00                            HOUSE BILL NO. 449                                                                          
01 "An Act relating to forgiveness of certain 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.  Loan forgiveness of loans made to borrowers employed in                                   
06       health care.  (a)  The state shall forgive a loan made to a borrower who has received                           
07       an undergraduate or graduate degree from a college or university, is employed within                              
08       the state as a health care practitioner, and has complied with AS 14.43.120.  The                                 
09       amount to be forgiven under this section is the portion of the payments to be made by                             
10       the borrower for a loan made under AS 14.43.090 equal to the following percentages                                
11       of the total loan received plus interest, up to a total of 50 percent of the total loan plus                      
12       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 amount of loan forgiveness received by the borrower under this                                      
05       section may not exceed the loan amount paid by the borrower to the state.                                         
06       Notwithstanding any other provision of law, while a person's loan is being forgiven by                            
07       the state under (a) of this section, that person may not receive forgiveness of a loan                            
08       under any other provision of this chapter.                                                                        
09            (c)  In this section, "health care practitioner" means a person licensed as a                                
10       registered nurse or a licensed practical nurse under AS 08.68; licensed as a pharmacist                           
11       under AS 08.80; or employed to provide medical services to an individual as a                                     
12       radiology technician or laboratory technician.                                                                    
13    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
14 read:                                                                                                                   
15       APPLICABILITY.  This Act applies to loans entered into on or after July 1, 2002, and                              
16 to a person's employment that occurs on or after July 1, 2002.                                                          
17    * Sec. 3.  This Act takes effect July 1, 2002.