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

00 CS FOR SENATE BILL NO. 94(EDC) 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 in a maximum total [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. AS 14.43 is amended by adding new sections to read: 11 Sec. 14.43.940. Economies of scale. When administering the education loan 12 program under AS 14.43.091 - 14.43.160 and the Alaska supplemental education loan 13 program under AS 14.43.170 - 14.43.175, the commission shall attempt to achieve 14 economies of scale. 15 Sec. 14.43.950. Report to the legislature. Not later than December 31 of each 16 year, the commission shall submit to the legislature a report evaluating the benefit 17 provided to Alaska students by the education loan program under AS 14.43.091 - 18 14.43.160 and the Alaska supplemental education loan program under AS 14.43.170 - 19 14.43.175. The commission shall deliver the report to the senate secretary and the 20 chief clerk of the house of representatives and notify the legislature that the report is 21 available. 22 * Sec. 7. This Act takes effect July 1, 2021.