SB 94-EDUCATION & SUPPLEMENTAL LOAN PROGRAMS  9:05:40 AM CHAIR HOLLAND announced the consideration of SENATE BILL NO. 94 "An Act relating to the education loan program and Alaska supplemental education loan program; and providing for an effective date." [SB 94 was previously heard on 3/5/21 and 4/19/21.] 9:05:52 AM CHAIR HOLLAND opened public testimony on SB 94. 9:06:12 AM CHAD HUTCHINSON, Director of State Relations, University of Alaska, Anchorage, Alaska, presented SB 94 on behalf of the administration. He stated that the University of Alaska (UA) supports SB 94. UA believes it is wise for the Alaska Student Loan Corporation (ASLC) to have flexibility in determining loan amounts for eligible borrowers. SB 94 will also allow borrowers more opportunities to finance their loans. Further, this bill aligns with UA President Pitney's vision to boost enrollment and reduce the university's dependency on state funding moving forward. He characterized it as a win-win for all parties. 9:07:15 AM CHAIR HOLLAND, after first determining no one wished to testify, closed public testimony on SB 94. 9:07:32 AM CHAIR HOLLAND solicited amendments to SB 94. 9:07:38 AM SENATOR HUGHES moved to adopt Amendment 1, [work order 32- GS1644\A.1]. AMENDMENT 1  32-GS1644\A.1 Klein 4/20/21 OFFERED IN THE SENATE BY SENATOR HUGHES TO: SB 94 Page 3, following line 9: Insert a new bill section to read: "* Sec. 6. AS 14.43 is amended by adding a new section to read: Sec. 14.43.940. Economies of scale. When administering the education loan program under AS 14.43.091 - 14.43.160 and the Alaska supplemental education loan program under AS 14.43.170 - 14.43.175, the commission shall attempt to achieve economies of scale." Renumber the following bill section accordingly. 9:07:43 AM CHAIR HOLLAND objected for discussion purposes. 9:07:47 AM SENATOR HUGHES explained that Amendment 1 makes it clear that the goal of the loan program expansion is to achieve economies of scale. During the first hearing on SB 94, members expressed concern about extending eligibility to students who were not currently Alaska residents. She said at the 4/19/21 hearing and through conversations with Ms. Efird, it became clear that this will help Alaska residents because expanding the pool achieves economies of scale that can help keep rates lower. It will also help boost ASLC's revenues, she said. She acknowledged that she would prefer that the Amendment 1 language was crafted differently but there was limited time to work on it. CHAIR HOLLAND noted that his office had not received the amendments from Legislative Legal Services in time to post them to BASIS prior to this meeting. 9:09:10 AM SENATOR MICCICHE asked what Amendment 1 will accomplish except to clarify the reason for the bill. SENATOR HUGHES answered that it also would help keep the commission mindful of what is beneficial to Alaskan students. SENATOR STEVENS offered his understanding that the overall effect of having more students in the loan program would be to lower student loan rates. SENATOR HUGHES deferred to Ms. Efird, but offered her belief that the primary reason was to ensure that revenue flows through the ASLC to help Alaskan students. 9:10:46 AM CHAIR HOLLAND related his understanding that the state does not want to increase the state's expenses to expand the loan program but SB 94 would achieve the goal of making the program more economical. SENATOR HUGHES agreed. She pointed out that due to the high credit score requirement for this program, it would not put the state at risk but could expand the pool. 9:11:27 AM CHAIR HOLLAND removed his objection. There being no further objection Amendment 1 was adopted. 9:11:39 AM SENATOR HUGHES moved to adopt Amendment 2, [work order 32- GS1644\A.2]: AMENDMENT 2  32-GS1644\A.2 Klein 4/20/21 OFFERED IN THE SENATE BY SENATOR HUGHES TO: SB 94 Page 3, following line 9: Insert a new bill section to read:  "* Sec. 6. AS 14.43 is amended by adding a new section to read: Sec. 14.43.940. Report to the legislature. Not later than December 31 of each year, the commission shall submit to the legislature a report evaluating the benefit provided to Alaska students by the education loan program under AS 14.43.091 - 14.43.160 and the Alaska supplemental education loan program under AS 14.43.170 - 14.43.175. The commission shall deliver the report to the senate secretary and the chief clerk of the house of representatives and notify the legislature that the report is available." Renumber the following bill section accordingly. 9:11:44 AM CHAIR HOLLAND objected for discussion purposes. 9:11:48 AM SENATOR HUGHES explained that Amendment 2 was developed as a result of the last hearing and in conversations with Ms. Efird. She explained that it is similar to Amendment 1 such that it would help ensure benefits go to Alaska students. It would require ASLC to evaluate and report benefits to the legislature. This essentially will trigger an annual review which Ms. Efird indicated was likely to happen. 9:12:31 AM CHAIR HOLLAND removed his objection. There being no further objection, Amendment 2 was adopted. 9:12:47 AM CHAIR HOLLAND asked for the will of the committee. 9:12:55 AM SENATOR STEVENS moved to report SB 94, work order 32-GS1644\A as amended, from committee with individual recommendations and attached fiscal note(s). CHAIR HOLLAND found no objection and CSSB 94(EDC) was reported from the Senate Education Standing Committee.