In connection with the forgivable loan programs administered by the board, and in addition to the funding of the same through the use of state funds, the board is authorized to establish a loan repayment mechanism employing agreements to repay private sector loans for education or guaranteed student loans. As an alternative to the forgivable loans administered by the board, the board is authorized to develop contractual relations with eligible applicants to repay, for and on behalf of the applicants, any or all outstanding private sector loans for education or guaranteed student loans, by undertaking to repay installments of interest and principal according to the requirement of the loans, so long as the applicants perform the terms of their loan or scholarship contracts with the board. The board may establish by rule and regulation the terms of the contracts so as to accomplish the purposes of the loan repayment programs, including, but not limited to: the maximum amount the board will undertake to repay; the maximum duration of the repayment arrangement or the period of required service; the geographical location for approved service; the nature of the service to be rendered; the needed professional occupations; the critical majors or subject areas of concentration; the criteria to determine need and the degree of need required for eligibility; and the scholastic achievement level required to be maintained by the student participants. The board may prescribe other rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.