00                             HOUSE BILL NO. 37                                                                          
01 "An Act relating to reimbursement of certain 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 section to read:                                                 
05            Sec. 14.43.142.  Reimbursement of borrowers employed as public school                                      
06       teachers.  (a)  The state shall reimburse a borrower who has received an                                        
07       undergraduate degree from a college or university, is employed at a public elementary                             
08       or secondary school within the state as a teacher, and has complied with                                          
09       AS 14.43.120. The amount to be reimbursed under this section is the portion of the                                
10       payments made by the borrower for a loan made under AS 14.43.110 equal to the                                     
11       following percentages of the total loan received plus interest, up to a total of 50                               
12       percent of the total loan plus interest:                                                                          
13                 (1)  one year employment, 10 percent;                                                                   
14                 (2)  two years employment, an additional 10 percent;                                                    

01                 (3)  three years employment, an additional 10 percent;                                                  
02                 (4)  four years employment, an additional 10 percent;                                                   
03                 (5)  five years employment, an additional 10 percent.                                                   
04            (b)  The loan amount reimbursed to the borrower may not exceed the loan                                      
05       amount paid by the borrower to the state.  Notwithstanding any other provision of law,                            
06       while a person's loan is being reimbursed by the state under (a) of this section, that                            
07       person may not receive forgiveness of a loan under any other provision of this chapter.                           
08            (c)  Reimbursement under (a) of this section is subject to appropriation by the                              
09       legislature.  Money obtained from the sale of bonds by the Student Loan Corporation                               
10       under AS 14.42.220 may not be appropriated for the payment of reimbursement of                                    
11       loans.                                                                                                            
12    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14       APPLICABILITY.  This Act applies to loans entered into on or after July 1, 2001, and                              
15 to a person's employment that occurs on or after July 1, 2001.                                                          
16    * Sec. 3.  This Act takes effect July 1, 2001.