California Student Loan Forgiveness Programs

California offers a long list of student loan repayment assistance programs for health care workers, most of them run by the Department of Health Care Access and Information (HCAI). The biggest awards now go to behavioral health workers who serve Medi-Cal patients, while CalHealthCares has stopped taking new cohorts of doctors and dentists. Teachers get help up front through the Golden State Teacher Grant, and lawyers and everyone else should start with federal forgiveness programs.

Medi-Cal Behavioral Health Student Loan Repayment Program (MBH-SLRP)

MBH-SLRP is part of California's BH-CONNECT workforce initiative and pays down student loans for behavioral health professionals who commit to serving Medi-Cal members (HCAI). Licensed prescribers such as psychiatrists can receive up to $240,000 for four years, licensed and associate-level non-prescribers up to $180,000, and non-licensed workers such as peer support specialists and community health workers up to $120,000. Social workers and counselors at nonprofit clinics should also read our breakdown of nonprofit student loan forgiveness.

Steven M. Thompson Physician Corps Loan Repayment Program (STLRP)

STLRP repays up to $105,000 in educational loans for recently licensed physicians who commit to at least three years of full-time practice in a primary care shortage area in California (HCAI). That's more than the National Health Service Corps pays for its standard two-year term, which our breakdown of student loan forgiveness for doctors compares.

California State Loan Repayment Program (CA-SLRP)

CA-SLRP is California's federally funded State Loan Repayment Program, paying up to $50,000 for a two-year full-time commitment or $25,000 for half time, with smaller extension awards down to $10,000 a year (HCAI 2026 CA-SLRP grant materials). The practice site must match the award dollar for dollar, so the provider's employer shares the cost. Nurse practitioners and midwives can compare it with federal Nurse Corps in our nursing student loan forgiveness roundup.

Licensed Mental Health Services Provider Education Program (LMH)

The LMH program pays up to $15,000 toward educational loans for licensed mental health services providers who commit up to 24 months to direct client care at an eligible site, and providers can receive an award up to three times (HCAI). It's a smaller award than MBH-SLRP, so therapists deciding between the two should also weigh PSLF if they work for a county or nonprofit.

Bachelor Of Science In Nursing Loan Repayment Program (BSNLRP)

BSNLRP pays up to $10,000 to registered nurses with a bachelor's degree who commit to one year of direct patient care at a qualified California facility, and nurses can receive it up to three times (HCAI). RNs at public hospitals can stack it with the federal options in our nursing student loan forgiveness roundup.

Licensed Vocational Nurse Loan Repayment Program (LVNLRP)

LVNLRP pays up to $6,000 per award cycle to licensed vocational nurses who keep practicing full-time direct patient care at a qualified California facility for 12 months, and LVNs can receive it up to three times (HCAI). LVNs who used a trade or career school to get licensed should also see our breakdown of trade school loan forgiveness.

Golden State Teacher Grant (GSTG)

The Golden State Teacher Grant pays $20,000 to students earning a preliminary special education credential who teach four years within eight years at a priority school, and $10,000 to students in other high-need credential fields who teach two years within four years (California Student Aid Commission). Priority schools are California public K-12 schools where more than 55% of students are English learners, eligible for free or reduced-price meals, or foster youth. Teachers who already have loans should read our list of student loan forgiveness options for teachers.

Medi-Cal Behavioral Health Scholarship Program (MBH-SP)

The scholarship side of BH-CONNECT funds people pursuing behavioral health degrees or certifications, at the same levels as the loan repayment program: up to $240,000 for licensed prescribers, $180,000 for licensed non-prescribers, and $120,000 for non-licensed practitioners (HCAI). Recipients serve two to four years at a Medi-Cal-serving site. Graduate students weighing it against borrowing should read our breakdown of graduate school student loan forgiveness.

HCAI Nursing Scholarships

HCAI runs four nursing scholarships that each require 12 months of full-time direct patient care at a qualified California facility after graduation: up to $10,000 a year for BSN students, $8,000 for ADN students, $8,000 for LVN-to-ADN students, and $4,000 for vocational nursing students (HCAI BSN Scholarship). The 2026-27 applications are open now. Nursing students comparing aid should also read our nursing student loan forgiveness roundup.

California exempts both Public Service Loan Forgiveness and forgiveness under an income-driven repayment plan from state income tax (The College Investor). The state also exempted death and disability discharges through January 1, 2026.

That matters more now, because income-driven plan forgiveness became federally taxable again on January 1, 2026, when the American Rescue Plan exclusion expired (Taxes And Student Loan Forgiveness). California borrowers who reach IBR or RAP forgiveness will owe federal tax only, and can estimate the bill with our student loan tax bomb calculator.

Nurse Corps payments aren't exempt from federal income and employment taxes (HRSA). Ask HCAI or CSAC whether your California award will be reported as income, and read our explainer on the 1099-C and student loan forgiveness before filing.

Does California Have A Student Loan Forgiveness Program?

California offers student loan repayment assistance programs rather than broad loan forgiveness. It runs nine service-based programs for doctors, nurses, behavioral health workers, other health clinicians, and future teachers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.

What Happened To CalHealthCares?

The 2025-26 state budget stopped new CalHealthCares cohorts, so the program that paid physicians and dentists up to $300,000 for five years of Medi-Cal service isn't taking applications (Physicians for a Healthy California). Doctors can still apply for STLRP, CA-SLRP, or the federal programs in our doctor forgiveness breakdown.

Can California Lawyers Get Help Repaying Student Loans?

California's Public Interest Attorney Loan Repayment Program, which repays up to $11,000 for four years of work in legal aid, prosecution, public defense, or child support offices, isn't accepting applications (California Student Aid Commission). Government and nonprofit attorneys can pursue PSLF instead.

How Much Can California Teachers Get?

The Golden State Teacher Grant pays up to $20,000 to future special education teachers and $10,000 in other high-need fields, and federal Teacher Loan Forgiveness adds up to $17,500 for five years at a low-income school (StudentAid.gov). Our teacher forgiveness breakdown explains how to combine federal programs.

Is Student Loan Forgiveness Taxable In California?

California doesn't tax PSLF or income-driven plan forgiveness, though IDR forgiveness granted after 2025 is taxable at the federal level (The College Investor). Use our tax bomb calculator to estimate what you'd owe.