Assembly Bill 270 establishes a new school psychologist loan program administered by the Higher Educational Aids Board (HEAB) aimed at supporting graduate students pursuing careers as school psychologists. Eligible students, who must be residents of Wisconsin, enrolled at least half-time in relevant graduate programs, and maintain a minimum GPA of 3.0, can receive loans of up to $10,000 annually for a maximum of three years, totaling $30,000. The bill defines "school psychologist" and outlines the criteria for rural counties and urbanized areas, which are essential for determining loan forgiveness eligibility.

Under the program, HEAB will forgive 25 percent of the loan and interest for each school year the recipient works as a full-time school psychologist in either a rural county or an urbanized area. The loans will carry a 5 percent annual interest rate, and all repayments, along with interest, will be deposited into the general fund as general purpose revenue. Additionally, the bill mandates that HEAB include a funding request for this program in its 2027-29 biennial budget submission.