RELATED EDUCATIONAL PROGRAMS

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RELATED EDUCATIONAL PROGRAMS

GOAL: Related Educational Programs are operated primarily through institutions and agencies external to the University of North Carolina. Although these programs are not a part of the University's operating budget, the Board of Governors, as the contracting authority for the state, has certain responsibilities for the administration of these programs. The nine Related Educational Programs are: Regional Education Program; Private Medical School Aid; Aid to Private Colleges; Legislative Tuition Grants; Medical Scholarships; Incentive Grants Program; Dental Scholarships;Incentive Scholarship and Grant Program for Native Americans; and Other Aid and Grants.

GENERAL FUND BUDGET CODE SUMMARY:

1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended TOTAL REQUIREMENTS 55,217,379 61,008,407 801,903 61,810,310 1,185,679 62,194,086

TOTAL ESTIMATED RECEIPTS 1,467,709 1,599,946 -906,970 692,976 -906,970 692,976

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1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended ESTIMATED RECEIPTS

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---NUMBER OF POSITIONS: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS --- --- --- TOTAL REQUIREMENTS .00 .00 .00 .00 .00 .00 --- --- --- ---0241 Regional Education Program P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE: In cooperation with the Southern Regional Education Board, the state is enabled to secure spaces for qualified North

Carolina students at out-of-state institutions in selected health science disciplines that are not offered by

institutions in North Carolina or that have sustained student demand in excess of the available spaces in North Carolina institutions. The contract costs to the state for spaces are negotiated by the Southern Regional Education Board

(SREB).

North Carolina began the contract programs through SREB in 1950. This activity has been in continuous operation since then, with modifications in contracts from time to time to accommodate changes in student quotas and costs of spaces. Appropriations are made to the Board of Governors for meeting the cost of the contract programs and for payment of the state's share of the operating cost of SREB.

The University is responsible for the administration of the out-of-state contract programs, certifying the residence of student applicants, and providing screening of candidates prior to their acceptance by the several contracting

institutions. The state has reserved a total of 98 spaces for 1995-96 in various disciplines as follows: 84 in optometry at the University of Alabama in Birmingham, Southern College of Optometry, the University of Houston, and Pennsylvania College of Optometry; and seven spaces in dentistry and seven spaces in medicine at Meharry Medical

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The estimated enrollments and costs for the Regional Education Program for 1997-99 are shown below. Program Statistics:

1997-98 1998-99

Field and Institution Students/Rate Amount Students/Rate Amount

SREB Contracts Medicine

Meharry Medical College 7 $9,300 $ 65,100 7 $9,700 $ 67,900 Dentistry

Meharry Medical College 7 9,450 66,150 7 9,600 67,200

Optometry

Southern College of Optometry 32 7,600 243,200 32 7,800 249,600 University of Alabama in Birmingham 16 7,600 121,600 16 7,800 124,400

University of Houston 8 7,600 60,800 8 7,800 62,400

Total SREB 70 $556,850 70 $575,900

Non-SREB Contracts Optometry

Pennsylvania College of Optometry 28 7,600 $212,800 28 $7,800 $218,400

GRAND TOTAL 98 $769,650 98 $790,300

PROGRAM INFORMATION:

This is one of 46 funds that contribute to program number 7399, Reserves/Other Accounting Fund The total 1996-97 certified budget for P/PB 7399 is $132,351,649 of which this fund is $853,733, or 0.65% of the total. A programmatic presentation which groups all funds that contribute to specific program levels throughout state government according to similar

outcomes, objectives, and outcome measures may be found in Volume 7.

Following is a complete list of departmental accounting funds which contribute to P/PB 7399.

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UNC-CH 0990 MULTI-ACTIVITY 6.57% UNC-P 0990 MULTI-ACTIVITY .01% UNC-CH 0252 OTHER RESERVES .38% W-S ST UNIV 0230 STUDENT FINANCIAL AID .53% NC STATE UN 0230 STUDENT FINANCIAL AID 4.08% W-S ST UNIV 0990 MULTI-ACTIVITY .12% NC STATE UN 0990 MULTI-ACTIVITY 5.96% ELIZ CITY ST 0230 STUDENT FINANCIAL AID 1.53% UNC-G 0230 STUDENT FINANCIAL AID .44% ELIZ CITY ST 0990 MULTI-ACTIVITY .01% UNC-G 0990 MULTIACTIVITY .12% FAY ST UNIV 0230 STUDENT FINANCIAL AID .69% UNC-C 0230 STUDENT FINANCIAL AID .67% FAY ST UNIV 0990 MULTI-ACTIVITY .02% UNC-C 0990 MULTI-ACTIVITY .06% NC CENTRAL 0230 STUDENT FINANCIAL AID .84% UNC-A 0230 STUDENT FINANCIAL AID .16% NC CENTRAL 0990 MULTI-ACTIVITY .02% UNC-A 0990 MULTI-ACTIVITY .01% NC SCH ARTS 0230 STUDENT FINANCIAL AID .03% PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS 53 3000 CURRENT OBLIGATIONS 3,693 6,133 0 6,133 0 6,133 53 4000 FIXED CHARGES & EXPEN 146,750 149,600 2,200 151,800 5,100 154,700 53 6900 OTHER AIDS AND GRANTS 643,800 698,000 71,650 769,650 92,300 790,300 --- --- --- TOTAL REQUIREMENTS 794,243 853,733 73,850 927,583 97,400 951,133 --- --- --- ESTIMATED RECEIPTS --- --- --- TOTAL RECEIPTS 0 0 0 0 0 0 --- --- --- NET APPROPRIATION 794,243 853,733 73,850 927,583 97,400 951,133 --- --- --- --- --- --- ---0242 Private Medical School Aid P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE: This program is designed to encourage the Bowman Gray School of Medicine of Wake Forest University and the Duke

University School of Medicine, through contractual agreements with the Board of Governors, to expand medical education opportunities for citizens of the state by enrolling increased numbers of North Carolinians.

The Board of Governors pays capitation grants to the two medical schools for each North Carolina resident enrolled as a full-time student studying for the M.D. Degree. The program began with capitation payments to the two schools for North Carolinians enrolled in the first year classes in 1969-70. Since 1972-73, payments have been made for all North

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In 1973, the Duke University School of Medicine agreed to enroll 30 North Carolina students in each entering class in 1973-74 and 1974-75. In return, the Board of Governors was authorized to pay $5,000 to Duke University for each North Carolina resident enrolled. Beginning in 1975-76, Duke committed to increase the number of North Carolinians in each entering class, in return for which the institution is paid $6,000 for each additional student enrolled. In 1973, the Bowman Gray School of Medicine agreed to begin in 1973-74 to enroll 45 North Carolinians in each entering class under arrangements identical to those established with Duke University. Subsequently, Bowman Gray committed to increase the number of North Carolinians in each entering class to 65, or 60 percent of the class, beginning in 1976-77, in return for capitation payments each year of $8,000 for each North Carolina resident. A specified amount of each capitation grant is to be placed in a fund to provide financial aid to needy North Carolina students.

Summary data on the programs are shown below. Program Statistics:

Enrollment of N.C. Students Payments to Institution

School Year Bowman Gray Duke Total Bowman Gray Duke Total

1995-96 Actual 225 118 343 $1,800,000 $596,000 $2,396,000

1996-97 Estimated 256 129 383 2,032,000 659,000 2,691,000

1997-98 Projected 255 140 395 2,040,000 720,000 2,760,000

1998-99 Projected 258 142 400 1,064,000 732,000 2,796,000

Objectives and Outcome Measures shown in fund 0241 also apply to funds 0242, 0243, 0244, 0245, 0246, 0247, 0248, and 0249. All of these funds are included in P/PB fund 7399.

Other Performance Measures:

1993-94 Actual 1994-95 Actual 1995-96 Actual - Bowman Gray Medical School:

Enrollment of N.C. students. 233 234 225 - Payments to institution (in thousands). $1,808 $1,872 $1,800 - Duke University:

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PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS

53 6900 OTHER AIDS AND GRANTS 2,396,000 2,645,000 115,000 2,760,000 151,000 2,796,000 --- --- --- TOTAL REQUIREMENTS 2,396,000 2,645,000 115,000 2,760,000 151,000 2,796,000 --- --- --- ESTIMATED RECEIPTS --- --- --- TOTAL RECEIPTS 0 0 0 0 0 0 --- --- --- NET APPROPRIATION 2,396,000 2,645,000 115,000 2,760,000 151,000 2,796,000 --- --- --- --- --- --- ---0243 Aid to Private Colleges P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE: This program, first funded in 1972-73, is designed to assist the state's private institutions to continue to educate

North Carolina students and to enroll additional numbers of North Carolinians. The current legislative authorization provides for a payment to each institution of an amount equal to $600 for each full-time equivalent North Carolina undergraduate resident enrolled, and requires that the funds be "provided as scholarship funds for needy North Carolina students."

An agreement is signed each year with each of the private institutions. The agreements indicate the total full-time equivalent North Carolina undergraduate student enrollment in the institution as of October 1 of the year of record and the payment that will be made to the institution based on that enrollment. The agreement obligates the institution to award funds to needy students and to maintain records and submit reports. Upon completion of the agreement, the University issues the appropriate payment to the institution.

Summary data on the program are shown below. Program Statistics:

1995-96 1996-97 1997-98 1998-99 Actual Estimated Projected Projected Appropriations $13,740,246 $14,966,336 $15,438,000 $15,540,000 Expenditures

State Resident

Under-graduate Enrollment (FTE) 24,987 25,574 25,744 25,914

Number of Students

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1993-94 Actual 1994-95 Actual 1995-96 Actual - Expenditures (in thousands). $11,240 $13,446 $13,740 - Number of students receiving assistance. 8,487 8,884 8,606 PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS

53 6900 OTHER AIDS AND GRANTS 13,740,246 14,966,336 472,000 15,438,336 574,000 15,540,336 --- --- --- TOTAL REQUIREMENTS 13,740,246 14,966,336 472,000 15,438,336 574,000 15,540,336 --- --- --- ESTIMATED RECEIPTS 43 0900 NONREVENUES 27,011 0 0 0 0 0 --- --- --- TOTAL RECEIPTS 27,011 0 0 0 0 0 --- --- --- NET APPROPRIATION 13,713,235 14,966,336 472,000 15,438,336 574,000 15,540,336 --- --- --- --- --- --- ---0244 Legislative Tuition Grants P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE: This program, established by the General Assembly in 1975, is designed to provide tuition assistance to North

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Appropriations are made to the Board of Governors for the Legislative Tuition Grants program which is administered by the North Carolina State Education Assistance Authority. The private colleges and universities bill the authority each term for and on behalf of the qualified North Carolina students enrolled. Payment is made to the institution. The

institution credits such payments to the individual account of each such student and notifies the student of the source of such tuition reduction.

Summary data on the program are shown below. Program Statistics:

1995-96 1996-97 1997-98 1998-99

Actual Estimated Projected Projected

Appropriations $27,304,880 $28,626,482 $29,513,982 $29,715,482

Students Receiving Awards

(Head count) N/A N/A N/A

Amount of Award per

Student (FTE) $1,250 $1,300 $1,300 $1,300

1993-94 Actual 1994-95 Actual 1995-96 Actual - Expenditures (in thousands). $24,147 $25,654 $27,304 - Number of students receiving assistance. 25,153 24,911 25,717 - Amount of award per student (FTE). $1,150 $1,250 $1,250 PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS

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1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended ESTIMATED RECEIPTS 43 0900 NONREVENUES 59,729 0 0 0 0 0 --- --- --- TOTAL RECEIPTS 59,729 0 0 0 0 0 --- --- --- NET APPROPRIATION 27,245,151 28,626,482 887,500 29,513,982 1,089,000 29,715,482 --- --- --- --- --- --- ---0245 Medical Scholarships P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE: In 1974, the Board of Governors of the University of North Carolina recommended to the General Assembly the creation of

a program of annual scholarships to encourage qualified North Carolina students of all races who are financially

disadvantaged to apply for, gain admission to, and enroll at any of the medical schools in North Carolina. The General Assembly provided funding for 15 first-year scholarships beginning in 1974-75. The number of first-year scholarships was increased to 17 beginning in 1979-80 and to 20 in 1986-87.

Interested persons submit a request for financial aid in the prescribed manner to any of the North Carolina medical schools. After admission to the medical school, the financial aid committee at the respective school recommends qualified applicants to a special scholarship committee appointed by the president of the university. The Bowman Gray School of Medicine of Wake Forest University, the Duke University Medical School, the East Carolina University School of Medicine, and the School of Medicine of the University of North Carolina at Chapel Hill each submits ten nominees. The committee makes its selection on the basis of each applicant's financial need and interest in the practice of medicine in North Carolina.

Each scholarship provides a stipend of $5,000 per year, plus tuition and mandatory fees. The scholarships are renewable each year, provided that the student has made satisfactory academic progress.

Summary data on the Medical Scholarships program are shown below. Program Statistics:

1995-96 1996-97 1997-98 1998-99 Actual Estimated Projected Projected

Number of awards each year 82 86 83 83

Number of scholars who are Black 59 59 56 55

Number of scholars who are Native

American 7 8 7 6

Number of scholars enrolled in:

Bowman Gray School of Medicine 11 12 13 12

Duke University 7 10 10 11

East Carolina University 28 28 22 25

The University of North Carolina

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1993-94 Actual 1994-95 Actual 1995-96 Actual - Number of awards. 83 78 82 - Number of scholars who are Black. 67 63 59 - Number of scholars who are Native American. 4 5 7 - Number of scholars enrolled at:

Bowman Gray School of Medicine. 9 10 11 - Duke University. 4 6 7 - East Carolina. 24 24 28 - UNC Chapel Hill. 46 38 36 PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS

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---0246 Incentive Grants Program P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE: Under a federal program of grants to the states first authorized by Title IV of the Higher Education Act of 1965, the

states are encouraged to create comprehensive programs which provide to students who demonstrate substantial financial need grants for undergraduate study at eligible educational institutions. The General Assembly appropriated the first matching funds to enable the state to utilize the federal grant for the 1975-76 school year. Appropriations are made to the Board of Governors for transfer to the North Carolina State Education Assistance Authority, which receives the federal grants. The program is administered for the authority under a contractual arrangement with College Foundation, Inc., a private nonprofit corporation established in 1962 by the Governor and Council of State.

Summary data on the Incentive Grants Program are shown below. Program Statistics:

Federal grants $1,467,709 $1,599,946 $692,976 $692,976

State appropriations to match federal grants and to fund

administrative costs $1,327,491 $1,704,496 $1,688,698 $1,688,698

Number of applicants 63,251 65,000 70,000 70,000

Number of awards 4,080 4,000 3,275 3,275

Average award $664 $675 $700 $787

1993-94 Actual 1994-95 Actual 1995-96 Actual - Amount of federal grants (in thousands). $1,548 $1,572 $1,467 - Amount of state appropriations to match federal

grants and to fund administrative costs (in

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PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS 53 1900 CONTRACTUAL SERVICES 83,419 104,550 15,798- 88,752 15,798- 88,752 53 6900 OTHER AIDS AND GRANTS 2,711,781 3,199,892 906,970- 2,292,922 906,970- 2,292,922 --- --- --- TOTAL REQUIREMENTS 2,795,200 3,304,442 922,768- 2,381,674 922,768- 2,381,674 --- --- --- ESTIMATED RECEIPTS 43 0200 GIFTS/GRANTS/ENDOWMEN 1,336,337 1,599,946 906,970- 692,976 906,970- 692,976 43 0900 NONREVENUES 39,107 0 0 0 0 0 --- --- --- TOTAL RECEIPTS 1,375,444 1,599,946 906,970- 692,976 906,970- 692,976 --- --- --- NET APPROPRIATION 1,419,756 1,704,496 15,798- 1,688,698 15,798- 1,688,698 --- --- --- --- --- --- ---0247 Dental Scholarships P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE: In the fall of 1978, the Board of Governors of the University of North Carolina established a program of scholarships to

increase the number of minority and financially disadvantaged students enrolled in the School of Dentistry of the University of North Carolina at Chapel Hill. The General Assembly provided funding for five first-year scholarships beginning in 1978-79 and subsequent appropriations have increased to eight students, the number of first-year

scholarships. Each scholarship provides a stipend of $5,000 per year in addition to the costs of tuition, mandatory fees, and special equipment. Each scholarship is renewable provided the student has made satisfactory academic progress and continues to demonstrate financial need.

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Summary data on the Dental Scholarships program are shown below. Program Statistics:

Number of awards each year 31 32 32 32

Number of scholars who are Black 8 7 7 9

Number of scholars who are Native

American - 1 1 1

1993-94 Actual 1994-95 Actual 1995-96 Actual - Number of awards. 31 31 31 - Number of scholars who are Black. 12 12 8 - Number of scholars who are Native American. 0 0 0 PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS

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---0248 Incentive Scholarship and Grant Program for Native Americans P/PB 7399 University System Reserves & Other Accounting Funds PURPOSE: The General Assembly, in Section 17.3(b) of the 1994 Budget Act (Senate Bill 1505), required the Board of Governors to

merge the American Indian Student Legislative Grant Program and the Incentive Scholarship Program for Native Americans into a single entity. Accordingly, the Board of Governors established the Incentive Scholarship and Grant Program for Native Americans to provide opportunities for Native Americans who are residents of North Carolina to attend constituent institutions of the University of North Carolina under rules adopted by the Board of Governors.

The merged program, now in its second year is composed of two types of awards: (1) need-based with a maximum award of $700 per year ($5,000 for doctoral students; and (2) merit-based with a maximum award of $3,000 per year (undergraduate only).

1993-94 Actual 1994-95 Actual 1995-96 Actual - Expenditures (in thousands). $151 $433 $739 - Number of awards - undergraduate. 259 454 461 - Average award - undergraduate (FTE). $500 $700 $700 - Number of awards - graduate. 7 13 13 - Average award - graduate (FTE). $4,000 $5,000 $5,000 PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS

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---0249 Other Aid and Grants P/PB 7399 University System Reserves and Other Accounting Funds PURPOSE:

Need-Based Loan Program

The 1987 General Assembly transferred the responsibility for administration of an established student loan program from the North Carolina Board for Need-Based Student Loans and the Office of State Budget and Management to the State

Education Assistance Authority and the Board of Governors. As specified by statute (G.S. 209.18), the program is for “loans to students with demonstrated needs who are residents of North Carolina and who are accepted in an accredited degree-granting program or in an accredited program granting a diploma or an approved certificate, in any school, college or university, leading to graduation as physicians, dentists, optometrists, pharmacists, nurses, nurse

instructors, nurse anesthetists, medical technicians, social workers, psychologists or other health professionals, or leading to graduation as mathematicians or scientists.” Related appropriations action transferred the administrative component to the University of North Carolina - General Administration Operating Budget and the loan fund reserve to Related Educational Programs-Need-Based Loan Program.

Summary data on the Need-Based Loan Program are shown below. Program Statistics:

Number of applications 637 700 700 700

Number of awards 502 720 450 475

Average award $5,333 $6,629 $6,631 $6,493

*Commencing with the 1996-97 academic year, loan amounts for each degree category increased. This increase averaged approximately $1,300 per recipient.

Nurse Scholars Program

In 1989, the General Assembly established a merit-based scholarship program to encourage outstanding qualified North Carolina students to enroll in nurse education programs (G.S. 90-171.6). Similarly, nurse scholarships for master’s degree candidates (MSN) were established in 1992-93. Recipients are selected by the North Carolina Nurse Scholars Commission from among students admitted to schools of nursing based upon academic performance, demonstrated leadership, and interest in the practice of nursing in North Carolina. Recipients may be enrolled in North Carolina four-year public universities, community colleges, hospitals, and private colleges offering programs in nurse education approved by the Nurse Scholars Commission and the N.C. Board of Nursing.

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Summary data on the Nurse Scholars Program are shown below. Program Statistics:

BSN Awards 335 347 355 355

ADN/Diploma Awards 516 497 530 545

MSN Awards 36 50 62 66

Total 887 894 947 966

Nurse Education Scholarship Loan Program

In 1989, the General Assembly established a need-based program of financial assistance for North Carolina students enrolled in North Carolina community college, university, and private college programs offering Licensed Practical Nursing (LPN) or Registered Nurse (RN) education. Recipients are selected, based upon financial need and interest in the practice of nursing in North Carolina, by the financial aid officers of participating institutions from among students admitted to nurse education programs.

Annual awards range from $400 to $3,000 in LPN and associate degree RN programs, and from $400 to $5,000 in BSN programs. Awards are renewable each year, provided the student has made satisfactory academic progress. A recipient may repay the loan through one year of nursing service for each year of educational support advanced.

Summary data on the Nurse Education Scholarship Loan Program are shown below. Program Statistics:

1995-96 1996-97 1997-98 1998-99 Actual Estimated Projected Projected Number of Awards BSN 145 150 150 150 ADN 907 900 900 900 Total 1,052 1,050 1,050 1,050 Average Award BSN $1,584 $1,600 $1,600 $1,600 ADN 794 900 900 900

Strengthen Teacher Education - Private Colleges

This program is the result of a directive by the 1985 General Assembly to the Board of Governors to study the

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1993-94 Actual 1994-95 Actual 1995-96 Actual - Health, Science, Mathematics Loan Programs:

Number of applications. 1,310 1,093 637 - Number of awards. 532 530 494 - Average award. $4,936 $5,100 $5,333 - Nursing Education Scholarships Loan Programs:

Number of awards. 1,009 1,056 1,052 - Nurse Scholars Program:

Number of applications - undergraduate 1,406 1,221 1,041 - Number of awards - undergraduate. 884 883 851 - Number of applications - graduate 36 31 41 - Number of awards - graduate 31 24 36 - Principal Fellow Program:

Number of awards 0 38 105 PURPOSE DETAIL: 1997-98 1998-99 Description 1995-96 Actual 1996-97 Authorized Inc/Dec From Authorized Total Recommended Inc/Dec From Authorized Total Recommended REQUIREMENTS

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---Principal Fellows Program

In 1993, the Educational Leadership Task Force reported to the General Assembly on numerous issues related to the

educational preparation and qualifications of public school administrators in North Carolina. Several major initiatives were begun as a result of its report, one of these being the Principal Fellows Program (PFP). The PFP was based on recommendation No. 7, which was to “fund opportunities for full-time graduate work for prospective school leaders.” The resulting legislation was Senate Bill 27, Section 85(a) (G.S. 116-74.41-43), that established the PFP. A twelve-member commission was created and a program director authorized.

The Commission administers the Principal Fellows Program in collaboration with the State Education Assistance Authority (SEAA). The PFP provides up to a two-year scholarship loan to selected recipients in the amount of $20,000 per year, per recipient for completion of a full-time program in school administration. Recipients will be persons who may be eligible to be hired as school administrators in the public schools of the state. The commission will make an effort to identify and encourage women and minorities to apply for the PFP. The Principal Fellows Commission determines the selection criteria, methods of selection, and selects recipients to receive the scholarship loans. No more than 200 scholarship loans will be made in each year.

Once recipients of the scholarship loans have been named, the records are transferred to SEAA, which SEAA performs all administrative functions necessary to implement the program. The two-year scholarship loans are in the amount of $20,000 per year of full-time study. The recipient agrees to seek, obtain, and maintain employment as an assistant principal or principal in a public school or a United States government school in North Carolina for four years to satisfy this debt. Should the individual not complete the program nor serve in an eligible school administration position, the debt must be repaid in cash at an interest rate of 10% within a period of 12 years or less.

The Continuing Operations budget recommendations for Related Educational Programs follow. Summary data on the Principal Fellows Program are shown below.

Program Statistics: