(a) The outstanding rural scholar fund is in the state treasury.
(b) The fund consists of legislative appropriations, gifts, grants, donations, the market value of in-kind contributions, and principal and interest payments on forgivable loans deposited to the credit of the fund by the department.

(c) The department shall administer the fund.
(d) The department shall allocate the fund, as available, for forgivable loans under this subchapter.
(e) The department shall deposit any principal and interest payments on forgivable loans to the credit of the fund.