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SB 959

Study Student Loan Forgiveness Program/SEAA.

2025-2026 Session Introduced by Sophia Chitlik and 4 co-sponsors

The bill would study and report on a North Carolina public-education loan forgiveness program to improve workforce retention, detailing feasibility and costs.

Passed 1st Reading
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Bill Summary · SB 959

Summary: SB 959 – Student Loan Forgiveness and Talent Retention Study Act (North Carolina)

Purpose and intent

  • The bill requires the State Education Assistance Authority (SEAA) to study the feasibility and advisability of establishing a statewide Student Loan Forgiveness and Talent Retention Program for graduates of public institutions of higher education located in North Carolina.
  • The overarching goal is to improve workforce retention, economic development, and community vitality by encouraging graduates to remain in North Carolina after graduation.

Key provisions

Definitions (Section 2)

  • Eligible borrower: An individual who earned a postsecondary credential from a public North Carolina institution.
  • Eligible student loan debt: Federal student loans used to attend a North Carolina public institution. Excludes:
    • Private loans for attendance at a public institution
    • Federal loans issued to the borrower’s parents
    • Loans incurred for attendance at private institutions or institutions outside North Carolina
  • Program: The proposed Student Loan Forgiveness and Talent Retention Program described in the act.
  • Public institution of higher education: UNC System constituent institutions or community colleges in North Carolina.

Study directive (Section 3)

  • SEAA, in consultation with the UNC Board of Governors, the North Carolina Community College System, the Department of Commerce, and other relevant workforce/economic development stakeholders, must study:
    1. Administrative considerations and implementation options.
    2. Estimated fiscal impact of the Program.
    3. Eligibility requirements, including residency and workforce participation.
    4. Benefits structures (e.g., forgiveness amounts and repayment mechanisms).
    5. Interaction with federal programs (e.g., Public Service Loan Forgiveness and other federal benefits).
    6. Impacts on workforce development and talent retention within the state.
    7. Comparisons to similar programs in other states, including best practices and lessons learned.

Report deadline (Section 3)

  • SEAA must submit a report to the Joint Legislative Education Oversight Committee no later than October 1, 2027.
  • The report should include findings and a recommendation on whether to establish the Program, plus a proposed structure and estimated costs if recommended.

Appropriation (Section 4)

  • A nonrecurring appropriation of $150,000 from the General Fund to UNC Board of Governors for FY 2026-2027.
  • Funds are earmarked to SEAA to conduct the study and prepare the report.
  • Funds do not revert at the end of the 2026-2027 fiscal year; they remain available through October 1, 2027.

Effective date (Section 5)

  • The act becomes effective July 1, 2026.

Who would be affected

  • Graduates of North Carolina public higher education institutions who hold eligible federal student loans.
  • SEAA, UNC System, North Carolina Community College System, and the Department of Commerce would coordinate on the study.
  • State policymakers would gain guidance on whether to implement a program and how it might be designed.

Timeline and process

  • Study and stakeholder engagement occur after July 1, 2026.
  • Final study report due by October 1, 2027.
  • The act contemplates potential future legislative action based on the study’s findings and recommendations.

Notes

  • The bill focuses on study and planning rather than immediate implementation.
  • Any final program would need to address administrative feasibility, cost, eligibility, and alignment with existing federal loan programs.

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

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