North Carolina HB 110: Cherokee/Rutherford/Clay Bds. of Ed. Elect.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 110
Committee Substitute Favorable 4/29/25

Short Title: Nat.l Guard Student Loan Repayment Program. (Public)
Sponsors:
Referred to:
February 13, 2025
*H110-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE NATIONAL GUARD STUDENT LOAN REPAYMENT 2
PROGRAM AND TO APPROPRIATE FUNDS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Chapter 127A of the General Statutes is amended by adding a new 5
Article to read: 6
"Article 19. 7
"National Guard Student Loan Repayment Program. 8
"§ 127A-230. National Guard Student Loan Repayment Program. 9
The National Guard Student Loan Repayment Program is established. The Program shall 10
provide student loan repayment awards to active members of the North Carolina National Guard 11
to incentivize the initiation or completion of a term of service with the North Carolina National 12
Guard. For purposes of this Article, a term of service shall be no shorter than three years in length. 13
"§ 127A-231. Program administration. 14
(a) The general supervision and administration of the Program shall be vested in the 15
North Carolina National Guard Adjutant General. It shall be the duty of the Adjutant General or 16
the Adjutant General's designee to do each of the following: 17
(1) Organize and establish rules and regulations for the Program, as necessary. 18
(2) Direct and control all Program personnel matters. 19
(3) Oversee and direct the administration and functioning of the Program. 20
(b) The Program shall include at a minimum each of the following guidelines: 21
(1) No award recipient shall receive an award exceeding the amount of student 22
loan debt held by the recipient at the time of the award. 23
(2) No award recipient shall receive an award exceeding fifty thousand dollars 24
($50,000) for an initial three-year term of service, except that recipients 25
serving a term of service exceeding three years in length may receive up to an 26
additional ten thousand dollars ($10,000) in award monies for each additional 27
year of service beyond the first three years of service. 28
(3) Prior to receiving an award from the Program, award recipients shall submit a 29
signed and notarized agreement to repay to the National Guard Student Loan 30
Repayment Program Fund award monies for every month of the term of 31
service the award recipient failed to serve as an active member of the North 32
Carolina National Guard. Repayment pursuant to the agreement required by 33
this subdivision shall only apply to an award recipient whose term of service 34
was terminated (i) voluntarily or (ii) involuntarily due to misconduct. The 35
repayment amount under this subdivision shall equal the product of the total 36

General Assembly Of North Carolina Session 2025
Page 2 House Bill 110-Second Edition
number of months of the term of service in which the award recipient failed 1
to serve as an active member of the North Carolina National Guard, multiplied 2
by the quotient of the total amount of the award divided by the total number 3
of months of the term of service. The repayment agreement must contain terms 4
no less favorable than the award recipient's original loan agreement that was 5
paid off by the award. 6
"§ 127A-232. National Guard Student Loan Repayment Program Fund. 7
(a) The National Guard Student Loan Repayment Program Fund is established as a 8
nonreverting special revenue fund. The Fund consists of General Fund appropriations, gifts, 9
donations, grants, devises, fees, and monies contributed by State and non-State entities for the 10
operation, maintenance, and expansion of the National Guard Student Loan Repayment Program 11
established by this Article, and any other revenues specifically allocated to the Fund by an act of 12
the General Assembly. 13
(b) Revenue credited to the Fund may only be used for costs associated with the 14
operations, maintenance, and expansion of the National Guard Student Loan Repayment Program 15
established by this Article." 16
SECTION 2. There is appropriated from the General Fund to the North Carolina 17
National Guard Student Loan Repayment Program Fund the sum of twenty-five million five 18
hundred forty thousand nine hundred dollars ($25,540,900) in nonrecurring funds for the 19
2025-2026 fiscal year to be used pursuant to the guidelines of that Fund. 20
SECTION 3. There is appropriated from the General Fund to the North Carolina 21
National Guard the sum of one hundred eighty thousand dollars ($180,000) in recurring funds 22
for the 2025-2026 fiscal year to be used to hire at least two full-time communications 23
professionals. 24
SECTION 4. This act becomes effective July 1, 2025. 25