GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2005-40
HOUSE BILL 780
AN ACT to modify the process by which the need-based scholarship loan fund is administered.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 90-171.65 reads as rewritten:
"§ 90-171.65. Need-based nursing scholarships fund.
(a) There is created a
need-based scholarship loan fund for nursing students. Need-based scholarship
loans shall be available for study in nursing programs offered by community
colleges and The University of North Carolina, and by private colleges which
that offer licensed practical nursing or registered nursing
programs. Part-time students and nontraditional students who have post-secondary
degrees, and registered nurses pursuing a baccalaureate degree in nursing, are
eligible to receive need-based nursing scholarship loans.
(b) Need-based nursing
scholarship loan funds shall be administered by the State Board of Community
Colleges, the Board of Governors of The University of North Carolina, and the
State Education Assistance Authority. The State Board of Community Colleges and
the Board of Governors of The University of North Carolina shall allocate the
scholarship loan funds among their respective constituent institutions which
have programs of education leading to a degree in nursing. Distribution shall
be in a manner determined by the appropriate governing body. The State
Education Assistance Authority shall distribute scholarship loan funds to
private nonprofit colleges which offer nursing degree programs. Distribution
shall be in a manner determined by the Board of the State Education Assistance
Authority after consultation with the North Carolina Association of Independent
Colleges and Universities.State Education Assistance Authority in
accordance with rules and regulations adopted by the Board of the State
Education Assistance Authority. Distribution of scholarship loan funds among
students enrolled in the constituent institutions of The University of North Carolina,
community colleges, and private colleges shall be in amounts proportionate to
the amounts awarded to each such group of students in the preceding fiscal
year. Scholarship loans shall be made only to prospective and enrolled nursing
students under the terms and conditions established for the need-based nursing
scholarship loan program by the State Education Assistance Authority.
(c) The State Education Assistance Authority shall carry out the following functions in implementing the need-based nursing scholarship loan program:
(1) Promulgate the rules
and regulations necessary to implement the scholarship program;program,
including the selection criteria and method of selection of recipients of need-based
nursing scholarship loans;
(2) Disburse, collect, and monitor scholarship loan funds;
(3) Establish the terms and conditions of promissory notes executed by loan recipients;
(4) Approve service repayment agreements;
(5) Collect cash repayments required when service repayment is not completed; and
(6) Adopt rules to allow for the forgiveness of scholarship loans if it determines that it is impossible for the recipient to practice nursing in North Carolina for a sufficient time to repay the loan because of the death or permanent disability of the recipient within ten years following graduation or termination of enrollment in a nursing education program.
(d) Each
institution to which scholarship loan funds are allocated shall publicize the
availability of, shall disseminate, receive and review applications for, and
shall select the recipients of scholarship loans. Scholarship loans shall be
made only to prospective and enrolled nursing students under the terms and
conditions established for the need-based nursing scholarship loan program by
the State Education Assistance Authority."
SECTION 2. This act becomes effective January 1, 2006, and applies to all scholarship loans awarded after that date.
In the General Assembly read three times and ratified this the 9th day of May, 2005.
s/ Marc Basnight
President Pro Tempore of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 10:32 a.m. this 12th day of May, 2005