Legislature(1999 - 2000)
03/16/2000 03:30 PM House HES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 427 - POSTSECONDARY LOAN PROGRAM:SCHOOL YR Number 0450 CHAIRMAN DYSON announced the next order of business as HOUSE BILL NO. 427, "An Act relating to the school year for purposes of the postsecondary student loan program; and providing for an effective date." Number 0468 DR. MILTON BYRD, President, Charter College, Member, Alaska Commission of Postsecondary Education, came forward to present HB 427. He explained that HB 427 is a technical change in the statute authorizing the administration of the Alaska Student Loan Program. The current definition indicates that students can receive one loan every 12 months. This bill changes that to permit an institution to offer a fast-track program consistent with legitimate requirements or length of time to justify an academic year. The U.S. Department of Education defines an academic year as 30 weeks of instruction; most institutions follow that, using either two 15-week semesters or three 10-week quarters. DR. BYRD said this change, from a 12-month period to a 30-week period to qualify for a loan, permits an institution to offer a fast-track program and shorten the traditional four-year degree for students who have the energy and desire to pursue such a degree with few, if any, breaks between terms. This bill was taken up at a meeting of the Alaska Commission of Postsecondary Education this morning and was endorsed by the commission. Number 0574 DR. BYRD requested a small change in HB 427, to delete the word "occurs" in line 6 and add the word "begins." The word "occurs" could be misinterpreted, he explained, and the original draft had the word "begins" in it. REPRESENTATIVE BRICE asked for clarification. DR. BYRD explained that "occurs" between those periods of time could be interpreted to mean beginning and ending during that time. So if it begins in that period, a student could begin a second term in that same period of time. The word "begins" is more precise than "occurs." DR. BYRD observed that there is a slight cost benefit for students. Over the years, analysis has shown that the major expense of attending college is the foregone income. The income not earned during the time someone attends college is more than 50 percent of the cost of attending college. If a student is able to finish in less than four years and go to work, the student's cost of education is reduced. Number 0904 REPRESENTATIVE KEMPLEN made a motion to adopt an amendment "to substitute the word 'begins' for 'occurs' on line 6, for purposes of discussion." REPRESENTATIVE KEMPLEN noted that the substitution changes the legislation because now it allows for a school year to go beyond August 31 of the following year. He asked for clarification. CHAIRMAN DYSON said he doesn't believe it sets a maximum on how many weeks the school can go. It only has to be a minimum, and it can start anytime during that period; a student could actually start two terms during that period. Number 1120 REPRESENTATIVE BRICE noted that the original bill said all 30 of the weeks had to fall between September 1 and August 31. The amendment says that a student can lapse over August 31 in the program. He wondered if that would be considered two years or one year. CHAIRMAN DYSON said the real thing here is the money. It allows students to complete it and then start their second academic year within a calendar year, and to have access to the funding for it. DR. BYRD agreed. If a student enrolled on September 1, the beginning of the loan year, then 30 weeks will have transpired seven months and a week and a half later; the student will have completed one academic year of the four years for a four-year degree. The following day, theoretically, that student could start a second academic year, and a little more than seven months later would have completed a second year. If the schedule were written properly, that student would be able to complete a four- year degree in two and a half years. During that year and a half saved, the student would be earning money that otherwise he/she couldn't earn if he/she took four years to complete the degree. REPRESENTATIVE BRICE said "The issue is we want that student to be able to apply for and receive four years of student loans because he is paying for four years of tuition. That's why we want 'begins' instead of 'occurs.'" CHAIRMAN DYSON asked Ms. Barrans whether the department endorses this and doesn't have any problems with it. Number 1258 DIANE BARRANS, Executive Director, Alaska Commission on Postsecondary Education, Department of Education & Early Development, came forward. She confirmed that the commission did review this legislation at its meeting earlier today and acted to endorse it. The commission consulted with other four-year institutions in the state and explained that this bill is relatively invisible to them. In the event that the institutions proposed accelerated degree programs, they would offer their students the same benefit. CHAIRMAN DYSON noted that he has a perceived conflict of interest because he had been a student at Dr. Byrd's institution and has received advice from Dr. Byrd on educational issues. REPRESENTATIVE BRICE asked whether there was still an objection to the amendment. REPRESENTATIVE KEMPLEN withdrew his objection. Number 1323 REPRESENTATIVE KEMPLEN made a motion to move HB 427, as amended, out of committee with individual recommendations and zero fiscal note. There being no objection, CSHB 427(HES) moved from the House Health, Education and Social Services Standing Committee.
| Document Name | Date/Time | Subjects |
|---|