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SB57 Alabama 2023 Session

Updated Feb 22, 2026

Summary

Session
Regular Session 2023
Title
Relating to the Board of Nursing; to add a new Article 8 to Title 34, Chapter 21, Code of Alabama 1975, to create the Alabama Loan Repayment Program for Nursing Education; to establish and describe the program; to provide for program funding from the Education Trust Fund; to provide definitions; to outline the procedure for the board to award loans to applicants who contract with the board to work as an instructor in a prelicense nursing education program; and to provide further for the powers of the board under the program.
Summary

SB57 creates the Alabama Loan Repayment Program for Nursing Education to fund nursing instructors through loans for qualified applicants who contract to teach in prelicense nursing programs, administered by the Board of Nursing.

What This Bill Does

It creates the Alabama Loan Repayment Program for Nursing Education, administered by the Board of Nursing and funded from the Education Trust Fund. The board can award loans to two groups: applicants admitted to a qualified nursing education program who sign a repayment contract, and students pursuing or who have completed graduate degrees to become nurse educators who sign a repayment contract. Loans cover up to three years for master’s studies and up to four years for doctoral studies, with an initial annual limit of $15,000 and possible annual increases of up to 5%. Recipients must work full-time as instructors in a qualified nursing education program for 24 months per loan; default can trigger interest charges, penalties, and potential license revocation, but there are exceptions for death, disability, or extreme hardship. The program is temporary and will repeal unless extended, and it’s subject to annual reporting and review.

Who It Affects
  • Nursing students and other individuals pursuing or holding graduate degrees to become nurse educators who sign a contract to work as full-time instructors in qualified prelicense nursing programs and may receive loan funds to support their education.
  • Public colleges and universities in Alabama that run qualified nursing education programs and would host and employ loan recipients as instructors, with oversight from the Board of Nursing and the Education Trust Fund.
Key Provisions
  • Creates the Alabama Loan Repayment Program for Nursing Education, administered by the Board of Nursing and funded by direct appropriation from the Education Trust Fund.
  • Defines terms: PARTICIPANT, PROGRAM, and QUALIFIED NURSING EDUCATION PROGRAM (accredited prelicensure program at a public Alabama institution).
  • Board shall establish and award loans to: (a) applicants admitted to a qualified nursing program who sign a contract; (b) students pursuing or holding a graduate degree to become nurse educators who sign a contract.
  • Loans may be granted for up to 3 years for master's study and up to 4 years for doctorate study; first-year maximum $15,000, with subsequent years allowed to increase by up to 5% annually.
  • Recipients must work as full-time nursing instructors for 24 months for each loan; failure to honor the contract triggers penalties and potential license action.
  • Penalties for default include immediate repayment with interest at 8% or the prime rate, whichever is greater; an additional 20% of total principal may be due in certain default scenarios after graduation for those pursuing a graduate degree.
  • Failure to honor the contract or repay may lead to revocation of the nursing license; repayment may be excused in cases of death, disability, or extreme hardship.
  • Annual reporting on program conditions and outcomes; performance metrics to be developed; a 2028 evaluation by the Alabama Commission on the Evaluation of Services to assess impact.
  • Board may adopt rules and use all program funds (repaid loans, interest, penalties) to fund loans.
  • The article would repeal on September 30, 2029 unless extended by law.
  • Effective date: the first day of the third month after passage.
AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects
Board of Nursing, Loan Repayment Program for Nursing Education created

Bill Actions

S

Enacted

S

Enrolled

H

Ready to Enroll

H

Read a Third Time and Pass

H

On Third Reading in Second House

H

Read Second Time in Second House

H

Reported Out of Committee in Second House

H

Reported Favorably from House Ways and Means Education

H

Referred to Committee to House Ways and Means Education

S

Read First Time in Second House

S

Read A Third Time And Passed As Amended

S

Adopt C6FGQJ-1

S

On Third Reading in House of Origin

S

Read Second Time in House of Origin

S

Reported Out of Committee in House of Origin

S

Reported Favorably from Senate Finance and Taxation Education

S

Amendment/Substitute by Senate Finance and Taxation Education C6FGQJ-1

S

Introduced and Referred to Senate Finance and Taxation Education

S

Read First Time in House of Origin

Calendar

Hearing

House Ways and Means Education Hearing

Room 200 at 09:00:00

Hearing

Senate Finance and Taxation Education Hearing

Finance and Taxation at 10:00:00

Bill Text

Votes

Read A Third Time And Passed As Amended

May 2, 2023 Senate Passed
Yes 32
Absent 3

Documents

Source: Alabama Legislature