Senate Bill 269 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 a relevant graduate program, 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 county" and "urbanized area" to determine eligibility for loan forgiveness.

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 an urbanized area or a rural county. The bill also mandates that all repayments and interest from these loans be deposited into the general fund as general purpose revenue. Additionally, the HEAB is required to include a funding request for this program in its 2027-29 biennial budget submission.