SCS CSHB 18(SED): "An Act amending the functions and powers of the Alaska Commission on Postsecondary Education; and relating to the repayment provisions for medical education and postsecondary degree program participants."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 18(SED) 01 "An Act amending the functions and powers of the Alaska Commission on 02 Postsecondary Education; and relating to the repayment provisions for medical 03 education and postsecondary degree program participants." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.42.030(d) is amended to read: 06 (d) The commission shall [MAY] enter into agreements with government or 07 postsecondary education officials of this state or other states to provide postsecondary 08 educational services and programs to Alaska residents pursuing a medical education 09 degree sufficient to accommodate at least 20 new program participants each year. 10 An agreement with another state must be limited to services and programs that are 11 unavailable in Alaska. The commission shall require a person participating in a 12 medical education program offered under this subsection to agree to the repayment 13 condition imposed under AS 14.43.510. 14 * Sec. 2. AS 14.43.510(a) is amended to read:
01 (a) Except as provided under (b) and (c) of this section, as a condition of 02 participating in a medical education program under AS 14.42.030(d), a program 03 participant shall agree to either return to the state and actively engage in 04 professional medical practice or repay [THE] financial support provided by the state 05 on behalf of the program participant [STUDENT]. The financial support to be 06 repaid is equal to 50 percent of the amount paid for each program participant by 07 the state to the contracting postsecondary institution, plus interest [THE 08 DIFFERENCE BETWEEN RESIDENT AND NONRESIDENT TUITION AT THE 09 CONTRACTING POSTSECONDARY INSTITUTION, PLUS INTEREST, 10 INCLUDING ANY DIFFERENTIAL FOR THE FIRST YEAR OF THE PROGRAM 11 DELIVERED AT THE UNIVERSITY OF ALASKA, ANCHORAGE]. The rate of 12 interest is equal to the 12th Federal Reserve District discount rate in effect on March 1 13 of the year in which the financial support is provided plus two percentage points. 14 Interest imposed under this subsection begins to accrue when the person terminates 15 studies under the medical education program. Accrued interest shall be added to the 16 principal balance of the repayment obligation at the time the borrower is obligated to 17 commence repayment and at the end of a deferment period. 18 * Sec. 3. AS 14.43.510(c) is amended to read: 19 (c) Repayment under (a) of this section is required to begin not later than six 20 months after the person terminates studies under the medical education program 21 except that repayment shall be deferred for a person who (1) qualifies for forgiveness 22 under (b) of this section for as long as the person remains qualified for forgiveness 23 under (b) of this section; (2) is employed in a medical residency program [IN THE 24 STATE] for as long as the person remains in the medical residency program; or (3) is 25 performing a service obligation imposed by the National Health Service Corps, the 26 Indian Health Service, or the Uniformed Service Scholarship Program for as long as 27 the person is performing the service. Forgiveness under (b) of this section only applies 28 to that portion of the repayment obligation that has not been repaid to the state.