Multiple loan forgiveness programs offer addiction counselors $15,000 to $250,000 in debt relief for serving underserved communities. Federal programs like STAR LRP and NHSC, state initiatives, and Public Service Loan Forgiveness (PSLF) provide substantial financial support while you build your career helping those who need it most.
There’s a good chance you’re drawn to addiction counseling because you understand the weight of addiction—maybe you’ve seen it affect someone you love, or you’ve experienced it yourself. That personal connection drives you to make a difference. But there’s also a practical reality you can’t ignore: the cost of education.
The path to becoming a certified addiction counselor requires degrees, training, clinical hours, and certifications—all of which come with price tags that add up quickly. For many aspiring counselors, student loan debt becomes a burden in its own right, creating tension between following your calling and achieving financial stability.
Here’s what you need to know: substantial financial relief exists specifically for addiction counselors willing to serve communities that need you most. Federal programs like STAR offer up to $250,000 in loan repayment, though specific award amounts vary annually based on congressional appropriations and HRSA funding availability. NHSC provides awards historically up to $75,000. Public Service Loan Forgiveness can eliminate your entire remaining balance after 10 years. State programs add thousands more in relief. These aren’t distant possibilities—they’re established programs with funding allocated right now for counselors ready to serve underserved populations.
The addiction counseling workforce faces critical shortages, particularly in rural areas and inner cities. More than 50% of the U.S. population lives in Mental Health Professional Shortage Areas, where the ratio of mental health providers to residents reaches 30,000:1 or worse. Rural counties often lack not just addiction counselors but also essential services like detoxification facilities and intensive outpatient programs.
This workforce gap has created unprecedented opportunities. Employment for substance abuse and mental health counselors is projected to grow 17-18% from 2024 to 2034, approximately four times faster than the average for all occupations. That translates to roughly 48,300 job openings annually, many in communities desperate for qualified professionals.
The shortage has driven federal and state governments to establish robust loan-repayment programs to recruit and retain addiction counselors in high-need areas. These programs acknowledge what you already know: financial incentives help overcome the barriers preventing qualified professionals from serving where care is most needed.
Federal Loan Forgiveness Programs for Addiction Counselors
| Program | Maximum Award | Service Period | Key Requirement |
|---|---|---|---|
| STAR LRP | Up to $250,000 | 6 years | Bachelor’s-level eligible |
| NHSC SUD Workforce | Up to $75,000 | 3 years | Cross-licensure required (LPC/LCSW) |
| NHSC Rural Community | Up to $100,000 | 3 years | No cross-licensure needed |
| PSLF | Complete forgiveness | 10 years (120 payments) | Nonprofit/government employer |
| IHS LRP | $50,000 initial + renewals | 2 years + annual extensions | Serve Native American communities |
STAR Loan Repayment Program: Up to $250,000
The Substance Use Disorder Treatment and Recovery (STAR) Loan Repayment Program represents one of the most substantial federal loan forgiveness opportunities available to addiction counselors. The program offers up to $250,000 in loan repayment for a six-year full-time service commitment, though specific award amounts vary annually based on congressional appropriations and HRSA funding availability.
What makes STAR particularly accessible is that it doesn’t require cross-licensure like some federal programs. You can qualify with bachelor’s-level substance use disorder credentials, behavioral health paraprofessional certifications, or clinical support staff positions—not just master’s-level clinical licenses.
STAR accepts a broader range of service sites than many federal programs. You can work at STAR-approved facilities located either in a Mental Health Professional Shortage Area or in counties where the drug overdose death rate exceeds the national average. Approved sites include SAMHSA-certified opioid treatment programs, office-based opioid treatment facilities, community mental health centers, Federally Qualified Health Centers, private practices, detoxification facilities, recovery centers, faith-based settings, correctional facilities, and prevention coalitions.
You need to understand the tax implications before accepting a STAR award. The program distributes the full amount as a lump sum, and the IRS treats it as taxable income. You’ll receive a W-2 for the award amount. Some counselors have reported owing significant state and local taxes on the funds received—one Pennsylvania counselor estimated owing approximately $7,000 in state and local taxes on their award.
The 2025 application cycle provides insight into the competitive process. Applicants report that credit checks began in August, with “under review” notifications sent in mid-August. However, receiving a credit check doesn’t guarantee selection. Funding prioritizes applicants at sites with the highest overdose mortality rates or HPSA scores.
NHSC Substance Use Disorder Workforce Programs
The National Health Service Corps offers two distinct loan repayment pathways for substance use disorder professionals, each with different requirements and award amounts.
The NHSC SUD Workforce Loan Repayment Program provides up to $75,000 for full-time service or $37,500 for half-time service over three years. Clinicians who demonstrate Spanish language proficiency may receive additional funding (historically $5,000 in past cycles—verify current year NHSC guidance for exact amounts). This program requires cross-licensure as a Licensed Professional Counselor or Licensed Clinical Social Worker, which typically requires a master’s degree. You’ll work at an NHSC-approved substance use disorder treatment facility located in a Mental Health Professional Shortage Area.
The NHSC Rural Community Loan Repayment Program offers up to $100,000 for full-time service or $50,000 for half-time service over three years. This program doesn’t require cross-licensure for SUD counselors, making it more accessible than the SUD Workforce program. You’ll serve at approved rural treatment facilities, including SAMHSA-certified opioid treatment programs and community health centers.
Healthcare professionals participating in NHSC programs report that the application process is straightforward, with funds deposited as a lump sum directly into bank accounts. However, the workload requirements can be demanding. You’re required to provide at least 32 hours of direct patient care per week, which can translate to 45-50 client appointments weekly in some community mental health settings. However, exact scheduling varies by facility type and patient population.
Counselors working in NHSC-approved sites have been honest about the risk of burnout from these high caseloads. One counselor stated bluntly, “My mental health is down the drain.” Another noted, “I totally did over 32 hours of patient care for most weeks, and it was tough to make it to the end of my contract. But I did, and I’m happier having left the job.”
Despite these challenges, many find the financial relief worth the commitment. As one participant put it: “It’s a lot of money, and they give it to you upfront. Pretty wild to see $75k in your account overnight.”
Public Service Loan Forgiveness: Complete Forgiveness After 10 Years
Public Service Loan Forgiveness offers complete loan forgiveness after 120 qualifying monthly payments (approximately 10 years) for counselors working full-time at government agencies or 501(c)(3) nonprofit organizations.
PSLF differs from lump-sum programs in several important ways. There’s no cap on the amount of forgiveness. Unlike programs with specific dollar limits, PSLF forgives your entire remaining balance regardless of size. The forgiven amount isn’t considered taxable income. You can pursue PSLF for any full-time position at eligible employers, not just those in designated shortage areas.
Addiction counselors working at nonprofit treatment centers, community mental health centers, government-operated facilities, or any 501(c)(3) organization providing substance use disorder services qualify. Your employer must be verified as qualifying, and you must be enrolled in an income-driven repayment plan such as the SAVE plan.
You can receive lump-sum awards from NHSC or state programs to reduce your principal balance while making qualifying PSLF payments on your remaining loans. However, you cannot receive both PSLF forgiveness and lump-sum forgiveness for the same loan dollars—structure your repayment strategy carefully with a student loan counselor.
PSLF is an established federal law that would require congressional action to modify. While legislative changes are always possible, the program has remained stable through multiple administrations since its creation in 2007.
Indian Health Service Loan Repayment Program
For addiction counselors interested in serving American Indian and Alaska Native communities, the IHS Loan Repayment Program offers up to $50,000 for a two-year initial service commitment. You can continue with annual extensions until your qualifying loans are fully repaid.
You’ll serve at IHS facilities, Tribal health programs, or Urban Indian health programs. Eligible disciplines include licensed mental health providers, clinical social workers, and professional counselors. The program allows you to keep renewing annually until all qualified student debt is eliminated, making it one of the few federal programs with this level of flexibility.
State Loan Repayment Programs for Addiction Counselors
Many states have established their own loan repayment programs specifically for behavioral health professionals. These programs often have less competition than federal programs and may offer substantial awards when combined with federal options.
| State | Maximum Award | Service Period | Special Features |
|---|---|---|---|
| New Jersey | $150,000 | 6 years (3 cycles) | $5,000 bonus for child/adolescent work |
| Colorado | Up to $90,000 | Varies by cycle | HPSA service required |
| Washington | Up to $75,000 | 3 years minimum | 24 hours/week minimum |
| Oregon | Up to $50,000 | 3 years | Up to 70% of the loan balance |
| Texas | Varies by credential | 3 years | Spanish bonus available |
| New York | $30,000-$40,000 | 3 years | $10,000 annual disbursement |
| California | Varies by program | Varies | Multiple program pathways |
| New Mexico | Up to $57,000 | 3 years | Quarterly payments |
Texas Mental Health Professionals Loan Repayment Program
Texas has significantly expanded its loan repayment offerings for addiction counselors. Award amounts vary by funding cycle—recent legislation authorized up to $50,000 for newly licensed LCDCs and $15,000 for associate-level counselors. Verify current award amounts and application deadlines at the Texas Higher Education Coordinating Board website.
Spanish-speaking counselors receive an additional one-time $5,000 bonus. The service commitment has been reduced from five years to three consecutive years in a Mental Health Professional Shortage Area. You must provide services to individuals enrolled in Medicaid or the Texas Children’s Health Insurance Program.
California Loan Repayment Programs
California offers several pathways for behavioral health professionals through different state agencies. The Medi-Cal Behavioral Health Student Loan Repayment Program provides loan repayment for behavioral health providers working in underserved areas. Tax treatment varies significantly by individual circumstances and tax year. Consult a licensed CPA or tax professional familiar with California tax law and loan forgiveness programs before making financial decisions based on potential tax implications.
The California State Loan Repayment Program, administered through the Health Care Access and Information Office, supports various health professionals serving medically underserved areas.
New York State Programs
New York offers multiple loan repayment options with different structures and requirements. The Office of Mental Health Loan Repayment awards between $30,000 and $40,000, distributed over three years at $10,000 annually. According to program participants, you must apply funds to student loans within 90 days after receiving the final payment. Still, you can hold the money in high-yield savings accounts during the service period.
The Licensed Social Worker Loan Forgiveness Program offers up to $26,000 for social workers providing services in critical human services areas, including substance abuse treatment. Awards are paid $6,500 per annual period of qualified service, with a minimum of 35 hours per week required.
The NYC Health + Hospitals Behavioral Health Loan Repayment Program offers non-physician behavioral health clinicians up to $30,000 in loan forgiveness for a three-year full-time commitment at NYC Health + Hospitals facilities.
New Jersey Behavioral Healthcare Provider Loan Redemption Program
This program offers one of the most generous state-level awards: up to $150,000 total over six years (up to $50,000 per two-year service period) for licensed clinical alcohol and drug counselors. An additional benefit: program participants who work primarily with children or adolescents are eligible to receive up to six individual incentive grants of $5,000 annually.
Application deadlines vary by funding cycle. Past cycles have closed on October 31—check the New Jersey Higher Education Student Assistance Authority website for current-year deadlines and funding availability.
Oregon Behavioral Health Loan Repayment Program
Oregon provides up to 70% of your qualifying loan balance with a maximum award of $50,000. Exact award percentages depend on available funding and the applicant pool. The service commitment is three years in rural and underserved communities. The program accepts Certified Alcohol and Drug Counselors, Level III.
One Oregon counselor who completed the program shared: “I did it for 6 years and had 90k-ish forgiven. It was life-changing, and I became a very competent therapist because of it!”
Colorado Health Service Corps
Colorado Health Service Corps awards vary by profession and funding cycle—historically up to $90,000 for eligible providers. Verify current maximum awards at the Colorado Department of Public Health and Environment website. The program supports primary care providers serving underserved patients at approved clinical sites.
Washington State Health Corps Programs
Washington State Health Corps provides loan repayment awards that vary by funding year and profession, historically up to $75,000. Confirm current award maximums at the Washington Student Achievement Council website. You commit to a minimum of 3 years of service, working 24 hours per week at an eligible site. The program accepts federal, state, and private loans used for relevant healthcare degrees.
New Mexico Health Professional Loan Repayment Program
New Mexico offers competitive awards, with some mental health professionals in primary care settings receiving up to $57,000 over three years. The program makes quarterly payments and requires quarterly employment verification. One participant expressed pride in serving their community: “I’m honored to serve my community and state as a mental health professional in primary care. I feel very fortunate, relieved, and appreciated.”
Understanding Health Professional Shortage Areas
Most loan repayment programs require service in designated Health Professional Shortage Areas. Understanding HPSA criteria helps you identify qualifying employment opportunities.
HPSAs come in three types. Geographic HPSAs demonstrate a shortage of providers for the total population of an area. Population Group HPSAs focus on specific populations such as low-income individuals, migrant farmworkers, Medicaid-eligible individuals, Native Americans, or homeless populations. Facility HPSAs are designated for particular facilities, including community health centers, rural health clinics, and federal correctional institutions.
Mental Health HPSA scoring considers several factors: population-to-provider ratio (30,000:1 for geographic areas, 20,000:1 for high-need areas), percentage of individuals below the federal poverty level, youth and elderly ratios, substance abuse and alcohol abuse prevalence, and average travel time or distance to nearest accessible care.
You can search for HPSAs in your area using the HRSA Data Warehouse tool, which lets you identify specific geographic areas, populations, and facilities with shortage designations.
Eligibility Requirements: What You Need to Qualify
Education and Licensure Requirements
Different programs accept different education levels, which affects when you can apply and how much funding you can receive.
Federal programs have varying requirements. STAR LRP accepts bachelor’s-level SUD counselors, behavioral health paraprofessionals, and clinical support staff. THE NHSC SUD Workforce requires cross-licensure as LPC or LCSW, which typically requires a master’s degree. NHSC Rural Community doesn’t require cross-licensure for SUD counselors.
State programs range from accepting associate degrees (Texas offers awards for associate degree holders) to requiring master ‘s-level licensure. Most programs require full, permanent, unencumbered, unrestricted licensure. Provisional or intern status typically doesn’t qualify. Check your state-specific addiction counselor requirements to understand certification and licensure pathways.
Qualifying Loans
Programs accept federal student loans (Direct Loans, Stafford Loans, Perkins Loans), state government student loans, and commercial or private student loans from legitimate lending institutions. Both undergraduate and graduate education loans qualify.
Several types of loans don’t qualify. Parent PLUS loans, loans in default status, loans with existing service obligations, loans consolidated with ineligible debt or another person’s loans, residency or relocation loans, credit card debt, and home equity loans used to pay off student loans are all ineligible.
Here’s a critical requirement: qualifying loans must remain segregated from ineligible debt. If you consolidate an eligible educational loan with ineligible debt—such as a car loan or credit card balance—the entire consolidated loan becomes ineligible for repayment.
Approved Service Sites
NHSC-approved sites include Federally Qualified Health Centers, FQHC Look-Alikes, Rural Health Clinics, Community Mental Health Centers, SAMHSA-certified Opioid Treatment Programs, Office-Based Opioid Treatment facilities, non-opioid substance use disorder treatment facilities, private practices in HPSAs, Critical Access Hospitals, and mobile clinics.
STAR-approved sites offer broader eligibility. In addition to NHSC-approved sites, STAR also accepts faith-based settings, detoxification facilities, recovery centers, inpatient treatment centers, prevention coalitions, correctional facilities, school-based clinics, and emergency departments.
The Reality of Working in Underserved Areas
Financial Considerations
Addiction counselor salaries vary significantly by location and setting.
| Setting/Location | Salary Range | Notes |
|---|---|---|
| National Median (2023) | $53,710 | BLS reported the average |
| California | $78,200 | Highest-paying state |
| New Jersey | $74,500 | Second highest |
| Massachusetts | $72,900 | Third highest |
| Seattle, WA | $64,360-$72,730 | Major metro area |
| Hospital Settings | $59,090 | Institutional care |
| Residential Facilities | $46,880 | Lower end of the range |
| Mississippi | $45,100 | Lower cost of living |
| Entry-Level Positions | $38,000 | Starting salaries |
| Top Tier Experienced | $89,920+ | 90th percentile |
Lower-paying states like Mississippi, West Virginia, and Arkansas offer significantly lower salaries. Still, these can be offset by the lower cost of living and eligibility for multiple loan repayment programs that help compensate for the wage gap.
Professional Benefits Beyond Money
Working at Federally Qualified Health Centers or in underserved rural areas offers unique professional benefits beyond salary and loan repayment.
FQHCs and community mental health centers prioritize mission-driven work. You’ll make meaningful differences in the lives of vulnerable populations, addressing healthcare disparities and serving communities with limited access. The sense of purpose derived from this work greatly enhances job satisfaction.
These settings emphasize reduced administrative burden compared to some private practice or insurance-driven environments. FQHCs prioritize direct patient care over excessive paperwork, allowing you to focus more on clinical work and less on bureaucratic tasks.
Team-based collaborative care is standard in FQHC settings. You’ll work alongside medical providers, social workers, case managers, and other specialists. This interdisciplinary approach enriches both patient outcomes and your professional development.
Professional growth opportunities come quickly in underserved settings. FQHCs are committed to staff development, offering access to continuing education, training programs, specialized certifications, and leadership roles. The diverse patient populations and complex cases provide rapid skill-building opportunities that may take years to accumulate in other settings.
Working at an FQHC automatically qualifies you for federal loan repayment programs. Many FQHCs actively assist staff with loan repayment applications as part of their recruitment and retention strategies.
Challenges to Consider
High caseloads pose a real challenge. Counselors participating in NHSC programs report that the requirement of 32+ hours of direct patient care per week can translate to 45-50 client appointments per week in some community mental health settings. However, exact scheduling varies by facility type and patient population. This intense schedule increases the risk of burnout.
Limited resources affect rural and underserved areas. These communities often lack supplemental services necessary for comprehensive treatment, such as detoxification facilities, intensive outpatient programs, and specialized services for co-occurring disorders. You’ll need to be resourceful and creative in connecting clients with the services they require.
Travel and transportation create barriers for both you, commuting to rural sites, and clients accessing services. The average travel time to treatment in some rural areas exceeds 60 miles one way.
Professional isolation can occur in rural settings where you have fewer colleagues providing similar services, limiting opportunities for peer consultation and clinical supervision. However, innovations like Project ECHO are helping connect rural providers with academic specialists through telehealth platforms.
Maximizing Your Loan Forgiveness Strategy
Competent counselors layer multiple programs to achieve maximum debt relief.
The PSLF plus NHSC or STAR combination works like this: work at a nonprofit, FQHC, or government facility while making income-driven repayment plan payments that count toward PSLF’s 120-payment requirement. You can receive lump-sum awards from NHSC or state programs to reduce your principal balance while making qualifying PSLF payments on your remaining loans. However, you cannot receive both PSLF forgiveness and lump-sum forgiveness for the same loan dollars—structure your repayment strategy carefully with a student loan counselor.
Apply for both federal programs (NHSC, STAR) and your state’s loan repayment program. Some states explicitly allow participation in multiple programs simultaneously, though not all do. Check specific program rules before applying.
The SAVE repayment plan advantage works particularly well for counselors with modest incomes relative to debt. The SAVE plan can result in $0 monthly payments while still counting toward PSLF’s 120-payment requirement. This allows you to receive loan repayment from NHSC or state programs while technically making “qualifying payments” toward PSLF.
How Your Degree Choice Affects Loan Forgiveness Eligibility
Your education level determines which programs you can access and when you can start receiving loan forgiveness.
Associate degree programs qualify for some state programs. Texas offers awards for counselors with at least an associate degree in chemical dependency counseling or behavioral health. Several states accept associate-level credentials for entry-level positions that qualify for loan repayment. However, the award amounts are typically lower than those of programs requiring bachelor’s or master’s degrees.
Bachelor’s degree programs provide the broadest eligibility across federal and state programs. STAR LRP accepts bachelor’s-level SUD counselors without requiring cross-licensure. Many state programs accept bachelor’s-level licensure. You can start working and qualifying for loan repayment immediately after completing your degree and obtaining state certification.
Master’s degree programs are required for some federal options. THE NHSC SUD Workforce requires cross-licensure as LPC or LCSW, which typically requires a master’s degree. Many state programs offer higher award amounts for master’s-level clinicians. Higher education opens doors to clinical supervisor roles and independent practice, which often come with increased compensation that complements loan forgiveness benefits.
Certificate programs have limited but growing eligibility. Some states and STAR LRP accept behavioral health paraprofessionals and clinical support staff with certificate-level training. These positions typically offer smaller loan repayment awards but can provide entry points into the field while you pursue additional education.
The key is understanding that different programs have different requirements, and your educational path affects both your immediate employability and your access to loan-forgiveness funding. Explore online addiction counseling degree programs that fit your schedule and career goals.
Application Strategies and Timeline
Start early and apply strategically to maximize your chances of receiving funding.
Federal programs have varying application cycles. STAR’s 2025 deadline was July 10, while NHSC accepts applications on rolling cycles. State programs range from specific deadlines to rolling admissions. Applying early gives your employer adequate time to complete the required verification paperwork.
Consider applying to multiple programs simultaneously. Many counselors pursue federal NHSC or STAR programs while also maintaining PSLF eligibility. State programs can provide additional support beyond federal options.
Programs use tiered ranking systems to prioritize applicants. Tier 1 priority goes to current or former NHSC participants with remaining eligible loans, providers at sites with the highest HPSA scores or overdose mortality rates, SUD professionals with specialized substance use disorder licensure or certification beyond basic requirements, and applicants with disadvantaged backgrounds.
Strategies to strengthen your applications include seeking positions at sites with high HPSA scores or in counties with the highest drug overdose death rates, obtaining specialized SUD credentials (CADC, CASAC, etc.) beyond basic licensure, and committing to more extended service periods when programs offer contract extensions.
Required documentation typically includes proof of current, complete, unrestricted licensure or certification, employment verification from an approved site, loan documentation with original promissory notes, and transcripts demonstrating contemporaneous education and loan usage. HRSA verifies loans by contacting lenders and reviewing credit reports, so ensure all documentation is accurate and readily available.
Job Outlook: Growing Demand Meets Financial Relief
The career outlook for addiction counselors remains exceptionally strong, supporting the sustainability of pursuing loan-forgiveness programs.
Employment for substance abuse, behavioral disorder, and mental health counselors is projected to grow 17-18% from 2024 to 2034, approximately four times faster than the average for all occupations. This translates to approximately 48,300 job openings projected annually over the decade, many of which result from the need to replace workers transferring to different occupations or retiring.
Several factors contribute to this growth. The ongoing opioid epidemic and rising rates of substance use disorders continue to drive demand. Expanded insurance coverage for addiction treatment through the Affordable Care Act and Mental Health Parity laws has increased access. Recognition of co-occurring mental health and substance use disorders requires integrated treatment. Criminal justice system reforms are directing drug offenders to rehabilitation programs instead of incarceration. Telehealth expansion is extending treatment access to previously underserved rural and remote communities.
Rural areas will offer particularly abundant opportunities due to severe provider shortages. These positions often qualify for the most generous loan repayment programs, creating a beneficial alignment between career opportunities and financial relief.
Real Experiences from Counselors Using Loan Forgiveness
Beyond official program descriptions, counselors who’ve navigated these programs share their experiences.
One HRSA loan repayment recipient with a 3-year commitment shared: “I started it in community mental health and then continued in private practice, which was a pain but worth it. It’s a lot of money, and they give it to you upfront. Pretty wild to see $75k in your account overnight. They are very demanding (32 client hours a week, very little time off), but they do pay well for it.”
A multi-year NHSC participant noted: “I had my loans repaid through this program… In my experience, I did over 32 hours of patient care in most weeks, and it was tough to make it to the end of my contract. But I did, and I’m happier having left the job.”
Another counselor who was accepted after multiple attempts shared: “I was a recipient. It took three applications for them to accept me. And then 4 years of service… They recently got more money, so they probably accept more people more quickly. Also, I learned my site was not categorized correctly, which is why I was getting denied.”
An Oregon state program recipient reflected: “I did it for 6 years and had 90k-ish forgiven. It was life-changing, and I became a very competent therapist because of it!”
These experiences highlight both the substantial financial relief available and the commitment required to complete service obligations successfully.
Frequently Asked Questions
Can I use multiple loan forgiveness programs at once?
Do I need a master’s degree to qualify for federal programs?
What happens if I leave my position before completing the service commitment?
Are loan forgiveness funds taxable?
Can addiction counselors qualify for PSLF?
How long does the application process take?
What if my employer isn’t NHSC-approved yet?
Can I apply if I’m still in school?
Key Takeaways
- Multiple pathways exist for substantial debt relief, with federal programs offering $50,000 to $250,000 in loan repayment for serving underserved communities.
- STAR LRP provides the most generous federal award (up to $250,000 over six years) and accepts bachelor’s-level counselors without cross-licensure requirements.
- NHSC programs offer awards of $75,000 to $100,000, depending on the specific program and service location, though cross-licensure requirements vary.
- Public Service Loan Forgiveness provides complete loan forgiveness after 10 years (120 payments) with no cap on the amount and no tax liability.
- State programs add thousands more in relief, with New Jersey offering up to $150,000, Colorado up to $90,000, and Washington up to $75,000.
- You can strategically combine programs to maximize benefits, though you cannot receive both PSLF and lump-sum forgiveness for the same loan dollars.
- Employment for addiction counselors is projected to grow 17-18% through 2034, creating roughly 48,300 annual job openings, many in underserved areas.
- Your education level affects program eligibility: associate degrees qualify for some state programs, bachelor’s degrees provide the broadest access, and master’s degrees are required for specific federal programs.
- Working in underserved areas offers benefits beyond loan forgiveness, including mission-driven work, rapid skill development, collaborative care environments, and reduced administrative burden.
- Start your application process early, understand the tax implications of lump-sum awards, and work with a student loan counselor to structure your repayment strategy for maximum benefit.
Ready to Start Your Addiction Counseling Career with Financial Support?
Explore accredited degree programs that qualify you for loan forgiveness while preparing you to make a real difference in the lives of those struggling with addiction.
Salary data sourced from 2024 US Bureau of Labor Statistics salary and employment figures for Substance Abuse, Behavioral Disorder, and Mental Health Counselors reflect national data, not school-specific information. Conditions in your area may vary. Data accessed January 2026.