(a) Each award shall consist of two consecutive annual payments, provided the recipient is eligible for a second payment pursuant to the provisions of this section. The calculation of the amount of each annual payment shall be made by the corporation following receipt of the annual payment application by the recipient. Each of the annual payments shall be for an amount equal to the total of the recipient's undergraduate and medical school student loan expense of $10,000, whichever is less. Student loan expense shall mean the cumulative total of the student loans covering the cost of attendance at an undergraduate institution and medical school, including the interest paid or payable thereon. Student loansshall mean all loans received by the recipient either made or guaranteed by a State or Federal governmental agency, or by the educational institution which the recipient attended, for the purpose of paying educational expenses at an undergraduate school or medical school. Such loans made to cover expenses at a graduate school other than medical school shall not be included.

(b) In calculating the intitial payment the corporation shall include all eligible student loans, including interest paid thereon and all interest payable, using the repayment schedule applicable to the recipient at the time he or she makes application for an award under this Part.

(c) Following the initial annual payment in calculating any subsequent annual payment, including pursuant to a further award, the amount of the initial annual payment and any subsequent annual payments shall be deducted from the recipient's student loan expense.