SB 149: "An Act establishing the Alaska education and health care professional incentive program; and providing for an effective date."
00 SENATE BILL NO. 149 01 "An Act establishing the Alaska education and health care professional incentive 02 program; and providing for an 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. Merit loan forgiveness of loans made to certain borrowers. 06 (a) Except as provided under (c) of this section, the state shall forgive a loan made to 07 a borrower who 08 (1) has complied with AS 14.43.120; 09 (2) has achieved a grade point average of 3.0 or better, or the 10 equivalent; and 11 (3) is employed in the state as 12 (A) a teacher or as a person providing professional special 13 education services at an elementary or secondary school in this state; or 14 (B) a health care provider.
01 (b) The amount to be forgiven under this section is the payments to be made 02 by the borrower for a loan made under AS 14.43.110 equal to the following 03 percentages of the total loan received plus interest up to a total of 50 percent of the 04 total loan plus interest: 05 (1) one year employment as described in (a) of this section, 10 percent; 06 (2) two years employment as described in (a) of this section, an 07 additional 10 percent; 08 (3) three years employment as described in (a) of this section, an 09 additional 10 percent; 10 (4) four years employment as described in (a) of this section, an 11 additional 10 percent; 12 (5) five years employment as described in (a) of this section, an 13 additional 10 percent. 14 (c) This section does not apply to a loan under AS 14.43.110 given to a 15 borrower who has fewer than 60 hours of credit at a college or university. 16 (d) The loan amount forgiven under this section may not exceed the loan 17 balance due to the state. Notwithstanding any other provision of law, while 18 (1) a person's loan is being forgiven by the state under (b) of this 19 section, that person may not receive forgiveness of a loan under any other provision of 20 this chapter; and 21 (2) a person is qualified for forgiveness under this section, the state 22 shall pay 50 percent of a borrower's obligation to repay the principal and interest on 23 the loan. 24 (e) Forgiveness under (a) of this section and payment of principal and interest 25 under (d) of this section is subject to appropriation by the legislature. Money obtained 26 from the sale of bonds by the Student Loan Corporation under AS 14.42.220 may not 27 be appropriated for the payment of forgiveness of loans. 28 (f) In this section, 29 (1) "health care provider" means a person licensed in this state to 30 provide services for the purpose of preventing, alleviating, curing, or healing human 31 illness, injury, or physical disability;
01 (2) "teacher" means a person who possesses a valid teacher certificate 02 issued under AS 14.20.020. 03 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 APPLICABILITY. This Act applies to loans entered into on or after July 1, 2001, and 06 to a person's employment that occurs on or after July 1, 2001. 07 * Sec. 3. This Act takes effect July 1, 2001.