2021-02-24                     House Journal                      Page 0227
HB 114                                                                                                                        
HOUSE BILL NO. 114 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act relating to the education loan program and Alaska                                                                   
    supplemental education loan program; and providing for an                                                                   
    effective date."                                                                                                            
                                                                                                                                
was read the first time and referred to the Education Committee.                                                                
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Education & Early Development                                                                                
2.  Zero, Dept. of Revenue                                                                                                      
                                                                                                                                
The Governor's transmittal letter dated February 23 follows:                                                                    
                                                                                                                                
"Dear Speaker Stutes:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the education loan                                                           
program for postsecondary students.                                                                                             
                                                                                                                                
The bill would increase opportunities for borrowers to consolidate                                                              
education loans by expanding options to show eligibility. Current                                                               
statute requires that borrowers physically reside in the State. This bill                                                       
adds additional eligibility options to include being a previous                                                                 
borrower, cosigner, or beneficiary of an education loan made under                                                              

2021-02-24                     House Journal                      Page 0228
AS 14.43 or AS 14.44, or being a graduate of a high school or                                                                   
postsecondary institution physically located in the State.                                                                      
                                                                                                                                
Specific loan limits would be removed from statute and instead the                                                              
Alaska Student Loan Corporation would have the authority to set                                                                 
limits, as appropriate, to address evolving student needs. The bill                                                             
would also clarify that a borrower’s obligation to commence                                                                     
repayment of the loan could begin immediately upon disbursement of                                                              
the loan.                                                                                                                       
                                                                                                                                
This legislation will increase responsiveness to Alaska’s higher                                                                
education community and will allow for responsible increases to                                                                 
annual loan limits and originations to meet the financial aid needs of                                                          
Alaska’s student loan borrowers.                                                                                                
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"