00HOUSE BILL NO. 246                                                                                                    
01 "An Act relating to reimbursement of student loans; and providing for an                                                
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 14.43 is amended by adding a new subsection to read:                                              
05  Sec. 14.43.142.  Reimbursement of borrowers.  (a)  If a borrower has                                                
06 graduated from a career education program or received an undergraduate degree from                                      
07 a college or university, is employed within the state, and has complied with                                            
08 AS 14.43.120, a portion of the payments made by the borrower for a loan made under                                      
09 AS 14.43.110 shall be reimbursed to the borrower by the state equal to the following                                    
10 percentages of the total loan received plus interest, up to a total of 50 percent of the                                
11 total loan plus interest:                                                                                               
12   (1)  one year employment, 10 percent;                                                                                
13   (2)  two years employment, an additional 10 percent;                                                                 
14   (3)  three years employment, an additional 10 percent;                                                               

01   (4)  four years employment, an additional 10 percent;                                                                
02   (5)  five years employment, an additional 10 percent.                                                                
03  (b)  The loan amount reimbursed to the borrower may not exceed the loan                                               
04 amount paid by the borrower to the state.  Notwithstanding any other provision of law,                                  
05 while a person's loan is being reimbursed by the state under (a) of this section, that                                  
06 person may not receive forgiveness of a loan under any other provision of this chapter.                                 
07  (c)  Reimbursement under (a) of this section is subject to appropriation by the                                       
08 legislature.  Money obtained from the sale of bonds by the Student Loan Corporation                                     
09 under AS 14.42.220 may not be appropriated for the payment of reimbursement of                                          
10 loans.                                                                                                                  
11    * Sec. 2.  APPLICABILITY.  This Act applies to loans entered into on or after July 1,                              
12 1999, and to a person's employment that occurs on or after July 1, 1999.                                                
13    * Sec. 3.  This Act takes effect July 1, 1999.