Senate Bill 2418

AN ACT TO CREATE THE GRADUATE NURSING LOAN REPAYMENT PROGRAM; TO PROVIDE AWARDS TO CERTAIN NURSING TEACHERS WHO APPLY SUBJECT TO AVAILABILITY OF FUNDS; TO SET ELIGIBILITY REQUIREMENTS; TO EXCLUDE CERTAIN CATEGORIES OF PERSONS FROM ELIGIBILITY; TO REQUIRE THAT RECIPIENTS MAINTAIN CURRENT TEACHING EMPLOYMENT INFORMATION AT ALL TIMES WITH THE STATE FINANCIAL AID BOARD; TO PROVIDE THAT AMOUNTS AWARDED BE PAID TO THE RECIPIENT'S LENDER OR LOAN SERVICE PROVIDER; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) There is established the "Graduate Nursing Loan Repayment Program" for new full-time nurse educators to be administered by the State Financial Aid Board.

(2) Subject to the availability of funds, an eligible applicant for an initial award must have:

(a) Legal residency in the State of Mississippi;

(b) Graduated from a degree-granting institution of higher learning that is accredited by the Southern Association of Colleges and Schools or a comparable accreditation body of another region;

(c) Gained employment as a full-time nurse educator at a nursing degree-granting community college or institution of higher learning in the State of Mississippi that is licensed by the Mississippi State Department of Health;

(d) A current Mississippi nursing license; and

(e) Outstanding qualifying educational loans, received at any point during the recipient's postsecondary educational career, which may include the principal, interest, and related expenses such as the required interest premium on the unpaid balances of government and commercial loans obtained by the recipient for educational expense.

(3) Persons who have received funds from other graduate forgivable loan programs at the same degree level established for nurses under Mississippi law, or who are in default or delinquent on any federal, state, local or commercial qualifying educational loan, are not eligible for this program.

(4) Recipients in the initial year of the program will be selected on a first-come, first-served basis from all eligible applicants. In the second and subsequent years of an applicant's continued eligibility, priority shall be given to renewal applicants. In any given year no more than twenty-five (25) new applicants may receive funds under the program.

(5) Recipients shall receive not more than Four Thousand Dollars ($4,000,00) for each year of full-time equivalent teaching; the maximum award under this program is Twelve Thousand Dollars ($12,000,00).

(6) A recipient shall not be penalized for ending teaching employment at a qualifying educational entity if the recipient begins working for another qualifying educational entity in the State of Mississippi during the year on which the award is based.

(7) Awards will be granted on a year-to-year basis, and recipients have no obligation to seek a subsequent award.

(8) Awards shall be paid annually, after the expiration of the year of teaching for which the award was granted, to the recipient's lender or loan service provider, to be applied to the outstanding balance. Monies paid by the recipient or on the recipient's behalf toward qualifying educational loans before payment of the award are not eligible for reimbursement through the program.

(9) During the teaching year for which the award is granted, a recipient must at all times keep the State Financial Aid Board informed of any changes to the recipient's current, correct and complete employment information and status.

(10) Recipients who fail to maintain a nursing license or fail to fulfill the teaching obligation on which the award was based forfeit any right to the award.

(11) The State Financial Aid Board, in collaboration with the State Board of Nursing, must track award recipients under this program through their fifth teaching year, unless the recipient leaves teaching at an earlier date. Data collected must include each recipients' graduate institution, place of employment, teaching area and any other pertinent information necessary to determine the efficacy of the program in retaining nursing teachers.

(12) The State Financial Aid Board must promulgate regulations necessary for the proper administration of this section, including setting a fiscal year policy for the program and application dates and deadlines.

(13) There is established in the State Treasury a special fund to be designated the "Graduate Nursing Loan Repayment Program," into which shall be deposited those funds appropriated by the Legislature, and any other funds that may be made available, for the purpose of implementing the loan repayment program established herein. Money in the fund at the end of the fiscal year shall not lapse into the General Fund, and interest earned on any amounts deposited into the fund shall be credited to the special fund.

(14) This section shall stand repealed on July 1, 2026.

SECTION 2. This act shall take effect and be in force from and after its passage.