71-17,105 Loans; restrictions; repayment; when. - Nebraska Statutes

71-17,105. Loans; restrictions; repayment; when.(1) Loans received under the Nursing Student Loan Act shall be used only for educational expenses for an approved nursing program. The use of such loan funds by a student is subject to review by the department.(2) Each loan shall be for one academic year. Each student shall not be loaned more than one thousand dollars per academic year nor a total of more than two thousand dollars.(3) If a student who has received a loan discontinues the approved nursing program before completing the program, the student shall repay one hundred percent of the outstanding loan principal with simple interest at a rate of one point below the prime interest rate. Such repayment shall commence within six months after the date of discontinuation of the course of study and shall be completed within the number of years for which loans were awarded.(4) After completion of the approved nursing program, a loan awarded to a student shall be forgiven when the recipient of the loan has engaged in the full-time practice of nursing in Nebraska for a period of time which would be the equivalent of full-time practice for the number of years for which loans were received.(5) If a recipient of a loan under the act is not engaged in full-time practice, or the equivalent of full-time practice, as required in subsection (2) of section 71-17,104, the recipient shall repay one hundred twenty-five percent of the outstanding loan principal. Such repayment shall be with simple interest at a rate of one point below the prime interest rate. Interest shall accrue beginning upon completion of the approved nursing program. Such repayment shall commence within six months after the date of discontinuation of the practice of nursing in Nebraska and shall be completed within the number of years for which loans were awarded. SourceLaws 2001, LB 468, § 5.