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
txt
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.                                                                                                                  

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