02/22/1995 09:06 AM Senate HES

 SHES - 2/22/95                                                                
                                                                               
             SB  59 REGULATIONS FOR STUDENT LOANS                            
                                                                               
                                                                               
 Number 379                                                                    
                                                                               
 CHAIRMAN GREEN called the committee back to order at 9:36 a.m. and            
 introduced  SB 59  as the next order of business before the                   
 committee.  Chairman Green inquired as to the will of the                     
 committee.                                                                    
                                                                               
 SENATOR LEMAN expressed the need to hear from the Commission.                 
                                                                               
 JULIEANNE HAYES, Executive Assistant of the Alaska Commission on              
 Postsecondary Education, stated that SB 59 is a transition bill               
 which would allow the Commission on Postsecondary Education to set            
 an interest rate.  This language was not present in last year's               
 legislation, HB 506.  Without the authority to set regulations the            
 commission would not be able to issue loans as of July 1995.  She             
 reviewed the sections of SB 59 and pointed out the various                    
 regulations they would allow such as default procedures and                   
 consolidation of loans.  She explained that the truth lending law             
 does not allow the issuance of loans without a specified interest             
 rate and without the timely passage of SB 59, the commission will             
 be unable to issue loans.                                                     
 CHAIRMAN GREEN clarified that SB 59 would correct an oversight in             
 the previous legislation; an immediate effective date is necessary.           
 Ms. Hayes agreed.                                                             
                                                                               
 SENATOR LEMAN moved that SB 59 be moved out of committee with                 
 individual recommendations.  Without objection, it was so ordered.