KRS 40.327: Loan repayment program for registered nurses and licensed practical

nurses employed by Department of Veterans' Affairs -- KHEAA to administer

program -- Funding.

(1) The Kentucky Department of Veterans' Affairs shall create a loan repayment

program for registered nurses and licensed practical nurses within their employ.

(2) The loan repayment program shall apply to any existing student loan incurred by the

employee as a result of that employee's academic or technical studies leading to

becoming a registered nurse or licensed practical nurse.

(3) The loan repayment program shall not apply to loans previously repaid.

(4) Recipients of the loan repayment program shall sign a contract stipulating:

(a) The recipient's existing student loan debt shall b e repaid up to twenty -five

percent (25%) of the loan's principal and interest up to a maximum of ten

thousand dollars ($10,000) after satisfactory completion of one (1) year of

employment at the state veterans' nursing home assigned;

(b) The recipient's student loan shall be repaid up to twenty -five percent (25%) of

the loan's principal and interest up to a maximum of ten thousand dollars

($10,000) after satisfactory completion of a second consecutive full year of

employment at the state veterans' nursing home assigned;

(c) The recipient's student loan shall be repaid up to twenty -five percent (25%) of

the loan's principal and interest up to a maximum of ten thousand dollars

($10,000) after satisfactory completion of a third consecutive full year of

employment at the state veterans' nursing home assigned;

(d) The recipient's student loan shall be repaid up to twenty -five percent (25%) of

the loan's principal and interest up to a maximum of ten thousand dollars

($10,000) after satisfactory completion of a four th consecutive full year of

employment at the state veterans' nursing home assigned; and

(e) The total amount paid by the loan repayment program shall not exceed forty

thousand dollars ($40,000) for a maximum of four (4) consecutive full years

of employment per person.

(5) The Kentucky Higher Education Assistance Authority shall administer this program

from funds provided by the Kentucky Department of Veterans' Affairs as funds are

available.

(6) The Kentucky Higher Education Assistance Authority and the Ke ntucky

Department of Veterans' Affairs shall promulgate administrative regulations

necessary for the effectuation of this section, including limits on the amount of any

loan that will be repaid.