2009 North Carolina Code
Chapter 116 - Higher Education.
§ 116-209.26. (Repealed effective July 1, 2010) Education Access Rewards North Carolina Scholars Fund.

§ 116‑209.26.  (Repealed effective July 1, 2010) Education Access Rewards North Carolina Scholars Fund.

(a)        The following definitions apply to this section:

(1)        Academic year. – A period of time in which a student in matriculated status is expected to complete the equivalent of at least two semesters' or three quarters' academic work.

(2)        Eligible postsecondary institution. – A school that is any of the following:

a.         A constituent institution of The University of North Carolina as defined in G.S. 116‑2(4);

b.         A community college as defined in G.S. 115D‑2(2); or

c.         An institution as defined in G.S. 116‑22(1).

(3)        Matriculated status. – Being recognized as a first‑time candidate for a degree or certificate, exclusive of any course credits earned while in high school, in a defined program of study at an eligible postsecondary institution.

(4)        Title IV. – Title IV of the Higher Education Act of 1965, as amended.

(b)        There is established the Education Access Rewards North Carolina Scholars Fund. The purpose of the Fund is to provide grants to certain eligible students to enable them to obtain an education beyond the high school level at certain postsecondary institutions in North Carolina without incurring student loans to meet their financial need during the first two years of their postsecondary education. The State Education Assistance Authority (SEAA) shall administer the Fund.

(c)        Criteria for awarding the grants shall be developed by the SEAA and include all of the following:

(1)        The student must qualify as a legal resident of North Carolina, a legal resident of the United States, and as a resident for tuition purposes in accordance with G.S. 116‑143.1.

(2)        Within seven months of the fiscal year in which the grant is to be disbursed, the student must have:

a.         Graduated from a North Carolina high school;

b.         Received a General Education Development (GED) certificate from a North Carolina institution; or

c.         Completed a high school education in a home school setting meeting the qualifications and requirements under G.S. 115C‑564.

(3)        The student must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status on a full‑time basis at an eligible postsecondary institution in North Carolina.

(4)        The student must be an eligible dependent student. For purposes of this subdivision, an "eligible dependent student" is a student who:

a.         Either is classified as dependent for the Title IV programs or is a ward or dependent of the court; and

b.         Demonstrates total family income not exceeding two hundred percent (200%) of the applicable federal poverty guideline, according to standards set by the SEAA and measured using data elements available to the SEAA from the Free Application for Federal Student Aid (FAFSA) or such other source as the SEAA may deem appropriate.

(5)        The student must meet all other eligibility requirements for the federal Pell Grant.

(6)        In order to retain eligibility for a grant for the student's second academic year, the student must meet achievement standards by maintaining satisfactory academic progress in a course of study in accordance with the standards and practices used for Title IV programs by the eligible postsecondary institution in which the student is enrolled.

(7)        The student may not receive a grant in an amount that, when combined with the federal Pell Grant, exceeds the student's cost of attendance as defined under Title IV.

(8)        The student may not receive a grant under this section for more than the equivalent of two academic years.

(d)        The maximum grant for which a student is eligible under this section shall be four thousand dollars ($4,000) per academic year. In the event there are not sufficient funds to provide each eligible student with the maximum grant, it is the intent of the General Assembly that eligible students who have matriculated into an eligible postsecondary institution in North Carolina with at least one academic year of college credit receive the maximum grant amount and all other eligible students shall receive a reduced grant amount.

(e)        The grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the SEAA not inconsistent with this section.

(f)         The State Education Assistance Authority shall report to the Joint Legislative Education Oversight Committee by December 1, 2009, and by each December 1 thereafter, regarding the Fund and grants awarded from the Fund.

(g)        Grant funds unexpended shall remain available to the SEAA for future grants to be awarded under this section.

(h)        No funds appropriated from the Escheat Fund to the Education Access Rewards North Carolina Scholars Fund shall be used for a grant awarded under this section to a student who is an undergraduate student at an institution as defined in G.S. 116‑22(1); however, funds appropriated from the General Fund to the Education Access Rewards North Carolina Scholars Fund may be used for a grant awarded under this section to a student who is an undergraduate student at an institution as defined in G.S. 116‑22(1).  (2007‑323, s. 9.7(a); 2008‑107, s. 9.2(a), (b).)