What's happening
This bill creates a loan forgiveness program for mental health nurses in New York who work in rural or underserved areas.
Why it matters
Targets urgent workforce shortages. By incentivizing mental health nurses to work in rural or underserved areas, the bill aims to address critical shortages in mental health care access where it’s often most lacking.
Focuses on recent graduates. Eligibility requires applicants to apply within two years of graduating from an approved New York college or university, encouraging newly trained nurses to enter and remain in the state’s mental health system.
Prioritizes economic need. The program guidelines include special consideration for economically disadvantaged applicants, directly supporting those who may have the highest student debt burden or most limited financial resources.
Ties loan forgiveness to public service. Recipients must commit to working in specific settings—such as state psychiatric hospitals, addiction treatment centers, or county mental health programs—ensuring the financial benefit is linked to providing care in high-need environments.
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Who cares
Headline styles
Forgive Mental Health Nurse Loans
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to higher education
- Referred to higher education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1277
2025-2026 Regular Sessions
IN SENATE
January 9, 2025
Introduced by Sens. GALLIVAN, BORRELLO -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education
AN ACT to amend the education law, in relation to providing loan forgiveness for mental health nurses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The education law is amended by adding a new section 679-k to read as follows:
§ 679-k. New York state mental health nurse loan forgiveness incentive program. 1. Purpose. The president shall grant student loan forgiveness awards for the purpose of alleviating the burden of student loan debt for mental health nurses in New York state. Such awards shall be made on a competitive basis as promulgated by the corporation for such purposes, to applicants who meet the eligibility criteria. Such rules and regulations shall include provisions for the consideration of applicants who are economically disadvantaged.
2. Eligibility. To be eligible for an award pursuant to this section, applicants shall:
(a) have graduated and obtained a degree from an approved New York state college or university;
(b) have an outstanding student loan debt from obtaining such degree;
(c) be employed as a professional or practical nurse, nurse practitioner, or clinical nurse specialist in New York state in accordance with sections six thousand nine hundred five, six thousand nine hundred six, six thousand nine hundred ten and six thousand nine hundred eleven of this chapter;
(d) apply for this program within two years of college graduation;
(e) comply with subdivisions three and five of section six hundred sixty-one of this part;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04131-01-5
(f) make a commitment to practice in a tract or county defined by the health resources and services administration as being "rural" or eligible for a rural health grant; and
(g) make a commitment to practice in state psychiatric hospitals, hospital in-patient psychiatric units, addiction treatment centers, behavioral health clinics or a county run mental health program for the duration of the award.
3. Awards. The corporation shall grant such awards within amounts appropriated for such purposes and based on the availability of funds.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to providing loan forgiveness for mental health nurses
Purpose
To provide loan forgiveness for mental health nurses.
Summary of provisions
Section 1. adds a new section to the education law to provide loan forgiveness for mental health nurses.
Section 2. provides the effective date.
Justification
New York State's mental health care system is facing a severe crisis attracting nurses and other health care professionals into the field to care for individuals and children at state and locally based treatment programs. The lack of nurses is particularly acute in New York's rural areas where state operated institutions like the St. Lawrence Psychiat- ric Center struggle to recruit nurses to staff in-patient and outpatient programs for both children and adults.
Creating a student nursing loan forgiveness program will help to encour- age nurses and nursing students to enter the mental health field. High student loan debt is often cited as a reason why graduates of nursing programs seek positions in urban areas and in fields outside of the mental health field. Creating a student loan debt relief program for nurses that choose to work in the mental health field can help rural areas attract the professionals they need. Rural mental health care programs and in-patient facilities already face difficulties in recruit- ing specialized health care professionals, such as nurses, due to their remoteness, long commutes and lifestyle differences.
Mental health nurses work with individuals and their families to develop a comprehensive approach to medical and nursing care for psychiatric disorders in both in-patient and community-based settings. With New York's rural areas already facing higher rates of mortality, disability and chronic diseases compared to urban and suburban areas, ways to address severe staffing shortages is critical to preventing the collapse of rural health care networks that rely on a comprehensive team approach.
Creating a new student loan repayment program for mental health nurses will help provide a powerful new recruitment tool to help encourage nurses to enter the mental health field.
Legislative history
2023-24: S.7486/A.4562Referred to higher education
2021-22: S.2664/A.5220Referredto higher education
2019-20: S.1429/A.2892Referredto higher education
2017-18: S.5552B/A.8211Reportedto finance/referred to higher education
Fiscal implications
To be determined.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.