(a) Subject to the availability of funds and the limits set out in this part, each loan made to an applicant shall be renewable annually for the number of years required to complete studies leading to qualification as a:

1. (1) Registered nurse;
2. (2) Licensed practical nurse; or
3. (3) Nursing educator.

(b) Any loan made to an applicant subsequent to an initial loan shall be made only upon application of the recipient and upon finding by the Arkansas State Board of Nursing that the applicant:

1. (1) Has successfully completed the nursing studies of the preceding academic year and remains in good standing as an enrolled student in the appropriate nursing program;
2. (2) Warrants financial assistance to complete his or her nursing studies;

3. (3) Has signed a written agreement to, upon graduation and licensure and for one (1) year for each year a loan is granted:

   1. (A) Either:

(i) Teach in a nursing education program in the State of Arkansas; or

1. (ii) Engage in practice as a registered nurse or licensed practical nurse in the State of Arkansas; and

   1. (B) Repay each loan with interest at the maximum legal rate if the applicant fails to fulfill the requirements of the board; and

2. (4) Continues to be a lawful resident of the State of Arkansas.

   1. (c) The total of the loans made to any one (1) student shall not exceed twenty thousand dollars ($20,000).