Mental Health Professionals Loan Repayment Program Guidelines

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Learn about the Mental Health Professionals Loan Repayment Program in Texas, aimed at encouraging qualified professionals to practice in shortage areas and provide mental health services to eligible populations. Find out about eligibility requirements, award amounts, and recent program expansions.

  • Mental Health
  • Loan Repayment
  • Program Guidelines
  • Texas
  • Mental Health Professionals

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  1. Mental Health Professionals Loan Repayment Program Maria Serna, Manager II Mental Health Professionals Loan Repayment Program

  2. Program Background Program Background The purpose of the Mental Health Professionals Loan Repayment Program is to encourage qualified mental health professionals to practice in a Mental Health Professional Shortage Area (MHPSA) and provide mental health care services to recipients under the medical assistance program authorized by the Texas Human Resources Code, Chapter 32, and to enrollees under the child health plan program authorized by the Texas Health and Safety Code, Chapter 62. Major program expansion during the 88thLegislative session: State hospitals and local mental health authorities included (HB 2100) School psychologists added as eligible profession (HB 1211) Service requirement reduced to three years (SB 532) Increased funding to $14 million 2

  3. Eligibility Requirements Eligibility Requirements In order to be eligible for participation, you must provide direct mental health services in an MHPSA to one of the following: Medicaid recipients; In addition to serving an eligible patient population, an applicant must also: Texas Children's Health Insurance Program (CHIP) enrollees; be practicing in an eligible practice specialty have completed at least one year of qualifying service be a US citizen or a Legal Permanent Resident not be currently fulfilling another obligation to provide mental health services as part of a scholarship agreement, a student loan agreement, or another student loan repayment program agree to provide three consecutive years of service at an eligible practice site Persons committed to a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department or the Texas Department of Criminal Justice Students in a school district which is located partially or completely in an MHPSA, an open enrollment charter school located in an MHPSA, or a Title I school (LSSPs only). Or, provide services at a state hospital, or local mental health authority. 3

  4. Award Amounts Award Amounts You may receive up to the following award amounts over a three-year period: Psychiatrists: $160,000 Psychologists, licensed clinical social workers, licensed professional counselors, and licensed marriage and family therapists who hold doctoral degrees: $80,000 Advanced practice nurses: $60,000 Licensed clinical social workers, licensed professional counselors, licensed specialists in school psychology, and licensed marriage and family therapists who do not hold doctoral degrees: $40,000 Licensed chemical dependency counselors who hold associate degrees: $10,000 If your verified loan balance is less than the maximum award amounts above, your award will be prorated: 33.33% of the original loan balance in year one 33.33% of the original loan balance in year two 33.34% of the original loan balance in year three 4

  5. Frequently Asked Questions Frequently Asked Questions I am participating in the Public Service Loan Forgiveness Program. Does this disqualify me from any loan repayment program? No. PSLF requires a person to make 120 payments before the loan is forgiven. A participant may complete the state program before all 120 payments have been made on their federal loans. Are these awards taxable? No; these awards are not considered tax liable. How are funds awarded? Funds are sent directly to the lender to be applied to the participant s account. 5

  6. Contact Us Contact Us Texas Higher Education Coordinating Board Loan Repayment Programs Email Email: loanrepaymentprograms@highered.Texas.gov Phone Phone: 833.597.0454 1801 Congress Ave. Suite 12.200 Austin, Texas 78701 PO Box 12788 Austin, TX 78711-2788 Main: 512.427.6101 For more information visit our website:

  7. Lets Stay Connected! maria.serna@highered.Texas.gov

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