Amends GS 115C-499.2, which sets out the eligibility requirements for scholarships for a community college or constituent institution of the UNC System, modifying the requirement that the student must meet all other eligibility requirements for the federal Pell Grant by excepting any eligibility requirements related to whether an individual is incarcerated in a State penal institution from the requirement.

Amends GS 115D-40.1, to now specify that an incarcerated individual who is not eligible for federal education assistance on the basis of the incarceration is not disqualified from receiving financial assistance under the Need-Based Assistance program or the Targeted Assistance program for community college students pursuant to the statute.

Amends GS 116-25.1, to now specify that an incarcerated individual who is not eligible for federal education assistance on the basis of the incarceration is not disqualified from receiving financial assistance under The University of North Carolina Need-Based Financial Aid Program if the individual otherwise meets the requirements of the program.

Amends GS 116-143.1, which sets out provisions for determining resident status for tuition purposes at community colleges and constituent institutions of the UNC System, to establish that an individual's incarceration in a State penal institution located in the State is prima facie evidence of the individual's legal residence in the State, and can be reinforced or rebutted by other evidence of legal residence requested of the individual. Requires an individual qualifying as a legal resident under the subsection to (1) be permitted to enroll and receive State financial assistance as a resident without meeting the 12-month durational requirement and (2) be classified as a resident for purposes of receiving the in-State tuition rate. Clarifies that the new subsection does not confer legal residency for any other purpose.

Amends GS 116-281, which sets out the eligibility requirements for Need-Based Scholarships for students attending private institutions of higher education, modifying the requirement that the student must meet all other eligibility requirements for the federal Pell Grant by excepting any eligibility requirements related to whether an individual is incarcerated in a State penal institution from the requirement.

Applies to the award of financial assistance beginning with the 2020-21 academic year.

Amends Section 8.3 of SL 2010-31, removing the provision that prohibits using funds appropriated for community college courses for prison inmates for Associate of Arts, Associate of Science, or Associate of General Education degrees. Removes the provision prohibiting courses in local jails from earning regular budget full-time equivalents; maintains the provision prohibiting the same for courses in federal prisons. Makes conforming changes to GS 115D-5, modifying the statute to require all community college course offerings approved for prisoners in local jails to be tied to clearly identified job skills, transition needs, or both (as required by existing law for course offerings approved for State prison inmates). Applies current approval provisions concerning community college course offerings which apply to courses offered to State prison inmates to those offered to prisoners in local jails. Provides that beginning with the 2019-20 academic year, community college courses offered in local jails earn regular budget full-time equivalents.

Effective July 1, 2019.