03/27/1998 08:10 AM Senate FIN

                                                                               
 SENATE BILL NO. 332                                                           
                                                                               
"An Act relating to the Alaska Student Loan                                    
Corporation."                                                                  
                                                                               
Co-chair Pearce called SB 332 and briefly explained the "E"                    
version of the committee substitute noting a zero fiscal                       
note from the Department of Education.                                         
                                                                               
Senator Phillips MOVED CSSB 332(), "E" version dated 3/6/98                    
as working version.  Senator Adams OBJECTED.                                   
                                                                               
Diane Barrans, Executive Director, Post Secondary Education                    
Commission, Department of Education was invited to join the                    
committee.  In response to a query from Senator Adams she                      
said the delinquent loan rate was about 19 percent, which                      
included loans from previous years.  At this time they were                    
seeking credit-worthy co-signers for those with bad credit.                    
Senator Adams asked how collections were done and Ms.                          
Barrans explained the process.                                                 
                                                                               
At this point Senator Adams WITHDREW his OBJECTION.                            
Therefore, WITHOUT OBJECTION, CSSB 332(), "E" version was                      
ADOPTED.                                                                       
                                                                               
Senator Donley commented that some provisions should be                        
added to make sure loans were paid back.  Medical students                     
were paying back their loans.                                                  
                                                                               
In response to Co-chair Pearce's comments, Ms. Barrans                         
indicated there was no companion House Bill.                                   
                                                                               
Senator Donley asked the bill be held until next Tuesday                       
because he wanted time to submit an amendment.                                 
                                                                               
Co-chair Pearce HELD SB 332.