Bill
HB 110
The bill creates a National Guard Student Loan Repayment Program that awards up to $50,000 (plus $10,000 per extra year) to NC National Guard members who commit to multi-year servi
Status: Enacted (effective July 1, 2025)
Primary subject areas: Military affairs; education/finance; appropriations
Summary
This bill creates a statewide student loan repayment program to recruit and retain members of the North Carolina National Guard by providing direct repayments of qualifying student loan debt in exchange for multi‑year service commitments.
Key provisions
- Establishes the "National Guard Student Loan Repayment Program" as a new Article in Chapter 127A (Article 19).
- Eligible participants: active members of the North Carolina National Guard. A qualifying "term of service" is defined as no shorter than three years.
- Administration: program oversight and rulemaking responsibility is vested in the Adjutant General (or a designee) of the NC National Guard, including personnel control and program management.
- Award limits:
- No award may exceed the recipient’s outstanding student loan debt at the time of award.
- Maximum award for an initial 3‑year term: $50,000.
- For service beyond the initial 3 years, recipients may receive up to an additional $10,000 per additional year.
- Repayment agreement / recapture: before receiving an award, recipients must sign a notarized agreement to repay a prorated portion of any award for each month of the agreed term they fail to serve as an active member. The recapture formula equals (months not served) × (total award ÷ total months in the term). The agreement applies to early terminations as specified in the bill (varies by draft language; enacted text should be consulted for whether recapture applies to voluntary separation only or also to separations for misconduct).
- Funding vehicle: creates the National Guard Student Loan Repayment Program Fund, a non‑reverting special revenue fund. The Fund may receive General Fund appropriations, gifts, grants, and other allocated revenues and may be used only for program operations, maintenance, and expansion.
Appropriations and administrative resources
- A one‑time General Fund appropriation of $25,540,900 (FY 2025–26) is made to the Program Fund to support issuance of awards and program start‑up.
- A recurring appropriation of $180,000 (FY 2025–26 base) is provided to the NC National Guard to hire at least two full‑time communications professionals to support the program.
Who is affected
- Active members of the NC National Guard (potential beneficiaries).
- State budget/taxpayers (initial nonrecurring appropriation and ongoing administrative costs).
- State military personnel offices (program administration and compliance).
Procedural/timeline notes
- The statute includes an effective date: July 1, 2025.
- Rules, application procedures, award schedules, and precise enforcement/recapture processes will be established by the Adjutant General under the bill’s rulemaking authority.
Potential impacts (practical considerations)
- Recruitment and retention: sizable awards (up to $50K) are designed to make Guard service more competitive and could improve enlistment/reenlistment.
- Fiscal: the large initial appropriation funds a finite number of awards depending on award size; long‑term program sustainability depends on future appropriations, gift/grant revenue, or fund balances.
- Administrative: the Guard must establish application, verification, and repayment tracking systems; staffing and communications resources are funded modestly but will be necessary for outreach and compliance.
- Legal/contractual: repayment obligations and enforcement procedures should align with state debt collection and employment law; applicants should be informed of recapture conditions.
For exact legal obligations (e.g., whether recapture covers involuntary separations for misconduct), consult the enacted bill text in the Session Laws or the NC General Assembly website.
Compiled from official sources — confirm details with the bill’s official record.
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