South Carolina H 3577: Nursing loan and scholarship forgiveness

Bill Text

2025-2026 Bill 3577 Text of Previous Version (Dec. 12, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3577

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 59-110-60, RELATING TO SCHOLARSHIPS, STUDENT LOANS, AND GRANTS UNDER 
THE SOUTH CAROLINA CRITICAL NEEDS NURSING INITIATIVE ACT, SO AS TO expand the availability 
of LOANS FOR NURSING EDUCATION TO STUDENTS WHO CONTRACTUALLY AGREE TO PRACTICE 
NURSING IN CERTAIN CRITICAL NEEDS GEOGRAPHIC AREAS, AND TO PROVIDE REQUIRED 
TERMS AND CONDITIONS OF SUCH CONTRACTS.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 59-110-60 of the S.C. Code is amended by 
adding:

 (G)(1) In addition to the loans provided 
in subsection (C), funds from the Critical Needs Scholarship, Loan, and Grant 
program may be used, subject to funding availability, for nursing education 
loans not to exceed:

 (a) 
ten thousand dollars per loan for students pursuing licensed practical nurse 
(LPN) or nursing assistant (NA) diplomas; 

 (b) 
twenty thousand dollars per loan for students pursuing an associate's degree in 
nursing from an accredited program;

 (c) 
twenty thousand dollars per loan for students pursuing a bachelor's degree in 
nursing from an accredited program and who have received an associate's degree 
in nursing from an accredited program; and

 (d) 
forty thousand dollars per loan for students pursuing a bachelor's degree in 
nursing from an accredited program and who have not received an associate's 
degree in nursing from an accredited program.

 (2)(a) A loan made pursuant to this 
subsection must be based upon the condition that the loan recipient apply for a 
license to practice nursing in South Carolina at the earliest practicable 
opportunity and that, within six months after the applicant is so licensed to 
practice, he will engage in the practice of nursing in a service area in this 
State where nursing needs are critical as determined by the Office for Health 
Care Workforce Research in collaboration with the Revenue and Fiscal Affairs 
Office and the South Carolina Center for Nursing Leadership.

 (b) 
The recipient of a loan provided pursuant to this subsection is required to 
enter a contract with the commission, which is considered a contract with the 
State of South Carolina agreeing to the terms and conditions upon which the 
loan is granted, and practice in such critical needs areas in this State for 
one year for each year in which he received the loan, and upon completion of 
this practice requirement the loan is considered paid in full.

 (3) 
A loan contract:

 (a) 
shall include penalties for wilful and unjustifiable noncompliance, which must 
include a demand for loan repayment plus interest at a per annum rate equal to 
the then prevailing prime rate plus two percent from the date funds were 
advanced to the recipient;

 (b) 
shall include other terms and conditions that the commission considers 
appropriate to carry out the provisions of this section; and

 (c) 
may provide for the deferral of payments during the time in which the loan 
recipient practices in the critical needs area.

SECTION 2. This act takes effect upon approval 
by the Governor.

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This web page was last updated on December 12, 2024 at 04:41 PM