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SB 155: "An Act relating to the Alaska Commission on Postsecondary Education and the Alaska Student Loan Corporation; relating to student financial aid programs and the financing of those programs; establishing the Alaska Advantage Loan Program and the Alaska Supplemental Education Loan Program; increasing the bonding authorization of the Alaska Student Loan Corporation; providing for liens resulting from a default under AS 14.43 or AS 14.44; relating to the duties of the recorder regarding those liens; relating to defaults under the Western Regional Higher Education Compact; relating to the prohibition on discrimination regarding programs under AS 14.43; relating to fees for the review of certain postsecondary institutions; making conforming amendments; and providing for an effective date."

00                              SENATE BILL NO. 155                                                                        
01 "An Act relating to the Alaska Commission on Postsecondary Education and the Alaska                                     
02 Student Loan Corporation; relating to student financial aid programs and the financing                                  
03 of those programs; establishing the Alaska Advantage Loan Program and the Alaska                                        
04 Supplemental Education Loan Program; increasing the bonding authorization of the                                        
05 Alaska Student Loan Corporation; providing for liens resulting from a default under AS                                  
06 14.43 or AS 14.44; relating to the duties of the recorder regarding those liens; relating to                            
07 defaults under the Western Regional Higher Education Compact; relating to the                                           
08 prohibition on discrimination regarding programs under AS 14.43; relating to fees for                                   
09 the review of certain postsecondary institutions; making conforming amendments; and                                     
10 providing for an effective date."                                                                                       
11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
12    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
01 to read:                                                                                                                
02       FINDINGS.  The legislature finds and declares that                                                                
03            (1)  it is essential for the ongoing economic health and well-being of the state                             
04 and its citizens and families for the state to develop coordinated programs to more efficiently                         
05 and fully use federal and state financial resources in                                                                  
06                 (A)  making postsecondary educational opportunities more accessible                                     
07       to its citizens; and                                                                                              
08                 (B)  supporting recruitment and retention of students to support the                                    
09       state's postsecondary education system;                                                                           
10                 (C)  creating statewide comprehensive planning for postsecondary                                        
11       education, including postsecondary educational institutions and related agencies; and                             
12                 (D)  creating a centralized information and financial aid center to                                     
13       provide a "one-stop" postsecondary educational information and financial aid services                             
14       center;                                                                                                           
15            (2)  it is essential that this and future generations of Alaskans be given the                               
16 fullest opportunity to access and benefit from postsecondary education, and that the state as a                         
17 whole be enabled to provide and reap the benefits of a well-trained and educated citizenry;                             
18            (3)  citizens of this state and students attending postsecondary institutions in                             
19 this state, and their parents and others responsible for paying those postsecondary education                           
20 expenses, should be provided with financial assistance at a lower cost in order to provide for                          
21 those expenses;                                                                                                         
22            (4)  institutions of postsecondary education in the state should be provided                                 
23 with financial aid tools to assist in the admission and retention of qualified students; and                            
24            (5)  benefits of the postsecondary programs, including the changes made by                                   
25 this Act, accrue to the Alaska public as a whole.                                                                       
26    * Sec. 2.  AS 14.42.030(a) is amended to read:                                                                     
27            (a)  The commission has the following functions, advisory to the governing                                   
28       boards of institutions of public and private higher education in this state [ALASKA],                         
29       to the governor, the legislature, and to other appropriate state and federal officials:                           
30                 (1)  coordinate the development of comprehensive plans for the orderly,                                 
31       systematic growth of public and private postsecondary education, including                                        
01       community colleges and occupational education, in the state and submit                                            
02       recommendations on the need for, and location of, new facilities and programs;                                  
03                 (2)  [ADVISE AS TO THE FUNCTIONS AND PURPOSES OF THE                                                    
04       COLLEGES AND UNIVERSITIES, BOTH PUBLIC AND PRIVATE, IN THE                                                        
05       STATE AND COUNSEL AS TO THE PROGRAMS APPROPRIATE TO EACH;                                                         
06                 (3)  REVIEW THE ANNUAL BUDGETS AND CAPITAL OUTLAY                                                       
07       REQUESTS OF THE UNIVERSITY OF ALASKA AND OF EACH OF THE                                                           
08       PRIVATE COLLEGES AND UNIVERSITIES IN THE STATE, AND PRESENT                                                       
09       COMMENTS ON THE GENERAL LEVEL OF SUPPORT SOUGHT;                                                                  
10                 (4)]  review and advise as to the efficiency and effectiveness                                      
11       [WORKING] of all consortia and other cooperative agreements between the                                           
12       institutions of public and private higher education in the state that are parties to                          
13       them[;                                                                                                          
14                 (5)  REPEALED].                                                                                         
15    * Sec. 3.  AS 14.42.030(b) is repealed and reenacted to read:                                                      
16            (b)  The commission shall                                                                                    
17                 (1)  administer the financial aid and interstate education compact                                      
18       programs under AS 14.43.091 - 14.43.920 and 14.43.990, and AS 14.44;                                              
19                 (2)  administer the provisions of AS 14.48 concerning regulation of                                     
20       postsecondary educational institutions;                                                                           
21                 (3)  resolve disputes under a consortium or other cooperative agreement                                 
22       between institutions of public and private higher education in the state; and                                     
23                 (4)  serve as the state agency required under 20 U.S.C. 1001 - 1155.                                    
24    * Sec. 4.  AS 14.42.030 is amended by adding a new subsection to read:                                             
25            (e)  The commission may                                                                                      
26                 (1)  adopt regulations under AS 44.62 (Administrative Procedure Act)                                    
27       to                                                                                                                
28                      (A)  carry out the purposes of                                                                     
29                           (i)  AS 14.43.091 - 14.43.750, 14.43.990, AS 14.44, and                                       
30                 AS 14.48; and                                                                                           
31                           (ii)  AS 14.43.910 and 14.43.920 as they relate to the                                        
01                 purposes of AS 14.43.091 - 14.43.750, 14.43.990, AS 14.44, and                                          
02                 AS 14.48; and                                                                                           
03                      (B)  ensure compliance with the requirements imposed by state                                      
04            and federal statutes and regulations governing the guaranty, insurance,                                      
05            purchase, or other dealings in eligible loans by federal agencies,                                           
06            instrumentalities, or corporations;                                                                          
07                 (2)  delegate to the executive director of the commission or a                                          
08       subcommittee of the commission any duty imposed on or power granted to the                                        
09       commission by AS 14.42, AS 14.43, AS 14.44, or AS 14.48, except its power to adopt                                
10       regulations and its duty to consider appeals under AS 14.43.100(b) and AS 14.48.120;                              
11                 (3)  establish task forces, committees, or subcommittees, not                                           
12       necessarily consisting of commission members, to advise and assist the commission in                              
13       carrying out its functions;                                                                                       
14                 (4)  contract with or use existing institutions of postsecondary                                        
15       education or other individuals or organizations to make studies, conduct surveys,                                 
16       submit recommendations, or otherwise contribute to the work of the commission;                                    
17                 (5)  establish fees for the review of an out-of-state institution that is                               
18                      (A)  requesting approval for participation in the programs under                                   
19            AS 14.43.091 - 14.43.750 and 14.43.990, and AS 14.44; and                                                    
20                      (B)  not accredited by a national or regional accreditation                                        
21            association recognized by the Council on Higher Education Accreditation; and                                 
22                 (6)  collect all fees and costs incurred in collection of the amount owed                               
23       on a loan or repayment obligation if the loan or repayment obligation becomes                                     
24       delinquent or in default; in this paragraph, fees and costs include attorney fees, court                          
25       costs, and collection fees charged by a collection agency.                                                        
26    * Sec. 5.  AS 14.42.055 is amended to read:                                                                        
27            Sec. 14.42.055.  Consortia.  All parties that are signatory to a consortium                                
28       agreement between the University of Alaska and a private university or college must                               
29       abide by a decision rendered by the commission when disagreements arise or exist                                  
30       between the parties.  For purposes of this section and AS 14.42.030                                           
31       [AS 14.42.030(b)(6)], "consortium" means a cooperative arrangement between two or                                 
01       more public or private institutions of postsecondary [HIGHER] education specified in                          
02       agreements or memoranda of understanding to permit sharing of facilities,                                         
03       instructional opportunities, and other educational services in such a way that the                                
04       integrity of each institution party to the consortium is preserved while at the same time                         
05       the institutions cooperatively plan the academic calendar, scheduling, use of personnel                           
06       and facilities, and educational programs and offerings to the maximum advantage of                                
07       the students and faculties of the institutions that are parties to a consortium.                                  
08    * Sec. 6.  AS 14.42.110 is amended to read:                                                                        
09            Sec. 14.42.110.  Purpose of corporation.  The purpose of the corporation is to                           
10       improve postsecondary [HIGHER] educational opportunities of eligible students                             
11       through the                                                                                                   
12                 (1)  centralized administration of financial aid and loan programs;                                 
13                 (2)  coordination of the state's administrative effort in student                                   
14       financial aid and loan programs with those of other government authorities; and                               
15                 (3)  support of the administration by the federal government, other                                 
16       states, and institutions of postsecondary education of the federal guaranteed                                 
17       student loan program [FOR RESIDENTS OF THE STATE IN ACCORDANCE                                                
18       WITH THIS CHAPTER].                                                                                               
19    * Sec. 7.  AS 14.42.200 is amended to read:                                                                        
20            Sec. 14.42.200.  General powers.  In addition to other powers granted in this                            
21       chapter, the corporation may                                                                                      
22                 (1)  sue and be sued in its own name;                                                                   
23                 (2)  adopt an official seal;                                                                            
24                 (3)  adopt regulations under AS 44.62 (Administrative Procedure Act)                                    
25       to carry out the purposes of this chapter;                                                                        
26                 (4)  make and execute agreements, contracts, and other instruments                                      
27       necessary or convenient in the exercise of the powers and functions of the corporation,                           
28       including contracts with a person or governmental entity;                                                         
29                 (5)  receive, take, hold, and administer, on behalf of the                                          
30       corporation and for any of its purposes, any appropriation, gift, grant, bequest,                             
31       devise, or donation of real property or personal property if that obligation of the                           
01       corporation is not a debt of the state; in this paragraph, "property" includes                                
02                      (A)  money; and                                                                                
03                      (B)  life estates, leases, or other interests in property                                      
04            [RECEIVE, ADMINISTER, AND COMPLY WITH THE CONDITIONS                                                         
05            AND REQUIREMENTS RESPECTING ANY APPROPRIATION, GIFT,                                                         
06            GRANT, OR DONATION OF PROPERTY OR MONEY];                                                                    
07                 (6)  borrow money as provided in this chapter to carry out its corporate                                
08       purposes and issue its obligations as evidence of the borrowing;                                                  
09                 (7)  include in a borrowing the amounts to pay financing charges,                                       
10       interest on the obligations for a period not exceeding one year after the date on which                           
11       the corporation estimates funds will otherwise be available to pay the interest,                                  
12       consultant, advisory, and legal fees, and other expenses necessary or incident to the                             
13       borrowing;                                                                                                        
14                 (8)  invest or reinvest, subject to its contracts with noteholders and                                  
15       bondholders, money held by the corporation as set out in AS 37.10.071;                                            
16                 (9)  set and collect interest, fees, and charges in connection with                                 
17       education loans or repayment obligations held by the corporation and its                                      
18       servicing agents; in this paragraph, "charges" includes costs of financing by the                             
19       corporation, service charges, insurance premiums, and other costs incurred by                                 
20       the corporation in carrying out its corporate purposes [COLLECT FROM A                                        
21       BORROWER AMOUNTS OWED WITH RESPECT TO A STUDENT LOAN THE                                                          
22       CORPORATION HAS PURCHASED];                                                                                       
23                 (10)  gather information on postsecondary education financial                                       
24       resources [STUDENT LOANS] available to residents of this state [ALASKA] and                               
25       disseminate the information to reasonably assure that qualified residents are aware of                            
26       those financial resources [AVAILABLE TO THOSE ATTENDING OR DESIRING                                           
27       TO ATTEND INSTITUTIONS FOR WHICH LOANS MAY BE MADE UNDER                                                          
28       AS 14.43.090 - 14.43.325, 14.43.600 - 14.43.700, OR 14.43.710 - 14.43.750];                                       
29                 (11)  service education [STUDENT] loans and repayment                                           
30       obligations held by the corporation;                                                                          
31                 (12)  purchase or participate in the purchase of education [STUDENT]                                
01       loans;                                                                                                            
02                 (13)  contract in advance for the purchase or sale of education                                     
03       [STUDENT] loans;                                                                                                  
04                 (14)  sell or participate in the sale, either public or private and on terms                            
05       authorized by the board, of education [STUDENT] loans to the Student Loan                                     
06       Marketing Association or to other purchasers;                                                                     
07                 (15)  collect and pay reasonable fees and charges in connection with the                                
08       purchase, sale, and servicing of education [STUDENT] loans and repayment                                  
09       obligations;                                                                                                  
10                 (16)  enter into agreements with the federal government, including                                      
11       guaranty agreements and supplemental guaranty agreements as described in 20 U.S.C.                            
12       1001 - 1155, as amended [THE UNITED STATES HIGHER EDUCATION ACT OF                                            
13       1965], as necessary to provide for the receipt by the corporation of administrative                               
14       allowances and other benefits available under 20 U.S.C. 1001 - 1155, as amended                               
15       [THE UNITED STATES HIGHER EDUCATION ACT OF 1965];                                                                 
16                 (17)  administer federal money allotted to the state involving insured                                  
17       education [STUDENT] loans and related administrative costs and other matters;                                 
18                 (18)  enter into agreements with the commission [ALASKA                                             
19       COMMISSION ON POSTSECONDARY EDUCATION] relating to education                                                  
20       [STUDENT] loans and repayment obligations, the administration of the financial                            
21       aid and loan programs [STUDENT LOAN FUND CREATED] under                                                       
22       AS 14.43.091 - 14.43.750 and 14.43.990, and AS 14.44 [AS 14.42.210], and the                                  
23       payment of and security for bonds of the corporation;                                                             
24                 (19)  to the extent permitted under contracts with bondholders [BOND                                
25       HOLDERS], consent to the modification of the rate of interest, time of payment of an                              
26       installment of principal or interest, or other terms of an education [A STUDENT]                              
27       loan or repayment obligation held [PURCHASED] by the corporation;                                             
28                 (20)  procure insurance against any loss in connection with the                                         
29       operation of its programs;                                                                                        
30                 (21)  provide advisory services to borrowers and other participants in                                  
31       the corporation's programs;                                                                                       
01                 (22)  enter into credit facility agreements and make pledges, covenants,                                
02       and agreements with respect to the repayment of borrowings under the credit facility                              
03       agreements;                                                                                                       
04                 (23)  develop and implement education financing programs; in this                                   
05       paragraph, "programs" includes                                                                                
06                      (A)  programs listed in AS 14.42.030(b)(1);                                                    
07                      (B)  programs for the guaranteeing, servicing, originating,                                    
08            and financing of education loans for borrowers located both inside and                                   
09            outside the state; and                                                                                   
10                      (C)  federal financial aid programs made under federal law;                                    
11            and                                                                                                      
12                 (24)  perform [DO ALL] acts that may be necessary or appropriate                            
13       [, CONVENIENT, OR DESIRABLE] to carry out effectively the general objectives                                  
14       and purposes of the corporation under AS 14.42.100 - 14.42.990 [THE POWERS                                    
15       EXPRESSLY GRANTED OR NECESSARILY IMPLIED IN AS 14.42.100 -                                                        
16       14.42.390].                                                                                                       
17    * Sec. 8.  AS 14.42 is amended by adding a new section to read:                                                    
18            Sec.  14.42.205.  Supplemental education loans:  financing program.  (a)                                 
19       The purpose of this section is to provide for supplemental education loan program                                 
20       financing to assist qualified borrowers in meeting postsecondary education costs for                              
21       which federal and private financial aid may be insufficient.                                                      
22            (b)  The corporation may develop and establish a financing program for the                                   
23       Alaska Supplemental Education Loan Program administered by the commission under                                   
24       AS 14.43.170 - 14.43.175.                                                                                         
25            (c)  The financing program established under (b) of this section                                             
26                 (1)  shall                                                                                              
27                      (A)  provide that loans under the Alaska Supplemental                                              
28            Education Loan Program are                                                                                   
29                           (i)  medium and long-range fixed and variable rate                                            
30                 loans; and                                                                                              
31                           (ii)  structured to operate as lines of credit;                                               
01                      (B)  require terms and conditions for those loans as the                                           
02            corporation determines are useful and feasible;                                                              
03                      (C)  be designed to                                                                                
04                           (i)  assist postsecondary institutions in this state in                                       
05                 attracting and retaining students;                                                                      
06                           (ii)  maximize the amount of financing available by                                           
07                 using private activity tax exempt bond capacity as may be allocated by                                  
08                 the state; and                                                                                          
09                 (2)  except as limited by (1)(B) of this subsection, may provide for                                    
10       terms and conditions that are more attractive than prevailing terms and conditions                                
11       available to students from other supplemental education lenders.                                                  
12    * Sec. 9.  AS 14.42.210 is amended to read:                                                                        
13            Sec. 14.42.210.  Education  [STUDENT] loan fund and program                                            
14       administration.  (a)  The education [STUDENT] loan fund is established in the                             
15       corporation.  The education [STUDENT] loan fund is a trust fund to be used to carry                           
16       out the purposes of AS 14.42.100 - 14.42.990 [AS 14.42.100 - 14.42.390],                                      
17       AS 14.43.091 - 14.43.160 [AS 14.43.090 - 14.43.325], 14.43.600 - 14.43.700,                                   
18       14.43.710 - 14.43.750, 14.43.990, and AS 14.44.025.  The fund consists of money or                            
19       assets appropriated or transferred to the corporation for the fund and money or assets                            
20       deposited in it by the corporation.  The corporation may establish separate accounts in                           
21       the fund.                                                                                                         
22            (b)  Money and other assets of the education [STUDENT] loan fund may be                                  
23       used to                                                                                                           
24                 (1)  secure bonds of the corporation;                                                           
25                 (2)  pay the costs of administration of the fund;                                                   
26                 (3)  invest [, INVESTED] in education [STUDENT] loans and                                       
27       investments under AS 37.10.071;                                                                               
28                 (4)  finance programs [AND USED TO PURCHASE LOANS]                                                  
29       approved under AS 14.43.091 - 14.43.160 [AS 14.43.090 - 14.43.325], 14.43.600 -                               
30       14.43.700, [OR] 14.43.710 - 14.43.750, or AS 14.44.040; and                                                   
31                 (5)  pay the costs of administering and collecting the loans and                                    
01       repayment obligations under the financial aid programs listed in (4) of this                                  
02       subsection.                                                                                                   
03            (c)  The financial aid programs listed in (b)(4) of this section [STUDENT                                
04       LOAN FUND] shall be administered by the commission [ALASKA COMMISSION                                         
05       ON POSTSECONDARY EDUCATION].  The corporation and the commission may                                              
06       enter into agreements relating to the administration of the programs [FUND].  The                             
07       corporation may assign its rights under the agreements for the benefit and security of                            
08       holders of its bonds.                                                                                             
09    * Sec. 10.  AS 14.42.210(a) is amended to read:                                                                    
10            (a)  The education loan fund is established in the corporation.  The education                             
11       loan fund is a trust fund to be used to carry out the purposes of AS 14.42.100 -                                  
12       14.42.990, AS 14.43.091 - 14.43.175 [AS 14.43.091 - 14.43.160], 14.43.600 -                                   
13       14.43.700, 14.43.710 - 14.43.750, 14.43.990, and AS 14.44.025.  The fund consists of                              
14       money or assets appropriated or transferred to the corporation for the fund and money                             
15       or assets deposited in it by the corporation.  The corporation may establish separate                             
16       accounts in the fund.                                                                                             
17    * Sec. 11.  AS 14.42.210(b) is amended to read:                                                                    
18            (b)  Money and other assets of the education loan fund may be used to                                        
19                 (1)  secure bonds of the corporation;                                                                 
20                 (2)  pay the costs of administration of the fund;                                                       
21                 (3)  invest in education loans and investments under AS 37.10.071;                                      
22                 (4)  finance programs approved under AS 14.43.091 - 14.43.175                                       
23       [AS 14.43.091 - 14.43.160], 14.43.600 - 14.43.700, 14.43.710 - 14.43.750, or                                      
24       AS 14.44.040; and                                                                                                 
25                 (5)  pay the costs of administering and collecting the loans and                                        
26       repayment obligations under the financial aid programs listed in (4) of this subsection.                          
27    * Sec. 12.  AS 14.42.220(b) is amended to read:                                                                    
28            (b)  Bonds may be authorized only by resolution of the board.  Bonds shall be                                
29       dated, bear interest at the rate or rates, be in the denominations, be in the form, either                        
30       coupon or registered, carry the registration privileges, be executed in the manner, be                            
31       payable in the medium of payment, at the place or places, be subject to the terms of                              
01       redemption, and mature as provided by the resolution or a subsequent resolution.                                  
02       However, a bond may not mature more than 40 [30] years after the date it is issued.                           
03    * Sec. 13.  AS 14.42.220(f) is amended to read:                                                                    
04            (f)  The corporation may not issue bonds, other than refunding bonds, during                                 
05       any two consecutive fiscal years in an aggregate amount greater than $200,000,000                             
06       [$125,000,000] unless the legislature, by law, approves issuance of a greater amount.                             
07    * Sec. 14.  AS 14.42.230 is amended to read:                                                                       
08            Sec. 14.42.230.  Trust indentures and trust agreements.  An issue of bonds                                 
09       by the corporation may be secured by a trust indenture or trust agreement between the                             
10       corporation and a corporate trustee, which may be a trust company, bank, or national                              
11       banking association, with corporate trust powers, located inside or outside the state, or                         
12       by a secured loan agreement or other instrument or under a resolution giving powers                               
13       to a corporate trustee by means of which the corporation may                                                      
14                 (1)  enter into agreements with the trustee or the bondholders that the                                 
15       board determines to be necessary or desirable, including covenants, provisions,                                   
16       limitations, and other agreements as to the                                                                       
17                      (A)  application, investment, deposit, use, and disposition of the                                 
18            proceeds of bonds of the corporation or of money or other property of the                                    
19            corporation or in which it has an interest;                                                                  
20                      (B)  fixing and collecting of [LOAN] payments and other                                        
21            consideration for an education [A STUDENT] loan or repayment                                         
22            obligation;                                                                                              
23                      (C)  assignment by the corporation of its rights in an education                               
24            [A STUDENT] loan or repayment obligation or in a mortgage or other                                       
25            security interest created with respect to an education [A STUDENT] loan or                           
26            repayment obligation to a trustee for the benefit of bondholders;                                        
27                      (D)  terms and conditions upon which additional bonds of the                                       
28            corporation may be issued;                                                                                   
29                      (E)  vesting in a trustee of rights, powers, duties, funds, or                                     
30            property in trust for the benefit of bondholders, including the right to enforce                             
31            payment, performance, and other rights of the corporation or of the                                          
01            bondholders, under an education [A STUDENT] loan or repayment                                        
02            obligation or a security interest created with respect to an education [A                            
03            STUDENT] loan or repayment obligation;                                                                   
04                 (2)  pledge, mortgage, or assign money, agreements, property, or other                                  
05       assets of the corporation either presently in hand or to be received in the future, or                            
06       both; and                                                                                                         
07                 (3)  provide for other matters that in any way affect the security or                                   
08       protection of the bonds.                                                                                          
09    * Sec. 15.  AS 14.42.270 is amended to read:                                                                       
10            Sec. 14.42.270.  Pledge and agreement of state.  The state pledges to and                                  
11       agrees with holders of bonds issued by the corporation that the state will not limit or                           
12       alter the rights and powers vested in the corporation under AS 14.42.100 - 14.42.990                          
13       [AS 14.42.100 - 14.42.390] to fulfill the terms of a contract made by the corporation                             
14       with the bondholders or in any way impair the rights and remedies of the bondholders                              
15       until the bonds, together with the interest on them with interest on unpaid installments                          
16       of interest, and all costs and expenses in connection with an action or proceeding by or                          
17       on behalf of the bondholders, are fully met and discharged.  The corporation may                                  
18       include this pledge and agreement of the state in a contract with bondholders.                                    
19    * Sec. 16.  AS 14.42 is amended by adding a new section to read:                                                   
20                       Article 3.  General Provisions.                                                                 
21            Sec. 14.42.990.  Definitions.  In this chapter, unless the context requires                                
22       otherwise,                                                                                                        
23                 (1)  "board" means the board of directors of the corporation;                                           
24                 (2)  "commission" means the Alaska Commission on Postsecondary                                          
25       Education created in AS 14.42.015;                                                                                
26                 (3)  "corporation" means the Alaska Student Loan Corporation created                                    
27       in AS 14.42.100;                                                                                                  
28                 (4)  "education loan" means a loan that is eligible for financing or is                                 
29       financed from the education loan fund established in AS 14.42.210;                                                
30                 (5)  "repayment obligation" means an obligation to repay financial                                      
31       support that is financed from the education loan fund established in AS 14.42.210 or                              
01       otherwise administered by the commission;                                                                         
02                 (6)  "eligible student" means an individual who meets the eligibility                                   
03       requirements established by the federal guaranteed student loan program or as                                     
04       otherwise set out in AS 14.43;                                                                                    
05                 (7)  "federal guaranteed student loan program" means the programs of                                    
06       the United States government making postsecondary educational financial aid                                       
07       available under 20 U.S.C. 1070 - 1099c-2, as amended.                                                             
08    * Sec. 17.  AS 14.43 is amended by adding a new section to read:                                                   
09            Sec. 14.43.091.  Education loan program.  (a)  There is created the education                              
10       loan program to provide loans to individuals who are students to assist in paying the                             
11       costs of postsecondary education.  The provisions of this section, AS 14.43.100 -                                 
12       14.43.160, 14.43.910, 14.43.920, and 14.43.990 apply to the loans.                                                
13            (b)  Upon approval by the commission of an education loan, the corporation                                   
14       shall finance a loan disbursement, subject to any limit that the corporation sets on the                          
15       total amount of loans that the corporation will finance in a school year.  A loan                                 
16       financed under this section becomes an asset of the corporation.                                                  
17            (c)  Repayments of principal and interest on a loan are paid into the education                              
18       loan fund established in AS 14.42.210. If money made available by the corporation is                              
19       inadequate to fully finance eligible loan applications, additional financing from the                             
20       general fund may be requested and appropriated for that year.                                                     
21    * Sec. 18.  AS 14.43.120(a) is amended to read:                                                                    
22            (a)  Proceeds from an education [A SCHOLARSHIP] loan to a full-time                                      
23       student may only be used for books and supplies, tuition and required fees, loan                              
24       origination fees, and room and board.  Proceeds from an education [A                                          
25       SCHOLARSHIP] loan to a half-time student may only be used for books and                                       
26       supplies, tuition and required fees, and loan origination fees.                                               
27    * Sec. 19.  AS 14.43.120(f) is amended to read:                                                                    
28            (f)  Interest on a loan made under AS 14.43.091 - 14.43.160 [AS 14.43.090 -                              
29       14.43.160] is equal to the interest rate                                                                          
30                 (1)  paid in each year on bonds issued by the Alaska Student Loan                                       
31       Corporation under AS 14.42.220; and                                                                               
01                 (2)  necessary to pay the administrative cost of the education                                      
02       [STUDENT] loan program that is represented by the loan.                                                           
03    * Sec. 20.  AS 14.43.120(v) is amended to read:                                                                    
04            (v)  In determining a rate of interest under (f)(2) of this section,                                         
05                 (1)  the commission shall use a method that ensures that the rate of                                    
06       interest is as low as possible without precluding the ability of the commission to                                
07       administer loans made under AS 14.43.091 - 14.43.160 [AS 14.43.090 - 14.43.160];                              
08       and                                                                                                               
09                 (2)  the total amount charged for administrative costs of the education                             
10       [STUDENT] loan program may not exceed three percent above the amount                                              
11       determined under (f)(1) of this section.                                                                          
12    * Sec. 21.  AS 14.43.122(a) is amended to read:                                                                    
13            (a)  The commission may offer                                                                                
14                 (1)  a borrower who has received more than one loan under                                               
15       AS 14.43.091 - 14.43.160 [THIS CHAPTER] the option of consolidating the multiple                              
16       loans into a single loan; or                                                                                      
17                 (2)  to consolidate loans made under AS 14.43.091 - 14.43.160 to                                    
18       married borrowers if the married borrowers agree to be jointly and severally liable for                           
19       repayment of the consolidated loan, regardless of the borrowers' future marital status                            
20       or the death of one of the borrowers.                                                                             
21    * Sec. 22.  AS 14.43.125(c) is amended to read:                                                                    
22            (c)  A person may not be awarded an education [A SCHOLARSHIP] loan                                       
23       under AS 14.43.091 - 14.43.160 [AS 14.43.090 - 14.43.160] if that person receives a                           
24       teacher education [SCHOLARSHIP] loan under AS 14.43.600 - 14.43.700 for the                                   
25       same period of attendance.                                                                                        
26    * Sec. 23.  AS 14.43.135 is repealed and reenacted to read:                                                        
27            Sec. 14.43.135.  Discrimination prohibited.  The programs established under                                
28       this chapter shall be carried out without regard to the applicant's or participant's race,                        
29       creed, sex, color, ancestry, national origin, or membership in fraternal or political                             
30       organizations.                                                                                                    
31    * Sec. 24  AS 14.43.145(a) is amended to read:                                                                     
01            (a)  For the purposes of this chapter, a loan is in default after [IF] a loan                            
02       payment has become 180 or more days past due.  Upon default,                                                      
03                 (1)  repayment of the remaining balance is accelerated and due;                                         
04                 (2)  the commission may take the borrower's permanent fund dividend                                     
05       under AS 43.23.067;                                                                                               
06                 (3)  the commission may issue an order to withhold and deliver under                                    
07       AS 14.43.147; [AND]                                                                                               
08                 (4)  the commission may provide notice of the default to a licensing                                    
09       entity for nonrenewal of the license under AS 14.43.148; and                                                  
10                 (5)  the commission may record the lien created under                                               
11       AS 14.43.149.                                                                                                 
12    * Sec. 25.  AS 14.43.145(a) is amended to read:                                                                    
13            (a)  For the purposes of this chapter, a loan is in default after a loan payment                             
14       has become 180 or more days past due or, for a loan under AS 14.43.161 - 14.43.168                            
15       or 14.43.170 - 14.43.175, the default requirements established by the commission                              
16       have been met.  Upon default,                                                                                 
17                 (1)  repayment of the remaining balance is accelerated and due;                                         
18                 (2)  the commission may take the borrower's permanent fund dividend                                     
19       under AS 43.23.067;                                                                                               
20                 (3)  the commission may issue an order to withhold and deliver under                                    
21       AS 14.43.147;                                                                                                     
22                 (4)  the commission may provide notice of the default to a licensing                                    
23       entity for nonrenewal of the license under AS 14.43.148; and                                                      
24                 (5)  the commission may record the lien created under AS 14.43.149.                                     
25    * Sec. 26.  AS 14.43.145(c) is amended to read:                                                                    
26            (c)  A borrower may appeal a notice of default by filing a statement with the                                
27       executive director, within 30 days after the date of the notice, requesting that the loan                         
28       status be reviewed.  AS 44.62 (Administrative Procedure Act) does not apply to the                                
29       review of default under this section.  The borrower has the burden to show that, at the                           
30       time of the notice of default, (1) no loan payment was more than 180 days past due or,                    
31       for a loan under AS 14.43.161 - 14.43.168 or 14.43.170 - 14.43.175, the default                               
01       requirements established by the commission had not yet been met; or (2) that the                          
02       borrower entered into, and was in compliance with, a default forbearance agreement                                
03       with the commission.  Within 40 days after receiving a written request for review,                            
04       the director shall inform the borrower in writing of the executive director's                                 
05       decision.  The decision of the executive director is a final decision that may be                             
06       appealed to the superior court under the Alaska Rules of Appellate Procedure.                                     
07    * Sec. 27.  AS 14.43 is amended by adding a new section to read:                                                   
08            Sec. 14.43.149.  Lien.  (a)  The amount owing on a loan that is in default under                           
09       AS 14.43, including principal, interest, and collection costs, is a lien upon all property                        
10       and right to property, real or personal, belonging to the borrower.  The lien arises at                           
11       the time that the commission mails or otherwise delivers a notice of default under                                
12       AS 14.43.145(b) and continues until the balance of the loan, including principal,                                 
13       interest, and collection costs, is paid in full.                                                                  
14            (b)  A lien created under (a) of this section is                                                             
15                 (1)  not valid against a mortgagee or other lienholder, pledgee,                                        
16       purchaser, or judgment creditor until notice of the lien is recorded in the records of the                        
17       recording district where the property subject to the lien is situated; and                                        
18                 (2)  subject to AS 40.19.040(e).                                                                        
19    * Sec. 28.  AS 14.43.160 is amended to read:                                                                       
20            Sec. 14.43.160.  Definitions.  In AS 14.43.091 - 14.43.160, unless the context                         
21       otherwise requires, [AS 14.43.090  -  14.43.160]                                                              
22                 (1)  "career education" means a course or program in vocational-                                        
23       technical training or education approved by the commission;                                                       
24                 (2)  "federally insured" means a loan covered by the provisions of                                      
25       20 U.S.C. 1001 - 1155 [THE GUARANTEED STUDENT LOAN PROGRAM OF                                                 
26       TITLE IV, PART B, OF THE HIGHER EDUCATION ACT OF 1965 (P.L. 89-329)],                                             
27       as amended;                                                                                                       
28                 (3)  "full-time student" means an undergraduate or career education                                     
29       student who is enrolled and is in regular attendance at classes for at least 12 semester                          
30       hours of credit or the equivalent during the semester or a graduate student who is                                
31       enrolled and is in regular attendance at classes for at least nine semester hours of credit                       
01       or the equivalent; any combination of semester hours of credit, or the equivalent,                                
02       aggregating to the requisite number of semester hours and undertaken during a                                     
03       semester at two or more public or private institutions of higher education constitutes                            
04       full-time student status;                                                                                         
05                 (4)  "half-time student" means an undergraduate, graduate, or career                                    
06       education student who during the semester is enrolled and is in regular attendance at                             
07       classes at one or more public or private institutions of higher education for at least a                          
08       total of six semester credit hours or an equivalent of six semester credit hours, and                             
09       includes a career education student enrolled and in regular attendance in classes for at                          
10       least 15 hours a week;                                                                                            
11                 (5)  "school year" means an academic period that is a minimum of 30                                     
12       weeks of instructional time that begins between September 1 of one year and August                                
13       31 of the following year;                                                                                         
14                 (6)  "summer term" means the period from June 1 - August 31.                                            
15    * Sec. 29.  AS 14.43 is amended by adding new sections to read:                                                    
16                 Article 4A.  Alaska Advantage Loan Program.                                                           
17            Sec. 14.43.161.  Purpose; creation.  There is established the Alaska                                       
18       Advantage Loan Program to provide postsecondary educational financial assistance                                  
19       through the federal guaranteed student loan program.  The Alaska Advantage Loan                                   
20       Program is the primary source for financial aid to eligible borrowers under AS 14.43.                             
21            Sec. 14.43.162.  Eligibility.  For a borrower to be eligible for a loan under                              
22       AS 14.43.161 - 14.43.168, the borrower must meet the eligibility requirements                                     
23       established by the federal guaranteed student loan program and                                                    
24                 (1)  must be a resident of the state as determined under (b) of this                                    
25       section; or                                                                                                       
26                 (2)  must be physically present in this state and attending an institution                              
27       that is physically located in this state.                                                                         
28            (b)  To meet the residency requirement of (a) of this section, the borrower                                  
29                 (1)  must physically reside in this state and maintain a domicile in this                               
30       state during the 12 consecutive months before the date of application for the program,                            
31       except that the borrower may be absent from this state for no more than a total of 60                             
01       days during that 12-month period; and                                                                             
02                 (2)  may not have                                                                                       
03                      (A)  declared or established residency in another state; or                                        
04                      (B)  received residency or a benefit based on residency, from                                      
05            another state.                                                                                               
06            (c)  To continue to meet the residency requirement of (a) of this section for                                
07       each year that a loan is received or subsequently applied for, the borrower must meet                             
08       the requirements of (b) of this section, except for                                                               
09                 (1)  full-time attendance at an educational or training institution;                                    
10                 (2)  military service; or                                                                               
11                 (3)  demonstrated good cause as determined by the commission.                                           
12            Sec. 14.43.163.  Restrictions on award.  Under the Alaska Advantage Loan                                   
13       Program, the commission may make loans subject to the following restrictions:                                     
14                 (1)  a loan amount awarded may not exceed the maximum amount for                                        
15       the school year as established by the federal guaranteed student loan program;                                    
16                 (2)  a borrower may not be awarded a loan amount that would, when                                       
17       aggregated with other loans awarded to the student under the federal guaranteed                                   
18       student loan program, exceed the maximum total amount allowable per borrower that                                 
19       is established by the federal guaranteed student loan program;                                                    
20                 (3)  the loan award may not exceed the total cost of attendance at the                                  
21       postsecondary institution less other forms of financial aid awarded to the borrower to                            
22       pay for those costs.                                                                                              
23            Sec. 14.43.164.  Use of loan.  A borrower may use a loan under this program                                
24       only for postsecondary education and reasonably related purposes as authorized by the                             
25       federal guaranteed student loan program.                                                                          
26            Sec. 14.43.165.  Interest.  (a)  The corporation shall set the rate of interest on a                     
27       loan made under AS 14.43.161 - 14.43.168 in accordance with federal and state law.                                
28       Interest on a loan made under AS 14.43.l61 - 14.43.168 may not exceed the rate                                    
29       specified by the applicable provisions of the federal guaranteed student loan program.                            
30       Interest on a loan made under AS 14.43.161 - 14.43.168 accrues from the time that the                             
31       loan is disbursed.                                                                                                
01            (b)  A borrower may elect to make payments of interest that is payable during                                
02       the borrower's term of attendance at the postsecondary institution or during certain                              
03       deferment periods authorized by the commission; however, the commission shall                                     
04       capitalize any unpaid interest as part of the principal to be repaid as agreed, or upon                           
05       graduation, withdrawal, or completion of the deferment period.                                                    
06            (c)  Notwithstanding the provisions of (b) of this section, if a borrower                                    
07       qualifies for a subsidized loan under the federal guaranteed student loan program, the                            
08       interest on the loan is paid by the federal government during the borrower's term of                              
09       attendance and any qualifying deferment and grace periods authorized under the loan.                              
10            Sec. 14.43.166.  Repayment of loans.  A borrower's obligation to commence                                  
11       repayment of the principal and interest on a loan under AS 14.43.161 - 14.43.168                                  
12       begins six months after the borrower's completion or other termination of the                                     
13       postsecondary education program.  The commission may accelerate the repayment of                                  
14       any loan made in error or in reliance upon a false statement made by the borrower.                                
15       The commission shall determine the period over which loans are repaid; however, the                               
16       maximum period of repayment of loans may not exceed the maximum period                                            
17       permitted under applicable provisions of the  federal guaranteed student loan program.                            
18            Sec. 14.43.167.  Consolidation of loans.  The commission may offer                                         
19                 (1)  an eligible borrower who has received more than one loan under                                     
20       the federal guaranteed student loan program the option of consolidating the multiple                              
21       loans into a single loan; or                                                                                      
22                 (2)  to consolidate loans made to married borrowers if the married                                      
23       borrowers agree to be jointly and severally liable for repayment of the consolidated                              
24       loan, regardless of the borrowers' future marital status or the death of one of the                               
25       borrowers.                                                                                                        
26            Sec. 14.43.168.  Default.  (a)  The commission shall establish the default                                 
27       requirements for loans made under AS 14.43.161 - 14.43.168; however, the                                          
28       requirements may not be less restrictive than those established by the federal                                    
29       guaranteed student loan program.                                                                                  
30            (b)  The provisions of AS 14.43.145 - 14.43.150 apply to loans under                                         
31       AS 14.43.161 - 14.43.168 that are in default.                                                                     
01            Article 4B.  Alaska Supplemental Education Loan Program.                                                   
02            Sec. 14.43.170.  Creation; purpose.  There is created the Alaska                                           
03       Supplemental Education Loan Program to provide postsecondary educational                                          
04       supplemental financial assistance.  Supplemental financial assistance is available only                           
05       if the financial aid available through the Alaska Advantage Loan Program is                                       
06       insufficient to cover the costs of attendance at a postsecondary institution or if the                            
07       borrower does not qualify for financial aid under the federal guaranteed student loan                             
08       program.  The commission shall make the public aware of the Alaska Supplemental                                   
09       Education Loan Program to facilitate providing loans to as many eligible borrowers as                             
10       possible.                                                                                                         
11            Sec. 14.43.171.  Applicability of other laws.  The provisions of                                           
12       AS 14.43.120(d)(4), 14.43.135, 14.43.140, 14.43.145 - 14.43.160, 14.43.164, and                                   
13       14.43.166 - 14.43.168 apply to the loans made under AS 14.43.170 - 14.43.175 as if                                
14       the loans were made under those applicable provisions.                                                            
15            Sec. 14.43.172.  Eligibility.  (a)  For a borrower to be eligible for a loan under                         
16       AS 14.43.170 - 14.43.175, the borrower must be, or be about to be, enrolled in a                                  
17       postsecondary institution on at least a half-time basis and                                                       
18                 (1)  must be a resident of this state                                                                   
19                      (A)  attending or about to attend a postsecondary institution that                                 
20            has been approved by and has executed a program participation agreement                                      
21            with the commission; or                                                                                      
22                      (B)  attending or about to attend an approved FFEL institution;                                    
23            or                                                                                                           
24                 (2)  must be physically present in this state and attending or about to                                 
25       attend an approved FFEL institution located in this state.                                                        
26            (b)  To meet the residency requirement of (a) of this section, the borrower must                             
27       meet the standards set out in AS 14.43.162(b).                                                                    
28            (c)  In addition to the provisions of (a) of this section, a borrower is eligible for                        
29       a loan under AS 14.43.170 - 14.43.175 if the borrower                                                             
30                 (1)  is not delinquent and has never been in default on a loan previously                               
31       awarded by the commission;                                                                                        
01                 (2)  at the time of application or loan disbursement does not have a past                               
02       due child support obligation established by court order or by the child support                                   
03       enforcement agency under AS 25.27.160 - 25.27.220;                                                                
04                 (3)  has not, within the previous five years, had a loan discharged or                                  
05       written off by the commission for any reason;                                                                     
06                 (4)  does not have a status, at the time of application for a loan or                                   
07       disbursement of loan money, that would prevent the borrower from repaying the loan                                
08       as it becomes due;                                                                                                
09                 (5)  has not within the previous five years defaulted on another loan                                   
10       made to the borrower by a lending entity unless the borrower can show good faith                                  
11       efforts to repay the loan and extraordinary circumstances that led to the default; and                            
12                 (6)  does not have a credit history, at the time of application for a loan,                             
13       that demonstrates chronic inability or unwillingness to pay an extension of credit or                             
14       loan as it becomes due.                                                                                           
15            (d)  The commission may make a loan to a borrower who has been in default                                    
16       on a loan previously awarded by the commission if                                                                 
17                 (1)  the previously awarded loan has been paid in full; and                                             
18                 (2)  another individual who satisfies the requirements of (c) of this                                   
19       section cosigns the loan.                                                                                         
20            (e)  Notwithstanding (c)(4) - (6) of this section, the commission may make a                                 
21       loan to a borrower if another individual who satisfies the requirements of (c) of this                            
22       section cosigns the loan.                                                                                         
23            (f)  The commission may withhold disbursement of a loan if the borrower no                                   
24       longer meets the eligibility standards set out in this section.                                                   
25            (g)  A borrower who is attending a postsecondary institution in this state that                              
26       has been approved by the commission but is not an approved FFEL institution must                                  
27       also comply with and meet any other requirements established by the commission.                                   
28            Sec. 14.43.173.  Loan award maximums; use of loan award.  (a)  In a school                                 
29       year, the commission may make a loan to an eligible borrower under AS 14.43.170 -                                 
30       14.43.175 attending an eligible postsecondary institution not to exceed                                           
31                 (1)  $8,500 to an eligible undergraduate student attending a college or                                 
01       university;                                                                                                       
02                 (2)  $9,500 to an eligible graduate student attending a college or                                      
03       university;                                                                                                       
04                 (3)  $6,500 to an eligible student attending a career education program.                                
05            (b)  The commission may not award loans made under AS 14.43.170 -                                            
06       14.43.175 to a borrower for more than                                                                             
07                 (1)  a total of $42,500 for undergraduate study;                                                        
08                 (2)  a total of $47,500 for graduate study; or                                                          
09                 (3)  a combined total of $60,000 for undergraduate and graduate study.                                  
10            (c)  To maintain a loan award under AS 14.43.170 - 14.43.175, the borrower                                   
11       must continue to be in good standing as determined by the institution and approved by                             
12       the commission.                                                                                                   
13            Sec. 14.43.174.  Interest.  (a)  The interest rate on a loan made under                                    
14       AS 14.43.170 - 14.43.175 shall be set by the corporation, but the annual rate may not                           
15       exceed 8.25 percent.  Interest on a loan made under AS 14.43.170 - 14.43.175 accrues                            
16       from the time the loan is disbursed.                                                                              
17            (b)  A borrower may elect to make payments of interest that is payable during                                
18       the borrower's term of attendance at the postsecondary institution or during certain                              
19       deferment periods authorized by the commission; however, the commission shall                                     
20       capitalize any unpaid interest as part of the principal to be repaid as agreed, or upon                           
21       graduation, withdrawal, or completion of the deferment period.                                                    
22            Sec. 14.43.175.  Repayment of loans.  A borrower's obligation to commence                                  
23       repayment of the principal and interest on a loan under AS 14.43.170 - 14.43.175                                  
24       begins six months following the borrower's completion or other termination of the                                 
25       postsecondary program or the date that the borrower ceases to be enrolled on at least a                           
26       half-time basis.  The commission shall set the repayment terms of a loan under                                    
27       AS 14.43.170 - 14.43.175.                                                                                         
28    * Sec. 30.  AS 14.43.255(a) is amended to read:                                                                    
29            (a)  There is created a memorial education [SCHOLARSHIP] revolving loan                                  
30       fund.  The fund shall be used to provide education [EDUCATIONAL                                               
31       SCHOLARSHIP] loans to students selected under AS 14.43.250 - 14.43.325.                                           
01       Repayments [UNLESS THE INSTRUMENT EVIDENCING THE MEMORIAL                                                     
02       SCHOLARSHIP LOAN HAS BEEN SOLD OR ASSIGNED TO THE ALASKA                                                          
03       STUDENT LOAN CORPORATION, REPAYMENTS] of a loan shall be deposited                                                
04       into the memorial education [SCHOLARSHIP] revolving loan fund and shall be used                               
05       to make new loans.                                                                                                
06    * Sec. 31.  AS 14.43.305(i) is amended to read:                                                                    
07            (i)  To the extent they are not in conflict with terms and conditions under                                  
08       AS 14.43.250 - 14.43.325, the terms and conditions of a memorial education                                    
09       [SCHOLARSHIP] loan made under AS 14.43.250(b)(5) are the same as the terms and                                    
10       conditions for an education [A SCHOLARSHIP] loan under AS 14.43.091 -                                     
11       14.43.160 [AS 14.43.090 - 14.43.160], except that the interest on the loan is equal to                        
12       five percent.                                                                                                     
13    * Sec. 32.  AS 14.43.320(b) is amended to read:                                                                    
14            (b)  To the extent that they are not in conflict with the provisions of                                      
15       AS 14.43.250 - 14.43.325, the provisions of AS 14.43.091 - 14.43.160                                          
16       [AS 14.43.090 - 14.43.160] relating to education [SCHOLARSHIP] loans are                                      
17       applicable to loans made under AS 14.43.250 - 14.43.325.                                                          
18    * Sec. 33.  AS 14.43.405(b) is amended to read:                                                                    
19            (b)  To the extent that they are not in conflict with the provisions of                                      
20       AS 14.43.400 - 14.43.405, the provisions of AS 14.43.091 - 14.43.160                                          
21       [AS 14.43.090 - 14.43.160] relating to student financial aid are applicable to the grants                         
22       made under AS 14.43.400 - 14.43.500.                                                                              
23    * Sec. 34.  AS 14.43.650(c) is amended to read:                                                                    
24            (c)  A student may not be awarded a teacher education [SCHOLARSHIP] loan                                 
25       under AS 14.43.600 - 14.43.700 if the student receives an education [A                                        
26       SCHOLARSHIP] loan under AS 14.43.091 - 14.43.160 [AS 14.43.090 - 14.43.160]                                   
27       for the same period of attendance.                                                                                
28    * Sec. 35.  AS 14.43.650(c) is amended to read:                                                                    
29            (c)  A student may not be awarded a teacher education loan under                                             
30       AS 14.43.600 - 14.43.700 if the student receives a [AN EDUCATION] loan under                                  
31       AS 14.43.170 - 14.43.175 [AS 14.43.091 - 14.43.160] for the same period of                                    
01       attendance.                                                                                                       
02    * Sec. 36.  AS 14.43.720(a) is amended to read:                                                                    
03            (a)  The family education loan account is created within the education loan                              
04       fund (AS 14.42.210) [SCHOLARSHIP REVOLVING LOAN FUND                                                          
05       (AS 14.43.090)].  The account shall be used to make family education loans to                                     
06       families selected under AS 14.43.710 - 14.43.750, to pay the costs of collecting family                           
07       education loans that are in default if those costs are not recovered from the family, and                         
08       to pay the costs of administering the account.  Unless the instrument evidencing the                              
09       family education loan has been sold or assigned to the Alaska Student Loan                                        
10       Corporation, repayments of principal and interest on family education loans shall be                              
11       paid into the family education loan account.  If estimated funds available from family                            
12       education loan repayments are inadequate to fully fund estimated family education                                 
13       loans in a fiscal year, additional funding from the general fund may be requested and                             
14       appropriated for that year.                                                                                       
15    * Sec. 37.  AS 14.43.990 is amended by adding a new paragraph to read:                                             
16                 (2)  "corporation" means the Alaska Student Loan Corporation created                                    
17       in AS 14.42.100.                                                                                                  
18    * Sec. 38.  AS 14.43.990 is amended by adding new paragraphs to read:                                              
19                 (3)  "federal guaranteed student loan program" means the programs of                                    
20       the United States government making postsecondary educational financial aid                                       
21       available under 20 U.S.C. 1070 - 1099c-2, as amended;                                                             
22                 (4)  "approved FFEL institution" means a postsecondary education                                        
23       institution in this state or outside of this state that is approved for participation in the                      
24       federal guaranteed student loan program.                                                                          
25    * Sec. 39.  AS 14.44.040(b) is amended to read:                                                                    
26            (b)  A repayment under this section shall be paid into the education                                     
27       [STUDENT] loan fund created under AS 14.42.210.                                                                   
28    * Sec. 40.  AS 14.44.040 is amended by adding a new subsection to read:                                            
29            (c)  If a program participant defaults on the repayment obligation, the                                      
30       provisions of AS 14.43.145 - 14.43.150 apply to collect on the obligation as if it were                           
31       a defaulted loan under AS 14.43.                                                                                  
01    * Sec. 41.  AS 40.19.040 is amended by adding a new subsection to read:                                            
02            (e)  The provisions of this section apply to a notice of a lien created under                                
03       AS 14.43.149(a) and to documents relating to that lien.                                                           
04    * Sec. 42.  AS 14.42.010(a), 14.42.030(c), 14.42.390; AS 14.43.090, 14.43.255(c),                                  
05 14.43.315, 14.43.730; and AS 14.48.050(10) are repealed.                                                                
06    * Sec. 43.  The uncodified law of the State of Alaska is amended by adding a new section to                        
07 read:                                                                                                                   
08       TRANSITION:  IMPLEMENTATION.  Notwithstanding sec. 47 of this Act, in order                                       
09 to timely disburse loans for the school year beginning on or after July 1, 2002, the Alaska                             
10 Commission on Postsecondary Education and the Alaska Student Loan Corporation may                                       
11 immediately implement secs. 8, 10, 11, 25, 26, 29, 35, and 38 of this Act as if they were in                            
12 effect at the time of implementation, so long as loan money is not disbursed under those                                
13 sections before July 1, 2002.                                                                                           
14    * Sec. 44.  The uncodified law of the State of Alaska is amended by adding a new section to                        
15 read:                                                                                                                   
16       TRANSITION: REGULATIONS.  Notwithstanding sec. 47 of this Act, the state                                          
17 agencies affected by this Act may immediately proceed to adopt regulations necessary to                                 
18 implement the respective changes made by secs. 8, 10, 11, 25, 26, 29, 35, and 38 of this Act.                           
19 The regulations take effect under AS 44.62 (Administrative Procedure Act) but not before the                            
20 effective date of the statutory change.                                                                                 
21    * Sec. 45.  The uncodified law of the State of Alaska is amended by adding a new section to                        
22 read:                                                                                                                   
23       REVISOR OF STATUTES INSTRUCTIONS.  (a)  The revisor of statutes is                                                
24 instructed to change                                                                                                    
25            (1)  the heading of AS 14.43 from "Scholarship, Loan, and Grant Programs for                                 
26 Postsecondary Students" to "Financial Aid Programs for Postsecondary Students";                                         
27            (2)  the heading of art. 4 of AS 14.43 from "Article 4.  Scholarship Loan                                    
28 Program" to "Article 4.  Education Loan Program";                                                                       
29            (3)  the heading of art. 5 of AS 14.43 from "Article 5.  Memorial Scholarship                                
30 Revolving Loan Fund" to "Article 5.  Memorial Education Revolving Loan Fund"; and                                       
31            (4)  the heading of art. 7 of AS 14.43 from "Article 7.  Teacher Scholarship                                 
01 Loan Program" to "Article 7.  Teacher Education Loan Program."                                                          
02       (b)  The revisor of statutes is instructed to change the references to "scholarship loan"                         
03 or "scholarship loans" to "education loan" or "education loans," respectively, in the Alaska                            
04 Statutes, including in the following:                                                                                   
05            (1)  AS 14.43.120(b), (d), (e), (r), and (u);                                                                
06            (2)  AS 14.43.300(a), (b), (c), and (g), 14.43.305(a), (e), (g), and (j),                                    
07 14.43.310(b), (c), and (d), and 14.43.320(a); and                                                                       
08            (3)  AS 14.43.600(b), 14.43.610, 14.43.620(a) and (b), 14.43.630(a) and (b),                                 
09 14.43.640(d), (e), and (f), and 14.43.650(a) and (b).                                                                   
10       (c)  The revisor of statutes is instructed to change the reference to "student loans" to                          
11 "education loans" in the heading of AS 14.43.110.                                                                       
12       (d)  The revisor of statutes is instructed to change the references to "student loan fund"                        
13 to "education loan fund" in the Alaska Statutes, including in the following:                                            
14            (1)  AS 14.42.295(b)(3); and                                                                                 
15            (2)  AS 14.43.120(u), 14.43.620(b), and 14.43.720(b).                                                        
16       (e)  The revisor of statutes is instructed to change the references to "scholarship                               
17 revolving loan fund" to "education revolving loan fund" in the Alaska Statutes, including in                            
18 the following:                                                                                                          
19            (1)  AS 14.43.250(a) and (b), 14.43.255(b), 14.43.300(e) and (g), 14.43.310(c),                              
20 and 14.43.325(a), (b), and (c);                                                                                         
21            (2)  the heading of AS 14.43.620 and 14.43.620(a) and (b); and                                               
22            (3)  AS 39.20.245(a).                                                                                        
23       (f)  The revisor of statutes is instructed to change the references to "memorial                                  
24 scholarship" or "memorial scholarships" to "memorial education loan" or "memorial                                       
25 education loans," respectively, in the Alaska Statutes, including in AS 14.43.250(a) and (b),                           
26 14.43.255(b), 14.43.300(d), and 14.43.310(b)(1), (2), (3), and (4).                                                     
27       (g)  The revisor of statutes is instructed to change the references to "scholarship" to                           
28 "loan" in the following:                                                                                                
29            (1)  AS 14.43.250(a) and 14.43.300(e);                                                                       
30            (2)  AS 43.75.032(a); and                                                                                    
31            (3)  AS 43.77.035(a).                                                                                        
01       (h)  The revisor of statutes is instructed to change the references to "scholarship                               
02 accounts" to "education loan accounts" in the following:                                                                
03            (1)  AS 14.43.250(b), 14.43.300(g), and 14.43.325(a) and (c);                                                
04            (2)  AS 39.20.245(a);                                                                                        
05            (3)  AS 43.75.032(a); and                                                                                    
06            (4)  AS 43.77.035(a).                                                                                        
07       (i)  The regulations attorney, under AS 44.62.125(b)(6), shall make changes in the                                
08 Alaska Administrative Code to replace the terms "student loan" and "scholarship loan" with                              
09 the term "education loan," consistent with the changes made by this Act.                                                
10    * Sec. 46.  Sections 1 - 7, 9, 12 - 24, 27, 28, 30 - 34, 36, 37, and 39 - 45 of this Act take                      
11 effect immediately under AS 01.10.070(c).                                                                               
12    * Sec. 47.  Except as provided in sec. 46 of this Act, this Act takes effect July 1, 2002.