Enacts new Article 35, Loan Repayment Assistance Program for Teachers, in GS Chapter 116.

Directs the State Education Assistance Authority (Authority) to administer the Loan Repayment Assistance Program for Teachers (Program) in accordance with new Article 35 and adopt any necessary rules, including adopting an application process, eligibility guidelines, a process for certifying an applicant's employment status, and reevaluating eligibility on an annual basis.

Allows any eligible teacher to apply to the Authority for a repayment assistance loan under the Program to repay all or a portion of the teacher's eligible debt by receiving repayment assistance loans for up to four years for eligible debt accrued toward an undergraduate degree.  Defines eligible teacher as a classroom teacher currently licensed in North Carolina, employed full-time in a local school administrative unit or charter school established under Article 14A of GS Chapter 115C.  Defines eligible debt as the outstanding principal, interest, and related fees from loans obtained for undergraduate or graduate educational expenses made by government or commercial lending institutions or educational institutions but does not include loans made by a private individual or family member.  Requires that the eligible teacher must have been employed for at least two years, but no longer than eight years, in any local school administrative unit or charter school in North Carolina before applying for the initial year of repayment assistance.  Requires the eligible teacher to include in the teacher's application for repayment assistance a signed statement of intent to remain an eligible teacher for a period of at least four years following each year the eligible teacher receives a repayment assistance loan, and agree to repay in full any repayment assistance loans disbursed to the eligible teacher if the teacher fails to complete the repayment assistance period due to voluntarily leaving the employment that provided the basis for eligibility under the Program and fails to secure other qualifying employment.  Bars eligibility for a repayment assistance loan if the applicant is in default on any obligation to a government or commercial lending institution or educational institution until those financial obligations are satisfied.  Provides that the Authority may waive ineligibility for this reason at its sole discretion.

Requires the Authority to annually provide repayment assistance loans to eligible teachers from monies available in the Teachers' Loan Assistance Repayment Fund, and to establish eligibility criteria for the amount of the repayment assistance loan for each eligible teacher based upon financial need, including an eligible teacher's salary, personal resources, and eligible debt, but a repayment assistance loan under the Program cannot exceed $10,000 per calendar year. Requires all repayment assistance loans to be evidenced by promissory notes made payable to the Authority. Directs the Authority to forgive the repayment assistance loan in the amount of each annual disbursement once the eligible teacher remains in employment as an eligible teacher for four years following the receipt of funds. Requires an eligible teacher who received a repayment assistance loan in a previous year to provide documentation to the Authority that the funds in the amount of the loan were submitted to the government or commercial lending institutions or educational institutions for repayment of the teacher's eligible debt.  Requires an eligible teacher to notify the Authority if the teacher's employment that provided the basis for eligibility under the Program terminates or changes, voluntarily or involuntarily, before exiting the repayment assistance period. Provides that an eligible teacher who voluntarily leaves the employment upon which eligibility is based and does not become employed in another position as an eligible teacher will be required to repay in full any funds that were paid to the teacher, with interest accruing at the annualized rate applicable to the eligible debt being repaid, if not yet forgiven under subsection (b) of new GS 116-287 at the time of termination. Establishes that an eligible teacher who cannot fulfill the employment requirements due to death or disability, taking a leave of absence, or being involuntarily terminated can no longer be eligible for a repayment assistance loan under the Program but is not responsible for repaying the outstanding amount of loans previously disbursed to the eligible teacher during the repayment assistance period.

Establishes the Teachers' Loan Assistance Repayment Fund (Fund) to be administered by the Authority, to be used only for repayment assistance loans made under GS 116-288, and the administrative costs of the Authority.  Requires that all funds appropriated to or otherwise received by the Authority to provide repayment assistance loans through the Program, all funds received as repayment of loans, and all interest earned on these funds to be placed in the Fund.  Allows the Authority to use up to 2% of the funds appropriated to the Fund each fiscal year to cover administrative costs for repayment assistance loans made during that fiscal year.

Requires the Authority to report no later than December 1, 2016, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the Fund and repayment assistance loans awarded from the Fund.

Appropriates $38.5 million from the Education Lottery Fund to the UNC Board of Governors for the 2016-17 fiscal year to be allocated to the Fund to implement the provisions of this act.  Allows the State Education Assistance Authority to use up to 2% of the funds appropriated for the 2016-17 fiscal year for the administration of the Program.

Effective July 1, 2016.