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Student Loan Forgiveness Bill Moving in State House

In the state House of Representatives, House Bill 282, introduced again by Rep. Thomas C. Petrone (D-Allegheny) would allow employees of publicly funded MH/MR treatment facilities, drug and alcohol facilities, and behavioral health rehabilitation service programs to receive student loan forgiveness of up to $5,000 per year ($20,000 total). This bill was reported out of the Health and Human Services Committee in late February and was on the full House calendar at press time.

In a letter to state legislators, PPA executive director Tom DeWall noted that a qualified and stable workforce is a key for the quality of these public sector behavioral health jobs. Unfortunately, many qualified individuals may be drawn away from careers in public sector programs because of low salaries and high work demands. This loan forgiveness provision will do much to attract and retain qualified people.

Recent graduates of doctoral programs in psychology face substantial financial pressures. Data from a 2001 survey by the American Psychological Association showed that the average graduate of a doctoral program in psychology owes $53,000, and 26% owe $75,000 or more. Anecdotal reports suggest that these debt loads have increased since that report was issued six years ago. With these large debts it is understandable that most recent graduates believe they can pay off their loans only if they work in higher paying settings. House Bill 282 will help make public sector behavioral health jobs more attractive to these recent graduates.

A similar bill passed the House of Representatives in the 2005-2006 legislative session but died in the state Senate. PPA hopes to see it through to final passage in the current two-year session.

 

 

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