Enacts GS Chapter 116, Article 35, Loan Repayment Assistance Program for Teachers (Program), providing that the Program is established in order to provide assistance for higher education indebtedness for eligible teachers. Sets out seven definitions for use in the chapter, including eligible debt and repayment assistance loan. Provides that the State Education Assistance Authority (Authority) will administer the Program and is required to adopt necessary rules, processes, and procedures for the implementation of the Program. Provides for eligible teachers to receive repayment assistance loans for up to four years for eligible debt accrued for an undergraduate or graduate degree. Sets out requirements to be eligible for the Program, including that an eligible teacher must have been employed for two years but no longer than eight years in any of the state's local school administrative units prior to applying. Also requires signed statement of intent to remain in position of employment for at least four years after each year the eligible teacher receives a repayment assistance loan. Provides that teachers in default regarding certain financial obligations do not qualify for the Program until such is resolved.
Provides that loan amounts will be based on financial need and that loans cannot exceed $10,000 per calendar year for teachers that meet more than one of the specified employment criteria and cannot exceed $5,000 for a teacher that meets one of the specified criteria. Sets out forgiveness provisions. Establishes notification requirements for teachers that receive repayment assistance but their employment status has changed, requiring repayment of the loans for teachers that voluntarily leave the qualified employment. Sets out specific criteria which prohibit teachers from remaining eligible for the program but does not require repayment of the financial assistance already rendered; such criteria include instances of death or disability.
Establishes the Teacher's Loan Repayment Assistance Fund (Fund) to be administered by the Authority, to be used to make repayment assistance loans and to pay for administrative costs of the Authority.
Directs the Authority to report no later than December 1, 2016, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the Fund and repayment assistance loans.
Appropriates from the General Fund to the UNC Board of Governors $5 million for the 2015-16 fiscal year and $5 million for the 2016-17 fiscal year to implement all of the provisions of this act. Allows the Authority to use up to 2% of the funds appropriated each fiscal year for administration of the Program.
Effective July 1, 2015.
Bill Summaries: H917 LOAN REPAYMENT ASSIST./CERTAIN TEACHERS.
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Bill H 917 (2015-2016)Summary date: Apr 20 2015 - View Summary