TO ESTABLISH THE FORGIVABLE EDUCATION LOANS FOR SERVICE PROGRAM AND THE FORGIVABLE EDUCATION LOANS FOR SERVICE FUND AS RECOMMENDED BY THE JOINT SELECT COMMITTEE ON STATE FUNDED STUDENT FINANCIAL AID.
Enacts new GS 116-209.45 to establish the Forgivable Education Loans for Service Program and Fund. The proposed statute is effective July 1, 2011. Provides that the State Education Assistance Authority (Authority) will administer the Forgivable Education Loans for Service Program (Program) and the Forgivable Education Loans for Service Fund (Fund). States that the purpose of the Program is to facilitate and promote the making, insuring, and collection of loans from the Fund. Directs the Program to initially target future teachers, nurses, and allied health professionals to provide loans. The Fund’s purpose is to provide financial assistance to qualified students to enable them to obtain requisite education beyond the high school level to work in North Carolina in high-need professions and to respond to critical employment shortages.
Defines the following terms applicable to the statute: eligible institution, fund, loan, and program. Directs the Authority to establish criteria and standards for initial and continuing eligibility in the Program and requires all loan recipients to be residents of NC and to attend an eligible institution. Lists terms and conditions applicable to each loan made by the Program. Instructs the Authority to appoint an advisory group composed of specified representatives to make recommendations on loan apportionment and distribution. Directs all funds appropriated to or otherwise received by the Authority to provide loans through the Program, all funds received as repayment of loans, and all interest earned on the funds, to be placed in the Fund. Allows the Authority to adopt rules necessary to implement, administer, and enforce the statute. Directs the Authority to report before December 1, 2013, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the Fund and awarded loans.
Repeals the following statutes, which govern several education loan funds: GS 90-171.100, 90-171.101 (Graduate Nurse Scholarship Program for Faculty Production); GS 90-171.60, 90-171.61, 90-171.62 (North Carolina Nursing Scholars Commission and Nursing Scholars Program); GS 90-171.65 (need-based scholarship loan fund for nursing students); GS 116-40.10 (Board of Governors’ Dental Scholarship Loan Fund); GS 116-40.9 (Board of Governors’ Medical Scholarship Loan Fund); GS 116-209.33, 116-209.34 (Prospective Teachers Scholarship Loan Fund); GS 116-209.35 (Teacher Assistant Scholarship Fund); GS 116-209.30 (Social Workers’ Education Loan Fund). Transfers all assets and liabilities from these now-defunct education loan and scholarship funds to the Forgivable Education Loans for Service Fund. Provides that all financial obligations to any student awarded a scholarship by the applicable fund before July 1, 2012, will be fulfilled by the Forgivable Education Loans for Service Fund. Requires the student to remain eligible under the requirements of this now-defunct fund. Also states that all contractual agreements between the Authority and a student awarded a scholarship loan from the former fund before July 1, 2012, remain enforceable and any provisions otherwise applicable under the former fund but for the proposed transfer, remain applicable to any scholarship loan awarded before July 1, 2012.
Also transfers all assets and liabilities from the Student Loan Program for Health, Science and Mathematics Fund, the Future Teachers of North Carolina Fund, the Physical Education Scholarship Loan Fund, and the Optometry Scholarship Loan Fund to the Forgivable Education Loans for Service Fund. The retained financial obligations and contractual agreements also apply to loans awarded from the Student Loan Program for Health, Science and Mathematics Fund before July 1, 2012.
Effective July 1, 2012, unless otherwise indicated.
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