§ 116-201. Purpose and definitions.
Article 23.
State Education Assistance Authority.
§ 116‑201. Purpose and definitions.
(a) The purpose of this Article is to authorize a system offinancial assistance, consisting of grants, loans, work‑study or otheremployment, and other aids, to assist qualified students to enable them toobtain an education beyond the high school level by attending public or privateeducational institutions. The General Assembly has found and hereby declaresthat it is in the public interest and essential to the welfare and well‑beingof the State and to the proper growth and development of the State to fosterand provide financial assistance to properly qualified students in order tohelp them to obtain an education beyond the high school level. The GeneralAssembly has further found that many students who are fully qualified to enrollin appropriate educational institutions for furthering their education beyondthe high school level lack the financial means and are unable, withoutfinancial assistance as authorized under this Article, to pay the cost of sucheducation, with a consequent irreparable loss to the State of valuable talentsvital to its welfare. The General Assembly has determined that theestablishment of a proper system of financial assistance for such objectivepurpose serves a public purpose and is fully consistent with the longestablished policy of the State to encourage, promote and assist education toenhance economic development.
(b) As used in this Article, the following terms shall have thefollowing meanings unless the context indicates a contrary intent:
(1) "Article" or "this Article" means thisArticle 23 of the General Statutes of North Carolina, presently comprising G.S.116‑201 through 116‑209.24;
(2) "Authority" means the State Education AssistanceAuthority created by this Article or, if the Authority is abolished, the board,body, commission or agency succeeding to its principal functions, or on whomthe powers given by this Article to the Authority shall be conferred by law;
(3) "Bond resolution" or "resolution" whenused in relation to the issuance of bonds is deemed to mean either anyresolution authorizing the issuance of bonds or any trust agreement or otherinstrument securing any bonds;
(4) "Bonds" or "revenue bonds" means theobligations authorized to be issued by the Authority under this Article, whichmay consist of revenue bonds, revenue refunding bonds, bond anticipation notesand other notes and obligations, evidencing the Authority's obligation to repayborrowed money from revenues, funds and other money pledged or made availabletherefor by the Authority under this Article;
(5) "Eligible institution," with respect to studentloans, has the same meaning as the term has in section 1085 of Title 20 of theUnited States Code;
(6) "Eligible institution," with respect to grants andwork‑study programs, includes the constituent institutions of TheUniversity of North Carolina, all state‑supported institutions organizedand administered pursuant to Chapter 115A of the General Statutes and allprivate institutions as defined in subdivision (8) of this subsection;
(7) "Student obligations" means student loan notes andother debt obligations evidencing loans to students which the Authority maymake, take, acquire, buy, sell, endorse or guarantee under the provisions ofthis Article, and may include any direct or indirect interest in the whole orany part of any such notes or obligations;
(8) "Private institution" means an institution otherthan a seminary, Bible school, Bible college or similar religious institutionin this State that is not owned or operated by the State or any agency orpolitical subdivision thereof, or by any combination thereof, that offers post‑highschool education and is accredited by the Southern Association of Colleges andSchools or, in the case of institutions that are not eligible to be consideredfor accreditation, accredited in those categories and by those nationallyrecognized accrediting agencies that the Authority may designate;
(9) "Reserve Trust Fund" means the trust fundauthorized under G.S. 116‑209 of this Article;
(10) "State Education Assistance Authority Loan Fund"means the trust fund so designated and authorized by G.S. 116‑209.3 ofthis Article;
(11) "Student," with respect to scholarships, grants, andwork‑study programs, means a resident of the State, in accordance withdefinitions of residency that may from time to time be prescribed by the Boardof Governors of The University of North Carolina and published in the residencymanual of the Board, who, under regulations adopted by the Authority, hasenrolled or will enroll in an eligible institution for the purpose of pursuinghis education beyond the high school level, who is making suitable progress inhis education in accordance with standards acceptable to the Authority and, forthe purposes of G.S. 116‑209.19, who has not received a bachelor'sdegree, or qualified for it and who is otherwise classified as an undergraduateunder those regulations that the Authority may promulgate;
(12) "Student," with respect to loans, means a residentof the State as defined in (11) of this subsection and an eligible student asdefined in 20 U.S.C. 1071 who is enrolled in an eligible institution located inNorth Carolina; and
(13) "Student loans" means loans to students defined insubdivisions (11) and (12) of this subsection to aid them in pursuing theireducation beyond the high school level. (1965, c. 1180, s. 1; 1971, c. 392, s. 1; c. 1244, s. 14; 1979, c. 165,s. 1; 1987, c. 227, ss. 1, 2.)