North Carolina § 115D-40 - 1. Financial Assistance for Community College Students.

§ 115D-40. 1. Financial Assistance for Community College Students.

Need-Based Assistance Program. - It is the intent of the General Assembly that the Community College System make these financial aid funds available to the neediest students who are not eligible for other financial aid programs that fully cover the required educational expenses of these students. The State Board may use some of these funds as short-term loans to students who anticipate receiving the federal HOPE or Lifetime Learning Tax Credits. Targeted Assistance. - Notwithstanding subsection (a) of this section, the State Board may allocate up to ten percent (10%) of the funds appropriated for Financial Assistance for Community College Students to the following students: Students who enroll in low-enrollment programs that prepare students for high-demand occupations. Students with disabilities who have been referred by the Department of Health and Human Services, Division of Vocational Rehabilitation, and are enrolled in a community college. Administration of Program. - The State Board shall adopt rules and policies for the disbursement of the financial assistance provided in subsections (a) and (b) of this section. Degree, diploma, and certificate students must complete a Free Application for Federal Student Aid (FAFSA) to be eligible for financial assistance. The State Board may contract with the State Education Assistance Authority for administration of these financial assistance funds. These funds shall not revert at the end of each fiscal year but shall remain available until expended for need-based financial assistance. The interest earned on the funds provided in subsections (a) and (b) of this section may be used to support the costs of administering the Community College Grant Program. If the interest earnings are not adequate to support the administrative costs, up to one percent (1%) of funds provided in subsection (a) of this section may be used to support the costs of administering the Community College Grant Program. Participation in Federal Loan Programs. - All community colleges shall participate in the William D. Ford Federal Direct Loan Program, unless the board of trustees of an institution adopts a resolution declining to participate in the Program. The State Board shall ensure that at least one counselor is available at each college to inform students about federal programs and funds available to assist community college students, including, but not limited to, Pell Grants, HOPE and Lifetime Learning Tax Credits, and, for participating colleges, the William D. Ford Federal Direct Loan Program, and to actively encourage students to utilize these federal programs and funds. The board of trustees of any institution that has declined to participate in the William D. Ford Federal Direct Loan Program through the adoption of a resolution may rescind the resolution and participate in the Program but shall not have the authority to again decline participation in the Program. History (1999-237, s. 9.4(a), (b); 2001-229, ss. 1, 2; 2003-52, s. 1; 2003-385, s. 1; 2009-451, s. 8.4; 2010-31, s. 8.5(b); 2011-148, ss. 1, 2; 2011-154, ss. 1, 2; 2011-155, ss. 1, 2; 2011-178, ss. 1, 2; 2012-31, s. 1; 2012-142, s. 8.11(c); 2013-360, s. 10.13; 2013-410, s. 43.) Editor's Note. - Session Laws 2001-229, s. 1, effective July 1, 2001, codified Session Laws 1999-237, s. 9.4(a) and (b) as G.S. 115D-40.1(a) and G.S. 115D-40.1(b) , respectively. The effective date of this section, as initially enacted, was July 1, 1999. Session Laws 2011-148, s. 1, 2011-154, s. 1, 2011-155, s. 1, and 2011-178, s. 1, which apply to more than ten counties, were codified as the first paragraph of subsection (e) of this section at the direction of the Revisor of Statutes. The applicability language of Session Laws 2011-148, s. 2, 2011-154, s. 2, 2011-155, s. 2, and 2011-178, s. 2 was codified as the second paragraph of subsection (e) of this section at the direction of the Revisor of Statutes. Session Laws 2013-410, s. 43, effective August 23, 2013, repealed Session Laws 2011-148, 2011-154, 2011-155, and 2011-178. This section is set out without subsection (e) as it appeared prior to the codification of Session Laws 2011-148, 2011-154, 2011-155, and 2011-178. Prior to its repeal by Session Laws 2013-410, s. 43, subsection (e) had provided an exception to participation in the William D. Ford Federal Direct Loan Program for the following community colleges: Beaufort County, Brunswick, Caldwell, Central Carolina, Central Piedmont, Cleveland, Gaston, James Sprunt, Lenoir, Martin, Mitchell, Montgomery, Pamlico, Randolph, Richmond, Robeson, Rockingham, Rowan-Cabarrus, Sandhills, Stanly, Surry, Sampson, South Piedmont, Vance-Granville, and Wilkes. Session Laws 2011-145, s. 8.21, as added by Session Laws 2011-391, s. 20, provides: "Notwithstanding G.S. 115D-31(b1) , a college whose board of trustees adopts a resolution declining to participate in the William D. Ford Federal Direct Loan Program, as provided in G.S. 115D-40.1(d) , shall not transfer from faculty salaries an amount that exceeds two percent (2%) of the State funds allocated to it for faculty salaries to support other instructional costs or other purposes." Effect of Amendments. - Session Laws 2009-451, s. 8.4, effective July 1, 2009, added the last sentence of the second paragraph of subsection (c). Session Laws 2010-31, s. 8.5(b), effective July 1, 2011, in subsection (c), twice inserted "subsections (a) and (b) of" and deleted the first sentence of the former last paragraph, which read: "The State Board shall ensure that at least one counsellor is available at each college to inform students about federal programs and funds available to assist community college students, including but not limited to, Pell Grants and HOPE and Lifetime Learning Tax Credits and to actively encourage students to utilize these federal programs and funds" and made a related change; and added subsection (d). Session Laws 2011-148, ss. 1, 2, effective July 1, 2011, permit the boards of trustees of Beaufort County Community College, Brunswick Community College, Cleveland Community College, James Sprunt Community College, Lenoir Community College, Sandhills Community College, and Surry Community College to adopt a resolution declining to participate in the William D. Ford Federal Direct Loan Program. Session Laws 2011-154, ss. 1, 2, effective July 1, 2011, permit the boards of trustees of Alamance Community College, Central Piedmont Community College, Gaston College, Mitchell Community College, Montgomery Community College, Randolph Community College, Richmond Community College, Robeson Community College, Stanly Community College, and Wilkes Community College to adopt a resolution declining to participate in the William D. Ford Federal Direct Loan Program. Session Laws 2011-155, ss. 1, 2, effective July 1, 2011, permit the boards of trustees of Caldwell Community College and Technical Institute, Martin Community College, Rockingham Community College, and Sampson Community College to adopt a resolution declining to participate in the William D. Ford Federal Direct Loan Program. Session Laws 2011-178, ss. 1, 2, effective July 1, 2011, permit the boards of trustees of Central Carolina Community College, Pamlico Community College, Rowan]Cabarrus Community College, South Piedmont Community College, and Vance]Granville Community College to adopt a resolution declining to participate in the William D. Ford Federal Direct Loan Program. Session Laws 2012-31, s. 1, effective July 1, 2011, in subsection (d), in the first sentence, inserted "unless the board of trustees of an institution adopts a resolution declining to participate in the Program"; in the second sentence, inserted "for participating colleges"; and added the last two sentences. Session Laws 2012-142, s. 8.11(c), effective July 1, 2012, added the last sentence in subsection (c). Session Laws 2013-360, s. 10.13, effective July 1, 2013, in the introductory language of subsection (b), substituted "up to" for "no more than," and added "the following students"; in subdivision (b)(1), deleted "do not qualify for need-based assistance but who" following "Students who" and made a minor punctuation and stylistic change; and in subdivision (b)(2), inserted "Department of Health and Human Services" and made a minor punctuation change.