This bill amends sections of the Code of West Virginia concerning higher education loan programs, particularly the medical student loan program and health sciences and mental health provider loan repayment programs. Key changes include an increase in the maximum annual loan amount for medical students from $10,000 to $20,000 and a shift in the determination of the repayment interest rate to the Vice Chancellor of Administration, moving away from a fixed rate of 9.5 percent. The bill also replaces scholarship language with loan repayment language in the health sciences and mental health provider programs, requiring that awards be paid directly to federal loan service providers. Additionally, new eligibility criteria for medical student loans emphasize in-state residency and good academic standing, while mandating annual reporting from medical schools on their loan programs.

Furthermore, the bill introduces a new mental health provider student loan repayment program, which allows eligible participants to receive up to $30,000 in loan repayment over three years for working in underserved areas. Awards of up to $10,000 per year are contingent upon completing one year of practice in these areas, with payments made directly to federal student loan servicers. The legislation also establishes the Mental Health Provider Student Loan Repayment Fund, which will include unexpended funds and repayments from recipients who do not meet their practice agreements. Overall, the bill aims to enhance support for medical and mental health professionals in West Virginia, particularly in underserved regions, by providing financial incentives for service in high-need areas.

Statutes affected:
Introduced Version: 18C-3-1, 18C-3-3
Committee Substitute: 18C-3-1, 18C-3-3
Engrossed Committee Substitute: 18C-3-1, 18C-3-3