NC H120

Establishes the Forgivable Education Loans for Service Program and Fund, administered by the State Education Assistance Authority, to provide forgivable loans to North Carolina residents pursuing education in high-need professions including teachers, nurses, and allied health professionals.

Loans bear an interest rate not exceeding 10% and are forgiven through service employment in designated fields in North Carolina or repaid through cash installments established by the Authority.

Eligible institutions include UNC constituent institutions, community colleges, nonprofit postsecondary institutions, hospital-affiliated schools of nursing, and other public or nonprofit institutions with programs not otherwise available in North Carolina.

Consolidates nine existing scholarship loan programs (for nurses, teachers, dentists, physicians, social workers, physical education, and optometry) by repealing their statutory provisions and transferring all assets and liabilities to the new Forgivable Education Loans for Service Fund, with existing loan obligations fulfilled under original terms through July 1, 2012.

Becomes effective July 1, 2012, and requires annual reporting to the Joint Legislative Education Oversight Committee beginning December 1, 2013.