Section 1.

Removes the current loan forgivable schedule set forth in GS 116-209.62(g) (awards of forgivable loans under the NC Teaching Fellows Program [Program]). Instead, awards forgivable loans to individuals holding a bachelor’s degree seeking preparation for licensure authorizes the Program to provide forgivable loans of up to $10,000 per academic year for up to two academic years. For all other students, directs the Program to provide forgivable loans of up to $10,000 per academic year for up to four academic years. Effective July 1, 2026, and applies beginning in 2026-27 to all students enrolled in an educator preparation program participating in the Program.

Section 2.

Retroactively applies both Section 8A.4 of SL 2023-134’s and Section 2.14 of SL 2024-1’s revisions to the Program to all persons participating in the Program, including teachers who are continuing or entering service repayment beginning in the 2024-25 academic year.

Section 3.

Authorizes, in new GS 116-209.62(f1), the NC Teaching Fellows Commission (Commission) to establish a process to regularly evaluate institutions of higher education (IHE’s) selected to participate in the Program, to ensure that they meet Program qualifications and to establish term limits for IHE participants. Expands the Commission’s annual report topic to include outcomes from any such evaluation process established.

Section 4.

Appropriates $50,000 from the General Fund to the UNC Board of Governors for 2026-27 to be allocated to the North Carolina State University for the Friday Institute to study student participation in the Program, including the reasons some students opt to repay their loans in cash instead of through service. Directs the Friday Institute to report this information to the specified NCGA committee by February 15, 2027.

Section 5.

Effective July 1, 2026. Except as otherwise provided, applies beginning with the 2026-27 academic year.