I don't have first hand experience but my husband is in the Phd program at UNC and went through this. His program asked that everyone apply for residency after their first year. He was told that as long as it appears that you are actually settling here (register you car and get an NC license when you move, change your mail, register to vote etc.) applying for residency is no problem. Also if you are married/have a family pretty much makes you a shoe-in. However, we still jumped all the hoops in our first couple weeks living here -- just to be on the safe side. I am not sure if there is a difference since that is a 5 year program and this is a 2 year program. SILS might have more information about how/if this even works.