NC Forgivable Education Loans for Service

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Summer, 2012

Bill CoxDeputy DirectorGrants, Training and OutreachNorth Carolina State Education Assistance Authority

FELS - Introduction

• 2011 General Assembly enacted legislation that merged multiple state programs into a single new program – FELS for 2012-13

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FELS – Intent of Program

• Provides financial assistance in the form of forgivable loans to qualified students who are committed to working in North Carolina in identified critical employment shortage professions

• Current target employment areas are teaching, nursing, allied health and medicine

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• With creation of FELS, the following programs will cease funding new students beginning 2012-13

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

www.CFNC.org/FELS

FELS - History

• Millennium Teachers Scholarship Loan (Elizabeth City State University, Fayetteville State University and Winston-Salem State University) merged with PTSL on January 1, 2012. PTSL will become FELS on July 1, 2012.

• Renewal recipients only after January 1, 2012

• New applicants after January 1, 2012 must have applied for the new FELS program

www.CFNC.org/FELS

FELS - History

FELS – Student Eligibility RequirementsA recipient must meet the following eligibility criteria to be

considered for FELS:

• Be a legal North Carolina resident and NC resident for tuition purposes

• Register with the Selective Service System, if required;

• Must not be in default, or does not owe a refund, under any federal or State loan or grant program

• Maintain Satisfactory Academic Progress according to policy of the institution.

• Be willing to work in NC in a designated critical employment profession.

• Not contingent on FPell or Title IV eligibility6

FELS – Student Eligibility Requirements

• Minimum cumulative grade point (GPA) average at the time of application, must be:

– 3.00 for graduating high school students (weighted GPA)

– 2.80 for undergraduate students pursuing an associate or bachelor's degree

– 3.20 for students pursuing a graduate or professional degree

Minimum GPA not required for renewal (SAP is required for renewal)

Currently offered fall and spring semesters; not available in the summer

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FELS – How Much?Annual Loan Amounts are as follows:

• Diploma, Certificate and/or associate degree programs: $3,000 • Bachelor's degree program: (freshmen and sophomores) $3,000 • Bachelor's degree program: (juniors and seniors) $7,000 • Master's degree program: $10,000 • Doctoral degree program: $14,000

Maximum Aggregate Loan Limits:

• Diploma, Certificate and/or associate degree programs: $6,000 • Bachelor's degree program: $20,000 • Master's degree program: $20,000 • Doctoral degree program: $56,000

Total Maximum Aggregate: $56,000

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FELS – How Much?By credit hour:

• 12 credits or more - Certificate, Diploma or Associate degree programs: $3,000

• 12 credits or more - Bachelor's degree program: Freshman and Soph: $3,000

• 12 credits or more - Bachelor's degree program: Junior and Senior: $7,000

• 9 credits or more - Master's degree program: $10,000 • 9 credits or more - Doctoral degree program: $14,000• 6 - 11 credits - Certificate, Diploma or Associate degree programs:

$1,500 • 6 - 11 credits - Bachelor's degree program: Freshman and Soph: $1,500 • 6 - 11 credits - Bachelor's degree program: Junior and Senior: $3,500 • 6 - 8 credits - Master's degree program: $5,000 • 6 - 8 credits - Doctoral degree program: $7,000

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FELS – How Much?Some exceptions:1. RIBN program (Regionally Increasing Baccalaureate Nurses):

First three years at CC, last year at a four year school• 12 credits or more - Bachelor's degree program: Fresh, Soph and JR:

$3,000• 6 - 11 credits - Bachelor's degree program: Fresh, Soph and JR:

$1,500• 12 credits or more - Bachelor's degree program: Senior: $7,000• 6 - 11 credits - Bachelor's degree program: Senior: $3,500

2. Undergraduate Bachelor of Nursing:First two years must be at an Approved Institution offering the BSN degree

3. Undergraduate Teaching First two years can be at a community college

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FELS - Advisory Group

• General Assembly provided that an advisory group would periodically make recommendations to SEAA regarding identifying critical shortage professions

– For 2012-13, this group included representation from:• NC Community Colleges • UNC General Administration• Council for Allied Health in NC• Department of Commerce• Cecil G. Sheps Center for Health Services Research• NC Independent College and Universities• Department of Public Instruction

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FELS – Approved Programs

Education Programs (Undergraduate or Master’s)

•Biology•Chemistry•English as a Second Language•Math•Middle Grades•Science•Special Education

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FELS – Approved Programs

2011-12 TASF recipients – special population

•TASF recipients for 2011-12 only•Permitted to apply for FELS regardless of discipline•Loan forgiven for teaching any discipline•Other requirements for forgiveness same as Approved “Education” programs•Offered for the 2012-13 year only

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FELS – Approved ProgramsNursing Programs• Nurse Educator (Masters, Doctorate)• Nurse Practitioner (Masters, Doctorate)• Nursing (ADN, LPN, BSN, RN2BN, RIBN)

Medical Programs• Dentistry (DDS)• Medical Doctor (MD)• Osteopathy (OD)• Podiatry (PD)• Psychology (PhD or PsyD)

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FELS – Approved ProgramsAllied Health ProgramsChiropractic Care (Doctorate)CytotechnologyDental HygieneEmergency Medical ScienceEmergency Medical TechnologyMedical Technology Occupational Therapy & AssistantOptometry (Doctorate)Pharmacy (PharmD) & TechnicianPhysical Therapy (Doctorate) & AssistantPhysician AssistantRadiographyRadiology & Radiology TechnicianSonography

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FELS – the Commitment to Work• Loan recipients must sign a promissory note that will require

them to seek loan forgiveness through employment in an approved position or repay in cash with interest

• Loan recipients must be continuously enrolled in an approved education program

• Generally, a loan for one academic year will be forgiven for:– one year of full-time employment; or– two years of part-time employment in an approved

qualified position • Interest will accrue at rate of 8% per year from the date of

disbursement • The repayment period generally will not exceed ten years and

varies depending on the borrower’s degree program and loan amount

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FELS – Forgiveness Requirements

Teaching• Complete the Approved Education Program• Obtain licensure from NCDPI• Teach in a qualified position

– Includes employment in a NC public school or charter school, school operated by the State of NC or operated by the federal government in NC

Employment as an administrator or as a substitute teacher or employment in a nonpublic school, community college or institution of higher learning is not eligible for forgiveness

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FELS – Forgiveness Requirements

Nursing• Complete the Approved Education Program• Obtain licensure from NC Board of Nursing• Practice nursing at the Approved Education

Program funding level• Work in a qualified position in North Carolina

– Includes employment in health care delivery positions that provide medical services to North Carolina residents

Nurse Educators• Teach at a public or nonprofit institution approved

by the NC Board of Nursing

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FELS – Forgiveness Requirements

Allied Health

• Complete the Approved Education Program• Obtain certification or licensure from applicable

licensing agency• Work in a qualified position in North Carolina

– Includes employment in health care delivery positions that provide medical services to North Carolina residents

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FELS – Forgiveness Requirements

Medicine

• Complete the Approved Education Program• Obtain licensure from NC Medical Board• Work in a qualified position in North Carolina

– Includes employment in health care delivery positions that provide medical services to North Carolina residents

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FELS – Approved Institution’s Responsibilities

• Execute a Participation Agreement• Certify that borrowers meet the eligibility criteria

(NC Resident for Tuition Purposes, Approved Education program, SAP, etc.)

• Disburse FELS funds to borrower accounts • Refund money within prescribed timeframes • Maintain records• Reassure current recipients that renewals will be

honored based upon the terms of renewal• Renewals require successful academic progress

(SAP)

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FELS – Additional thoughts

• Please update your publications and websites NOW to remove references to the discontinued programs and to share the FELS information with interested parties

• Renewals require successfully progressing (SAP), so no decisions before the end of each Spring semester

• Students will be offered FELS for one Approved Education program (or degree) at a time and will need to re-apply for FELS for any subsequent degree plan

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FELS – Resources and Contacts

• The program rules can be found at http://www.ncseaa.edu/Program_Information.htm

• Terrence Scarborough, Program Manager, SEAA– terrence@ncseaa.edu

NCSEAA Student Portal (for students):www.cfnc.org/seaastudent

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Questions?

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