(1) The board shall establish a loan program to defray the cost of tuition, fees, and expenses for persons enrolled in any of the following:
(a) A program in this state that confers an associate degree in nursing.
(b) A program in this state that confers a bachelor's degree in nursing.
(c) A program in this state that confers a 2nd degree that will make the person eligible to sit for examination under s. 441.04 or 441.10 .
(d) A program in this state that confers a diploma in nursing.
(2) Beginning in the 2002-03 fiscal year, the board shall make loans under this section from the appropriation under s. 20.235 (1) (cm) . The maximum amount of loan for a person during any fiscal year is $3,000. The maximum that a person may receive under this section is $15,000. The board shall ensure that the terms of the loan do not require a loan recipient to repay the loan while the recipient is enrolled in a program under sub. (1) .
(3) After the recipient of a loan under sub. (1) has completed the program described in sub. (1) , the board shall forgive 25% of the loan's principal and interest after the first full year and 25% of the loan's principal and interest after the 2nd full year that the recipient has been employed full time in this state as a nurse. The board may forgive loans on a prorated basis for persons who are employed less than full time.
(4) The board shall promulgate rules to implement and administer this section.