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.