NC S1322

Directs the State Board of Community Colleges to permanently realign formula funding by increasing allocation for financial aid services by $50,000,000 and decreasing allocation for curriculum and continuing education instruction by the same amount.

Requires all community colleges to participate in the William D. Ford Federal Direct Loan Program by July 1, 2011, to enable students to access federal loans for educational costs.

Mandates that at least one counselor be available at each community college to inform students about federal financial aid programs including Pell Grants, HOPE and Lifetime Learning Tax Credits, and the William D. Ford Federal Direct Loan Program.

Removes the struck language requiring counselors to inform students about federal programs and relocates this requirement to new subsection (d) focused on federal loan program participation.

Effective July 1, 2010, except for Section 2 regarding federal loan program participation which becomes effective July 1, 2011.