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SB 2662

AN ACT RELATING TO EDUCATION -- STUDENT LOAN REPAYMENT PROGRAM

2026 Regular Session Introduced by Alana DiMario and 6 co-sponsors

Rhode Island would create a fund to have employers pay a portion of eligible workers' student loan debt for up to 24 months in exchange for a two-year state-based service commitmen

05/19/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2662

Overview

SB 2662, introduced in Rhode Island during the 2026 session, establishes the Rhode Island Student Loan Repayment Program. Administered by the Rhode Island Student Loan Authority (RISLA), the program would allow eligible Rhode Island-based employers to pay a portion of an employee’s outstanding student loan debt directly to the employer for a defined period. The measure aims to help address workforce shortages in high-need professions by linking debt relief to continued service in the state.

Purpose and intent

  • Create a dedicated Rhode Island Student Loan Repayment Fund to fund employer-based debt relief for eligible individuals.
  • Encourage employment in high-need professions and in underserved communities within the state.
  • Provide a structured program with rules, eligibility criteria, and reporting to monitor effectiveness and fiscal impact.

Key provisions and changes

  • Creation of the Rhode Island Student Loan Repayment Fund, a restricted receipt account administered by RISLA.
  • RISLA authorized to promulgate rules, including multilingual guidance for applying for debt relief.
  • Funding: program operation is contingent on available funds and may draw from state and federal sources, settlements, grants, gifts, or private sources.
  • Definitions: clarifies terms such as administering agency (Department of Labor and Training), eligible individuals, service requirements, and underserved communities.
  • Eligibility (16-117-4):
    • Employed by a Rhode Island-based employer.
    • Have eligible, unpaid student loans.
    • Work in a high-need profession addressing a workforce shortage or public need, as designated by the administering agency (subject to updates).
    • Commit to a two-year, full-time stay in the state in that profession.
    • Enrolled in an income-driven repayment plan with federal loan programs.
    • Preference given to individuals in underserved communities.
  • Service requirements (16-117-5):
    • Eligible individuals receive monthly debt relief payments made directly to their employer for up to 24 months.
    • Must complete RISLA’s intake process, receive financial counseling, and obtain RISLA approval.
    • Debt relief ends after 24 months, loss of eligibility, or when loan balances are paid off, with exceptions for leaves of absence (e.g., illness, pregnancy, military service).
    • Leaves of absence can pause payments (up to one year, with military leaves up to three years) pending employer approval and reemployment.
    • Provisions for workforce reductions: recipients must document reduction in force and reemployment within 18 months; if not, relief may pause or terminate.
  • Eligibility of loans and lenders (16-117-6):
    • RISLA determines which employers and loans qualify.
    • Eligible lenders include banks, credit unions, higher education institutions, governmental agencies, or private foundations; excludes private individuals and non-educational loan types (e.g., credit cards).
    • Loans must be for undergraduate/graduate education and must not be tied to another service-based relief program.
  • Program limits (16-117-7):
    • Monthly relief amounts capped based on available funds; total relief cannot exceed the outstanding loan balance.
  • Administration of the fund (16-117-8) and disbursement (16-117-9):
    • Funds go to the employer under the employer’s Section 127 educational assistance program.
    • Required financial counseling and information to help recipients manage debt; guidance on allocation and other repayment programs.
    • If funds are insufficient in a fiscal year, RISLA must implement an equitable priority process considering payment history and income-to-debt ratio.
  • Reporting (16-117-10):
    • Annual RISLA reporting as part of its broader reporting obligations, including number of approvals, total dollars disbursed, employer info, and whether education was in-state or out-of-state.
    • Emphasis on privacy and ongoing fund existence.

Who is affected

  • Eligible Rhode Island workers in high-need professions who have qualifying student loans and are enrolled in income-driven repayment plans.
  • Employers in Rhode Island who participate in the program by receiving and applying the debt-relief payments.
  • RISLA, which would administer the fund, determine eligibility, and enforce rules.
  • Potentially underserved communities within the state, due to preference provisions.

Timeline and process

  • Effective date: upon passage.
  • Applications can be submitted by those meeting eligibility criteria as long as funds are available.
  • Annual reporting to evaluate program impact and sustainability.

If enacted, the bill would create a new, funded pathway to reduce student debt for targeted Rhode Island workers, with oversight and regular reporting to monitor utilization and effectiveness.

Compiled from official sources — confirm details with the bill’s official record.

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