The proposed "Nurse Loan Repayment Act" aims to address the shortage of nurses in designated underserved areas of New Mexico by establishing a loan repayment program for nursing professionals. The act outlines the powers and duties of the higher education department, including the creation of a nurse selection committee responsible for identifying underserved areas and determining eligibility criteria for applicants. Eligible nurses must be licensed in New Mexico and either provide services in these areas or work as faculty members in nursing education. The act also establishes a fund to support the repayment of loans, with specific award criteria and penalties for non-compliance.

The act stipulates that awards will be granted based on the recipient's nursing education debt, with a maximum total of $35,000 over four years. It includes provisions for contract terms, including a minimum service requirement and the possibility of penalties for non-compliance. Additionally, the department is required to report annually on the program's effectiveness, including data on awards given, service completion rates, and the impact on nursing shortages in underserved areas. An appropriation of $5 million from the general fund is allocated to support the program's implementation.