On Apr. 23, ARK LEG enacted bill related to health loan forgiveness.
ARK LEG enacted bill SB 554 to create Behavioral Health Loan Forgiveness Program.
Amends Arkansas code, ARK LEG 6-81-2101 to 2105 (to create the forgiveness program), ARK LEG 19-5-1288 (to create professional student loan repayment fund).
Behavioral Health Loans
Added definitions related to behavioral health, loans, related licensed professionals.
Created the Behavioral Health Loan Forgiveness Program in order to promote mental health professionals by giving participants payments toward certain student loans.
Outlined the powers and duties of the Secretary of Department of Human Services.
Also provided eligibility standards for persons who wish to become licensed in the field.
Department of Human Services Secretary will distribute available funds from Arkansas Behavioral Health Professional Student Loan Repayment Fund to eligible participants.
If not enough qualified participants within a given year, the remaining funds may be allocated proportionally among the other eligible professions per the vacancy rate.
Secretary will make annual disbursements from the fund to the participant in an amount equivalent to 15% of the average educational debt, for up to three years.
Participants who do not meet contractual obligation must repay loan plus 5% interest.
Legislative History
On Mar. 20, 2025, bill introduced in Senate; on Apr. 3, 2025, bill passed the Senate.
On Apr. 3, 2025, bill introduced into House; on Apr. 16, 2025, bill passed in House.
On Apr. 16, 2025, bill sent to the governor; on Apr. 23, 2025, bill became Act 1022.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
CNSM; Corp; IA
Reference
Act 1022, Bill SB554, 4/23/2025; Citation: *ARK LEG* 6-81, 19-5;
