A BILL TO BE ENTITLED
AN ACT to provide free college tuition to graduates from the north carolina school of science and mathematics who are north carolina residents, enroll in a constituent university, and who teach science or mathematics for three years in the state public school system or at a school in this state operated by the federal government.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 116‑238.1 reads as rewritten:
"§ 116‑238.1.  Full tuition loan for graduates who attend a State university.
(a)	There is awarded to each State resident who graduates from the North Carolina School of Science and Mathematics, enrolls as a full‑time student in a constituent institution of The University of North Carolina, and is interested in teaching math or science in the public schools of the State a sum to be determined by the General Assembly as a tuition loan. The tuition loan shall be for four consecutive academic years and shall cover the tuition cost at the constituent institution in which the student is enrolled. The tuition loan shall be distributed to the student as provided by this section.
(b)	The tuition loans provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section. The State Education Assistance Authority shall not approve any loan until it receives proper certification from the appropriate constituent institution that the student applying for the loan is an eligible student. Upon receipt of the certification, the State Education Assistance Authority shall remit at the times it prescribes the loan to the constituent institution on behalf, and to the credit, of the student.
(c)	In the event a student on whose behalf a loan has been paid is not enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which the loan was paid, the institution shall refund the full amount of the loan to the State Education Assistance Authority.
(d)	In the event there are not sufficient funds to provide each eligible student with a fullloan:
(1)	The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2)	Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(e)	Any remaining funds shall revert to the General Fund.
(f)	Notwithstanding any other provision of this section, no tuition loan awarded to a student under this section shall exceed the cost of attendance at the constituent institution at which the student is enrolled. If a student, who is eligible for a tuition loan under this subsection, also receives a scholarship or other loan covering the cost of attendance at the constituent institution for which the tuition loan is awarded, then the amount of the tuition loan shall be reduced by an appropriate amount determined by the State Education Assistance Authority. The State Education Assistance Authority shall reduce the amount of the tuition loan so that the sum of all loans and scholarship aid covering the cost of attendance received by the student, including the tuition loan under this section, shall not exceed the cost of attendance for the constituent institution at which the student is enrolled. The cost of attendance, as used in this subsection, shall be determined by the State Education Assistance Authority for each constituent institution.
(g)	The State Education Assistance Authority shall forgive the loan if, within seven years after graduation, the recipient teaches science or mathematics for three years at a North Carolina public school or at a school operated by the United States government in North Carolina. The State Education Assistance Authority shall also forgive the loan if, within seven years after graduation, the recipient teaches science or mathematics for three consecutive years, unless the recipient takes an approved leave of absence, at a North Carolina public school in a local school administrative unit that, at the time the recipient accepts employment with the unit, is a low‑performing school system identified in accordance with Article 6A of this Chapter or is on warning status as defined by the State Board of Education. The State Education Assistance Authority shall also forgive the loan if it finds that it is impossible for the recipient to teach science or mathematics for three years, within seven years after graduation, at a North Carolina public school or at a school operated by the United States government in North Carolina, because of the death or permanent disability of the recipient."
SECTION 2.  This act becomes effective July 1, 2006, and applies to students enrolled in the North Carolina School of Science and Mathematics for the 2007‑2008 academic year, and each subsequent academic year.