Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB900

Introduced
7/8/25  

Caption

Providing for Commonwealth support for a Mental Health and Intellectual Disability Staff Member Loan Forgiveness Program and an Alcohol and Drug Addiction Counselor Loan Forgiveness Program; and imposing duties on the Pennsylvania Higher Education Assistance Agency.

Summary

SB900 establishes two new state-run loan forgiveness programs within the Pennsylvania Higher Education Assistance Agency (PHEAA): one for mental health and intellectual disability staff members, and one for alcohol and drug addiction counselors. The bill is aimed at recruiting and retaining workers in these fields by helping repay qualifying student loans for eligible Pennsylvania residents who have completed an accredited degree or diploma, secured full-time employment in the covered occupations, and completed an initial six-month employment period in good standing. Under the bill, selected participants must sign a service contract and remain employed in the field for at least four consecutive years. The agency may forgive up to $6,250 per year, with a maximum of $25,000 total per recipient, and forgiveness is structured so the full amount can be earned over four years. The bill also sets conditions for repayment if a recipient fails to meet service obligations, provides false information, or is convicted of a felony, while waiving the service obligation in cases of death or total/permanent disability.

Impact

SB900 would add a new chapter of state-supported student loan relief targeted to behavioral health and human services workforce shortages. It would direct PHEAA to administer the programs, establish application and verification procedures, issue annual public reports, and adopt implementing regulations, policies, forms, and procedures. The bill also specifies that loan forgiveness payments are not taxable income under the Pennsylvania Tax Reform Code, and it bars participants from receiving concurrent forgiveness under another Commonwealth loan forgiveness program.

Sentiment

The bill’s findings reflect a strongly supportive policy rationale: lawmakers describe workforce shortages in mental health, intellectual disability, and addiction treatment as a public problem affecting health care, family stability, and public safety. Although no committee transcript or vote record is provided, the bill text itself indicates a favorable posture toward using loan forgiveness as an incentive to attract and retain qualified workers in hard-to-staff public service fields.

Contention

The main policy tension in SB900 is not whether the workforce shortage exists, but how to structure and fund the response. The bill limits awards to available appropriations and uses a lottery if funding is insufficient, which may raise concerns about predictability and adequacy of support. It also imposes strict service obligations, repayment triggers, and ineligibility for applicants with defaulted loans or those already receiving another Commonwealth forgiveness benefit. These provisions suggest likely areas of concern for administrators, applicants, and budget-minded legislators, even though no explicit opposition is recorded in the provided materials.

Companion Bills

No companion bills found.

Previously Filed As

PA HB194

Establishing the Mental Health Professional Student Loan Forgiveness Program; imposing powers and duties on the Pennsylvania Higher Education Assistance Agency; and making an appropriation.

PA HF4067

Physical therapists and physical therapist assistants eligible for loan forgiveness under the health professional education loan forgiveness program, and money appropriated.

PA SF4170

Physical therapists and physical therapist assistants eligibility for loan forgiveness under the health professional education loan forgiveness program authorization and appropriation

PA HF3133

Physician and medical resident eligibility for loan forgiveness under the health professional education loan forgiveness program modified.

PA AB700

Student loans: public service educational loan forgiveness program.

PA SB554

To Create The Behavioral Health Loan Forgiveness Program.

PA S0019

Health care Professional Loan Forgiveness Program

PA SF3408

Health professional education loan forgiveness program physician and medical resident eligibility modifications

PA HB19

Higher Education - Maryland Public Service Loan Forgiveness Program - Establishment

PA HB0019

Higher Education - Maryland Public Service Loan Forgiveness Program - Establishment

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