BOSTON — More than 700 health care workers will have millions of dollars in student loans paid off under a taxpayer-funded state repayment program aimed at easing workforce shortages.
The program, which launched in 2022, pays off up to $300,000 in college loans for eligible health care professionals in a variety of disciplines, including dental, medical, mental health and substance abuse.
The state Executive Office of Health and Human Services, which oversees the MA Repay program, announced a new round of disbursements this week totaling $14.6 million.
The latest round of loan repayments specifically targets direct care human service workers, supervisors and home health professionals, the agency said.
Health and Human Services Secretary Kate Walsh said the program provides “meaningful student loan relief to our dedicated human service and home health professionals.”
“Their work is vital to our communities, and these loan repayment opportunities are one way we can show how much we really value the people who do these important jobs,” she said in a statement.
The repayments are the latest under the program, which was approved as part of a $4 billion pandemic relief bill signed by Gov. Charlie Baker in December 2021.
The loan repayments are aimed at recruiting and retaining new workers in a sector of the state’s health care system that is traditionally among the lowest paid.
Under the program, psychiatrists are eligible for up to $300,000 if they are employed full time and $150,000 if they work part time. Psychologists can have up to $150,000 in loans repaid if they are full-time workers, $75,000 if they work part time.
Nurses, nurse practitioners, advanced practice nurses, physician assistants and social workers with master’s degrees who are employed in mental health settings can receive $25,000 to $50,000. Workers in those professions with bachelor’s degrees can get between $15,000 and $30,000.
Those who qualify must commit to working for at least four years in the state under a “service commitment” to receive the financial relief. That employment can be with up to two employers, according to the program’s requirements.
To date, the state has repaid $117.5 million in college debt for health care workers under the program, according to the state agency.
The Healey administration is planning another round of disbursements through the program totaling $61 million and targeting behavioral health workers. The agency began accepting applications earlier this month.
The state’s loan repayment program comes as federal efforts to ease the impact of crushing college debt – including President Joe Biden’s federal loan forgiveness program which was rejected by the U.S. Supreme Court – have been shot down amid court challenges.
In 2023, the U.S. Department of Education launched a policy called the Saving on a Valuable Education, or SAVE, plan, which it touted as “the most affordable repayment plan ever created.” The plan is estimated to cost about $156 billion over the next 10 years.
But Biden’s loan forgiveness plan is in jeopardy as he prepares to step down from office in January and a recent federal court ruling siding with Republican-led states that sued to block the program.
The plaintiffs, which include Alabama, Florida and Missouri, argue that the Biden administration exceeded its legal authority by enacting the student debt relief plan.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.
