Legislature(1999 - 2000)
04/10/2000 02:15 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 275(HES)
An Act relating to the school year for purposes of the
postsecondary student loan program; and providing for
an effective date.
SENATOR MIKE MILLER stated that currently, AS 14.43,
Subsection (5), Section 160, "definitions" reads: "School
year", means a period from September 1st of one year through
August 31st of the following year. The bill would amend the
definition to read that an academic period could be a
minimum of 30 weeks of instructional time to begin between
September 1st of one year and August 31st of the following
year.
Senator Miller noted that the current definition of "school
year" assumes an agricultural society, such as existed when
public education in America began in earnest in the 1820's
and 1830's. Then the vast majority, perhaps 85%-90% of
Americans lived on family farms. The school year was
designed to begin after fall harvest and end before spring
planting.
Senator Miller continued, today, hardly more than one-
percent of our population lives on family farms. The school
calendar is obsolete, especially for higher education in
urban America. The U. S. Department of Education defines an
academic year as thirty weeks of instruction, and virtually
all colleges and universities follow that pattern, either
offering two fifteen-week semesters or three ten-week
quarters. However, most continue to use the agriculture
calendar, making it difficult to offer a fast-track program
for urban individuals who want to get on with their
education in a vigorous fashion. The U. S. Department of
Education will offer a full loan to a full-time student who
completes successfully a thirty-week academic year and will
offer another loan as soon as that student begins another
similar period of full-time study.
Senator Miller pointed out that Charter College in Anchorage
has experimented with offering five ten-week quarters in one
calendar year or one and two-thirds academic years in one
calendar year. That has proven popular because it allows a
student to complete a two-year associate degree in just
fifteen months. Charter is now in the planning stage of a
four-year bachelor degree program, which will allow
ambitious and hard-working students to complete their
degrees in as little as thirty consecutive months.
Unlike students in other programs following the slower and
more traditional calendar, these students cannot obtain four
State loans for their degrees, given the current definition
of a school year. They deserve the option of taking on the
challenge of a fast-track baccalaureate degree. Senator
Miller advised that under that circumstance, the sum total
of their loans for their education would be no more than
that for their counterparts following traditional calendars.
However, the cost of their education will have been reduced
because they will have yielded less foregone income during
their college years when they were in no position to hold
full-time jobs.
Co-Chair Therriault asked about the structure of the
language on Page 1, Line 6-7. Senator Miller explained that
language was left in for accounting purposes at the Student
Loan Division.
Representative J. Davies suggested that a period could be
placed after "time". Senator Miller reiterated that the
Student Loan Division wanted that language left as is for
accounting purposes.
Vice Chair Bunde asked if this would create a large change
to the current semester system. He suggested that the
language as currently written implies that a person can only
apply for one student loan in the 12-month period. Senator
Miller explained that the time would be "compressed" so that
the student could receive a four-year degree in a three-year
period.
DIANE BARRANS, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION, spoke to
the Postsecondary Commission's support for the legislation.
Ms. Barrans stated that there would be zero fiscal impact to
the Commission while at the same time offering more
opportunities to the Alaska College students.
Ms. Barrans spoke to her concern. She pointed out that the
objective was twofold:
? Providing an opportunity under an excellerated
program to borrow more than one loan per year; and
? Doing so without changing anymore needed related
statutes.
Ms. Barrans commented that the intent was to keep the bill
short, pointed out that it had been reviewed by the Attorney
General. She reiterated that the legislation would allow
the Commission to offer more than one loan per year with set
terms of conditions.
Co-Chair Therriault asked what would happen to a student
that was not able to finish the program according to the
proposed schedule. He asked if they would be precluded from
receiving a loan for the following year. Ms. Barrons
replied that would be a different issue in terms of
completing the term at the required enrollment level. If
the student were to complete that academic year in another
loan year, under the terms of the new loan, they would be
able to continue to borrow. Co-Chair Therriault clarified
that a student would actually be able to draw three years
worth of loans in a two-year period of time. Ms. Barrans
acknowledged that was correct.
Representative J. Davies asked the current restrictions on
borrowing. Ms. Barrans explained that currently, an
undergraduate could borrow $8500 dollars in a 12-month
period. Representative J. Davies believed that the
legislation would limit the 12-month period. Ms. Barrans
stated that there would be a number of factors used to
determine if they qualify for a second loan. The first
criteria is if they had completed the entire academic period
for the previous loan. If they did and had made good
progress, they could apply for and receive a second loan.
Representative J. Davies believed that by formulating the
proposed change, there would be no limit on the number of
loans that a person could receive in a two-year period. He
proposed an amendment which would clarify that language.
Co-Chair Therriault stated that rather than moving a
conceptual amendment at this time, the bill would be held in
Committee in order to confer with the drafters.
MILTON BYRD, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE,
added that the U.S. Department of Education defines an
academic period as 30 weeks of instruction. Most colleges
in the country, pursue that by offering two 15 or 16 week
semesters or three 10 or 11 week quarters. Mr. Byrd noted
that a school can offer a compressed program, but they must
offer the same amount of class time. He stressed that one
could not compress the amount of time that it would take to
complete a four-year degree by cutting out the "pauses"
between terms. However, you can compress the amount of time
taken to complete a degree.
Representative J. Davies asked if there was language which
stipulates that a student must complete the one 30-week
period before receiving the next loan. Mr. Byrd referred
that to Ms. Barrans.
HB 275 was heard and HELD in Committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|