1. Uniform State Residency 2014 Training

2. Background Uniform State Residency Background As part of the UNC Efficiency Agenda, the Residency Verification process was identified for review. An August 2012 Collaborative Efficiency Review by OSBM, in conjunction with UNC, analyzed the three areas of residency classification (initial classification, reclassification and the appeal process) and recommended various options for improvement. UNC General Administration directed UNC FIT to lead a future state analysis for residency in March 2013, engaging campus experts across the system.

3. UNC Goals Uniform State Residency UNC Goals  Reduce inconsistent decision making and application of the residency laws  Reduce duplicate student residency verifications  Provide a more efficient experience for students

4. UNC Goals Uniform State Residency UNC Goals  Reduce burden and manual processes in place on campuses  Identify a process that could serve undergraduate and eventually graduate determinations  Identify a process that could serve all of higher education in NC

5. Uniform State Residency In late July, Senate Bill 402 was passed by the North Carolina General Assembly directing UNC to work in conjunction with the North Carolina Community College System (NCCCS), North Carolina State Education Assistance Authority (NCSEAA), and the North Carolina Independent Colleges and Universities (NCICU) on a coordinated and centralized residency determination process for higher education. The UNC vision project continued the final stage by estimating costs for the solutions identified earlier in the project noting that the new law for a statewide vision may impact the recommended solution for UNC.

6. Purpose Uniform State Residency Purpose  (1) To meet the goals outlined in the UNC Study  (2) To Comply with the Legislative Directive Mandating a Coordinated Residency Determination Process across all NC Higher Education: Section 11.3(a) of Session Law 2013-360 and  (3) It’s the RIGHT thing to do

7. Who Is Leading the Charge Uniform State Residency Who Is Leading the Charge  A Collaborative Higher Education Work Group composed of representatives from the University of North Carolina General Administration, NC Community Colleges System, NC Independent Colleges and Universities and NC State Education Assistance Authority, assisted by College Foundation, Inc.  We are working in collaboration with The State Residence Committee and with a team of residency experts across UNC and Community Colleges

8. Scope Uniform State Residency Scope  (1) Develop and implement a standard set of common questions that all students must answer to determine residency;  (2) Build and implement a structure/calculation algorithm method to automate the residency determination, based on answers to the common questions;  (3) Conduct statewide residency verification training;

9. Scope Uniform State Residency Scope  (4) Develop and deploy a standardized Uniform Residency reclassification and centralized appeal system;  (5) Integrate graduate admissions application data into the standardized system

10. Timelines Uniform State Residency Timelines  Phase I Deliverables due by June 30, 2014: Development of Common Questions and Accompanying Algorithm and State Residency Training;  Phase 2 Deliverables due by June 30, 2015: Technical Development, Testing and Deployment of the common questions and algorithm by June 30, 2015 (to be applicable to students applying for admission for the Spring 2016 semester and beyond) and B: Develop model for a standardized reclassification and centralized appeal system

11. Timelines Uniform State Residency Timelines  Phase 3 Deliverables (Due Date TBD): Implement the standardized reclassification process; (B) Develop plan to integrate graduate admissions application data into the standardized system  Phase 4 Deliverables (Due Date TBD): Integrate Graduate Admissions Application Data into the Standardized System

12. Where We Are Now Uniform State Residency Where We Are Now  (1) Standard Questions are Developed  (2) Algorithm Development is in progress  (3) Training is being conducted today  (4) Phase I Deliverables will be met!

13. Initial Residency Classification: An Automated Process Uniform State Residency Initial Residency Classification: An Automated Process  (1) Standard Questions revolve around six areas of key residency determination: (a) Citizenship; (b) Claim; (c) Domicile/Residence; (d) Student Information; (e) Parent Information; and (f) Military  (2) Standard Algorithm will be applied to these questions to determine initial residency  (3) There will be no human intervention  (4) CFNC Applications will have the residency questions and algorithm embedded in them

14. Initial Residency Classification: An Automated Process Uniform State Residency Initial Residency Classification: An Automated Process  (5) Other campus applications (which are NOT linked to CFNC) will have to implement the standard questions and algorithm and will be subject to audit for compliance OR they can choose to send students to CFNC for residency determination (we will have focused follow-up conversations with each of these campuses)  (6) Beginning with the Spring 2016 semester applicants (in place by Aug 2015)

15. What Does this Mean to you? Uniform State Residency: What Does this Mean to you?  (1) Goal is to achieve greater uniformity NOW  (2) Take back what you gain from today’s conference  (3) Send questions in as you encounter issues that are difficult  (4) Review the FAQs that will be posted on the website  (5) Become familiar with the Standard Questions

16. What Does this Mean to you? Uniform State Residency: What Does this Mean to you?  (6) Think through your campus processes as to how the standardized and automated processes will impact you  (7) Start Planning for change!  (8) Engage all of the necessary people on your campus  (9) Expect communications, protocol and guidance throughout this project

17. Purpose of the Manual  To aid  To aid University and Community College administrators in classifying a student’s residency for tuition purposes.  To guide  To guide independent colleges and universities in this state in determining the number of North Carolina students on their campuses for which they are eligible to receive state funding.  To assist  To assist students and families in understanding the law and policies related to residence for tuition purposes.

18. 1.Residence and Domicile are NOT the same – it is the student’s domicile that determines whether the student is eligible for in-state tuition. 2.To be eligible for in-state tuition, state law generally requires a student to have established domicile in North Carolina for 12 consecutive months. 3.A student’s domicile is generally presumed to be that of his or her parents.

19.  The Initial Residency for Tuition Purposes determination is completed a part of the application for admissions to a college or university.  The residency reclassification process is in response to the initial classification or to changes in circumstances.  Except for deadlines set out in General Statutes, UNC Board policy, or SBCC Code, the deadline to submit the reclassification application along with all supporting documentation cannot be later than the 10th business day of the term for which the student is seeking residency reclassification.  Institutions may set their own deadlines so long as they are not inconsistent with the these deadlines.

20.  A person’s residential presence in a state AND  That person’s particular intent related to that presence

21. Residence ≠Domicile Residence is where you live A domicile is where you intend to return and remain for an indefinite period of time A person can have many residences but only one domicile

23. In good faith with earnest intent. A person must demonstrate that he or she has established a bona fide, as opposed to a temporary, domicile when seeking residency classification. Establishing domicile in North Carolina just to become eligible for in-state tuition is not a bona fide domicile.

24. The responsibility borne by the applicant to convince the institution of higher education, by a preponderance of the evidence, that the student is a bona fide domiciliary for tuition purposes. This burden of proof is met by providing tangible evidence to support relevant conduct of legal residence and its duration as may be required by officials of an institution of higher education.

25. Legal ability to establish residence unimpeded by other factors, such as age or non-immigration status. For purposes of legal residence for tuition purposes, capacity includes the ability to remain in North Carolina permanently through one’s own financial resources.

26. A person’s true, fixed, and permanent home and place of habitation of indefinite duration (for an indefinite period of time); it is the place where he or she intends and is able to remain permanently and to which, whenever the person is absent, he or she expects to return. A person may have more than one residence, but may have only one domicile. For purposes of the Manual, “domicile” is synonymous with “legal residence.”

27.  Domicile may be established by: ◦ Birth ◦ Law ◦ Choice  Residence for tuition purposes is not guaranteed – it must be established by the student.  The burden of proof is on the student.

28. “Domicile” (continued)  Evidence of domicile includes (but is not limited to): ◦ Where the student lives ◦ Voter registration and act of voting ◦ Driver’s license and vehicle registration ◦ Employment and payment of taxes ◦ Ownership of real property  There is no “residence checklist” – each application is considered on its own merit.

29. A person who is a legal resident of (is domiciled in) North Carolina. For purposes of the Manual, “domiciliary” is synonymous with “legal resident.”

30. Documents and other proof verifying conduct that is provided to officials of an institution of higher education regarding legal residence and its duration necessary to prove that an applicant is entitled to in-state tuition.

31. The first classification of residency for tuition purposes assigned to an applicant for admission to a public institution of higher education based on information received as a part of the application for admission to that institution. Initial classification decisions by one institution are not binding on another institution, nor are initial classification decisions at one academic level binding on another academic level within that same institution.

32. Institutions, both public and private, that offer post-secondary instruction in North Carolina, including all UNC constituent institutions and all Community Colleges..

33. A person who is court-appointed to act in the place of an individual’s parents (usually referred to as a “guardian of the person” or “general guardian”). A guardianship ends when the person reaches age 18 or is otherwise emancipated. “Custody” or “legal custodian” is not the same as legal guardian.

34. A person under the age of eighteen (18) years. A person is no longer a minor on the date of the person’s eighteenth birthday. Generally, a minor is presumed to have the same domicile as that of his or her parents or legal guardians.

35. A false and fraudulent misstatement of fact. If an applicant or someone acting on the applicant’s behalf knowingly makes a misrepresentation in connection with a state residency application or appeal, that misrepresentation could lead to a misdemeanor charge.

36. The greater weight of the evidence; more probable than not; proof which leads one to find that the existence of the contested fact is more probable than its nonexistence. This standard is less stringent than “beyond a reasonable doubt.” It is not necessarily established by a greater number of witnesses testifying to the fact, but instead by evidence that has the most convincing force.

37. A legal inference used to place the burden of proof and of producing supporting evidence on one party to a proceeding in order to overcome that presumption. Under North Carolina law, a minor’s domicile is “presumed” to be that of his or her living parents or legal guardian.

38. At first appearance or first view – before investigation. Under North Carolina law, the legal residence of the applicant’s parents shall be prima facie evidence of the applicant’s legal residence.

39. The process of an applicant's formal request to review pertinent residentiary facts to determine the correctness or an update of the initial classification of residency for tuition purposes by public institutions of higher education.

40. A place of abode, whether permanent or temporary. “Permanent residence” means the legal residence or domicile, whereas “temporary residence” means one’s abode for an undetermined or temporary duration. A person may have many residences but only one permanent, legal residence (domicile).

41. A person who has established legal residence (domicile) in North Carolina and maintained that legal residence for at least 12 months (365 days) immediately prior to his or her classification as a resident for tuition purposes. The applicant must establish that his or her presence in the State is, and during the required preceding 12 months was, for the purpose of maintaining a bona fide domicile rather than maintaining a temporary residence incident to enrollment in an institution of higher education.

42. Supporting Documentation Evidence of North Carolina domicile for tuition purposes includes actions that would normally be characteristic and expected of any permanent resident. Domicile information – lease or rental agreement (if renting) or warranty deed if purchasing. Financial information – previous year’s tax return (federal & state) Acts of residency – such as vehicle registration, voter registration, driver’s license Employment information Citizenship or immigration status (if applicable) Parent information ….the legal residence of parent(s) or legal guardian shall be prima facie evidence of the individual's legal residence, which may be reinforced or rebutted relative to the age and general circumstances of the individual.

43.  In-state benefits are provided only to legal residents of North Carolina  The primary North Carolina statute requiring domicile for in-state tuition purposes is G.S. 116-143.1

44.  It must be shown that: The person abandoned the first domicile with the intention not to return to it And The person established a new domicile with the intention of making the new residence a permanent home

45.  In most cases it requires 12 months of uninterrupted domicile in North Carolina  With minors the inquiry starts with the parents or legal guardian  Once a student is 18, they have the legal capacity to establish their own domicile  The classifier looks at the domicile of the living parent(s) or legal guardian as prima facie evidence. Student may rebut or reinforce this legal presumption

46.  Does the student have capacity to establish residence? Are they 18, are they independent?  There are numerous factors to review and consider as a whole. The classifier and appeal boards are advised to look at actions more than personal statements and emotional appeals  Do not consider statements of intent to do things in the future. Look at current actions.

47. What actions did the student take to establish domicile

48. What actions did the student take to establish domicile When did the student complete these actions

49. What actions did the student take to establish domicile When did the student complete these actions Why the student performed such actions

50.  The NC General Assembly has decided by law that if the student has lived in North Carolina for five consecutive years immediately prior to enrolling or registering at an institution of higher education, the domicile of the student’s parent(s) is not presumed to be the student’s domicile, even if the applicant is a minor. Domicile is determined based on the information supplied by the student with no statutory presumption in favor of any particular piece of evidence

51.  Domicile of a Minor (under 18)  Minor with a Divorced or Separated Parents  After the Minor Turns 18  Special Considerations of the “Five-Year Rule” for minors  Emancipated Minors  Wards of the State  Homeless

52.  Based upon common law, it is “presumed” that a minor is dependent upon their parent(s) for domicile  If one parent is dead, then the domicile is of the surviving parent  If the minor is an orphan - with no legal guardian - domicile is the same as the person they live with  Otherwise, their domicile is the one last established by parent or legal guardian (court appointed “guardian of the person” or “general guardian”)

53.  If the student has lived in North Carolina for five consecutive years immediately prior to enrolling or registering at an institution of higher education with an adult relative, other than a parent, and that adult relative is domiciled in North Carolina and has served as a de facto guardian for that minor child then- The minor child is given the benefit of “resident status for tuition purposes” (not legal residence or domicile) for immediate enrollment the next term in question

54.  The child may have lived with more than one adult relative over the five years  It does not require financial support, just actual care  Once the child turns 18 they have legal residency in North Carolina on their own and can retain it as long as they do not abandon the state

55. In North Carolina the rule includes:  Under the age of 18 but not under the age of 16  Legally considered a legal adult  Established by decree from district court judge in the minor’s county of residence  The person is married  To make claim, the student must show legal evidence of decree and all other information related to a claim of domicile

56.  Have student produce the court order, decree of emancipation, or other evidence that is legally valid in that state  Look at the application as you would for any other independent student, regardless of their age

57.  Wards are orphans or other children who have been placed in the custody of the state  Wards (age 17-23) who were a ward as of 18 in North Carolina, are eligible for a tuition waiver at both university and community colleges if ◦ They are a resident of the state ◦ Eligible for services under Chaffee Education and Training Vouchers Program

58.  The McKinney-Vento Homeless Assistance Act of 1986 is a federal law that provides money for homeless shelter programs. "Homeless" children are also entitled to the protections of the McKinney-Vento Act.McKinney-Vento Homeless Assistance Act of 1986  The McKinney-Vento Act defines homeless children as "individuals who lack a fixed, regular, and adequate nighttime residence." The act provides examples of children who would fall under this definition:  Children sharing housing due to economic hardship or loss of housing;  Children living in "motels, hotels, trailer parks, or camp grounds due to lack of alternative accommodations"  Children living in "emergency or transitional shelters"  Children "awaiting foster care placement"  Children whose primary nighttime residence is not ordinarily used as a regular sleeping accommodation (e.g. park benches, etc)  Children living in "cars, parks, public spaces, abandoned buildings, substandard housing, bus or train stations…"

59.  Domicile is with the parent who claims the child as a dependent for tax purposes (parent must also be a legal resident of North Carolina to be classified as in-state)  Length of domicile in the state = the length of time the in-state parent claimed them on their taxes. This can be less than 12 months as long a parent already has the necessary 12 months legal residency

60.  To keep in-state status, the student must perform as many residential acts as possible for their circumstances to retain in-state residency AND  The student must enroll at a North Carolina institution of higher education not later than the fall term after completion of education requirement for admission (high school graduation)

61. Emergency Workers  Tuition Waiver  Survivors of Deceased Law Enforcement/ Emergency Workers. available to the surviving spouse and children of a law enforcement officer (including sheriffs), firefighter, volunteer firefighter or rescue squad worker who was killed as a direct result of a traumatic injury sustained in the line of duty (including both active service and training for active duty).  Families of Disabled Law Enforcement/Emergency Workers. available to the spouses and children of law enforcement officers (including sheriffs), firefighters, volunteer firefighters, or rescue squad workers who are permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty (including both active service and training for active service).

62. Statutory Grace Period If a person has been properly classified as a resident for tuition purposes and enjoyed that status while enrolled at an institution of higher education in this state, a change in that person’s state of residence does not result in an immediate, automatic loss of entitlement to the in-state tuition rate. Students in this situation are allowed a “grace period” during which the in-state rate will still be applicable even though the student is no longer a legal resident of North Carolina. The grace period can apply under certain circumstances both to currently enrolled students as well as to students who are no longer enrolled or who have graduated.

63. Currently Enrolled Students First, the student must have been properly classified as a resident for tuition purposes and At the time of change of legal residence to a state other than North Carolina, the individual must have been enrolled in an institution of higher education in North Carolina. A person whose change in legal residence occurred during a period while not enrolled is not entitled to the benefit of the grace period. The grace period extends for 12 months from the date of the change in legal residence, plus any portion of a semester or academic term remaining at the time the change in legal residence occurred.

64. Students Who Are No Longer Enrolled The student must have been properly classified as a resident for tuition purposes at the time the student ceased to be enrolled at or graduated from an institution of higher education in this state, and

65. Students Who Are No Longer Enrolled The student must have been properly classified as a resident for tuition purposes at the time the student ceased to be enrolled at or graduated from an institution of higher education in this state, and Subsequently abandons his or her domicile in North Carolina and then reestablishes domicile in this state within 12 months of abandonment, the student may reenroll at an institution of higher education in this state as a resident for tuition purposes without having to satisfy the 12-month durational requirement so long as the student continuously maintains his or her reestablished domicile in North Carolina at least through beginning of the academic term for which in-state tuition status is sought. It is important to note that a student may benefit from this particular grace period only once during his or her life.

66. It is the student’s responsibility to provide the documentation necessary to support his or her claims for in-state residency for tuition purposes by the applicable deadlines. Burden of Proof Proof must include documentation supporting the date of departure from North Carolina and the date of return to North Carolina.

67. Erroneous Classifications and Erroneous Notices The correctness of a residence classification may be tested through the reclassification or the appeal process. Erroneous classifications are different from undisputed classifications that are communicated erroneously to the classified student or within the classifying institution; these communications are called “erroneous notices concerning classification.” Erroneous notices are, by definition, written communications. If a student who has been classified as a nonresident for tuition purposes receives from an institutional officer an erroneous notice informing that the student will be billed as a resident for tuition purposes, the student will not be responsible for paying the out-of- state tuition differential for any enrolled term commencing before the classifying institution gives to the student actual notice in writing, through certified mail, of the erroneous nature of the prior notice.

68. Fraudulent Residence Applications A residency application for in-state tuition status is fraudulent if the residency classification is based on falsified information concerning legal residence and/or a student knowingly withholds correct residential information. If a student willfully misrepresents his or her eligibility for a tuition waiver under Chapter 115B of the North Carolina General Statutes, the student, along with anyone who knowingly assists the student, in the misrepresentation may be subject to criminal misdemeanor punishment.

69. FOREIGN NATIONALS

70. Non-U.S. Citizens Persons who are not U.S. citizens but who have certain visa and immigration statuses that grant them the legal ability to establish and maintain a bona fide domicile in this country are subject to the same considerations as U.S. citizens in determining residence status for tuition purposes. First, determine the immigration status of the applicant based on the visa category through evidence of either of the following:

71. Visa Classifications Eligible for Residence for Tuition Purposes ►A valid A-1, A-2, E-1, E-2, E-3, G-1, G-2, G-3, G-4, H-1B, H-1C, H-4, I, K-1, K-2, K-3, K-4, L-1 A, L-1B,L-2, N, O-1, O-3, P-1, P-2, P-3, P-4, R-1, R-2, T-1, T-2, T-3, T-4, T-5, U-1, U-2, U-3, U-4, U-5, V-1, V-2, V-3, NATO-1, NATO-2, NATO-3, NATO-4, NATO-5, or NATO-6 visa status

72. ►A pending Application to Adjust Status (Form I-485 receipt notice) and an approved Immigrant Petition (Forms I-130, I-360, or I-140). ► One of the following: (1) A Permanent Resident Card I-551; or (2) A USCIS-issued notice of approval of Application to Adjust Status (I-485); or (3) A current Conditional Permanent Resident Card. (issued for 2 year period only.) A current Conditional Permanent Resident should be initially classified non resident followed by receipt of the confirming documentation - then for only the period of time for which the Conditional Permanent Resident card was issued. Visa Classifications Eligible for Residence for Tuition Purposes con’t Refugee or asylum status with approval documentation. Temporary Protected Status (TPS) is an approved immigration status eligible for consideration as a resident for tuition purposes.

73. Non-U.S. citizens present in the United States under certain visa statuses such as tourists, visitors on business, and temporary foreign/international students do not have the legal capacity to establish a bona fide domicile in this country (and thus, not in North Carolina). B, C, D, F, J, M, Q, S, and TN visas (and dependent visas for spouses and children such as a TD visa) cannot establish domicile with these documents Employment Authorization Document (EAD) in and of itself, does not give the EAD holder the legal capacity to establish residency for tuition purposes in this state. Visa Classifications NOT Eligible for Residence for Tuition Purposes

74. Deferred Action for Childhood Arrivals (DACA) Were born after June 15, 1981; Arrived in the United States before the age of 16; Have continuously resided in the United States since June 15, 2007, up to the present time; Were present in the United States on June 15, 2012; Entered without inspection before June 15, 2012 or your lawful immigration status expired as of June 15, 2012; Are currently in school, graduated or received a certificate of completion from high school, obtained a general educational development certificate (GED), or that you are an honorably discharged veteran of the Coast Guard or U.S. Armed Forces; and Are at least 15 years of age at the time of filing, if never been in removal proceedings or if their case was terminated before your request.

75. Deferred Action for Childhood Arrivals (DACA) Receive an Employment Authorization document (EDA card). DACA students are not eligible for the resident tuition status.

76. The legal union of a man and a woman in accordance with the laws of the State of North Carolina. North Carolina law defines marriage as being between a man and a woman. North Carolina does not recognize marriages between persons of the same gender performed in another state even if those marriages are legally valid under the laws of that state.

77. Spousal Benefit Applicant may use the time in North Carolina for the North Carolina spouse to meet the 12-month requirement for in state tuition. The qualifying event (the wedding) must have occurred prior to the first day of the term for which the in-state tuition rate is requested. Qualification for this benefit is determined by information provided by the applicant including the North Carolina resident spouse’s residency information and legally valid marriage documentation. North Carolina law defines marriage as being between a man and a woman. G.S. 51-1. Requisites of marriage; A valid and sufficient marriage is created by the consent of a male and female person who may lawfully marry, presently to take each other as husband and wife, freely, seriously and plainly expressed by each in the presence of the other, either: (1) a. In the presence of an ordained minister of any religious denomination, a minister authorized by a church, or a magistrate; and b. With the consequent declaration by the minister or magistrate that the persons are husband and wife; or (2) In accordance with any mode of solemnization recognized by any religious denomination, or federally or State recognized Indian Nation or Tribe.

78. Same Sex Marriages G.S. 51-1.2. Marriages between persons of the same gender not valid. Marriages, whether created by common law, contracted, or performed outside of North Carolina, between individuals of the same gender are not valid in North Carolina. (1995 (Reg. Sess., 1996), c. 588, s. 1.)

79. Non-Military Federal Personnel, Volunteers, and Missionaries Federal employees may establish domicile for themselves and their dependents by the usual requirements of residential acts plus intent. Individuals employed by federal agencies such as the United States Foreign Service, State Department, and volunteers with government agencies such as the Peace Corps must establish and maintain domicile for tuition purposes under the general rules of domicile. Similarly, individuals who participate in programs such as Teach for America or who are missionaries affiliated with religious organizations may establish domicile in this state and maintain that domicile during their absence. There is not, however, a specific statutory provision under North Carolina law that grants special residence status for tuition purposes for federal personnel, Volunteers, missionaries or Teach for America.

80. Dependent vs Independent

81. A person defined under federal law as a “qualifying child” or “qualifying relative” for income tax purposes.  To claim someone as a dependent, the dependent must have legal status in this country, Canada, or Mexico for some part of the year.  A spouse is never a dependent.  IRS regulations should be consulted!

82.  To be a dependent for income tax purposes, specific requirements for the following factors must be satisfied: ◦ Relationship ◦ Age ◦ Residence ◦ Level of financial support ◦ Tax Filing Status

83. “Dependent” (continued)  A student may still be financially dependent on his or her parents even if the parents don’t claim the student as a dependent for income tax purposes.  Financial independence must be established as part of the residence classification process.

84. A person who is legally entitled to claim, and in fact does claim, himself or herself on income tax returns, is not claimed by another person as a dependent on that person’s income tax return, and possesses sufficient funds to live and pay tuition and fees at the person’s current residence classification without outside financial assistance.

85.  Generally, students who are financially dependent on parents who are not domiciled in North Carolina will not be eligible for in-state tuition.  A student may still be financially dependent on his or her parents even if the parents don’t claim the student as a dependent for income tax purposes.  Failure to claim a student as a dependent for income tax purposes does not automatically make the student “financially independent” from his or her parents.

86.  Factors relevant to determining whether a student is “independent” include: ◦ Employment, income, & assets ◦ Level of financial support from parents ◦ Level of outside financial assistance from other sources ◦ Status for financial aid purposes  There is no “independence checklist” – each application must be considered on its own merit.

87.  A trust is a legal relationship in which one person (qualified trust company or trustee) holds property for the benefit of another (beneficiary).  Often established by one person for the benefit of himself or of another. In these cases, it generally involves at least three people: the grantor (the person who creates the trust, also known as the settlor or donor), the trustee (who holds and manages the property for the benefit of the grantor and others), and one or more beneficiaries (who are entitled to the benefits).  It may be helpful to think of a trust as a contract between the grantor and the trustee.

88.  GRAT (Grantor Retained Annuity Trust)  Revocable  Irrevocable  Asset Protection  Charitable  Constructive  Special Needs Trust  Spendthrift Trust  Tax By Pass Trust  Totten Trust

89.  GRAT (Grantor Retained Annuity Trust) A grantor retained annuity trust (GRAT) is a useful strategy to shift wealth from one generation to the next with little risk and typically little or no gift tax.  A grantor creates a GRAT by transferring assets into an irrevocable trust while retaining the right to receive an annual payment known as an annuity.

90.  Revocable Trust Revocable Trusts are created during the lifetime of the donor and can be altered, changed, modified or revoked  Irrevocable Trusts An Irrevocable Trust is one which cannot be altered, changed, modified or revoked after its creation. Once a property is transferred to an Irrevocable Trust, no one, including the donor, can take the property out of the Trust.

91. Members of the Armed Forces and their families

92. Members of the Armed Forces and Their Families Active duty personnel in the armed services, and their spouses, dependent children and dependent relatives may be eligible for in-state tuition. If they qualify for admission, they may qualify for in-state tuition in two ways: As a domiciliary of the State Under a special provision of North Carolina and federal law requiring that non-resident active duty military personnel and their eligible family members be charged in-state tuition. OR

93. As a domiciliary of the State the service member generally enlists from North Carolina and maintains North Carolina as their state of legal residence while in active status. The legal state of residence can be verified with copies of the active service member’s Leave and Earnings Statement (a.k.a. LES) along with other usual supporting documentation. Members of the Armed Forces and Their Families A North Carolina domiciliary does not lose in-state status simply by joining the armed services or by being assigned outside North Carolina by the military.

95. As a domiciliary of the State the service member generally enlists from North Carolina and maintains North Carolina as their state of legal residence while in active status. The legal state of residence can be verified with copy of the active service member’s Leave and Earnings Statement (a.k.a. LES) along with other usual supporting documentation. Members of the Armed Forces and Their Families A North Carolina domiciliary does not lose in-state status simply by joining the armed services or by being assigned outside North Carolina by the military The domiciled active duty member who is assigned outside of North Carolina has the burden of proving that North Carolina residency has been maintained by providing documentation in support of that claim.

96. Recent federal law allows the spouses of military personnel to retain legal residency (domicile) in the spouse’s home state for voting and tax purposes after relocating from that state to accompany the military member. Being able to retain legal residency for voting and tax purposes may make it easier for the spouse to retain domicile status in his or her home state. Members of the Armed Forces and Their Families

97. Under a Special Provision of North Carolina and Federal Law or G.S. 116-143.3 The service member’s permanent duty station must be in North Carolina as of the first day of the semester or term for which the in-state tuition benefit is requested. Eligibility is confirmed by a letter (on military letterhead) from the service member’s commanding officer or personnel officer indicating the following information: Name of service member Permanent duty station location Any pending discharge information Confirmation of active status

98. If a non-domiciled active duty member of the armed services or eligible family member qualifies for the instate tuition rate and his or her military status changes, the following rules apply: Reassignment. If the active duty member is reassigned to a military base or installation outside of North Carolina, the service member and his or her spouse and dependent relatives will continue to be eligible for the in-state tuition rate as long as the service member, spouse, or dependent is continuously enrolled in the degree or other program in which they were enrolled at the time of reassignment. The service member’s dependent must continue to be a dependent to qualify for the benefit. Retirement. If the active duty member retires, the service member and his or her spouse and dependent relatives will continue to be eligible for the in-state tuition rate as long as they remain continuously enrolled in the degree or other program in which they were enrolled at the time of retirement. The service member’s dependent must continue to be a dependent to qualify for the benefit.

99. Honorable Discharge. If the active duty member receives an Honorable Discharge (no other type of discharge will qualify), the service member is eligible for the in-state rate if he or she establishes legal residency in North Carolina within thirty days of discharge and is continuously enrolled in the degree or other program in which he or she was enrolled at the time of Honorable Discharge. A dependent relative of an honorably discharged service member must establish legal residency within thirty days after the discharge, remain continuously enrolled in the degree or other program in which the dependent was enrolled at the time of discharge, and remain a dependent of the service member who is honorably discharged to continue to be eligible for the in-state rate.

100. North Carolina National Guard Any member of the North Carolina National Guard, regardless of whether the person is a legal resident of North Carolina, is eligible for in-state tuition rate during the Guard member’s period of service whether in a reserve or active status. The in-state tuition benefit does not apply to the spouses or dependents of non-resident Guard members unless the Guard member is serving in North Carolina on active duty. Military reservists (other than those of the North Carolina National Guard) must be on active duty to qualify for the in-state tuition benefit. Supporting documentation must include a copy of the member’s enlistment documents showing the member’s name, home of record, place of enlistment, date of enlistment and length of time of enlistment commitment.

101.  Most Recent Details of the Policies and Procedures of the State Residence Committee (SRC) as it applies its: ◦ Composition ◦ Functions ◦ Grounds for Appeal ◦ Procedures and Deadlines ◦ Basis of Review State Residence Appeals

102.  Equal Representation from the University System and the Community College System Office. Currently there are 7 from each system.  Current term of appointment = 2 years September to July  One Co-Chair from each system main office  Members recuse themselves during deliberations, discussion, and voting on records from their own institutions

103.  Decide cases appealed to it from the campuses  Evaluate campus procedures, current law and substantive rules, and make appropriate recommendations  Maintain a current State Residence Classification Manual = a.k.a. “The Manual”  Advise and share general advice about residency classifications for tuition purposes including training opportunities for classifiers

104.  There are four sole grounds for appeal: ◦ The decision was made in disregard of or mistake with reference to the requirements of law or Manual policy ◦ Manual provisions as currently stated do not address the present issue and the decision violates state or federal law ◦ Manual provisions as currently stated are at disagreement with later developed case law relevant to the decision ◦ The record does not support the conclusion reached by the institution and is not reasonable

105.  The SRC follows the policies and procedures of both its operation as well as the policies and procedures of the institution  Deadlines are strictly followed  Failure to follow timelines and procedures may result in a dismissal of the case by the SRC

106.  The SRC ONLY reviews the case “on the record” and no new information may be attached, forwarded or included that was not reviewed by the campus classifying bodies  Additional materials will not be reviewed by the SRC, including new information contained within the student’s appeal letter to the SRC.

107.  The Policies and Procedures of the State Residence Committee (updated Fall 2011) provides clear steps for the procedures a petitioner must follow in the filing of an appeal with the SRC  As defined in the current policy, a total of 50 days plus processing time may pass before the case arrives at the SRC  The case must be received at UNC at least 30 days prior to the next scheduled SRC meeting

108.  Sustain  Overturn  Decline to review due to procedural error or proper bases for review  Remand for further institutional inquiry or further action. This case could return to SRC at a later time for final appeal if campus concludes terms of the remand and decision remains out–of-state  Final decision is provided in writing  The SRC is the final administrative remedy

109.  The SRC is exempt form the North Carolina Administrative Procedure Act and is not required to give reasons for its decisions

110.  One of the duties of the SRC is to review, advise and adopt forms used by the institutions for the purpose of conducting appeals Make routine visits to the website: http://www.northcarolina.edu/legal/residence/index.htm For updates and changes in residency classification law