HB 37: "An Act relating to reimbursement of certain student loans; and providing for an effective date."
00 HOUSE BILL NO. 37 01 "An Act relating to reimbursement of certain student loans; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.43 is amended by adding a new section to read: 05 Sec. 14.43.142. Reimbursement of borrowers employed as public school 06 teachers. (a) The state shall reimburse a borrower who has received an 07 undergraduate degree from a college or university, is employed at a public elementary 08 or secondary school within the state as a teacher, and has complied with 09 AS 14.43.120. The amount to be reimbursed under this section is the portion of the 10 payments made by the borrower for a loan made under AS 14.43.110 equal to the 11 following percentages of the total loan received plus interest, up to a total of 50 12 percent of the total loan plus interest: 13 (1) one year employment, 10 percent; 14 (2) two years employment, an additional 10 percent;
01 (3) three years employment, an additional 10 percent; 02 (4) four years employment, an additional 10 percent; 03 (5) five years employment, an additional 10 percent. 04 (b) The loan amount reimbursed to the borrower may not exceed the loan 05 amount paid by the borrower to the state. Notwithstanding any other provision of law, 06 while a person's loan is being reimbursed by the state under (a) of this section, that 07 person may not receive forgiveness of a loan under any other provision of this chapter. 08 (c) Reimbursement under (a) of this section is subject to appropriation by the 09 legislature. Money obtained from the sale of bonds by the Student Loan Corporation 10 under AS 14.42.220 may not be appropriated for the payment of reimbursement of 11 loans. 12 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 APPLICABILITY. This Act applies to loans entered into on or after July 1, 2001, and 15 to a person's employment that occurs on or after July 1, 2001. 16 * Sec. 3. This Act takes effect July 1, 2001.