(1) There is created a forgivable loan program for baccalaureate study in nursing. Forgivable loans are established and shall be allocated to students who: (a) are accepted and enrolled in an accredited Mississippi School of Nursing approved by the board; (b) complete an application by the deadline established by the board; and (c) enter into contract with the board, obligating themselves to pursue to completion the course of study agreed upon, and following the completion of such work, to spend a period of time in teaching nursing at any accredited school of nursing in Mississippi, approved by the board, or in performing other work in the interest of public health in the state, to be approved by the board. Repayment and conversion terms shall be the same as outlined in Section 37-106-53.

(2) There is created a program for advanced study in nursing. Forgivable loans are established and shall be allocated to students who: (a) have graduated from an accredited high school and from a school of nursing and are licensed registered nurses in Mississippi; and (b) are approved by the board; and (c) enter into contract with the board, obligating themselves to pursue to completion the course of study agreed upon, and immediately following the completion of such work, to spend a period of time, equal to the period of study provided under the scholarship, in teaching nursing at any accredited school of nursing in Mississippi, approved by the board, or in performing other work in the interest of public health in the state, to be approved by the board. Repayment and conversion terms shall be the same as outlined in Section 37-106-53.

(3) In addition to a forgivable loan, any such student may be allocated a loan not to exceed One Thousand Dollars ($1,000.00) per month for each month of full-time study in a graduate nursing program. The repayment of the principal and interest of such loans shall be eligible for deferment during attendance as a full-time student in an approved program for advanced study in an accredited school of nursing. For any student who receives this loan, the student’s contract with the board shall obligate the student, immediately following completion of the course of study, to repay the loan by teaching nursing for not less than two (2) years at any accredited school of nursing in Mississippi approved by the board. Repayment and conversion terms shall be the same as those outlined in Section 37-106-53, except that teaching service shall convert the loan to an interest-free scholarship, and discharge the same, on the basis of two (2) years of service for one (1) year’s loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as established by rule and regulation of the board.

(4) The board shall establish the rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.