Michigan has long faced a critical
shortage of mental health professionals, impacting access to vital care for communities across the state. To address this growing challenge, the
Michigan Department of Health and Human Services (MDHHS) launched the
Behavioral Health Now Loan Repayment Program, a strategic initiative aimed at attracting and retaining mental health professionals by alleviating the financial burden of student loans.
Previously known as the MI Kids Now Loan Repayment Program, this medical education debt repayment program incentivizes behavioral health care providers to practice in underserved areas in Michigan in eligible nonprofits, outpatient practice sites, or public school-based systems. The program has a two-year service obligation and caps loan repayments at a maximum of $300,000.
Amber Myers
According to Amber Myers, MDHHS Workforce/Access and Grants Management section manager, the program is designed to attract top talent and support long-term workforce stability.
“This is an ongoing program, and we plan to continue offering it on an annual cycle,” Myers says. “We’re also complementing this with other strategies, like the
Behavioral Health Internship Stipend Program and the
Bachelor of Social Work to Master of Social Work Program.”
The Behavioral Health Internship Stipend Program provides stipends of up to $15,000 for interns pursuing behavioral health degrees. The Bachelor of Social Work to Master of Social Work Program offers $30,000 grants to incentivize public-sector service.
“Both programs aim to build a pipeline of professionals dedicated to behavioral health,” says Myers.
Expanding the workforce: Insights from CMHA
The
Community Mental Health Association of Michigan (CMHA) has been at the forefront of addressing the state’s mental health workforce challenges. According to Robert Sheehan, CMHA CEO, the Behavioral Health Now Loan Repayment Program has had a significant impact — but in an unexpected way.
Robert Sheehan
“We all thought this would be a recruitment tool. Turns out, it’s been a retention tool,” Sheehan says. “I’ve heard people say, ‘I was literally going to have to leave this job, and I’m not now.’”
The program has particularly benefited seasoned professionals already working in Michigan’s public mental health system who were burdened by student debt. Sheehan said that many of these professionals were considering leaving the field, but the loan repayment program gave them a reason to stay.
Sheehan says that the program has received overwhelming positive feedback from participants, with two rounds of funding supporting hundreds of professionals. While it has helped professionals across the board, its greatest impact has been on clinicians with advanced degrees, particularly social workers.
“Social workers make up the largest portion of our workforce, so naturally, they’ve benefited the most. But the program also supports psychologists and psychiatrists,” Sheehan says.
Despite these successes, Sheehan pointed to several systemic challenges that still need to be addressed to strengthen the workforce. One of the most pressing issues is compensation.
“We’ve spent years denigrating the work of mental health practitioners, and it’s reflected in pay,” Sheehan says.
While signing bonuses and increased wages for clinicians have helped, other roles — such as direct care workers — remain underpaid, with starting wages as low as $16 an hour, often without benefits.
OnPoint staff Colton Braun, left, and Alison Schuyler.
To enhance recruitment and retention, CMHA has advocated for strategies like hiring internship coordinators, offering stipends for internships, and providing tuition reimbursement for staff to pursue advanced degrees. These initiatives not only build a pipeline of skilled professionals but also give interns and staff opportunities to fall in love with the work.
“Once people get to work with our clients, they tend to stay. It’s like a year-long interview,” Sheehan says.
While the Behavioral Health Now Loan Repayment Program is a step in the right direction, Sheehan emphasizes the importance of continued investment and innovation to address the multifaceted challenges facing Michigan’s mental health workforce.
“The program has been a game-changer, but there’s more work to do,” he says.
OnPoint’s perspective on the program’s potential
OnPoint, a community mental health provider serving Allegan County, has firsthand experience with the struggles of maintaining adequate staffing levels. Mark Witte, OnPoint’s CEO, shares how the workforce shortage affects service delivery.
Mark Witte“To talk about OnPoint’s ability to provide mental health care, we really have to talk about changes over the past two years. OnPoint became a part of Michigan’s demonstration for the federal
Certified Community Behavioral Health Clinic (CCBHC) program. We worked under a federal grant for CCBHC for a year prior to that, so we’ve been doing it for about two years,” says Witte.
CMHs like OnPoint were historically funded primarily by Medicaid and focused on people with the most serious needs. Mild-to-moderate outpatient needs often went unmet unless there was a crisis. CCBHC allow everyone — regardless of need or insurance coverage — to access mental health care. This shift created new challenges because there simply aren’t enough clinicians to meet the need.
“As good as that was from a policy perspective, it’s been very challenging because it required us to add significant numbers of outpatient clinicians to meet the overwhelming demand for services,” Witte says. “We welcomed the state’s efforts to ease student loan repayment for new professionals, but other factors have limited its impact. Only a few staff have joined our team through the program.”
Witte also describes the unique challenges Allegan County faces.
“Allegan County is a relatively rural area with limited housing to support an expanding workforce. Many of our staff commute from surrounding counties like Ottawa, Kent, and Kalamazoo, which also have competing CCBHC programs. This competition for qualified employees has intensified. Additionally, the rise of online and virtual counseling has drawn staff away from CMHs and other agencies,” he says.
Witte proposes additional solutions to address workforce challenges.
“Efforts like housing assistance, retention stipends, and subsidies for long-distance commuting could encourage professionals to choose employment with rural CMHs like OnPoint,” he says.
Mark Witte and Caitlin Clemens, OnPoint outpatient therapist.Evaluating success statewide
Metrics are key to evaluating the success of the Behavioral Health Now Loan Repayment Program at MDHHS.
“By comparing this program to other loan repayment initiatives, like the Michigan State Loan Repayment Program, we’ve established a benchmark of a 90% retention rate over a two-year agreement,” said Myers. “This program is meeting that benchmark, which is a positive sign for its long-term impact.”
Engaging with community stakeholders is another priority for the program as the team ensures both students and communities are benefitting from the program.
“We regularly assess our operations and meet with healthcare clinics and community mental health agencies across Michigan,” says Myers. “These partnerships ensure that our programs meet the needs of both providers and the communities they serve.”
The Behavioral Health Now Loan Repayment Program is a promising initiative in the fight against Michigan's community mental health workforce shortage. By alleviating financial burdens and encouraging professionals to enter the field, the program is laying the foundation for a stronger behavioral health system. However, its success will depend on continued collaboration, innovation, and investment in the workforce to ensure all Michiganders have access to the mental health care they deserve.
Brianna Nargiso, a graduate of Howard University and Mercer University, specializes in media, journalism, and public health. Her work has appeared in The Root, 101 Magazine, and Howard University News Service, covering profiles, politics, and breaking news. A Hearst journalism award nominee and active member of the National Association for Black Journalists, she has also worked with Teach for America and the Peace Corps. Now a doctoral candidate at American University, Brianna is dedicated to advancing social justice, public health and education on a global scale.
Photos by John Grap.
Robert Sheehan photo by Doug Coombe.
Amber Myers photo courtesy MDHHS.
The MI Mental Health series highlights the opportunities that Michigan's children, teens, and adults of all ages have to find the mental health help they need, when and where they need it. It is made possible with funding from the Community Mental Health Association of Michigan, Center for Health and Research Transformation, LifeWays, Michigan Health and Hospital Association, Northern Lakes Community Mental Health Authority, OnPoint, Sanilac County Community Mental Health, St. Clair County Community Mental Health, Summit Pointe, and Washtenaw County Community Mental Health and Public Safety Preservation Millage.