EEC: $7.5M in FY25 for loan-repayment program; applications expected in fall

The Department of Early Education and Care said the FY25 state budget includes $7.5 million to create a student loan repayment program for the early-education workforce, and that the program will be administered in partnership with the Department of Higher Education (DHE).

The commissioner told the advisory group: "We got $7,500,000 this year in the FY 'twenty 5 budget to create a new loan repayment program for the early education and care workforce." EEC staff said the program criteria have been developed with DHE, the criteria were approved by the board and Department of Higher Education, and the next step is to stand up an application process and technical supports with DHE. Technical work includes building the application in Nelnet, staff said.

Officials said they expect applications to open in the coming fall and that awards will be retroactive to July 1, 2024. The agency noted the program is likely to attract high demand and that DHE plans to distribute funds until they are exhausted.

Separately, EEC staff said the agency is expanding higher-education scholarship eligibility and that the scholarship program will open April 1 for the next academic cycle; staff described the scholarship and loan repayment eligibility as aligned so a broader range of educator roles (including home visitors and related educator types) can participate. "We were able to work with the Department of Higher Ed this past year and expand eligibility, to a much broader range of educator types," an agency official said.

EEC said details about exact award amounts per recipient were part of the program materials being finalized and were not specified in the advisory session; officials emphasized communications and outreach plans once the application portal is ready.