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HB 1216

John Rollins Scholarship Protection Act.

2025-2026 Session Introduced by Eric Ager and 2 co-sponsors

Public NC colleges cannot reduce a student’s institutional aid when they receive private scholarships, protecting donor funds and transparency.

Passed 1st Reading
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Bill Summary · HB 1216

Summary of HB 1216 (John Rollins Scholarship Protection Act) – North Carolina, 2025 Session

Purpose and intent

  • The bill seeks to protect the net benefit of private scholarships for students at public colleges and universities in North Carolina by prohibiting scholarship displacement.
  • It is framed around ensuring that private donors’ generosity is not diminished when institutions reduce a student’s institutional financial aid due to the receipt of a private scholarship.
  • Named in honor of John Rollins’ concerns about scholarship displacement, with a broader aim of encouraging private philanthropy to support higher education.

Key provisions and changes

New law: John Rollins Scholarship Protection Act (Article 34A, added to Chapter 116)

  • Definitions:
    • Institutional financial aid: Grants, scholarships, tuition waivers, and other aid from public higher education institutions based on need or merit (excludes loans and work-study).
    • Private scholarship: Scholarships from private, nongovernmental sources (not state or federal funds). Excludes:
    • State-funded awards administered by private entities (e.g., Patriot Star Family Scholarship Program).
    • Private awards from a private organization affiliated with a public institution that are coordinated with the institution (and involve the institution in selecting recipients).
    • Public institution of higher education: North Carolina community colleges and UNC system institutions.
    • Student: Enrolled at a public institution of higher education.

Prohibition on reducing institutional aid

  • (a) Public institutions may not reduce a student’s institutional financial aid as a result of the student receiving a private scholarship.
  • (b) Policy requirements for enforcement:
    • The UNC Board of Governors and the State Board of Community Colleges must adopt policies to enforce the no-displacement rule.
    • Policies must require reporting to the relevant governing boards on:
    • The cost of attendance.
    • The average institutional aid for students with private scholarships versus those without.
  • (c) Annual reporting:
    • By March 15 each year, the UNC Board of Governors must report the information described in (b) to the Joint Legislative Education Oversight Committee.

Parallel provision for community colleges

  • Section 115D-40.4 directs the State Board of Community Colleges and each community college to comply with the no-displacement requirements to ensure private scholarships do not lead to reduced institutional aid.

Fiscal and timing provisions

  • Appropriations to support implementation:
    • UNC system: $160,000 (recurring) beginning in the 2026-2027 fiscal year to increase funds available for student financial aid, allocated based on enrollment.
    • Community Colleges System Office: $580,000 (recurring) beginning in the 2026-2027 fiscal year to increase student financial aid funds, allocated based on enrollment.
  • Effective date and applicability:
    • The act becomes law upon passage and applies to scholarships awarded starting in the 2027-2028 academic year.
    • Section 2 provides the targeted recurring funding timeline to support implementation.

Affected parties

  • Public institutions of higher education in North Carolina (UNC system and community colleges).
  • Students at public institutions who receive private scholarships.
  • Private scholarship providers (donors, foundations, alumni associations) who contribute private funds to students.
  • Governing boards of the UNC system and the Community Colleges System Office responsible for policy enforcement and reporting.
  • The Joint Legislative Education Oversight Committee for annual reporting review.

Potential impact

  • Reduces or eliminates the practice of scholarship displacement, ensuring students retain the full benefit of private scholarships.
  • Encourages greater private donations by providing assurance that such donations will have their intended impact.
  • Increases transparency through annual reporting on cost of attendance and aid disparities between students with and without private scholarships.
  • Requires new administrative policies and reporting workflows at public institutions, potentially increasing minor compliance costs offset by targeted funding for aid.

Summary at a glance

  • Objective: Protect private scholarships from being offset by institutional aid at public NC colleges and universities.
  • Mechanism: Prohibit reduction of institutional aid when a student receives private scholarships; mandate policy adoption and annual reporting; streamline compliance across UNC and community colleges.
  • Funding: $160k (UNC) + $580k (CC) in recurring funds starting 2026-27 to boost aid; effective for scholarships awarded 2027-28 onward.
  • Effective date: Law applies to 2027-28 academic year scholarships.

Compiled from official sources — confirm details with the bill’s official record.

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