HI SB348

Creates the Hawaii Public Service Loan Forgiveness Program administered by the University of Hawaii in partnership with a Hawaiian financial institution to provide loans to students completing associate, bachelor, or graduate degrees within the UH system.

Requires loan recipients to agree to work full-time for the State for a university-determined period; students/teachers qualifying for the Hawaii educator loan forgiveness program are excluded from eligibility.

Loans bear 5% simple interest with repayment commencing one year after graduation or three months after leaving the program, paid over a seven-year period.

Provides loan forgiveness of 10% annually for the first five years of state employment and 25% annually for years six and seven; if recipients fail to complete the required state employment period, the interest rate increases to 10% simple interest.

Establishes a revolving fund for the program with appropriations from general revenues, private contributions, and loan repayments; up to 5% of outstanding loans may be used for administrative expenses.