00                            HOUSE BILL NO. 385                                                                          
01 "An Act relating to forgiveness of portions of education loans for certain borrowers who                                
02 are residents of the state."                                                                                            
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 14.43.120(t) is amended to read:                                                                  
05            (t)  Payment of interest under (l) of this section and forgiveness under (s) and                         
06       (w) of this section are subject to appropriation by the legislature.  Money obtained                          
07       from the sale of bonds by the Student Loan Corporation under AS 14.42.220 may not                                 
08       be appropriated for the payment of interest or the forgiveness of loans.                                          
09    * Sec. 2.  AS 14.43.120 is amended by adding a new subsection to read:                                             
10            (w)  A portion of a loan shall be paid on behalf of the borrower by the state if,                            
11       immediately upon completion of the course of study for which the loan was granted,                                
12       the borrower is a resident of the state for at least two full consecutive years.  The                             
13       portion of the loan that shall be paid by the state is calculated based on the following                          
14       percentages of the total loan received plus interest, up to a maximum of 50 percent of                            

01       the total loan plus interest, and based on the number of consecutive years the borrower                           
02       remains a resident after completion of the course of study:                                                       
03                 (1)  two full consecutive years' residence in the state, 10 percent;                                    
04                 (2)  four full consecutive years' residence in the state, an additional 10                              
05       percent;                                                                                                          
06                 (3)  five full consecutive years' residence in the state, an additional 10                              
07       percent;                                                                                                          
08                 (4)  six full consecutive years' residence in the state, an additional 10                               
09       percent;                                                                                                          
10                 (5)  seven full consecutive years' residence in the state, an additional 10                             
11       percent.