00 HOUSE BILL NO. 25                                                                                                       
01 "An Act relating to reimbursement and taxation of certain student loans; and                                            
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 14.43.120 is amended by adding new subsections to read:                                             
05  (u)  If a borrower has graduated from an early childhood career education                                             
06 program or received an undergraduate degree in early childhood education from a                                         
07 college or university, is employed in early childhood education within the state, and                                   
08 has complied with the other provisions of this section, a portion of the loan payments                                  
09 made by the borrower shall be reimbursed to the borrower by the state equal to the                                      
10 following percentages of the total loan received plus interest up to a total of 70 percent                              
11 of the total loan plus interest:  (1) one year employment, 10 percent; (2) two years em-                                
12 ployment, an additional 12 percent; (3) three years employment, an additional 14                                        
13 percent; (4) four years employment, an additional 16 percent; (5) five years                                            
14 employment, an additional 18 percent.  The loan amount reimbursed to the borrower                                       
01 may not exceed the loan amount paid by the borrower to the state.  In this subsection,                                  
02 "early childhood education" means employment as a day care provider, in a Head Start                                    
03 program, or in a similar program providing for the education of children that are less                                  
04 than six years of age.                                                                                                  
05  (v)  Notwithstanding any other provision of law, while a person's loan is being                                       
06 reimbursed by the state under (u) of this section, that person may not receive                                          
07 forgiveness of a loan under any other provision of this chapter.                                                        
08  (w)  The commission shall adopt regulations that permit a borrower to exclude                                         
09 a reimbursed portion of a loan from the gross income of the borrower if allowed under                                   
10 the Internal Revenue Code.                                                                                              
11  (x)  Reimbursement under (u) of this section is subject to appropriation by the                                       
12 legislature.  Money obtained from the sale of bonds by the Student Loan Corporation                                     
13 under AS 14.42.220 may not be appropriated for the reimbursement of loans.                                              
14    * Sec. 2.  APPLICABILITY.  This Act applies to loans entered into on or after July 1,                                
15 1993, and to a person's employment in early childhood education that occurs on or after                                 
16 July 1, 1993.                                                                                                           
17    * Sec. 3.  This Act takes effect July 1, 1993.