It is very likely the carbon brushes that contact the motor to transfer electricity to the windings. those tend to crack and get stuck or wear out. They need to be moving in and out freely and have spring pressure pushing them in towards the motor. you can get new ones cheap at ereplacementparts.com if they sell them.
http://manuals.harborfreight.com/manuals/94000-94999/94436.pdf
The link above is for the manual. There is a phone number at the bottom of some of the pages for technical assistance. Harbor Freight tools are sometimes difficult to get parts for. Either that or you can take the drill to a small tools repair shop and see if they can match the brushes up.