Senate Bill 227 Summary

• Consolidates the Transforming Principal Preparation (TP3) Grant Program and Principal Fellows Program under the North Carolina Principal Fellows and TP3 Commission, with the State Education Assistance Authority handling loan administration.

• Maintains administration of current TP3 grant recipients through June 30, 2021, then transitions to the new Commission structure; repeals the old TP3 program effective July 1, 2021.

• Establishes forgivable scholarship loans up to $40,000 per participant ($20,000 per year for up to two years) with interest up to 10% annually, forgivable through four years of service as school administrator or through cash repayment within 10 years.

• Increases loan forgiveness to 50% for service in high-need schools and 25% for service in other schools; loan forgiveness timeline is seven years post-graduation with authorized deferments for extenuating circumstances.

• Allocates $130,000 annually (2019-2021) for administrative costs and transfers Principal Fellows Trust Fund balances to the new North Carolina Principal Fellows and TP3 Trust Fund effective fiscal year 2019-2020.