00                             HOUSE BILL NO. 54                                                                          
01 "An Act relating to reimbursement of student loans; and providing for an effective                                      
02 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.  (a)  If a borrower has                                       
06       graduated from a career education program or received an undergraduate degree from                                
07       a college or university, is employed within the state, and has complied with                                      
08       AS 14.43.120, a portion of the payments made by the borrower for a loan made under                                
09       AS 14.43.110 shall be reimbursed to the borrower by the state equal to the following                              
10       percentages of the total loan received plus interest, up to a total of 50 percent of the                          
11       total loan plus interest:                                                                                         
12                 (1)  one year employment, 10 percent;                                                                   
13                 (2)  two years employment, an additional 10 percent;                                                    
14                 (3)  three years employment, an additional 10 percent;                                                  

01                 (4)  four years employment, an additional 10 percent;                                                   
02                 (5)  five years employment, an additional 10 percent.                                                   
03            (b)  The loan amount reimbursed to the borrower may not exceed the loan                                      
04       amount paid by the borrower to the state.  Notwithstanding any other provision of law,                            
05       while a person's loan is being reimbursed by the state under (a) of this section, that                            
06       person may not receive forgiveness of a loan under any other provision of this chapter.                           
07            (c)  Reimbursement under (a) of this section is subject to appropriation by the                              
08       legislature.                                                                                                      
09    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
10 read:                                                                                                                   
11       APPLICABILITY.  This Act applies to loans entered into on or after July 1, 2001, and                              
12 to a person's employment that occurs on or after July 1, 2001.                                                          
13    * Sec. 3.  This Act takes effect July 1, 2001.