in this program is $20,000 for social workers. No employer or community match is required.
Priority will be given to social workers of color, those who speak more than one language fluently, and those who work in mental health professional shortage areas.
Washington
The Washington Health Corps administers three loan repayment programs that can benefit social workers. All three require participants to work in a Health Professional Shortage Area (HPSA) and at a nonprofit.
All three programs also apply to licensed independent clinical social workers, substance misuse professionals, and licensed mental health counselors.
The first is the Federal Health Program (FHP).
This program requires a minimum of two years of service in an HPSA. Participants must work 40-hour workweeks in order to qualify for up to $70,000 that can be used to pay back student loan debt.
The State Health Program (SHP) and Behavioral Health Program (BHP) are identical in how they benefit social workers.
SHP and HP require a three-year contract, and participants can earn up to $75,000 for their student loan debt. These programs require just 24 hours of work per week, and the service obligation is prorated.
