Legislature(1999 - 2000)
04/10/1999 10:06 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 27
"An Act relating to graduate student loans; and
providing for an effective date."
CS FOR HOUSE BILL NO. 27(HES)
"An Act relating to financial aid received for medical
education and financial aid received by students
participating in the Western Interstate Commission on
Higher Education Professional Student Exchange
Program; relating to the Western Regional Higher
Education Compact; and providing for an effective
date."
REPRESENTATIVE ELDON MULDER was invited to join the
committee. He thanked the committee for hearing HB 27 and
explained that it was a simple bill. It would allow Alaska
students opportunities or access to special "slots" through
use of the Alaska Student Loan program. As he said, the
bill would allow the holding of slots within WITCHIE for
Alaska students. It would be a full loan repayment plan.
The biggest concern is one of access. These are
professional fields, which are very competitive to get
into. These included for example, dentistry, which were
not available at the University of Alaska. And it would be
too expensive to establish these degree programs at the
University. The bill would allow for slots to be held for
Alaskan students. He referred to a letter written from a
woman from Wasilla. (read into the record) He felt that
the letter explained the situation completely for Alaskan
students. Further, passage of the bill would help to
correct these difficulties.
At this time Representative Mulder passed out an amendment
which he said was a technical correction.
Co-chair Torgerson asked him to explain this. (No number
was issued for this amendment at this time.)
Amendment #1 was MOVED by Senator Wilken. Representative
Mulder asked that Diane Barrans to be invited to join the
committee to explain the amendment.
DIANE BARRANS, Executive Director, Post Secondary Education
Commissioner, Department of Education was invited to join
the committee.
Co-chair Torgerson asked her to explain amendment #1,
specifically section two.
Senator Green asked about section 1 of the bill, the HES
version. "Are we just bringing WITCHIE back?"
Ms. Barrans explained "WAMI" and "WITCHIE". Senator Green
asked the sections of the bill to be identified where these
slots would fit in. Representative Mulder said they would
come under section three.
Ms. Barrans referred again to the amendment. Senator Green
asked if the WITCHIE program was being repealed? Ms.
Barrans indicated that was correct.
Senator Leman asked if there were slots in other states
that were given to their residents. He further asked if
our students, through the WITCHIE compact, would have the
same priority?
Ms. Barrans said at the time when we were participating and
funding slots that was true. But since the program was no
longer funded to include these slots and that the State no
longer participated in the programs that was no longer
true.
Senator Adams asked if in looking at the slots for Alaska
students, was there any benefit to the State versus a
student paying out-of-state tuition? Ms. Barrans said
generally not. Support fee was more than the differential
for non-resident tuition. In some other cases it was less.
It would all depend on the fee schedule for the degree
program. There could be some minor economical benefit,
however, the major benefit was that the student would get
considered.
Senator Donley said he did not understand how forgiveness
bought more seats at a university? "We have to buy seats
for students applying to the program?" Ms. Barrans asked
the question be repeated. Senator Donley asked if we were
buying our way into the WITCHIE program? Ms. Barrans
indicated that was correct. She explained that the
exchange program required states to pay an additional cost
in advance. The schools have to know that the money will
be available.
Ms. Barrans explained the bottom line of the fiscal
analysis. It was not an appropriated item, however.
Senator Donley asked about the fee being paid.
Representative Mulder said the student would not only pay
the loan but the slot fee. Senator Donley said there was a
special component already in the medical WITCHIE program.
Ms. Barrans replied that the students would be incurring
about $200,000 debt. Senator Donley asked if the bill
would take money from the existing users of the loans to
sign at universities for slots for Alaskans? Ms. Barrans
said they would just reactivate their status in the
program.
Senator Donley referred to page two of the bill, WAMI.
Where is the repayment program in the bill? Ms. Barrans
said it was in the amendment. Senator Donley said he
needed more clarification of the amendment.
Senator Green asked about changes to the student loan
program dealt with about two to three years ago. Is there
a ceiling? Ms. Barrans said a cap could not really be put
in because they are renegotiated each year. At present,
the cap for an undergraduate is $60,000.
Senator Wilken asked the total amount of loans to be put
out this year. She responded about $69 million. Senator
Wilken said this year they recorded a profit. Would this
piece of legislation cause a negative impact on this
profit? She did not expect so.
Senator Donley asked how much a non-WAMI student could
borrow? Ms. Barrans responded that the amount was
$9,500/year. Senator Donley said there used to be a line
item in the budget to pay for WAMI. Would this bill cover
the line item effect of previous? Would the department
make decision as to what slots were purchased?
Senator Donley also asked about medical school? He was
concerned that an undergraduate would have maxed out their
capacity to borrow.
Senator Parnell asked about the $9,500/year borrowing
capacity. Ms. Barrans explained this. Senator Parnell
asked if there was a medical student loan program only?
Ms. Barrans said there was no special loan program.
WITHOUT OBJECTION amendment #1 was ADOPTED.
Co-chair Torgerson took a brief at ease at approximately
11:31 a.m.
Senator Wilken MOVED SCS CSHB 27(FIN) and WITHOUT OBJECTION
it was REPORTED OUT with individual recommendations and
accompanying fiscal note from the Department of Education,
indeterminate amount.
Co-chair Torgerson called HB 10.
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