(1) The Kentucky Department of Veterans' Affairs shall create a loan repayment program for registered nurses and licensed practical nurses within their employ.
(2) The loan repayment program shall apply to any existing student loan incurred by the employee as a result of that employee's academic or technical studies leading to becoming a registered nurse or licensed practical nurse.
(3) The loan repayment program shall not apply to loans previously repaid.
(4) Recipients of the loan repayment program shall sign a contract stipulating:
(a) The recipient's existing student loan debt shall be repaid up to twenty-five percent (25%) of the loan's principal and interest up to a maximum of ten thousand dollars ($10,000) after satisfactory completion of one (1) year of employment at the state veterans' nursing home assigned;
(b) The recipient's student loan shall be repaid up to twenty-five percent (25%) of the loan's principal and interest up to a maximum of ten thousand dollars ($10,000) after satisfactory completion of a second consecutive full year of employment at the state veterans' nursing home assigned;
(c) The recipient's student loan shall be repaid up to twenty-five percent (25%) of the loan's principal and interest up to a maximum of ten thousand dollars ($10,000) after satisfactory completion of a third consecutive full year of employment at the state veterans' nursing home assigned;
(d) The recipient's student loan shall be repaid up to twenty-five percent (25%) of the loan's principal and interest up to a maximum of ten thousand dollars ($10,000) after satisfactory completion of a fourth consecutive full year of employment at the state veterans' nursing home assigned; and (e) The total amount paid by the loan repayment program shall not exceed forty thousand dollars ($40,000) for a maximum of four (4) consecutive full years of employment per person.
(5) The Kentucky Higher Education Assistance Authority shall administer this program from funds provided by the Kentucky Department of Veterans' Affairs as funds are available.
(6) The Kentucky Higher Education Assistance Authority and the Kentucky Department of Veterans' Affairs shall promulgate administrative regulations necessary for the effectuation of this section, including limits on the amount of any loan that will be repaid.