Changes in State Financial Aid Programs 1 November 8, 2011 Greensboro, North Carolina Bill Cox Deputy Director Grants, Training and Outreach North Carolina State Education Assistance Authority

Topics 1.Forgivable Loans for Education Service (NC FELS) 2.Certifying State Grants for newly-regulated clock hour programs 3.North Carolina Need Based Scholarship (NCNBS) 2

North Carolina Forgivable Education Loan for Service (FELS) 2011 General Assembly enacted legislation that merged multiple state programs into a single new program – FELS Provides forgivable loans to qualified North Carolina residents who commit to working in North Carolina in specified high need areas 3

FELS FELS recipients will sign a promissory note agreeing to work in North Carolina in their approved fields of study –Note will provide forgiveness of debt, one year for each year worked, in exchange for specified employment –Loan recipients who choose not to fulfill the career service obligation are obliged to repay loans in cash at interest rates higher than unsubsidized federal loans 4

With creation of FELS, the following programs will cease funding new students beginning Nurse Educators of Tomorrow Scholarship Loan Nurse Education Scholarship Loan Program Nursing Scholars Program Board of Governors’ Dental Scholarship Loan Board of Governors’ Medical Scholarship Loan Prospective Teachers Scholarship Loan Teacher Assistant Scholarship Fund Health, Science, and Mathematics Student Loan FELS

Millennium Teachers Scholarship Loan (Elizabeth City State University, Fayetteville State University and Winston-Salem State University) will merge with PTSL on January 1, PTSL will become FELS on July 1, New and renewal recipients only through December 1, 2011 New applicants after January 1, 2012 will apply for the new FELS program FELS

FELS recipients will sign a promissory note agreeing to work in North Carolina in their approved fields of study –Note will provide forgiveness of debt, one year for each year worked, in exchange for specified employment –Loan recipients who choose not to fulfill the career service obligation are obliged to repay loans in cash at interest rates higher than unsubsidized federal loans 7

FELS Full FELS program details and qualifying disciplines will be posted on CFNC.org/FELS in December Please update your publications and websites NOW to remove references to the discontinued programs and to share the FELS information with interested parties Reassure current recipients that renewals will be honored based upon the terms of renewal 8

FELS Renewals to current Scholarship Loan recipients SEAA will notify students that renewal is possible Students will submit a request for renewal SEAA will publish Notification Lists to the School Portal Schools will certify renewal eligibility 9

FELS How much? What majors/career paths? GPA limitations? All to be announced!!! 10

FELS Questions? 11

Certification of State Grants for Clock Hour Programs Q. How should schools certify students who are in clock hour programs for State grant programs? A. The applicable regulation is 34 CFR 668.8(k)(2). The amendment of this federal regulation does not change the way students are certified for State grant programs. First, they must be in a program that is deemed eligible under Title IV of the Higher Education Act. The student must meet all requirements for a Federal Pell Grant, except the EFC Second, certify the state grant just as you would a Pell Grant.

Certification of State Grants for Clock Hour Programs Q. Our school administers Pell Grants according to the clock hour schedule for our clock hour programs, but the credit hour determination is still in place and is used for billing and other purposes. Is it acceptable to use the credit hour method to certify state grants for these clock hour programs? A. Yes, this is a permissible method for certifying state grants. Schools must document their business processes as it relates to the certification of clock hour programs for future reviews.

Clock Hour Questions? 14

North Carolina Need Based Scholarship (NCNBS) Established by the 2011 NC General Assembly to provide need-based funding for students attending eligible private institutions Qualifying Campuses –NCICU campuses –Johnson & Wales University –Mid-Atlantic Christian University –The College at Southeastern –Carolinas College of Health Sciences –Mercy School of Nursing CFI administers for SEAA

Need-Based Scholarships for Students Attending Private Institutions of Higher Education Eligibility requirements for scholarships –Have eligible EFC as set annually by SEAA –Meet all other eligibility requirements for Pell except EFC –Resident of NC for tuition purposes –Classified as undergraduate student –Maintain satisfactory academic progress –Receive scholarship for no more than 9 full-time academic semesters or the equivalent or 11 full-time academic semesters for five-year program Award amount will vary with a minimum award amount of $500

Semester Tracking, Semester limit to receive certain grants for baccalaureate degree Programs Affected –UNC-Need Based Grant –New Need-Based Scholarship for Students Attending Private Institutions Limits –9 semesters (full-time) for a four-year degree program –11 semesters (full-time) for a five-year degree program –Prorated if students are enrolled less than full-time Lottery Scholarship has always had an eight semester limit

Questions? 18