Sec. 1. 20-A MRSA §12101, sub-§8, as amended by PL 1995, c. 117, Pt. D, §1 and affected by §3, is further amended to read:

8. Primary health care. "Primary health care" means general or family practice of medicine, general internal medicine, general pediatrics, general dentistry, ophthalmology, optometry and obstetrics and gynecology.

Sec. 2. 20-A MRSA §12104, sub-§5, ķA, as amended by PL 1995, c. 117, Pt. D, §2 and affected by §3, is further amended to read:

A. Upon completion of professional education the student shall repay the loan in accordance with the following schedule.

(1) A loan recipient who does not obtain loan forgiveness pursuant to this section shall repay the entire principal portion of the loan plus simple interest at a rate to be determined by rule of the authority. Interest does not begin to accrue until the loan recipient completes medical education, including residency and internship. The authority may establish differing interest rates to encourage loan recipients to practice primary health care medicine in the State.

(2) Primary health care physicians providers and dentists practicing in a designated health professional shortage area, any physician, ophthalmologist or optometrist practicing in an underserved specialty or any physician, ophthalmologist or optometrist providing services to a designated underserved group are is forgiven the larger of 25% of the original outstanding indebtedness plus any accrued interest or $7,500 for each year of practice.

Primary health care physicians providers and dentists practicing in the State, but not practicing in a designated health professional shortage area, are forgiven the larger of 12.5% of the original outstanding indebtedness plus any accrued interest or $3,750 for each year of practice.

(3) Veterinarians providing services to Maine residents with insufficient veterinary services are forgiven the larger of 25% of the original outstanding