Legislature(2015 - 2016)GRUENBERG 120
04/13/2016 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB174 | |
| HB347 | |
| SB121 | |
| SB123 | |
| SJR2 | |
| SB91 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 347 | TELECONFERENCED | |
| + | SB 123 | TELECONFERENCED | |
| + | SJR 2 | TELECONFERENCED | |
| + | SB 121 | TELECONFERENCED | |
| += | SB 91 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 174 | TELECONFERENCED | |
SJR 2-CONST. AM: G.O. BONDS FOR STUDENT LOANS
2:27:11 PM
CHAIR LEDOUX announced that the next order of business would be
SENATE JOINT RESOLUTION NO. 2, Proposing an amendment to the
Constitution of the State of Alaska relating to contracting
state debt for postsecondary student loans.
2:27:28 PM
KRISTEN PRATT, Staff, Senator Anna MacKinnon, Alaska State
Legislature, said that SJR 2 is a constitutional amendment
permitting the issuance of general obligation bonds for the
purpose of funding postsecondary student loans by amending the
Constitution of the State of Alaska Article IX, Section 8.
Currently Article IX, Section 8, allows for general obligation
bonding for capital improvements as well as housing loans for
veterans. The intent of this legislation, she explained, is for
students to have better access to lower cost loans, essentially
the intent is to lower interest rates on student loans. It
would also give the Alaska Student Loan Corporation (ASLC) more
flexibility with its underwriting criteria.
2:29:12 PM
DIANE BARRANS, Executive Director, Alaska Commission on
Postsecondary Education (ACPE), Alaska Student Loan Corporation
(ASLC), Executive Officer, advised that the sponsor is focused
on making lower cost financing available to both students
currently going through the pipeline, but also to holders or
borrowers of education loans who might have those loans at
higher interest rates and are interested in refinancing them at
a lower rate. In the event the people of Alaska are presented
with this opportunity to decide on the ballot to amend the
Alaska State Constitution, and vote in the affirmative, her
office would be able to enter the market with the state's credit
behind these loans. Therefore, not only would Alaskans enjoy a
lower rate in the market, and in the event the state retains its
AAA rating, she estimated there would be a full 1.1 percent
interest rate advantage in the market. In the event that rate
drops to AA rating, Alaskans would still maintain a 95 basis
points advantage in the market. Therefore, there is a material
benefit to students increasingly looking to alternatives to
finance their education. She noted that the state is in an era
where, with the rising cost of education within the state and
outside the state, the need for this type of assistance and
support from the state is higher than ever. The beauty of this
structure is that her office could leverage the state's credit
rating without having to tap the general fund because the loans
would be made with the underwriting criteria that would make
them fully capable of repaying the bonds as they become due.
They would be able to sustain themselves without any general
fund draws and the corporation would design the related programs
accordingly, she explained.
CHAIR LEDOUX opened public testimony. After ascertaining no one
wished to testify, closed public testimony.
2:32:37 PM
CHAIR LEDOUX advised that she is holding the bill.
[SJR 2 was held over.]