§321-25 Hawaii registered nurse student loan fund. [Repealed on July 1, 2000. L 1990, c 288, §6.] (a) There is established a special fund to be known as the Hawaii registered nurse student loan fund, from which moneys shall be loaned by the department for the purposes of this section and into which shall be deposited all moneys received as repayment for loans as provided for in this section. All interest and fees collected by the department shall be deposited in a loan reserve fund to the extent necessary to carry on the operations of this program. All payments received on account of principal shall be credited to the Hawaii registered nurse student loan fund, which shall maintain a proper reserve to guarantee sufficient loans for purposes of this section.

(b) The Hawaii registered nurse student loan fund shall provide loans to selected eligible applicants at not more than five per cent interest per year. The loan amounts shall be used first for payment of tuition and second for other necessary financial assistance in connection with obtaining a degree or certificate from an accredited degree-granting university, college, or nursing institution in Hawaii. Preference for selection of eligible applicants shall be given first to students pursuing a career as a registered nurse, and second to students pursuing specialized training for a career as a nurse practitioner.

(c) In the event that no accredited specialized nursing educational programs are available in Hawaii, the director of health, in consultation with the screening and selection panel, shall give consideration for loan approval to fund training at an accredited degree-granting or certificate-granting university, college, or nursing institution outside the State of Hawaii.

(d) Repayments of loans shall commence twelve months after the recipient has graduated, been licensed, and has obtained employment as a registered nurse in Hawaii; provided that loan beneficiaries shall have their repayment obligation reduced by twenty per cent per year for each year they work as a registered nurse in Hawaii. If a student withdraws from nursing studies prior to graduation, graduates but does not seek employment, graduates and becomes employed in the State in a profession other than as a registered nurse, or graduates and becomes employed in any field outside of the State of Hawaii, repayment shall commence immediately. The fund shall be implemented on the basis of legislative appropriations as the legislature may deem appropriate. The fund may also accept donations from any legitimate source, including federal and private grants and gifts from private foundations or endowment organizations. Any unencumbered balance, including moneys other than legislative appropriations, remaining in the fund as of the close of business on June 30, 2000, shall lapse into the general fund.

(e) No loan shall be made after June 30, 1995. [L 1990, c 288, pt of §3; am L 1992, c 30, §1]