Purpose

This bill expands Minnesota’s health professional education loan forgiveness program to include physical therapists and physical therapist assistants among the eligible professions, and it provides funding and rules to support loan forgiveness for these and other health workers. The goal is to encourage trained health professionals to practice in rural areas, underserved urban communities, or in specialty areas such as pediatric psychiatry, helping to address workforce gaps in Minnesota’s health care system.

Main Provisions

• Expanded eligibility

  • Adds physical therapists and physical therapist assistants to the list of health professionals who can receive loan forgiveness.
  • Maintains eligibility for other already-covered professions (e.g., medical residents, physicians, mental health professionals, nurses, pharmacists, dentists, dental therapists, and public health nurses).

• Funding and how it’s used

  • The state sets aside money to forgive qualified educational loans for the eligible professions listed.
  • The Department of Health, in consultation with the Healthcare Education Industry Partnership, will determine which health fields have the greatest need and target loan forgiveness accordingly.
  • In addition to loan forgiveness for practitioners, some funds may support loan forgiveness for teaching or other forms of service in specific health professions.

• Practice location and service requirements

  • Participants must agree to practice in designated rural areas or underserved urban communities (or in specialty areas like pediatric psychiatry) to receive forgiveness.
  • Designated rural areas are defined as certain non-metro areas that exclude some larger cities (e.g., Duluth, Mankato, Moorhead, Rochester, St. Cloud).
  • There are also requirements for midlevel practitioners to teach in postsecondary nursing programs or to practice in rural areas.
  • Nurses may be required to work in Minnesota nursing homes, intermediate care facilities for people with developmental disabilities, hospitals, or similar settings, and some teaching requirements apply.
  • Dentists have a separate requirement to deliver at least 25% of yearly patient encounters to state public program enrollees or to patients who receive a sliding-fee schedule.

• Eligibility and contract terms

  • Eligible individuals include medical or dental residents, licensed pharmacists, or those enrolled in training/education programs to become various health professionals (including PTs/PTAs, dentists, dental therapists, mental health professionals, etc.).
  • The commissioner may consider graduates who are licensed and practicing.
  • Selected applicants must sign a contract to serve a minimum period:
  • Generally a three-year full-time service obligation after completing required training.
  • Some nursing participants may have a two-year obligation, and other exceptions may apply for teaching roles.
  • Certain roles require ongoing service in a hospital or teaching capacity for a set period (e.g., two-year minimums for teaching positions).

• Appropriation and administration

  • A specific amount ($500,000 in fiscal year 2027) is appropriated from the general fund to fund loan forgiveness for eligible physical therapists and physical therapist assistants.
  • Funds remain available until expended; any remaining balance at the end of a biennium that isn’t committed or needed to fulfill commitments can revert to the fund.
  • The program’s administration involves the Department of Health with input from the Healthcare Education Industry Partnership to identify priority fields.

• Additional program details

  • The bill defines several terms and categories (e.g., “qualified educational loan,” “emergency circumstances,” “designated rural area,” “underserved urban community,” “midlevel practitioner,” “public health nurse,” and others) to guide eligibility and obligations.
  • There are references to specific regulatory standards for implementing sliding-fee schedules and delivering care to publicly funded patients.
  • The bill includes several cross-references to Minnesota licensing and practice definitions for the listed professions.

Significant Changes to Existing Law

• Explicitly adds physical therapists and physical therapist assistants to the list of health professionals eligible for loan forgiveness under the health professional education loan forgiveness program.
• Broadens the scope of eligible fields and the places where forgiveness funds can be used (rural areas, underserved urban areas, and certain specialty practices such as pediatric psychiatry).
• Introduces or modifies teaching and service obligations tied to loan forgiveness (e.g., minimum years of service, teaching requirements for certain health roles).
• Establishes a dedicated appropriation for PTs and PTAs and clarifies fund handling (availability of funds until expended, biennium balance rules).
• Sets location and practice requirements that determine eligibility and continuation of loan forgiveness benefits.

Relevant Terms - health professional education loan forgiveness program - qualified educational loan - physical therapist - physical therapist assistant - designated rural area - underserved urban community - pediatric psychiatry - medical resident - physician - mental health professional - midlevel practitioner - nurse practitioner - nurse midwife - registered nurse - licensed practical nurse - hospital nurse - pharmacist - dentist - dental therapist - advanced dental therapist - public health nurse - emergency circumstances - teaching requirements - contract to serve - designation of funds - United States DHHS sliding fee schedule (42 CFR 51c.303) - Healthcare Education Industry Partnership - designated health care fields - seven-county metropolitan area (exclusions listed) - qualified educational loan definition - general fund appropriation - biennium balance cancellation - Minnesota Statutes 144.1501 (sections amended)