Study Student Loan Forgiveness Program/SEAA.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 959

Short Title: Study Student Loan Forgiveness Program/SEAA. (Public)
Sponsors: Senators Theodros and Garrett (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S959-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE TH E STATE EDUCATION AS SISTANCE AUTHORITY T O 2
STUDY THE FEASIBILIT Y AND ADVISABILITY O F ESTABLISHING A STU DENT 3
LOAN FORGIVENESS AND TALENT RETENTION PR OGRAM FOR GRADUATES 4
OF PUBLIC INSTITUTIO NS OF HIGHER EDUCATI ON LOCATED IN NORTH 5
CAROLINA AND TO APPROPRIATE FUNDS FOR THAT PURPOSE. 6
Whereas, the public institutions of higher education located in North Carolina 7
produce a skilled and educated workforce vital to the economic growth of the State; and 8
Whereas, many reside nts of North Carolina who pursue higher education through 9
public institutions of higher education incur significant student loan debt; and 10
Whereas, retaining graduates of public institutions of higher education located in 11
North Carolina strengthens the wor kforce of the State, supports the economic development of 12
the State, and benefits local communities in the State; and 13
Whereas, policies that encourage graduates of public institutions of higher education 14
to remain in North Carolina following completion of their postsecondary education may improve 15
workforce retention and strengthen the economy of the State; Now, therefore, 16
The General Assembly of North Carolina enacts: 17
SECTION 1. Title of Act. – This act shall be known and may be cited as the "Student 18
Loan Forgiveness and Talent Retention Study Act." 19
SECTION 2. Definitions. – The following definitions apply in this act: 20
(1) Eligible borrower. – An individual who obtained a posts econdary credential 21
from a public institution of higher education. 22
(2) Eligible student loan debt. – Federal student loans incurred by an eligible 23
borrower to attend a public institution of higher education. This term shall not 24
include any of the following: 25
a. Private loans provided to attend a public institution of higher 26
education. 27
b. Federal loans issued to the parents of an eligible borrower. 28
c. Loans incurred to attend a private institution of higher education or an 29
institution of higher education located outside this State. 30
(3) Program. – The Student Loan Forgiveness and Talent Retention Program 31
described in Section 3 of this act. 32
(4) Public institution of higher education. – A constituent institution of The 33
University of North Carolina or a community college located in this State. 34
SECTION 3.(a) Study. – The State Education Assistance Authority, in consultation 35
with the Board of Governors of The University of North Carolina, the State Board of Community 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 959-First Edition
Colleges, the Department of Commerce, and any oth er relevant stakeholders in the area of 1
workforce and economic development, shall study the feasibility and advisability of establishing 2
a Student Loan Forgiveness and Talent Retention Program for eligible student loan debt. The 3
study shall evaluate possib le Program structures in North Carolina and costs necessary to 4
encourage eligible borrowers to remain in North Carolina for a sustained period of time following 5
graduation, including at least the following: 6
(1) Administrative considerations and options for implementation. 7
(2) The estimated fiscal impact of the Program described in this act. 8
(3) Recommended eligibility requirements for the Program, including residency 9
and workforce participation requirements. 10
(4) Options for benefits structures, including lo an forgiveness amounts and 11
repayment mechanisms. 12
(5) Interaction with federal programs, including the Public Service Loan 13
Forgiveness Program and any other federal student loan repayment programs 14
or benefits. 15
(6) Workforce and economic development impacts of the Program, including 16
projected effects on talent retention within the State. 17
(7) Comparable programs in other states, including best practices and lessons 18
learned from those programs. 19
SECTION 3.(b) Report. – No later than October 1, 2027, the State E ducation 20
Assistance Authority shall report the results of the study conducted pursuant to subsection (a) of 21
this section to the Joint Legislative Education Oversight Committee, including a recommendation 22
for whether the General Assembly should establish a Student Loan Forgiveness and Talent 23
Retention Program as described in this act and, if so, a proposed program structure and estimate 24
of costs. 25
SECTION 4. Appropriation. – There is appropriated from the General Fund to the 26
Board of Governors of The University of North Carolina the sum of one hundred fifty thousand 27
dollars ($150,000) in nonrecurring funds for the 2026-2027 fiscal year to be allocated to the State 28
Education Assistance Authority to conduct the study and provide the report described in this act. 29
These funds shall not revert at the end of the 2026 -2027 fiscal year but shall remain available 30
until October 1, 2027. 31
SECTION 5. Effective Date. – This act becomes effective July 1, 2026. 32