CSHB 193(FIN): "An Act relating to financial assistance for students attending certain graduate education programs; and providing for an effective date."
00CS FOR HOUSE BILL NO. 193(FIN) 01 "An Act relating to financial assistance for students attending certain graduate 02 education programs; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.42.030(d) is amended to read: 05 (d) The commission may enter into agreements with government or 06 postsecondary education officials of this state or other states to provide postsecondary 07 educational services and programs to Alaska residents pursuing a medical education. 08 An agreement with another state must be limited to services and programs that are 09 unavailable in Alaska. The commission shall require a person participating in a 10 medical education program offered under this subsection to agree to the 11 repayment condition imposed under AS 14.44.040. 12 * Sec. 2. AS 14.44 is amended by adding a new section to article 1 to read: 13 Sec. 14.44.040. Repayment condition for medical education program 14 participants. (a) Except as provided under (b) and (c) of this section, as a condition
01 of eligibility for receiving financial aid under AS 14.44.010 - 14.44.040, a program 02 participant shall agree to receive a portion of the financial aid as a loan, to be repaid 03 to the state. The portion of the financial aid received as a loan to be repaid to the 04 state is equal to the difference between resident and nonresident tuition at the 05 contracting postsecondary institution plus interest and does include costs for the first 06 year of the program delivered at the University of Alaska at Anchorage. The rate of 07 interest is equal to the 12th Federal Reserve District discount rate in effect on March 08 1 of the year in which the financial aid is received plus two percentage points. Interest 09 imposed under this subsection begins to accrue when the person terminates studies 10 under the graduate education program. Accrued interest shall be added to the principal 11 balance of the loan at the time the borrower is obligated to commence repayment and 12 at the end of a deferment period. 13 (b) If a person required to repay a loan under (a) of this section has graduated 14 from the graduate education program for which the loan was received and is employed 15 within the state in the field for which the person received the loan, including 16 employment within the state in a medical residency program, the loan shall be forgiven 17 and considered a grant in an amount equal to the following percentages plus accrued 18 interest: 19 (1) one year employment, 20 percent; 20 (2) two years employment, an additional 20 percent; 21 (3) three years employment, an additional 20 percent; 22 (4) four years employment, an additional 20 percent; 23 (5) five years employment, an additional 20 percent. 24 (c) Repayment under (a) of this section is required to begin not later than six 25 months after the person terminates studies under the graduate education program, 26 except that a person who qualifies for forgiveness under (b) of this section is not 27 required to begin repayment to the state as long as the person remains qualified for 28 forgiveness under (b) of this section. A person employed in a medical residency 29 program is not required to begin repayment to the state as long as the person remains 30 in the medical residency program. Forgiveness under (b) of this section only applies 31 to that portion of the loan that has not been repaid to the state.
01 (d) If a person meets the qualifying conditions under this section for 02 forgiveness after beginning repayment, the repayment requirement is deferred in the 03 month following qualification for forgiveness. Repayment shall be deferred as long 04 as the person remains qualified or until the balance of the loan has been fully forgiven. 05 If the person is delinquent or in default on the person's regular repayment schedule, 06 repayment shall continue until the person is current in payments. A period of time 07 during which the person is making past due payments may not be considered as a 08 qualifying period for the purpose of calculating forgiveness benefits. 09 (e) For purposes of qualifying for forgiveness under this section, a person must 10 be a full-time employee for a period of at least six months in order to qualify for a 11 prorated forgiveness benefit. In this subsection, "full-time employee" does not include 12 seasonal or temporary employment. 13 (f) A person's obligation to repay the loan under this section ends if the person 14 dies and is deferred during any period in which a physician certifies that the person 15 is totally disabled. 16 (g) This section does not apply to loans received by a person under AS 14.43. 17 (h) The commission may adopt regulations to implement this section. Except 18 as provided in this section, regulations adopted under this subsection may not exempt 19 or defer a repayment required under this section. 20 * Sec. 3. APPLICABILITY. This Act applies to a person who begins a graduate education 21 program and who receives financial aid from the state under AS 14.44.010 - 14.44.040, or for 22 a medical education program under AS 14.42.030(d), on or after July 1, 1998. 23 * Sec. 4. This Act takes effect July 1, 1998.