Section 22-2213-A - Loan forgiveness program(a) Establishment of program.--The agency shall administer a loan forgiveness program for nursing school applicants on a Statewide basis. The agency may provide loan forgiveness as provided in subsection (b) for recipients of loans who by contract with the agency agree to practice professional nursing in this Commonwealth upon attainment of the required license.(b) Loan forgiveness.--Agency-administered, federally insured student loans for higher education provided to a nursing school applicant may be forgiven by the agency as follows:(1) The agency may forgive 50% of the loan, not to exceed $50,000, if a loan recipient enters into a contract with the agency that requires the recipient upon successful completion of an approved nursing program and licensure as a registered nurse to practice nursing in this Commonwealth for a period of not less than three consecutive years.(2) Loan forgiveness awards made pursuant to paragraph (1) shall be forgiven over a period of three years at an annual rate of 33 1/3 % of the award and shall be made from funds appropriated for this purpose.(3) The contract entered into with the agency pursuant to paragraph (1) shall be considered a contract with the Commonwealth and shall include the following terms:(i) An unlicensed recipient shall apply for a registered nurse's license to practice in this Commonwealth at the earliest practicable opportunity upon successfully completing a degree in nursing.(ii) Within six months after licensure, a recipient shall engage in the practice of nursing in this Commonwealth according to the terms of the loan forgiveness award.(iii) The recipient shall agree to practice in a licensed health care facility in the provision of direct patient care on a full-time basis.(iv) The recipient shall permit the agency to determine compliance with the work requirement for nurses and all other terms of the contract.(v) Upon the recipient's death or total or permanent disability, the agency shall nullify the service obligation of the recipient.(vi) If the recipient is convicted of or pleads guilty or no contest to a felony or if the licensing board has determined that the recipient has committed an act of gross negligence in the performance of service obligations or has suspended or revoked the license to practice, the agency shall have the authority to terminate the recipient's service in the program and demand repayment of the amount of the loan as of the date of the conviction, determination, suspension or revocation.(vii) Loan recipients who fail to begin or complete the obligations contracted for shall pay to the agency the amount of the loan received under the terms of the contract pursuant to this section. Providing false information or misrepresentation on an application or verification of service shall be deemed a default. Determination as to the time of default shall be made by the agency.(4) Notwithstanding 42 Pa.C.S. § 8127 (relating to personal earnings exempt from process), the agency may seek garnishment of wages in order to collect the amount of the loan following default under paragraph (3)(vii).1949, March 10, P.L. 30, No. 14, art. XXII-A, § 2213-A, added 2001, Oct. 30, P.L. 828, No. 83, § 3, imd. effective.