00                             HOUSE BILL NO. 33                                                                          
01 "An Act relating to forgiveness of certain student loans; and providing for an effective                                
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 14.43 is amended by adding a new section to article 6 to read:                                    
05            Sec. 14.43.180.  Loan forgiveness of loans made to borrowers employed as                                   
06       public school teachers.  (a)  The state shall forgive a loan made to a borrower who                             
07       has received an undergraduate or graduate degree from a college or university, is                                 
08       employed at a public elementary or secondary school within the state as a teacher, and                            
09       has complied with AS 14.43.172.  The amount to be forgiven under this section is the                              
10       portion of the payments to be made by the borrower for a loan made under                                          
11       AS 14.43.170 - 14.43.175 equal to the following percentages of the total loan received                            
12       plus interest, up to a total of 50 percent of the total loan plus interest:                                       
13                 (1)  one year employment, 10 percent;                                                                   
14                 (2)  two years employment, an additional 10 percent;                                                    

01                 (3)  three years employment, an additional 10 percent;                                                  
02                 (4)  four years employment, an additional 10 percent;                                                   
03                 (5)  five years employment, an additional 10 percent.                                                   
04            (b)  The loan amount forgiven the borrower under this section may not exceed                                 
05       the loan amount paid by the borrower to the state.  Notwithstanding any other                                     
06       provision of law, while a person's loan is being forgiven by the state under (a) of this                          
07       section, that person may not receive forgiveness of a loan under any other provision of                           
08       this chapter.                                                                                                     
09    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
10 read:                                                                                                                   
11       APPLICABILITY.  This Act applies to loans entered into on or after July 1, 2003, and                              
12 to a person's employment that occurs on or after July 1, 2003.                                                          
13    * Sec. 3.  This Act takes effect July 1, 2003.