SB 61: "An Act relating to forgiveness of certain student loans; and providing for an effective date."
00 SENATE BILL NO. 61 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 as 06 public school teachers. (a) The state shall forgive a loan made to a borrower who 07 has received an undergraduate or graduate degree from a college or university, is 08 employed at a public elementary or secondary school within the state as a teacher, and 09 has complied with AS 14.43.120. The amount to be forgiven under this section is the 10 portion of the payments to be made by the borrower for a loan made under 11 AS 14.43.090 equal to the following percentages of the total loan received plus 12 interest, up to a total of 50 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 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 * 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.