Legislature(2001 - 2002)

2001-03-22 House Journal

Full Journal pdf

2001-03-22                     House Journal                      Page 0689
HB 204                                                                                            
HOUSE BILL NO. 204 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
    "An Act relating to the Alaska Commission on Postsecondary                                      
    Education and the Alaska Student Loan Corporation; relating to                                  
    student financial aid programs and the financing of those                                       
    programs; establishing the Alaska Advantage Loan Program and                                    
    the Alaska Supplemental Education Loan Program; increasing the                                  
    bonding authorization of the Alaska Student Loan Corporation;                                   
    providing for liens resulting from a default under AS 14.43 or AS                               
    14.44; relating to the duties of the recorder regarding those liens;                            
    relating to defaults under the Western Regional Higher Education                                
    Compact; relating to the prohibition on discrimination regarding                                
    programs under AS 14.43; relating to fees for the review of certain                             
    postsecondary institutions; making conforming amendments; and                                   
    providing for an effective date."                                                               
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
The following fiscal note(s) apply:                                                                 
1.  Fiscal, Dept. of Education & Early Development                                                  
The Governor's transmittal letter dated March 20, 2001, appears                                     
"Dear Speaker Porter:                                                                               
Alaska's student loan program has achieved great success in the past                                
few years.  The Commission on Postsecondary Education and the                                       
Alaska Student Loan Corporation have turned the program around --                                   
running it in the black for the first time in history and paying a                                  
dividend back to the state.  This year the dividend payment is $2.2                                 
million with another $4 million expected for fiscal year 2002.  All of                              
this while serving over 90,000 Alaska student loan customers with                                   
$615 million in loans.                                                                              

2001-03-22                     House Journal                      Page 0690
This bill I transmit today establishes the AlaskAdvantage Loan                                      
Program, the next step in continuing the growth and financial integrity                             
of the state student loan program.  Under this legislation, Alaska                                  
would participate in the federal guaranteed student loan program                                    
which brings benefits including low interest rates for borrowers and                                
reduced risk to the state through federal loan guarantees.                                          
This bill also creates a supplemental loan program to provide financial                             
assistance in the event the AlaskAdvantage Loan is insufficient to                                  
cover education costs or the student does not qualify for assistance                                
under the federal guaranteed student loan program.                                                  
This bill will create a one-stop financial aid information center and                               
financial opportunity, guaranty the lowest possible borrowing rates,                                
streamline aid delivery and reduce financial risk to the State through                              
the federal guarantee.  This program will also offer expanded options                               
for borrowers with special needs in loan repayment.                                                 
At a time when access to quality education is at the forefront of our                               
legislative agenda, I urge your prompt and favorable action on this                                 
                              Tony Knowles