North Carolina Launches Loan Repayment Program to Bolster Mental Health Workforce
In a move aimed at addressing critical staffing shortages in mental health services, the North Carolina Department of Health and Human Services (NCDHHS) has unveiled the Licensed Workforce Loan Repayment Program. This $20 million initiative is designed to attract and retain licensed mental health professionals in the state’s rural and underserved areas.
As a vital component of North Carolina’s strategy to strengthen its community-based workforce, the program offers financial incentives to licensed professionals who are often deterred by economic challenges from working in high-need regions. Recent initiatives by NCDHHS to promote careers in human services can be explored through a dedicated web portal on their website.
“We have significant workforce shortages and access challenges in mental health,” said NC Health and Human Services Secretary Dev Sangvai. “This program is a strategic investment in the people who provide critical care and support to individuals and families across our state.”
The initiative targets licensed, master’s-level professionals such as counselors, social workers, psychologists, and therapists. These roles are crucial for service delivery but often come with financial constraints that the new program aims to alleviate.
Kelly Crosbie, MSW, LCSW, Director of the NCDHHS Division of Mental Health, Developmental Disabilities and Substance Use Services, emphasized the importance of the initiative by stating, “We cannot build a strong system of care without a strong workforce. This program is about investing in those professionals, supporting their careers, and ensuring that people across North Carolina have access to the care they need, close to home.”
Currently, nearly 4 million residents in North Carolina—almost 40% of the population—live in areas with a shortage of mental health professionals. The urgency is highlighted by a 2022 KFF and CNN survey indicating that over a third of young adults aged 18-29 reported “only fair/poor” mental health, a sentiment echoed by one in four adults aged 30-49. The American Psychological Association also found that most psychologists are unable to accept more patients.
Program Highlights
- Offers up to $50,000 in student loan repayment
- Requires a three-year service commitment in rural or underserved counties
- Targets non-medical, licensed professionals such as:
- Licensed Clinical Social Workers (LCSW)
- Licensed Clinical Mental Health Counselors (LCMHC)
- Licensed Clinical Addiction Specialists (LCAS)
- Licensed Marriage and Family Therapists (LMFT)
- Licensed Psychologists and Psychological Associates
The Loan Repayment Program is designed to ensure that skilled professionals remain in the public service sector, thereby continuing to provide essential services in the communities where they are most needed.
Eligibility Requirements
Applicants must meet several criteria:
- Possess a valid North Carolina license in good standing
- Work a minimum of 32 hours per week
- Provide services in mental health, substance use, IDD, or TBI
- Be employed at an approved agency that serves at least 40% Medicaid, uninsured, or underinsured individuals
- Work in a designated rural or underserved area
Application Process
Applications opened on Dec. 1, 2025. For more details and to apply, visit the NCDHHS Licensed Workforce Loan Repayment Program page.
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