AZ SB1078

Restructures the Board of Medical Student Loans from eight members to six members, removing appointments from the Arizona Medical Board and Board of Osteopathic Examiners, and adding representatives from each accredited medical school in Arizona.

Removes the requirement that at least 50% of loan funds be apportioned to private medical school students.

Revises penalty structure for loan recipients who fail to fulfill service commitments: no penalty if withdrawn during medical school, 10% penalty if withdrawn during residency, and 25% penalty if withdrawn while serving as a physician in the approved area.

Transfers administration of the medical student loan fund from the Department of Health Services to the Board of Medical Student Loans, with loan payments now deposited into the fund.

Establishes a sunset date of July 1, 2029 for the Board of Medical Student Loans, with all related statutory provisions repealing on January 1, 2030.