As student loan forgiveness opportunities shrink at the federal level, New Jersey is offering up to $180,000 for eligible behavioral healthcare professionals to help pay off their debt.

“The Behavioral Healthcare Provider Loan Redemption Program is among the many initiatives we introduced to support and encourage mental health providers to offer their services in underserved areas,” said Gov. Murphy in a press release.

“With this latest round of funding, the program is building on its success by incentivizing professionals to provide much-needed care in communities throughout the state,” he continued.

Who Qualifies and How It Works

The program targets licensed behavioral healthcare providers who work full-time at nonprofit, educational, or government-operated sites in New Jersey. Eligible professions include licensed counselors, clinical social workers, psychologists, psychiatric nurses, board-certified behavior analysts, and psychiatrists. Providers must be New Jersey residents and deliver direct care for a minimum of two years to qualify.

For every two years of service at approved sites, participants receive up to $50,000 toward their student loans, with a maximum of $150,000 available over six years. Those working primarily with children and adolescents can earn an additional supplemental grant of up to $5,000 per year, increasing the total possible relief to $180,000.

The state’s announcement comes as part of ongoing efforts to bolster behavioral and mental health resources across New Jersey. Higher Education Student Assistance Authority (HESAA) is launching the fourth year of this initiative, committing $3.825 million from the Fiscal Year 2026 budget to incentivize professionals working in behavioral health. Since the program began in January 2023, 165 professionals have been offered loan relief.

Application Details

Applications are open through October 31. Those who previously applied and were not selected must reapply to be considered in this funding cycle. HESAA leaders and state officials emphasize that the program is designed to address workforce shortages and expand access to mental health care, particularly in underserved communities.

Providers are required to maintain appropriate professional licenses and commit to working at qualifying sites throughout the program period.

For more information, eligible professionals can visit HESAA’s website to access the application.