COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 123
(By Senators Unger, Foster, Prezioso, Stollings, Jenkins and
Laird)
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[Originating in the Committee on Education;
reported March 20, 2009.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §18C-3-1a, relating
to creating the Nursing Education Forgivable Loan Program;
establishing eligibility requirements for loans; establishing
loan forgiveness requirements; creating the Nursing Education
Forgivable Loan Fund as a special revolving loan fund in the
State Treasury; specifying fund sources and fund
administration; and establishing program reporting
requirements.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §18C-3-1a, to read as
follows:
ARTICLE 3. HEALTH PROFESSIONALS STUDENT LOAN PROGRAMS.
§18C-3-1a. Nursing education forgivable loan program; administration; eligibility and loan cancellation;
required report.
(a) The vice chancellor for administration shall administer a
Nursing Education Forgivable Loan Program, which shall provide
forgivable loans to students pursuing undergraduate degrees in
nursing that will allow them to earn the designation of registered
nurse.
(b) An individual is eligible for loan consideration if the
individual meets the following conditions:
(1) Demonstrates financial need;
(2) Meets established academic standards;
(3) Is enrolled or accepted for enrollment at an accredited
institution of higher education in this state in a program leading
to an undergraduate degree in nursing that will allow the student
to earn the designation of registered nurse;
(4) Has not previously received the degree provided in
subdivision (3) of this subsection; and
(5) Is not in default on any previous student loan.
(c) Priority for the loans shall be given as follows:
(1) Residents of this state;
(2) Students taking primarily nursing rather than pre-nursing
courses; and
(3) To the extent practicable, students who demonstrate a
commitment to work in areas of critical need, such as rural areas
and areas in which the nursing shortage is especially acute.
(d) Annually, any individual who has received a nursing education forgivable loan and who has rendered full-time service as
a registered nurse in this state during the preceding year may
submit to the commission a sworn statement of service on a form
provided for that purpose. When the commission receives and
certifies the statement of service, the commission shall cancel up
to $5,000 of the outstanding loan or loans for each full period of
twelve consecutive calendar months of service. The total amount of
loan cancellation may not exceed $20,000.
(e) In determining how much of an outstanding loan or loans to
cancel, the commission may take into consideration whether the
applicant is working in a critical shortage area. In determining
whether an area is a critical shortage area registered nurses for
purposes of determining whether to provide full or partial loan
forgiveness, the commission shall consult with the Center for
Nursing.
(f) There is hereby created in the state treasury a special
revolving fund known as the Nursing Education Forgivable Loan Fund
administered by the commission solely for the purpose of
implementing the provisions of this section.
(1) The fund consists of moneys from the following sources:
(A) Appropriations provided by the Legislature;
(B) Repayment of any loans made under this section;
(C) Amounts provided by nursing associations, hospitals or
other medical provider organizations in this state, or by political
subdivisions of the state, under an agreement which requires the
recipient to practice his or her nursing profession in this state or in the political subdivision providing the funds for a
predetermined period of time and in such capacity as set forth in
the agreement;
(D) All interest earned from investment of the moneys in the
fund; and
(E) Other amounts which may be made available from external
sources.
(2) The vice chancellor for administration may expend any
funds in the Nursing Education Forgivable Loan Fund for the
purposes of the nursing student loan program.
(3) All costs associated with administering this section shall
be paid from the Nursing Education Forgivable Loan Fund.
(4) Balances remaining in the fund at the end of the fiscal
year do not expire or revert.
(g) The vice chancellor for administration shall prepare and
submit a report for inclusion in the statewide report card required
pursuant to section eight, article one-d, chapter eighteen-b of
this code. At a minimum, the report shall include the following
information:
(1) The number of loans awarded;
(2) The total dollar amount of the loans awarded;
(3) The amount of any unexpended moneys in the fund; and
(4) The rate of default during the previous fiscal year on the
repayment of previously awarded loans.
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