Expand & Enhance the Teaching Fellows Program.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 643

Short Title: Expand & Enhance the Teaching Fellows Program. (Public)
Sponsors: Senators Lowe and Salvador (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S643-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXPAND AND ENHANCE THE NORTH CAROLINA TEACHING FELLOWS 2
PROGRAM. 3
Whereas, the pursuit of teaching is the pursuit of excellence, and excellent teachers 4
are not just born, they are developed, equipped, trained, and valued; and 5
Whereas, all students in North Carolina deserve to be taught by excellent teachers; 6
and 7
Whereas, the North Carolina Teaching Fellows Program has an important legacy in 8
North Carolina, providing the best and brightest students the opportunity to have a pla ce of 9
influence and distinction by elevating them to a vital role – the role of a teacher; and 10
Whereas, based on the sorely inadequate and regularly declining enrollment in teacher 11
preparation programs and an accelerating teacher turnover rate, North Carol ina is facing an 12
overwhelming teacher shortage across the State, especially in rural counties; and 13
Whereas, the teacher shortage is a growing crisis for our entire educational system as 14
well as the future of our State; and 15
Whereas, to solve this problem and provide stable, talented, motivated, and excellent 16
teachers in our classrooms, we need to continue to rebuild the North Carolina Teaching Fellows 17
Program; Now, therefore, 18
The General Assembly of North Carolina enacts: 19
SECTION 1.(a) Part 3 of Article 23 of Chapter 116 of the General Statutes reads as 20
rewritten: 21
"Part 3. North Carolina Teaching Fellows Program. 22
"§ 116-209.60. Definitions. 23
The following definitions apply in this Part: 24
(1) Commission. – The North Carolina Teaching Fellows Commission. 25
(2) Director. – The Director of the North Carolina Teaching Fellows Program. 26
(3) Forgivable loan. – A forgivable loan made under the Program. 27
(4) Program. – The North Carolina Teaching Fellows Program. 28
(5) Public school. – An elementary or secondary school located in North Carolina 29
that is governed by a local board of education, charter school board of 30
directors, regional school board of directors, or University of North Carolina 31
laboratory school board of trustees. 32
(5a) Qualifying licensure area. – A teacher licensure area in one of the following 33
subjects: 34
a. Either of the following, as identified pursuant to G.S. 116-209.62(h): 35
1. Special education. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 643-First Edition
2. Stem. 1
b. Elementary education (K-6). 2
(5b) Qualifying teacher. – A teacher in a North Carolina public school who meets 3
the following criteria: 4
a. Received a forgivable loan under the Program. 5
b. Graduated within 10 years from an educator preparation program 6
leading to teacher licensure, excluding any authorized deferment for 7
extenuating circumstances. 8
c. Serves as a teacher in a qualifying licensure area. 9
(6) STEM. – Science, technology, engineering, and mathematics. 10
(7) Trust Fund. – The North Carolina Teaching Fellows Program Trust Fund. 11
… 12
"§ 116-209.62. North Carolina Teaching Fellows Program established; administration. 13
(a) Program. – There is established the North Carolina Teaching Fellows Program to be 14
administered by the System Office of The University of North Carolina, in conjunction with the 15
Authority and the Commission. The purpos e of the Program is to recruit, prepare, and support 16
students residing in or attending institutions of higher education located in North Carolina for 17
preparation as highly effective teachers in qualifying licensure areas in the State's public schools. 18
The Program shall be used to provide a forgivable loan to individuals interested in preparing to 19
teach in the public schools of the State in qualifying licensure areas.State. 20
(b) Trust Fund. – There is established the North Carolina Teaching Fellows Program 21
Trust Fund to be administered by the Authority, in conjunction with the System Office of The 22
University of North Carolina. All funds (i) appropriated to, or otherwise received by, the Program 23
for forgivable loans and other Program purposes, (ii) received as repayment of forgivable loans, 24
and (iii) earned as interest on these funds shall be placed in the Trust Fund. The purpose of the 25
Trust Fund is to provide financial assistance to qualified students for completion of teacher 26
education and licensure programs to fill qualifying licensure areaspositions in the public schools 27
of the State. 28
(c) Uses of Monies in the Trust Fund. – The monies in the Trust Fund may be used only 29
for (i) forgivable loans granted under the Program, (ii) administrative costs associated with the 30
Program, including recruitment and recovery of funds advanced under the Program, (iii) 31
mentoring and coaching support to forgivable loan recipients, and (iv) extracurr icular 32
enhancement activities of the Program in accordance with the following: 33
(1) The Authority shall transfer the greater of six hundred thousand dollars 34
($600,000) or ten percent (10%)the following amounts of the available funds 35
from the Trust Fund to The University of North Carolina System Office at the 36
beginning of each fiscal year year: 37
a. The greater of six hundred thousand dollars ($600,000) or ten percent 38
(10%) for the Program's administrative costs, the salary of the Director 39
of the Program and other Program staff, expenses of the Commission, 40
and to provide the Commission with funds to use for the 41
extracurricular enhancement activities of the Program. staff, and 42
expenses of the Commission. 43
b. The sum of up to six hundred thousand dollars ($600,000) for 44
extracurricular enhancement activities of the Program, including (i) 45
summer programs to maintain year-round connections and (ii) alumni 46
programs to foster continued engagement after graduation. These 47
activities should be geared to instilling a strong motivation not only to 48
remain in teaching but to provide leadership for tomorrow's schools. 49
General Assembly Of North Carolina Session 2025
Senate Bill 643-First Edition Page 3
c. The sum of up to five hundred thousand dollars ($500,000) for the 1
Director of the Program to implement the recruitment activities 2
identified in subsection (d) of this section. 3
(2) The Authority may use the greater of two hundred fifty thousand dollars 4
($250,000) or four percent (4%) of the funds appropriated to the Trust Fund 5
each fiscal year for administrative costs associated with the Program. 6
(3) The Authority shall provide the Commission with up to six hundred thousand 7
dollars ($600,000) from the Trust Fund in each fiscal year for the Commission 8
to provide mentoring and coaching support to forgivable loan recipients 9
through the North Carolina New Teacher Suppor t Program in an amount of 10
up to two thousand two hundred dollars ($2,200) for each Program recipient. 11
Funds shall be prioritized for teachers serving in North Carolina public 12
schools identified as low-performing under G.S. 115C-105.37. 13
(d) Director of the Program. – The Board of Governors of The University of North 14
Carolina shall appoint a Director of the Program. The Director shall appoint staff to the 15
Commission and shall be responsible for recruitment and coordination of the Program, including 16
proactive, aggressive, and strategic recruitment of potential recipients. Recruitment activities 17
shall include (i) targeting regions of the State with the highest teacher attrition rates and teacher 18
recruitment challenges, (ii) actively engaging with educators, business leaders, experts in human 19
resources, elected officials, and other community leaders throughout the State, and (iii) attracting 20
candidates in qualifying licensure areas to the Program. The Director shall report to the President 21
of The University of Nor th Carolina. The Authority shall provide office space and clerical 22
support staff, as necessary, to the Director for the Program. 23
(e) Student Selection Criteria for Forgivable Loans. – The Commission shall adopt 24
stringent standards for awarding forgivable loans based on multiple measures to ensure that only 25
the strongest applicants receive them, including the following: 26
(1) Grade point averages. 27
(2) Performance on relevant career and college readiness assessments. 28
(3) Experience, accomplishments, and other c riteria demonstrating qualities 29
positively correlated with highly effective teachers, including excellent verbal 30
and communication skills. 31
(4) Demonstrated commitment to serve in a qualifying licensure area in North 32
Carolina public schools. 33
(f) Program Sel ection Criteria. – The Authority shall administer the Program in 34
cooperation with up to 10 each postsecondary constituent institution of The University of North 35
Carolina with an approved educator preparation program and up to four institutions of higher 36
education with approved educator preparation programs selected by the Commission that 37
represent a diverse selection of both postsecondary constituent institutions of The University of 38
North Carolina and private postsecondary institutions operating in the Sta te. The Commission 39
shall adopt stringent standards for selection of the most effective private educator preparation 40
programs, including the following: 41
(1) Demonstrates high rates of educator effectiveness on value-added models and 42
teacher evaluations, incl uding using performance -based, subject -specific 43
assessment and support systems, such as edTPA or other metrics of evaluating 44
candidate effectiveness that have predictive validity. 45
(2) Demonstrates measurable impact of prior graduates on student learning, 46
including impact of graduates teaching in qualifying licensure areas.learning. 47
(3) Demonstrates high rates of graduates passing exams required for teacher 48
licensure. 49
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 643-First Edition
(4) Provides curricular and co -curricular enhancements in leadership, facilitates 1
learning for diverse learners, and promotes community engagement, 2
classroom management, and reflection and assessment. 3
(5) Requires at least a minor concentration of study in the subject area that the 4
candidate may teach. 5
(6) Provides early and frequent internship or practical experiences, including the 6
opportunity for participants to perform practicums in diverse school 7
environments. 8
(7) Is approved by the State Board of Education as an educator preparation 9
program. 10
(8) For an educator preparation program enrolling loan recipients in a program of 11
study leading to licensure in elementary education (K -6), provides training 12
that is aligned with the Science of Reading in accordance with 13
G.S. 115C-269.20. The Commission shall contract with a third-party entity to 14
biennially evaluate whether a program identified in this subdivision is 15
providing training that is aligned with the Science of Reading. 16
(g) Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected 17
students to be used at up to 10 select ed each postsecondary constituent institution of The 18
University of North Carolina with an approved educator preparation program and up to four 19
selected private institutions for completion of a program leading to initial teacher licensure as 20
follows: 21
(1) North Carolina high school seniors. – Forgivable loans of up to five thousand 22
dollars ($5,000) six thousand dollars ($6,000) per semester for up to eight 23
semesters. 24
(2) Students applying for transfer to a selected educator preparation program at 25
an institution of higher education. – Forgivable loans of up to five thousand 26
dollars ($5,000) six thousand dollars ($6,000) per semester for up to six 27
semesters. 28
(3) Individuals currently holding a bachelor's degree seeking preparation for 29
teacher licensure. – Forgivable loans of up to five thousand dollars ($5,000)six 30
thousand dollars ($6,000) per semester for up to four semesters. 31
(4) Students matriculating at institutions of higher education who are changing to 32
an approved program of study at a selected educator prep aration program. – 33
Forgivable loans of up to five thousand dollars ($5,000) six thousand dollars 34
($6,000) per semester for up to four semesters. 35
Forgivable loans may be used for tuition, fees, the cost of books, and expenses related to 36
obtaining licensure. 37
(h) Identification of STEM and Special Education Licensure Areas. – The Superintendent 38
of Public Instruction shall identify and provide to the Commission and the Authority a list of 39
STEM and special education licensure areas and shall annually provide to the Commission the 40
number of available positions in each qualifying licensure area relative to the number of current 41
and anticipated teachers in that area of licensure. The Commission shall make the list of STEM 42
and special education licensure areas readily available to applicants. 43
… 44
(j) Annual Report. – The Commission, in coordination with the Authority, the 45
Department of Public Instruction, each postsecondary constituent institution of The University 46
of North Carolina with an approved educator preparation program, and the selected private 47
educator education programs participating in the Program shall report no later than January 1, 48
2019, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding 49
the following: 50
(1) Forgivable loans awarded from the Trust Fund, including the following: 51
General Assembly Of North Carolina Session 2025
Senate Bill 643-First Edition Page 5
a. Demographic information regarding recipients. 1
b. Number of recipients by institution of higher education and program. 2
c. Information on number of recipients by anticipated qualifying 3
licensure area. 4
(2) Placement and repayment rates, including the following: 5
a. Number of graduates who have been employed in a qualifying 6
licensure areaas a public school teacher in North Carolina within two 7
years of program completion. 8
b. Number of graduates who accepted employment at a low -performing 9
school identified under G.S. 115C-105.37 as part of their years of 10
service. 11
c. Number of graduates who have elected to do loan repayment and their 12
years of service, if any, prior to beginning loan repayment. 13
d. Number of graduates employed in a qualifying licensure area North 14
Carolina public school who have received an overall rating of at least 15
accomplished and have met expected growth on applicable standards 16
of the teacher evaluation instrument. 17
e. Aggregate information on student growth and proficiency in courses 18
taught by graduates who have fulfilled service requirements through 19
employment in a qualifying licensure area. North Carolina public 20
school. 21
… 22
"§ 116-209.63. Terms of forgivable loans; receipt and disbursement of funds. 23
(a) Notes. – All forgivable loans shall be evidenced by notes made payable to the 24
Authority that bear interest at a rate not to exceed ten percent (10%) per year as set by the 25
Authority and beginning on the first day of September after the completion of the program 26
leading to teacher licensure or 90 days after graduation, whichever is later. If a forgivable loan is 27
terminated, the note shall be made payable to the Authority 90 days after termination of the 28
forgivable loan. The forgivable loan may be terminated upon the recipient's withdrawal from the 29
Program or by the recipient's failure to meet the standards set by the Commission. 30
(b) Forgiveness. – For every year a qualifying teacher remains a qualifying teacher, the 31
Authority shall forgive the loan amount received over one year of enrollment in an educator 32
preparation program and any interest accrued on that amount.The Authority shall forgive the loan 33
and any interest accrued on the loan if, within 10 years after graduation from a program l eading 34
to teacher licensure, exclusive of any authorized deferment for extenuating circumstances, the 35
recipient serves as a teacher in a North Carolina public school for every year the teacher was 36
awarded the forgivable loan, in any combination of the following: 37
(1) Six months at a North Carolina public school identified as low -performing 38
under G.S. 115C-105.37 at the time the teacher accepts employment at the 39
school or, if the teacher changes employment during this period, at another 40
school identified as low-performing. 41
(2) One year at a North Carolina public school not identified as low -performing 42
under G.S. 115C-105.37. 43
The Authority shall also forgive the loan if it finds that it is impossible for the recipient to 44
work for up to eight four years, within 10 years after completion of the program leading to teacher 45
licensure, at a North Carolina public school because of the death or permanent disability of the 46
recipient. If the recipient repays the forgivable loan by cash payments, all indebtedness shall be 47
repaid within 10 years after completion of the program leading to teacher licensure supported by 48
the forgivable loan. If the recipient completes a program leading to teacher licensure, payment 49
of principal and interest shall begin no later than the first day of September after the completion 50
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 643-First Edition
of the program. Should a recipient present extenuating circumstances, the Authority may extend 1
the period to repay the loan in cash to no more than a total of 12 years." 2
SECTION 1.(b) There is appropriated from the General Fund to the North Carolina 3
Teaching Fellows Program Trust Fund the sum of ten million dollars ($10,000,000) in recurring 4
funds for the 2025 -2026 fiscal year to revise the NC Teaching Fellows Program in accordance 5
with subsection (a) of this section. 6
SECTION 2. This act becomes effective July 1, 2025, and applies to applications 7
for the award of funds beginning in the 2025-2026 academic year. 8