2005 North Carolina Code - General Statutes § 116-209.30. Social Workers\' Education Loan Fund.

§ 116‑209.30.  Social Workers' Education Loan Fund.

(a)       There is established the Social Workers' Education Loan Fund to be administered by the State Education Assistance Authority, in consultation with the Department of Health and Human Services, to attract trained social workers into public child welfare positions in all county departments of social services in the State.  The Fund shall provide 25 four‑year undergraduate and 10 two‑year graduate scholarship loans per year.

(b)       The Authority, in consultation with the Department of Health and Human Services, shall develop the following criteria to administer the Fund:

(1)       All students shall be enrolled in an institution of higher education in North Carolina in an accredited bachelors of social work or masters of social work program;

(2)       All students shall be residents of North Carolina.  For purposes of this section, residency shall be determined by the same standard as residency for tuition purposes pursuant to G.S. 116‑143.1;

(3)       All students shall enter into a legal agreement and promissory note with the Authority to accept employment in public child welfare in exchange for receiving any funds, which agreement shall include stipulation that the student agrees to accept employment in rural or other need‑based counties; and

(4)       Any additional criteria that the Authority considers necessary to administer the program effectively, including:

a.         Consideration of the appropriate numbers of minority students and students from diverse socio‑economic backgrounds to receive funds pursuant to this section;

b.         Consideration of what rural or other need‑based areas of the State shall be considered appropriate for work after graduation pursuant to subdivision (3) of this subsection;

c.         Consideration of the academic qualifications of the individuals applying to receive funds; and

d.         Consideration of the commitment the individuals applying to receive funds demonstrate to the profession of social work.

(c)       The Authority shall ensure that the loan amounts are limited as follows:

(1)       For a student pursuing a bachelors of social work degree, four thousand dollars ($4,000) per year for a maximum of four years; and

(2)       For a student pursuing a masters of social work degree, five thousand dollars ($5,000) per year for a maximum of two years.

(d)       The Authority shall ensure that the following loan cancellations and repayment schedules apply to all funds distributed pursuant to this section:

(1)       The individual who graduates with a bachelors of social work degree or a masters of social work degree and who works for a public child welfare agency in a rural or other need‑based area of North Carolina shall have that amount of the loan cancelled that is based on the amount of time employed and the number of academic years funds were received. One full year of employment shall cancel one academic year's loan, whether four thousand dollars ($4,000) or five thousand dollars ($5,000);

(2)       The individual who graduates with a bachelors of social work degree or a masters of social work degree and who works in public child welfare in a rural or other need‑based area of North Carolina for the equivalent of the total number of academic years funds were received shall have the entire loan cancelled;

(3)       The individual who graduates with a bachelors of social work degree or a masters of social work degree and who does not work in public child welfare in a rural or other need‑based area of North Carolina for any or all of the equivalent of the number of years funds were received shall repay the loan to the Authority according to a schedule prescribed in the promissory note, plus ten percent (10%) annual interest; and

(4)       The individual who does not graduate with a bachelors of social work degree or a masters of social work degree shall repay the loan according to a schedule prescribed by the Authority, not to exceed fifteen percent (15%) annual interest.  In establishing a schedule and interest rate, the Authority shall take into consideration the reasons the individual did not graduate with a bachelors of social work degree or a masters of social work degree.

The Authority shall ensure that all repayments, including accrued interest, shall be placed in the Fund.

The Authority may forgive or reduce any loan repayment if the Authority considers that extenuating circumstances exist that would make repayment impossible.

(e)       The State Education Assistance Authority, in consultation with the Department of Health and Human Services, shall adopt rules to implement the Social Workers' Education Loan Fund as described in this section. (1993 (Reg. Sess., 1994), c. 769, s. 17.16; 1997‑443, s. 11A.118(a).)