NEWS

Photo note: See below to download a photo of CCB’s Furr.

By CHRYS BULLARD
Office of Development

CHAPEL HILL -- The Central Carolina Bank Foundation based in Durham has become the first foundation to contribute to the University of North Carolina at Chapel Hill’s Carolina Covenant, a new groundbreaking initiative to make a Chapel Hill education possible debt-free for low-income students.

The $125,000 gift is the largest received to date to support the Carolina Covenant, which was a first for a major U.S. public university when it was announced last fall to emphasize UNC’s traditional commitment to access for those who are academically qualified. Since UNC’s announcement, the University of Virginia and Harvard University are among several major campuses across the country creating similar programs.

"This leadership gift from CCB sets a standard for others to follow," Chancellor James Moeser said. "It reflects the power of corporations to make a difference in the lives of the people they serve. We thank CCB for the generous precedent this gift has set to help future Carolina students."

Starting next fall, the Carolina Covenant will enable qualified low-income students to come to Carolina and graduate debt-free if they work on campus 10 to 12 hours weekly in a federal work-study job instead of borrowing. UNC will meet the rest of those students’ needs through a combination of private gifts such as CCB’s, as well as federal, state, university and other privately funded grants and scholarships.

"Central Carolina Bank is a Tar Heel born bank making an investment in a Tar Heel bred covenant," said Richard Furr, president of CCB, chief operating officer for National Commerce Financial and 1971 Carolina graduate. "We are dedicated to building North Carolina’s communities one person at a time. Our investment in the Carolina Covenant will pay generous dividends in students who attend Carolina and enrich the cities and towns to which they return."

The gift from CCB counts toward the university’s Carolina First Campaign, a comprehensive, multi-year private fund-raising campaign with a goal of $1.8 billion to support Carolina’s vision of becoming the nation’s leading public university.

UNC’s Carolina Covenant comes at time when the cost of college is rising steadily for low-income families. Nationally, the average student loan debt has nearly doubled to $17,000 over the past decade. About one-fifth of the full-time students work 35 or more hours a week.

As a result, many low-income youth abandon plans for college — or drop out — because the burden of that debt and workload is too much. The patterns are even stronger among minority students. Research also shows that low-income families need more information — and greater predictability — about the availability of financial aid.

The Carolina Covenant responds to such concerns. The university already meets 100 percent of the documented financial need of all students who apply for aid on time, but about a third of that need is being met through loans. To fund the Carolina Covenant, the university will make reallocations of existing funds in the Office of Scholarships and Student Aid and pledge growing private gifts dedicated to low-income students.

Eligible students must be at or below 150 percent of the federal poverty level. Under current federal poverty levels, a family of four with an annual income of about $28,000 would qualify. For a single parent with one child, the eligible income would be about $18,000.

The state of the economy and the rising number of families living in poverty demonstrate the need for the Carolina Covenant. One in four North Carolina children now live in poverty. According to the North Carolina Children’s Index of 2002, more than one-third of North Carolina’s families made less than $28,000 a year in 1999, the last year data were available.

In fall 2003, 281 of Carolina’s freshmen, or 8 percent of the freshman class, came from low-income families. Most of those — 89 percent — were from North Carolina. More than half were minorities. Federal and state financial aid covered about 60 percent of the college costs for those students.

Founded in 1903 in Durham, CCB operates nearly 280 branches in North and South Carolina, and is one of three primary bank brands owned by National Commerce Financial Corp. CCB’s heritage of service and leadership includes support of education, health and social welfare and in the arts. Recent examples of CCB’s sponsorships include a major gift to fund the George Watts Hill Pavilion for the Arts, in Durham, and underwriting a civic project to develop an urban park next to the CCB office in downtown Durham.

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Photo URL: http://www.unc.edu/news/pics/alum/furr_richard.jpg.

News Services contact: Mike McFarland, (919) 962-8593, mike_mcfarland@unc.edu

CCB contact: Eileen Sarro, (901) 523-3605, eileen.saro@ncfcorp.com