North Carolina launches $20 million loan repayment

North Carolina’s Department of Health and Human Services (NCDHHS) has introduced a Licensed Workforce Loan Repayment Program, allocating $20 million to support licensed clinicians serving mental health, substance use, intellectual and developmental disabilities (IDD), and traumatic brain injury (TBI) populations. This initiative focuses on expanding service capacity in rural and underserved communities, where provider shortages remain critical. Applications for the program open on December 1, 2025, offering licensed professionals financial assistance to ease student loan burdens in exchange for a service commitment.

Eligibility and program details

The loan repayment opportunity is available to licensed professionals including Licensed Clinical Social Workers (LCSW), Licensed Clinical Mental Health Counselors (LCMHC), Licensed Clinical Addiction Specialists (LCAS), Licensed Marriage and Family Therapists (LMFT), as well as licensed psychologists and psychological associates. Applicants must hold an active North Carolina license, work a minimum of 32 hours per week, and be employed by agencies that serve high-need populations—defined as at least 40% Medicaid, uninsured, or underinsured clients. To qualify, services must be delivered within designated rural or underserved areas across the state. Award amounts can reach up to $50,000 spread over three years, with payments disbursed biannually contingent on continued service.

Addressing critical provider shortages

Approximately 40% of North Carolina residents live in areas classified as mental health shortage zones, highlighting the urgent need for expanded behavioral health and IDD care. By incentivizing licensed clinicians to commit to service in underserved regions, the program seeks to bolster agency capacity and improve access to community-based care. IDD service providers and agencies facing workforce recruitment challenges may find this program a particularly valuable resource for attracting and retaining qualified professionals.

Next steps for providers and agencies

Licensed clinicians practicing in mental health, substance use disorder, IDD, or TBI fields—and serving eligible populations in qualifying counties—are encouraged to consider applying. Agencies employing such staff should review eligibility criteria and inform their teams of this opportunity. A comprehensive list of designated rural and underserved counties is available through NCDHHS for reference and eligibility verification.