SB 94: "An Act relating to the education loan program and Alaska supplemental education loan program; and providing for an effective date."

00 SENATE BILL NO. 94 01 "An Act relating to the education loan program and Alaska supplemental education 02 loan program; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.43.122(b) is amended to read: 05 (b) For a borrower to be eligible for consolidation of a loan under this section, 06 the borrower must apply on a form approved by the corporation and must [PROVIDE 07 PROOF SATISFACTORY TO THE CORPORATION THAT THE BORROWER] 08 (1) physically reside [RESIDES] in the state and have [HAS] 09 maintained a domicile in the state for not less than 12 consecutive months before 10 submitting an application for consolidation; 11 (2) be a previous borrower, cosigner, or beneficiary of an 12 education loan made under AS 14.43 or AS 14.44 [HAS NOT BEEN 13 PHYSICALLY ABSENT FROM THE STATE FOR MORE THAN 60 DAYS IN 14 THE 12 MONTHS BEFORE SUBMITTING AN APPLICATION FOR

01 CONSOLIDATION]; or 02 (3) be a graduate of a high school or postsecondary institution 03 physically located in the state [HAS NOT DECLARED RESIDENCY IN 04 ANOTHER STATE; 05 (4) HAS NOT RECEIVED A BENEFIT OF RESIDENCY IN 06 ANOTHER STATE]. 07 * Sec. 2. AS 14.43.173(a) is amended to read: 08 (a) In a school year, the corporation may finance a loan to an eligible borrower 09 under AS 14.43.170 - 14.43.175 attending an eligible postsecondary institution in a 10 maximum amount to be determined by the corporation for an eligible [NOT TO 11 EXCEED] 12 (1) undergraduate attending a college or university [$14,000 TO 13 AN ELIGIBLE UNDERGRADUATE STUDENT ATTENDING A COLLEGE OR 14 UNIVERSITY]; 15 (2) graduate student attending a college or university [$15,000 TO 16 AN ELIGIBLE GRADUATE STUDENT ATTENDING A COLLEGE OR 17 UNIVERSITY]; and 18 (3) student attending a career education program [$10,000 TO AN 19 ELIGIBLE STUDENT ATTENDING A CAREER EDUCATION PROGRAM]. 20 * Sec. 3. AS 14.43.173(b) is amended to read: 21 (b) The corporation may finance loans made under AS 14.43.170 - 14.43.175 22 to an eligible [A] borrower a maximum total [IN AN] amount to be determined by 23 the corporation for [THAT IS NOT MORE THAN] 24 (1) an [A TOTAL OF $56,000 FOR] undergraduate study program; 25 (2) a [TOTAL OF $60,000 FOR] graduate study program; and [; OR] 26 (3) a combined [TOTAL OF $87,000 FOR] undergraduate and 27 graduate study program. 28 * Sec. 4. AS 14.43.173(d) is amended to read: 29 (d) The commission shall determine a borrower's loan award amount for a 30 specific school year [BASED ON A STUDENT'S ON-TIME, HALF-TIME, AND 31 FULL-TIME STUDENT STATUS] and may not exceed the limits established by the

01 corporation [IN THIS SECTION] or the borrower's costs of attendance. 02 * Sec. 5. AS 14.43.175 is amended to read: 03 Sec. 14.43.175. Repayment of loans. A borrower's obligation to commence 04 repayment of the principal of and interest on a loan under AS 14.43.170 - 14.43.175 05 begins not later [MORE] than six months following the borrower's completion or 06 other termination of the postsecondary program or the date that the borrower ceases to 07 be enrolled on at least a half-time basis. The commission and borrower may agree 08 to a repayment schedule commencing repayment immediately upon 09 disbursement of a loan. 10 * Sec. 6. This Act takes effect July 1, 2021.