Arkansas Act 1022: Behavioral Health Loan Forgiveness for Professionals in Underserved Communities

By FYH News Team

Published on April 29, 2025

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FAYETTEVILLE, Ark. (KNWA/FOX24) — Now Act 1022, the behavioral health loan forgiveness plan provides an incentive for mental and behavioral health professionals to take jobs in underserved communities.

According to legislation, “underserved communities” are determined by the ratio of mental health professionals to the population of a given area. It also says that for each year a participant meets the requirements, they will also receive a 15% reduction on their student loans for a maximum of three years.

Dean of Social and Behavioral Sciences at NorthWest Arkansas Community College, Lorena Clouse, said this new legislation is a win-win for both the community and the professionals taking these jobs.

“It helps the local community beyond the fact that they have this specialized training in the field because now they’re also economic contributors,” Clouse said. “They’re buying houses, they’re contributing to local businesses, they’re participating in the kinds of things that can identify maybe the barriers for individuals in those communities. Without that, it might not be happening.”

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The law is designed with the hope of keeping mental health professionals in Arkansas and to boost the overall well-being of the state’s citizens. It also gives financial relief for people who enter the field, because in order to become a licensed professional, one must complete a master’s program.

Emma Haas is a psychology student at the University of Arkansas, and she said that this program provides an opportunity for her to continue her path towards a master’s degree.

“It was not in the plans or even a possibility for me to go beyond getting my bachelor’s degree, Haas said. “So, I think providing that opportunity for students like me will definitely keep people in Arkansas and help communities that need it.”

The bill was signed into law last week and is expected to take effect at the start of 2026.

For the latest news, weather, sports, and streaming video, head to KNWA FOX24.

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