State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-171_101

§ 90‑171.101.  Terms ofloans; receipt and disbursement of funds.

(a)        All scholarshiploans shall be evidenced by notes made payable to the State EducationAssistance Authority that bear interest at a rate not to exceed ten percent(10%) per year as set by the Authority and beginning 90 days after completionof the nursing education program, or 90 days after termination of thescholarship loan, whichever is earlier. The scholarship loan may be terminatedupon the recipient's withdrawal from school or by the recipient's failure tomeet the standards set by the Commission.

(b)        The State EducationAssistance Authority shall forgive the loan if, within seven years aftergraduation from a nursing education program, the recipient teaches in a publicor private nursing education program in a public or private educationalinstitution in North Carolina for one year for every year a scholarship loanwas provided, unless the recipient was a nursing faculty member of a communitycollege. In those circumstances, the State Education Assistance Authority shallforgive the loan if, within seven years after graduation from a nursingeducation program, the recipient teaches in a community college nursingeducation program in North Carolina for one year for every year a scholarshiploan was provided. If the recipient repays the scholarship loan by cashpayments, all indebtedness shall be repaid within 10 years. The Authority mayprovide for accelerated repayment and for less than full‑time employmentoptions to encourage the practice of nursing education in either geographic ornursing specialty shortage areas. The Authority shall adopt specific rules todesignate these geographic areas and these nursing specialty shortage areas,upon recommendations of the North Carolina Center for Nursing. The NorthCarolina Center for Nursing shall base its recommendations on objectiveinformation provided by interested groups or agencies and upon objectiveinformation collected by the Center. The Authority may forgive the scholarshiploan if it determines that it is impossible for the recipient to teach in apublic or private nursing program, or in a community college nursing program ifthat was a condition of the scholarship loan, in North Carolina for asufficient time to repay the loan because of the death or permanent disabilityof the recipient within 10 years following graduation or termination ofenrollment in a nursing education program.

(c)        All fundsappropriated to or otherwise received by the Graduate Nurse Scholarship Programfor Faculty Production for scholarships, all funds received as repayment ofscholarship loans, and all interest earned on these funds shall be placed in arevolving fund. This revolving fund may be used only for scholarship loansgranted under the Graduate Nurse Scholarship Program for Faculty Production.  (2006‑66, s. 9.6; 2007‑323,s. 9.6(b); 2008‑204, s. 5.2; 2009-445, s. 46.)