(a) A physician who receives a loan under the program provided for in this chapter shall be licensed to practice medicine within the State of Georgia at the time the loan is made and shall be a graduate of an accredited four-year medical school located in the United States which has received accreditation or provisional accreditation by the Liaison Committee on Medical Education of the American Medical Association or the Bureau of Professional Education of the American Osteopathic Association for a program of education designed to qualify the graduate for licensure by the Composite State Board of Medical Examiners of Georgia.

(b) The board shall make a full investigation of the qualifications of an applicant for a loan under the provisions of this chapter to determine the applicant's fitness for participation in such loan program, and for such purposes, the board may propound such examinations to applicants as the board deems proper. The board's investigation shall include a determination of the outstanding medical education loans incurred by the applicant while completing his or her medical education and training.

(c) The board is authorized to consider among other criteria for granting loans under the provisions of this chapter the state residency status and home area of the applying physician and to give priority to those applicants who are physicians specializing in and actively practicing obstetrics. After giving such priority, the board may also consider, in the following order of priority, the applications of physicians specializing in obstetrics/gynecology, family practice, general practice, general internal medicine, general pediatrics, general surgery, psychiatry, or other medical specialties approved by the board.

(d) The board may adopt and prescribe such rules and regulations as it deems necessary or appropriate to administer and carry out the loan program provided for in this chapter. Such rules and regulations shall provide for fixing the rate of regular interest to accrue on loans granted under the provisions of this chapter. Such regular rate of interest shall not exceed by more than 2 percent the prime rate published from time to time by the Board of Governors of the Federal Reserve System. Within such limitation, the regular rate of interest may be increased for new recipients of loans under this chapter.