Minnesota Rural Mental Health Professional Loan Forgiveness Guidelines
Current cycle: The Minnesota Health Care Loan Forgiveness program cycle is now CLOSED and will re–open again for new applications on November 1, 2021.
The program is offered to licensed mental health professionals as defined in Minnesota statute, 245.462, subdivision 18, which includes Independent Clinic Social Workers, Psychologists, Marriage and Family Therapists, and Licensed Professional Clinical Counselors. A prospective participant must submit an application to the ORHPC during the open application cycle.
The Rural Mental Health Professional Loan Forgiveness Program provides funds for repayment of Qualified Educational Loans. Qualified Educational Loans include government, commercial, and foundation loans for actual costs paid for tuition, reasonable education and living expenses related to the past graduate or undergraduate education of the Mental Health Professional. Credit card debt or loans from family members do not qualify. Parent PLUS loans do not qualify.
Loans in current or active default are NOT eligible for forgiveness in this program, even if considered in good standing with the collections agency. Previously defaulted loans that have since been completely rehabilitated and are not currently in active default status are eligible.
Selected participants shall provide direct patient care hours/client–centered services. Hours cannot be fulfilled meeting with providers, process improvement, policy development, supervising, or administering programs.
Participants must begin their service obligation under this program no later than March 31 following completion of their licensure. Participants must complete their licensure as originally stated in their application.
Participants are eligible to participate for up to four years in the program as a mental health professional in a designated rural area. ORHPC will make an annual payment to the participant in the amount of up to (1) $18,000, not to exceed $72,000 for Psychologists and (2) $9,300, not to exceed $37,200 for Licensed Independent Clinical Social Workers, Licensed Marriage and Family Therapists, and Licensed Professional Clinical Counselors for the maximum four-year period or the balance of the designated loan(s), whichever is less subject to the availability of funds appropriated by the Minnesota State Legislature for the loan forgiveness program.