State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-171_62

§ 90‑171.62.  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 practices nursing inNorth Carolina for one year for every year a scholarship loan was provided. Ifthe recipient repays the scholarship loan by cash payments, all indebtednessshall be repaid within ten years. The Authority may provide for acceleratedrepayment and for less than full‑time employment options to encourage thepractice of nursing in either geographic or nursing specialty shortage areas.The Authority shall adopt specific rules to designate these geographic areasand these nursing specialty shortage areas, upon recommendations of the NorthCarolina Center for Nursing. The North Carolina Center for Nursing shall baseits recommendations on objective information provided by interested groups oragencies and upon objective information collected by the Center. The Authoritymay forgive the scholarship loan if it determines that it is impossible for therecipient to practice nursing in North Carolina for a sufficient time to repaythe loan because of the death or permanent disability of the recipient withinten years following graduation or termination of enrollment in a nursingeducation program.

(c)        All fundsappropriated to or otherwise received by the Nursing Scholars Program forscholarships, all funds received as repayment of scholarship loans, and allinterest earned on these funds, shall be placed in a revolving fund. Thisrevolving fund may be used only for scholarship loans granted under the NursingScholars Program.  (1989,c. 594, s. 1; 1991, c. 550, s. 1.1; 1993 (Reg. Sess., 1994), c. 769, s.17.11(b); 2008‑204, s. 5.1; 2009-445, s. 46.)