Tennessee Code Title 49. Education § 49-4-702

(1) Any resident of this state who becomes a candidate for a master's degree in nursing, or any resident with a master's degree in nursing who becomes a candidate for a doctoral degree program in nursing or a related field that would qualify the person to become a teacher, administrator or supervisor in nursing, shall be eligible to apply to TSAC for a loan-scholarship in an amount established by TSAC, not to exceed the cost of attendance for an academic year to attend an approved graduate school of nursing or an approved doctoral program in nursing or a related field. The loan-scholarship may be received for a maximum of four (4) years. Preference in awarding loan-scholarships shall be given to persons who can enter faculty or administrative positions in this state immediately upon completion of their master's or post-master's degree program;

(2) Students who teach full-time in a nursing school in this state who have been approved by the state board of nursing, must receive forgiveness of the loan balance based on one (1) year's teaching service for each year the scholarship was awarded, or proportionate credit for part-time teaching service, as defined by rules; and

(3) All loan-scholarships shall be evidenced by notes payable to TSAC, which shall bear interest at an annual rate of interest to be determined by TSAC from and after the completion of the educational program. The notes shall be executed pursuant to the rules and regulations of TSAC. If the recipient does not remain in, or return to, this state to teach or practice, the person shall be required to repay the full value of loan-scholarship funds received at an annual rate of interest to be determined by TSAC from the date of completion of the educational program. The permanent withdrawal or dismissal of any recipient, or the failure of any recipient to do college work in a manner acceptable to TSAC, shall immediately forfeit the recipient's right to retain the loan-scholarship. Any loan made under this section shall be cancelled by the death or the permanent and total disability of the recipient.