Millennium Teacher Scholarship Loan Program (MTSLP) Loan Forgiveness FAQ

The Millennium Teacher Scholarship Loan Program was established by the North Carolina General Assembly in 2004 to provide financial assistance in the form of a forgivable loan to North Carolina high school seniors interested in preparing to teach in the State’s public schools who also enroll in certain Historically Black Colleges and Universities that do not have Teaching Fellows.

A recipient who graduates from the MTSLP program and secures a qualifying position may apply to repay the loan obligation through loan forgiveness. NCSEAA shall forgive one academic year of funding for each year of full-time qualified employment. A recipient must complete loan forgiveness within seven (7) years of graduation, excluding periods of approved deferments. All worksites must be approved by NCSEAA.

A recipient who does not graduate from the program will be required to repay the loan in cash, which includes a 10% interest rate beginning ninety (90) days after graduation or withdrawal from the program. Cash payments are due on the next billing cycle after the expiration of the ninety (90) day grace period. For additional instructions on cash repayment click on the Cash Repayment link.

How to apply for loan forgiveness.

To qualify for loan forgiveness, you must graduate from the MTSLP program, obtain licensure from the North Carolina Department of Public Instruction, and secure full-time employment as a full-time teacher in a North Carolina public school. To apply for loan forgiveness you must follow the steps out-lined below. You are responsible for submitting the appropriate forms to NCSEAA on time.

1. Submit verification of graduation to NCSEAA.
2. Notify NCSEAA of your intent to repay through loan forgiveness within 90 days of graduation.
3. Obtain teacher licensure from the North Carolina Department of Public Instruction.
4. Secure a full-time teaching position in a North Carolina public school.
5. Complete a Loan Forgiveness Application form and return it to NCSEAA for approval.

What is a qualified position? Am I required to work in a designated shortage area in North Carolina?

The purpose of the MTSLP loan is to increase the number of qualified educators available to the public schools in the State of North Carolina. Therefore, you must teach full-time in a public school in North Carolina at a worksite approved by NCSEAA.

What forms do I submit to NCSEAA?

Once you are licensed by the North Carolina Department of Public Instruction and have obtained employment in a qualifying position, you must submit a Loan Forgiveness Application form to NCSEAA for approval.

How long must I work to fulfill my loan forgiveness obligation?

You must work one year as a full-time teacher in a North Carolina public school for each year of funding received through the MTSLP program. Credit for loan forgiveness is approved annually by NCSEAA at the end of each year of employment. You must complete your loan forgiveness obligation within seven (7) years of graduation from the MTSLP program.

What if I change my work site?

If there is a worksite change before you complete your loan obligation, you must seek approval from NCSEAA prior to the change to ensure that the new site qualifies for loan forgiveness. Should you have a break in employment prior to completing your obligation, you should notify NCSEAA immediately of the status change.

What if I have a break in employment?

If you have a break in employment prior to the completion of your obligation to the State of North Carolina, you may be eligible to postpone or defer payments. To apply for deferment, you must submit a Postponement/Deferment Form to NCSEAA for approval. Eligible deferments include: personal illness, Family Medical Leave, full-time student enrollment, and unemployment.

What happens if I cannot fulfill my loan forgiveness obligation?

You made a commitment to repay this loan when you signed the promissory note accepting educational funding from NCSEAA. If you cannot repay the loan through loan forgiveness, then you must repay it in cash within ten (10) years of graduation or withdrawal from the MTSLP program. For additional instructions on cash repayment, click on the Cash Repayment link.

Whom should I contact if I have additional questions concerning loan forgiveness?

Additional information is available in the MTSLP Rules and Regulations or you may contact Repayment Services between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday.