(a) A recipient of a loan under this subchapter shall repay each loan together with interest at the maximum rate allowed by Arkansas law if the recipient:
(1) Ceases to be enrolled in good standing in a recognized school of nursing before completing the education requirements to qualify as a registered nurse, licensed practical nurse, or nursing educator;
(2) For the period specified by rule of the Arkansas State Board of Nursing upon completion of the education requirements to qualify as a registered nurse, licensed practical nurse, or nursing educator does not:
(A) Teach in a nursing education program in the State of Arkansas; or
(B) Engage in practice as a registered nurse or licensed practical nurse in the State of Arkansas; or
(3) Fails to comply with any other requirement of this subchapter.
(b) Interest shall accrue from the date each payment of funds was received by the recipient.
(c) No interest shall accrue and no obligation to repay a loan exists during any period of time that the recipient of the loan serves on active duty in the United States Armed Forces or state active duty in the Arkansas National Guard.
(d) If repayment of a loan is required, upon the death of the recipient of the loan all unpaid principal and interest is due and payable.
(e) The failure to repay a loan as specified in this section may be considered unprofessional conduct for disciplinary purposes.