The bill proposes the establishment of a teacher candidate loan forgiveness program, which will be administered by the University System of New Hampshire. The program is designed to provide financial assistance to students who are pursuing a teaching degree in high-needs subject areas and are willing to commit to teaching in critical teacher shortage areas of the state. To be eligible for the loan, individuals must be lawful residents of New Hampshire, have completed their sophomore year, be enrolled as full-time juniors or seniors in good standing, major in a degree program leading to teacher licensure in a high-needs area, and agree to teach for at least five consecutive years in a designated shortage area upon licensure. If the individual fails to meet these requirements, they must repay the loan with interest.

The loan amount is set at $5,000 per academic year, with a maximum of $10,000 per individual. The loan is renewable annually until graduation, provided the individual continues to meet eligibility requirements and makes satisfactory academic progress. The loan, plus accrued interest, is forgiven at a rate of 20 percent per year for each year the individual teaches in a critical shortage area. Repayment begins immediately if the individual fails to maintain enrollment in good standing, does not obtain teacher certification within a year of graduation, does not begin teaching immediately after certification, or does not fulfill the five-year teaching commitment in a shortage area. The university system may defer repayment if no suitable employment position was available. The act is set to take effect on July 1, 2023, and the University System of New Hampshire, in consultation with the Department of Education, will adopt rules for the program's implementation. The fiscal impact of the bill is not provided at the time of introduction.