03/20/2000 01:33 PM Senate HES

          SB 275-POSTSECONDARY LOAN PROGRAM:SCHOOL YR                                                                           
                                                                                                                                
CHAIRMAN MILLER noted SB 275 was introduced by the Senate HESS                                                                  
Committee.  The bill changes the definition of the school year to                                                               
provide student loans for students attending schools that offer a                                                               
two year degree within a 15 month time period.  Charter College                                                                 
offers such a degree, and it is working on a four year degree                                                                   
program that a student could earn in 2+ years. SB 275 changes the                                                               
requirement that loans be granted only according to the traditional                                                             
school year.                                                                                                                    
                                                                                                                                
MR. MILT BYRD, President of Charter College and a member of the                                                                 
Alaska Commission on Postsecondary Education (ACPE), explained that                                                             
the modification of the definition of a school year is consistent                                                               
with the definition of the U.S. Department of Education.                                                                        
Historically, colleges and universities have offered two semesters                                                              
of 15 weeks each or three quarters of ten weeks for a total of 30                                                               
weeks for the academic year.  Language in the current statute                                                                   
assumes that students will go to school for nine months of the year                                                             
to achieve 30 weeks of instruction.  One can put together a fast                                                                
track program whereby the 30 week instructional year can be offered                                                             
in about 7+ months.  That permits a student to complete a four year                                                             
degree in 30 months or 2+ years.  Charter College uses that                                                                     
structure.  Currently, it offers a two-year degree and plans to                                                                 
develop into a four year institution.  Charter College is concerned                                                             
that students will need to pay four years of tuition for the fast                                                               
track program but will be unable to get four years of loans.  The                                                               
modification of the current statute will simply provide that a 30                                                               
week period of academic instruction constitutes a full year and                                                                 
provides for one full loan.                                                                                                     
                                                                                                                                
MR. BYRD said the House companion bill was slightly modified.  The                                                              
word "occurs" was changed to "begins"  on page 1, line 6, to allow                                                              
students who are on a fast track program to apply for two loans                                                                 
during the period from September 1 to August 31.  That change was                                                               
approved by the Alaska Commission on Postsecondary Education at its                                                             
meeting last Thursday.                                                                                                          
                                                                                                                                
SENATOR ELTON asked, if the word "begins" is used, why the dates of                                                             
September 1 and August 31 are necessary.  He asked if the bill                                                                  
could say that a school year means an academic period that is a                                                                 
minimum of 30 weeks of instruction time.                                                                                        
                                                                                                                                
MR. BYRD replied that would be fine from his point of view, but                                                                 
ACPE staff is concerned that the additional loan year be part of                                                                
the record for reasons unrelated to this particular change.                                                                     
                                                                                                                                
MS. DIANE BARRANS, Executive Director of the Alaska Commission on                                                               
Postsecondary Education, forwarded to the committee the endorsement                                                             
taken by the ACPE the previous week.  In regard to Senator Elton's                                                              
question, she said the terms and conditions for each school year                                                                
are set and disclosed within the Alaska Student Loan Corporation's                                                              
official statement.  In order to accurately track those terms and                                                               
conditions from one year to the next, a time period is set that                                                                 
they will apply to - the reason the dates are needed in SB 275.                                                                 
                                                                                                                                
There being no further testimony on SB 275, CHAIRMAN MILLER moved                                                               
to replace the word "occurs" with "begins" on page 1, line 6.                                                                   
There being no objection, the motion carried.                                                                                   
                                                                                                                                
SENATOR WILKEN moved CSSB 275(HES) from committee with individual                                                               
recommendations and its zero fiscal note.  There being no                                                                       
objection, it was so ordered.  CHAIRMAN MILLER noted the bill has                                                               
no fiscal note.                                                                                                                 
                                                                                                                                
MS. BARRANS told committee members the bill has no fiscal impact                                                                
but that she would provide a zero fiscal note for the next                                                                      
committee of referral.                                                                                                          
                                                                                                                                
There being no further business to come before the committee,                                                                   
CHAIRMAN MILLER adjourned the meeting at 2:20 p.m.