§ 116-209.34. Fund administered by State Education Assistance Authority; rule-making authority. - North Carolina Statutes

§ 116‑209.34.  Fund administered by StateEducation Assistance Authority; rule‑making authority.

(a)        The State Education Assistance Authority shall establish theterms and conditions for the scholarship loans consistent with the following:

(1)        The loan amount shall be not more than four thousand dollars($4,000) per academic school year for a maximum of four years for applicantswho are pursuing a college degree to become a teacher.

(2)        All scholarship loans shall be evidenced by notes madepayable to the Authority that bear interest at the rate of ten percent (10%)per year, beginning September 1 after graduation, or immediately aftertermination of the scholarship loan, whichever is earlier.

(3)        A scholarship loan shall be terminated upon the recipient'swithdrawing from school or a finding by the Authority that the recipient failsto meet the standards set by the Authority. All terminated scholarships shallbe regarded as vacant and subject to being awarded to other eligible persons.

(4)        The Authority shall forgive a four‑year loan if,within seven years after graduation, the recipient teaches for four years at aNorth Carolina public school or at a school operated by the United Statesgovernment in North Carolina. The Authority shall also forgive a four‑yearloan if, within seven years after graduation, the recipient teaches for threeconsecutive years, or for three years interrupted only by an approved leave ofabsence, at a North Carolina public school that is in a low‑performingschool system or a school system on warning status at the time the recipientaccepts employment with the local school administrative unit. For loans of lessthan four years, the Authority shall forgive one year for each year therecipient teaches, within four years of graduation, at a North Carolina publicschool or a school operated by the United States government in North Carolina.

(5)        The Authority may forgive or reduce any loan payment if theAuthority considers that extenuating circumstances exist that would maketeaching or repayment impossible.

(6)        The Authority shall ensure that all repayments, includingthe accrued interest, are placed in the Fund.

(b)        The State Education Assistance Authority, in consultationwith the State Board of Education, shall adopt rules to implement G.S. 116‑209.33,116‑209.34, and 116‑209.35. (1957, c. 1237;1973, c. 581, ss. 1, 2; 1975, c. 750, s. 1; 1983 (Reg. Sess., 1984), c. 1034,s. 10.1; 1987, c. 738, ss. 198(c), (d), (e); 1989 (Reg. Sess., 1990), c. 1066,s. 95; 1993, c. 260, s. 2; 1995, c. 435, s. 1; 2005‑276, ss. 9.17(b),9.17(d).)