Legislature(2021 - 2022)SENATE FINANCE 532
05/15/2022 11:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB363 | |
| HB172 | |
| HB265 | |
| HB127 | |
| HB114 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 19 | TELECONFERENCED | |
| += | HB 114 | TELECONFERENCED | |
| += | HB 127 | TELECONFERENCED | |
| += | HB 172 | TELECONFERENCED | |
| += | HB 265 | TELECONFERENCED | |
| += | HB 363 | TELECONFERENCED | |
HOUSE BILL NO. 114 am
"An Act relating to the education loan program and
Alaska supplemental education loan program; and
providing for an effective date."
1:40:34 PM
AT EASE
1:41:03 PM
RECONVENED
1:41:30 PM
Senator Hoffman MOVED to ADOPT proposed committee
substitute for HB 114, Work Draft 32-GH1644\B (Marx,
5/12/22).
Co-Chair Bishop OBJECTED for discussion.
1:41:58 PM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, discussed the
changes to the committee substitute.
Senator Wielechowski stated that he had a question for
someone from the Department of Education and Early
Development.
1:42:53 PM
SANA EFIRD, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT, introduced herself.
Senator Wielechowski recalled that he had previously posed
the question about the definition of beneficiary on page
1, line 12.
Ms. Efird replied that she had submitted the answer to that
question, but remarked that the difference for a
beneficiary in the program was a person that was the
recipient of the benefit of the loan.
Senator Wielechowski wondered whether wealthy parents could
receive cheaper loans instead of the bank from the state.
Ms. Efird replied that if the applicant met the eligibility
requirements of the loan, they could receive a state loan.
Senator Wielechowski expressed concern, because under
current law one must have good credit to receive the state
loan.
Ms. Efird replied that there were specific credit
requirements for the loan.
Senator Wielechowski wondered what would happen if someone
or someones family had bad credit.
1:45:4 0 PM
Ms. Efird replied that a student that may not qualify could
get a cosigner for the loan. She agreed that the student
loan corporation is responsible for the financial
sustainability of the fund.
Senator Wielechowski wondered whether a beneficiary also
had to be an Alaska resident under the bill.
Ms. Efird replied that there were various student loan
programs. She shared that there must be proof of Alaskan
residency for a student that was taking an in school loan,
even if attending out of state. She noted that the bill had
expanded the criteria for the refinance loan program. The
expansion of the eligibility included those that could have
previously received a loan through the student loan
corporation, but were now out of state.
Co-Chair Bishop queried the definition of Alaskan
resident in the bill.
Ms. Efird replied that the requirement was the same as the
Permanent Fund Dividend (PFD) criteria.
Senator Wielechowski noted that the bill allowed the
corporation to set a maximum loan amount. He wondered
whether the bill allowed the state to cover a large amount
of tuition for a wealthy family.
Ms. Efird replied that the bill gave the authority to the
corporation board the ability to set the loan limits based
on current analysis of instate cost an out-of-state costs
of where the majority of Alaska student attendance.
1:51:49 PM
Senator von Imhof queried the evaluation of the ability for
repayment.
Ms. Efird replied that she was not the loan specialist, and
agreed to provide further information. She did explain that
there were credit evaluations.
Senator von Imhof queried the ability for a student to sign
on a loan, and wondered why there was no cosigner required
for all applicants. She queried the repayment timeline.
Ms. Efird stated that the default rate for the refinance
program had a zero percent default rate. She stated that an
in school student loan was deferred while the student was
in school. After graduation, the student had six months
before repayment begins. She noted that there were a number
of different payment plans.
1:55:23 PM
Senator Wilson remarked that he took out a loan for his
graduate studies from the corporation. He surmised that the
intent was to take out low-risk loans. He felt that it was
not a competition with banks.
Ms. Efird agreed. She explained that the corporation was
fulfilling the mission set out in statute.
1:57:43 PM
AT EASE
1:57:53 PM
RECONVENED
1:57:58 PM
Co-Chair Bishop WITHDREW their OBJECTION. There being NO
OBJECTION, it was so ordered.
1:58:30 PM
Co-Chair Bishop discussed FN 3, a zero fiscal note from the
Department of Education and Early Development, OMB
Component 2738.
Co-Chair Bishop asked about the impact of the changes in
the committee substitute.
Ms. Efird stated that the effective date was retroactive to
2016.
Senator Hoffman MOVED to report SCS HB 114(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS HB 114(FIN) was REPORTED out of committee with three
no recommendation, one amend, and two do pass
recommendations; and with one new fiscal impact note from
the Department of Education and Early Development, and one
previously published zero fiscal note: FN4 (GOV).
Co-Chair Bishop discussed the following day's agenda //