Bill
HB 7457
Rhode Island will fund up to 24 months of employer-paid student loan relief for certain public school workers (LCSW, social caseworker, or child protective investigator) in underse
Date Introduced: January 30, 2026
Jurisdiction: Rhode Island
Committee: House Finance
Sponsor: Rep. Shallcross Smith (and several co-sponsors)
Purpose
- Establish a targeted state program to help certain Rhode Island public school employees repay a portion of their eligible student loan debt.
- Create a dedicated fund, administered by RISLA (Rhode Island Student Loan Authority), and set a finite funding period.
Key Provisions
1) Creation and Fund Administration
- Establishment of the Rhode Island Student Loan Repayment Fund (a restricted receipt account) within RISLA.
- RISLA will administer the fund and promulgate rules/regulations, including multilingual guidance explaining how to request debt relief.
2) Funding and Sunset
- The General Assembly must appropriate $10,000,000 to the fund.
- $2,000,000 disbursed this year.
- The remaining $8,000,000 held in a restrictive account, with $2,000,000 disbursed in each subsequent year.
- After such annual disbursements, the program ceases to operate unless extended or made permanent by future action.
3) Definitions (Key Terms)
- Debt relief recipients: Individuals receiving relief under the program.
- Eligible individuals: Those meeting specified criteria in §§ 16-117-4 and 16-117-6.
- Service requirements: Employment/work obligations necessary to obtain relief.
- Underserved community: Federally designated health professional shortage area per HRSA.
4) Eligibility (Who Qualifies)
- Employed by a Rhode Island-based employer in one of these roles:
- Licensed Clinical Social Worker (LCSW) or Social Caseworker, or
- Child Protective Investigator in a Rhode Island public elementary or secondary school.
- Must have eligible unpaid student loans.
- Must commit to full-time work in the specified role for two consecutive years in Rhode Island.
- Must be enrolled in the federal SAVE program (Student Aid VAluable Education).
- Preference for those working in underserved communities.
5) Service Requirements and Debt Relief Mechanics
- Approved eligible individuals receive monthly debt relief payments directly to their employer for up to 24 consecutive months (two years), toward their student loan payments.
- Requirements to receive relief include:
- Meeting eligibility criteria and submitting a RISLA-formatted request.
- Receiving financial counseling from RISLA.
- Having RISLA approve the relief request.
- Duration: Relief ends after 24 months, or when the individual’s outstanding balance is fully paid, or if eligibility is lost.
- Leave of absence: May pause payments for up to one calendar year (three years for military-related leaves for the individual or spouse) with conditions (employer approval, documentation, resumption of employment, etc.).
- Reduction in force (RIF) allows continued eligibility if the recipient resumes public-school employment within 18 months of the layoff, and if the two-year commitment is still feasible.
6) Loans and Lenders
- RISLA determines which employers and loans are eligible for relief.
- Eligible lenders include institutions such as banks, credit unions, higher education institutions, government entities, etc.
- Excludes non-educational loans (e.g., credit cards, home equity loans).
- Eligible loans must be for paying costs of attendance of the individual’s undergraduate/graduate education and not already obligated under another debt-relief program; if consolidated, proper documentation of the portion used for attendance is required.
7) Limits of Assistance
- Maximum monthly debt relief payment: $500.
- Total relief cannot exceed the outstanding loan balance.
8) Administration and Consumer Protections
- RISLA must consider minimizing tax impact of relief.
- Rules may enable coordination with loan servicers to obtain needed documentation.
- Forms and processes must be accessible, including translations and public availability on RISLA’s website; hard copies available on request.
9) Reporting and Evaluation
- RISLA must include in its annual report a program evaluation, covering:
- Number of approvals, total dollars paid, employer information, and whether recipients attended Rhode Island-based or out-of-state institutions.
- Privacy protections for participants emphasized.
- Annual reporting continues only while the fund exists.
Effective Date
- Takes effect upon passage.
Potential Impact and Considerations
- Targets retention of licensed clinical social workers, social caseworkers, and child protective investigators in Rhode Island public schools.
- Provides a concrete financial incentive to work in targeted roles and neighborhoods (underserved areas).
- Finite funding period creates a time-limited program; its continuation would require legislative action.
- Administrative rules and multilingual guidance are required to facilitate participation and accessibility.
Overall, HB 7457 creates a state-backed, employer-directed student loan relief program for specific school-based professionals, backed by a $10 million fund and administered by RISLA, with a two-year (24-month) relief period and strict eligibility, loan, and administrative requirements.
Compiled from official sources — confirm details with the bill’s official record.
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