North Carolina 2025 2025-2026 Regular Session

North Carolina Senate Bill S297 Amended / Bill

Filed 03/18/2025

                    GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2025 
S 	1 
SENATE BILL 297 
 
 
Short Title: Nursing Fellows & Curric. Support Funds/WSSU. 	(Public) 
Sponsors: Senators Lowe, Blue, and Adcock (Primary Sponsors). 
Referred to: Rules and Operations of the Senate 
March 18, 2025 
*S297 -v-1* 
A BILL TO BE ENTITLED 1 
AN ACT TO ESTABLISH THE NURSING FELLOWS PROGRAM AT WINSTON -SALEM 2 
STATE UNIVERSITY AND TO APPROPRIATE FUND S FOR CURRICULUM 3 
SUPPORT FOR NURSING STUDENTS AT WINSTON -SALEM STATE UNIVERSITY. 4 
The General Assembly of North Carolina enacts: 5 
 6 
PART I. NURSING FELL OWS PROGRAM AT WINST ON-SALEM STATE 7 
UNIVERSITY 8 
SECTION 1.(a) Article 23 of Chapter 116 of the General Statutes is amended by 9 
adding the following new Part to read: 10 
"Part 3A. Nursing Fellows Program. 11 
"§ 116-209.64.  Definitions. 12 
The following definitions apply in this Part: 13 
(1) Academic term. – A semester or summer session. 14 
(2) Authority. – The State Education Assistance Authority. 15 
(3) Dean. – The Dean of the School of Health Sciences at WSSU. 16 
(4) Eligible nurse. – A nurse who meets all of the following criteria: 17 
a. Received a forgivable loan. 18 
b. Graduated within 10 years from at least one of the following at WSSU, 19 
excluding any authorized deferment for extenuating circumstances: 20 
1. A Bachelor of Science in Nursing program. 21 
2. A Master of Science in Nursing Education program. 22 
c. Is licensed as a registered nurse in this State. 23 
(5) Forgivable loan. – A forgivable loan made under the Program. 24 
(6) Program. – The Nursing Fellows Program. 25 
(7) Qualifying nurse. – An eligible nurse who meets all of the following criteria: 26 
a. Holds a Bachelor of Science degree in Nursing from WSSU. 27 
b. Is employed as a nurse in this State. 28 
(8) Qualifying nurse instructor. – An eligible nurse who meets all of the following 29 
criteria: 30 
a. Holds a Bachelor of Science degree in Nursing from WSSU and a 31 
Master of Science degree in Nursing Education from WSSU. 32 
b. Is employed as an instructor in a qualifying nursing program. 33 
(9) Qualifying nursing program. – A nursing program at one of the following that 34 
prepares students to earn a degree in nursing and become a licensed practical 35 
nurse as defined in Article 9A of Chapter 90 of the General Statutes: 36  General Assembly Of North Carolina 	Session 2025 
Page 2  Senate Bill 297-First Edition 
a. A community college. 1 
b. A university or private postsecondary institution. 2 
(10) Trust Fund. – The Nursing Fellows Program Trust Fund. 3 
(11) University or private postsecondary institution. – Either of the following: 4 
a. A postsecondary constituent institution of The University of North 5 
Carolina as defined in G.S. 116-2(4). 6 
b. An eligible private postsecondary educational institution as defined in 7 
G.S. 116-280(3). 8 
(12) WSSU. – Winston-Salem State University. 9 
"§ 116-209.65.  North Carolina Nursing Fellows Program established; administration. 10 
(a) Program. – There is established the Nursing Fellows Program. The purpose of the 11 
Program is to recruit, prepare, and support eligible nursing students at WSSU for preparation as 12 
highly effective nurses and instructors in qualifying nursing programs. The Program shall be used 13 
to provide forgivable loans to nursing students who are (i) enrolled in degree programs at WSSU 14 
to receive a Bachelor of Science in Nursing or a Master of Science in Nursing Education and (ii) 15 
interested in preparing to become nurses in the State or instructors in qualifying nursing 16 
programs. 17 
(b) Program Administration; Dean. – The Authority shall administer the Program in 18 
cooperation with the Dean. The Dean shall determine forgivable loan recipient selection criteria 19 
and selection procedures and shall select the recipients to receive forgivable loans under the 20 
Program in accordance with the requirements of this Part. The Dean shall appoint any needed 21 
staff of the Program and shall be responsible for recruitment and coordination of the Program, 22 
including proactive, aggressive, and strategic recruitment of potential recipients. Recruitment 23 
activities shall include (i) targeting regions of the State with the greatest need for nurses and 24 
nursing instructors in qualifying nursing programs, (ii) actively engaging with registered nurses, 25 
business leaders, experts in human resources, elected officials, and other community leaders 26 
throughout the State, and (iii) attracting candidates to the Program. WSSU shall provide office 27 
space and clerical support staff, as necessary, to the Dean for the Program. 28 
(c) Trust Fund. – There is established the Nursing Fellows Program Trust Fund to be 29 
administered by the Authority, in conjunction with the Dean. All funds (i) appropriated to, or 30 
otherwise received by, the Program for forgivable loans and other Program purposes, (ii) received 31 
as repayment of forgivable loans, and (iii) earned as interest on these funds shall be placed in the 32 
Trust Fund. The purpose of the Trust Fund is to provide financial assistance to qualified students 33 
to fill needed positions for nurses in the State and instructors in qualifying nursing programs 34 
through completion of a Bachelor of Science degree in Nursing or both a Bachelor of Science 35 
degree in Nursing and a Master of Science degree in Nursing Education. 36 
(d) Uses of Monies in the Trust Fund. – The monies in the Trust Fund may be used only 37 
for (i) forgivable loans granted under the Program, (ii) administrative costs associated with the 38 
Program, including recruitment and recovery of funds advanced under the Program, (iii) 39 
mentoring and coaching support to forgivable loan recipients, and (iv) extracurricular 40 
enhancement activities of the Program in accordance with the following: 41 
(1) The Authority shall transfer six percent (6%) of the available funds from the 42 
Trust Fund to WSSU at the beginning of each fiscal year for the following 43 
purposes: 44 
a. The Program's administrative costs. 45 
b. Extracurricular enhancement activities of the Program. 46 
c. Mentoring and coaching support to forgivable loan recipients in an 47 
amount of up to two thousand two hundred dollars ($2,200) for each 48 
Program recipient. 49  General Assembly Of North Carolina 	Session 2025 
Senate Bill 297-First Edition  	Page 3 
(2) The Authority may use up to four percent (4%) of the funds appropriated to 1 
the Trust Fund each fiscal year for administrative costs associated with the 2 
Program. 3 
(e) Student Selection Criteria for Forgivable Loans. – The Dean, in consultation with the 4 
Associate Dean of Nursing at WSSU, shall adopt stringent standards for awarding forgivable 5 
loans based on multiple measures to ensure that only the strongest applicants receive them, 6 
including the following: 7 
(1) Grade point averages. 8 
(2) Performance on relevant assessments. 9 
(3) Experience, accomplishments, and other criteria demonstrating qualities 10 
positively correlated with highly effective nurses and instructors in qualifying 11 
nursing programs, including excellent verbal and communication skills. 12 
(4) Demonstrated commitment to serve in North Carolina. 13 
(f) Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected 14 
students who are initially enrolled in a Bachelor of Science in Nursing degree program at WSSU. 15 
Loan payments shall be provided each year for completion of the Bachelor of Science in Nursing 16 
program and, if a loan recipient seeks to become a qualifying nurse instructor, for a Master of 17 
Science in Nursing Education program. The student shall be eligible to receive loan payments 18 
for the Master of Science in Nursing Education program as long as the student enrolls within two 19 
years of graduation from the Bachelor of Science in Nursing program. Forgivable loans may be 20 
used for tuition, fees, the cost of books, and expenses related to completing a Bachelor of Science 21 
degree in Nursing and a Master of Science degree in Nursing Education. Forgivable loans shall 22 
be awarded per academic term in amounts of up to five thousand dollars ($5,000) per semester 23 
or two thousand five hundred dollars ($2,500) per summer session, as follows: 24 
(1) For students pursuing careers as qualifying nurses, for up to five semesters. 25 
(2) For persons pursuing careers as qualifying nurse instructors, for up to nine 26 
semesters. 27 
(g) Administration of Forgivable Loan Awards. – Upon the naming of recipients of the 28 
forgivable loans by the Dean, the Dean shall transfer to the Authority its decisions. The Authority, 29 
in coordination with the Dean, shall perform all of the administrative functions necessary to 30 
implement this Part, which functions shall include rulemaking, disseminating information, acting 31 
as a liaison with participating institutions of higher education, implementing forgivable loan 32 
agreements, loan monitoring, loan canceling through service and collection, determining the 33 
acceptability of service repayment agreements, enforcing the agreements, and all other functions 34 
necessary for the execution, payment, and enforcement of promissory notes required under this 35 
Part. 36 
(h) Annual Report. – The Dean, in coordination with the Authority, shall report no later 37 
than January 1, 2027, and annually thereafter, to the Joint Legislative Education Oversight 38 
Committee regarding the following: 39 
(1) Forgivable loans awarded from the Trust Fund, including the following: 40 
a. Demographic information regarding recipients. 41 
b. Number of recipients by institution of higher education. 42 
(2) Placement and repayment rates, including the following: 43 
a. Number of graduates who have been employed as qualifying nurses in 44 
the State and qualifying nurse instructors in qualifying nursing 45 
programs within two years of graduation. 46 
b. Number of graduates who have elected to do loan repayment and their 47 
years of service, if any, prior to beginning loan repayment. 48 
c. Graduation rates of associate degree students taught by instructors in 49 
qualifying nursing programs who are recipients of loans under the 50 
Program. 51  General Assembly Of North Carolina 	Session 2025 
Page 4  Senate Bill 297-First Edition 
(3) Mentoring and coaching support, including the number of forgivable loan 1 
recipients who received mentoring and coaching support. 2 
(4) Selected nurse employer outcomes by degree program, including the 3 
following: 4 
a. Turnover rate for forgivable loan graduates, including the turnover rate 5 
for graduates who also received mentoring and coaching support. 6 
b. Fulfillment rate of forgivable loan graduates. 7 
"§ 116-209.66.  Terms of forgivable loans; receipt and disbursement of funds. 8 
(a) Notes. – All forgivable loans shall be evidenced by notes made payable to the 9 
Authority that bear interest at a rate not to exceed ten percent (10%) per year as set by the 10 
Authority and beginning on the first day of September after completion of the applicable degree 11 
program or 90 days after graduation, whichever is later. If a forgivable loan is terminated, the 12 
note shall be made payable to the Authority 90 days after termination of the forgivable loan. The 13 
forgivable loan may be terminated upon the recipient's withdrawal from the Program or by the 14 
recipient's failure to meet the standards set by the Dean. 15 
(b) Forgiveness. – For every year a qualifying nurse remains a qualifying nurse or a 16 
qualifying nurse instructor remains a qualifying nurse instructor, the Authority shall forgive 17 
one-third of the total loan amount received over the course of enrollment in the applicable degree 18 
program and any interest accrued on that amount. The Authority shall also forgive the loan if it 19 
finds that it is impossible for the recipient to work for up to three years, within 10 years after 20 
completion of the Bachelor of Science in Nursing degree program for persons pursuing 21 
forgiveness as qualifying nurses or of the Master of Science in Nursing Education degree 22 
program for persons pursuing forgiveness as qualifying nurse instructors, because of the death or 23 
permanent disability of the recipient. If the recipient repays the forgivable loan by cash payments, 24 
all indebtedness shall be repaid within 10 years after completion of the latest applicable degree 25 
program supported by the forgivable loan. If the recipient completes the applicable degree 26 
program, payment of principal and interest shall begin no later than the first day of September 27 
after the completion of the program. Should a recipient present extenuating circumstances, the 28 
Authority may extend the period to repay the loan in cash to no more than a total of 12 years." 29 
SECTION 1.(b) G.S. 116-204 reads as rewritten: 30 
"§ 116-204.  Powers of Authority. 31 
The Authority is hereby authorized and empowered: 32 
… 33 
(9) To collect loan repayments for loans awarded under the Teaching Fellows 34 
Program pursuant to G.S. 115C-363.23A following programs if the loan 35 
repayment is outstanding for more than 30 days.days: 36 
a. The Teaching Fellows Program pursuant to Part 3 of Article 23 of 37 
Chapter 116 of the General Statutes. 38 
b. The Nursing Fellows Program pursuant to Part 3A of Article 23 of 39 
Chapter 116 of the General Statutes. 40 
…." 41 
SECTION 1.(c) The Dean of the School of Health Sciences at Winston-Salem State 42 
University shall establish initial selection criteria for recipients no later than November 15, 2025, 43 
and shall make available applications to prospective students no later than December 31, 2025. 44 
SECTION 1.(d) The Dean of the School of Health Sciences at Winston-Salem State 45 
University shall select recipients and award the initial forgivable loans for the 2026-2027 46 
academic year no later than April 1, 2026. 47 
SECTION 1.(e) There is appropriated from the General Fund to the Nursing Fellows 48 
Program Trust Fund for the 2025-2026 fiscal year the sum of one million four hundred thousand 49 
dollars ($1,400,000) in recurring funds to establish the Nursing Fellows Program described in 50 
this section. 51  General Assembly Of North Carolina 	Session 2025 
Senate Bill 297-First Edition  	Page 5 
SECTION 1.(f) This section applies beginning with applications for enrollment in 1 
the Nursing Fellows Program in the 2026-2027 academic year. 2 
 3 
PART II. FUNDS FOR CURRICULUM SUPPORT FO R NURSING STUDEN TS AT 4 
WINSTON-SALEM STATE UNIVERSITY 5 
SECTION 2. There is appropriated from the General Fund to the Board of Governors 6 
of The University of North Carolina the sum of one hundred thousand dollars ($100,000) in 7 
recurring funds for the 2025-2026 fiscal year to be allocated to Winston-Salem State University 8 
(WSSU) to provide mentoring, coaching, and other curriculum-support services for students 9 
enrolled in a nursing degree program at WSSU. 10 
 11 
PART III. EFFECTIVE DATE 12 
SECTION 3. This act becomes effective July 1, 2025. 13