Rules Governing the

North Carolina Need-Based Scholarship for Public Colleges and

3120 Poplarwood Court

Adopted by the Board of Directors April 3, 2023

Amended: October 23, 2023

Effective: October 23, 2023

SHORT TITLE, PURPOSE, AND DEFINITIONS .................................................................................. 3

PART II ............................................................................................................................................. 7

ELIGIBILITY REQUIREMENTS .......................................................................................................... 7

.0201. Satisfactory Academic Progress Requirement…………………………………………………………….7

PART III ............................................................................................................................................ 9

PART IV ......................................................................................................................................... 13

PROGRAM ADMINISTRATION ...................................................................................................... 13

.0401. College Foundation, Inc., as Central Administrator……………………………………………………13

The Rules Governing the North Carolina Need-Based Scholarship for Public Colleges and

Universities may hereinafter be cited by the State Education Assistance Authority and referred

to as the “NC Scholarship Program Rules.”

assistance to needy North Carolina resident students attending eligible colleges and universities

directed by the General Assembly, the State Education Assistance Authority administers the

Program pursuant to the Act and the NC Scholarship Program Rules. Each eligible college and

university plays a role in administering the Scholarships for the Eligible Students that it enrolls.

(a) “Academic Year” means a combination of school terms consisting of two semesters,

three trimesters, or the equivalent thereof, and also includes the summer term.

(b) “Act” means Part 5 of Article 23 of Chapter 116 of the General Statutes of North

Carolina, as existing at the date of adoption of the NC Scholarship Program Rules, or as

Program.

(c) “Approved Institution” means a constituent institution of the University of North

Carolina as defined in G.S. 116-2(4) or a community college as defined in G.S. 115D-2(2)

that has executed a NC Scholarship Program Participation Agreement.

(d) “Authority” means the State Education Assistance Authority, a political subdivision of

quality control and eligibility checks on the application data.

(g) “Cost of Attendance” means a student’s total cost of attending a postsecondary

institution as defined in Section 472 of the Higher Education Act (20 U.S.C. § 1087ll).

(h) “Eligible Student” means a student who meets all of the following conditions:

1. Is seeking a degree, diploma, or certificate at an Approved Institution as an

undergraduate student in a matriculated status.

2. Meets all of the requirements to receive a Scholarship under the Act and the

NC Scholarship Program Rules.

(i) “FAFSA” means the Free Application for Federal Student Aid.

20 U.S.C. § 1070, et seq.

(n) “Institutional Student Information Record” or “ISIR” means the report of student

information from the FAFSA that is processed and generated by the Central Processing

System and transmitted electronically to the Approved Institution for use in

determining the student’s eligibility for financial aid.

(o) “Matriculated Status” means being recognized as a student in a defined program of

study leading to a degree, diploma, or certificate at an Approved Institution.

(p) “Needy Student” means a student whose determination of need as reported on the ISIR

Academic Year.

Methodology.

(r) “Participation Agreement” means the agreement, in a form acceptable to the Authority,

by which an Approved Institution agrees to administer the Program in compliance with

of his or her degree, diploma, or certificate.

(u) “Scholarship” means the scholarship for education awarded to an Eligible Student under

the Program.

(v) “State” means the State of North Carolina.

(w) “State Auditor” means the Office of the Auditor of the State of North Carolina.

(x) “State Funded Need-Based Financial Aid Programs” means financial aid programs for

post-secondary education funded by the State as those programs are identified in G.S.

§ 116-209.19A.

(y) “Waiver” means a waiver granted by the Approved Institution, pursuant to the Board

disrupted or interrupted the student’s pursuit of a degree, diploma, or certificate: (i) a

military service obligation, (ii) serious medical debilitation, (iii) a short-term or long-

term disability, or (iv) other extraordinary hardship.

A student is eligible to receive a Scholarship for an Academic Year if the Approved Institution at

which the student is enrolled, or admitted for enrollment, determines that the student meets

the following requirements:

(a) Submits a Free Application for Federal Student Aid (FAFSA).

(b) Is a Needy Student.

(c) Qualifies as a North Carolina resident for tuition purposes under G.S. § 116-143.1, and

University of North Carolina and the President of the North Carolina Community College

System for the Program.

An Eligible Student may receive a Scholarship for the Eligible Student’s subsequent Academic

Years provided that, for each subsequent Academic Year, the Eligible Student meets the

standards by which the Approved Institution measures a student’s satisfactory academic

progress for the purposes of determining eligibility for federal financial assistance under the

An Approved Institution shall be responsible for at least the following:

(a) Designating an Authorized School Official as the primary contact between the Approved

(b) Complying with the Scholarship disbursement procedures.

(c) Complying with the refund procedures.