Session: State Capitol, Room 417 Juneau, AK 99801-1182 Phone: (907) 465-2487 Toll Free: (800) 865-2487 Fax: (907) 465-4956 Interim: 112 Mill Bay Road Kodiak, AK 99615 Phone: (907) 486-8872 Fax: (907) 486-5264 (at LIO)

Sponsor Statement for SB 61
Student Loan Forgiveness

An Act relating to forgiveness of certain student loans; and providing for an effective date.

SB 61, "An Act Relating to reimbursement of certain student loans; and providing for an effect date," is a companion bill to HB 37. With school districts throughout the state experiencing difficulties recruiting teachers and the continued loss of talented Alaskan youth, this bill will offer solutions to both concerns.

The bill forgives borrowers who have received an undergraduate degree from a college or university, is employed at a public elementary or secondary school within the state as a teacher, and has complied with AS 14.43.120.

The amount to be forgiven under this section is the portion of the payments made under AS 14.43.110 by the borrower up to 50 percent of the total loan plus interest.

SB 61 allows students of any academic discipline to receive forgiveness of a portion of their Alaska student loan upon meeting the criteria of the bill. With the passage of this bill, students who decide to pursue a teaching career after enrolling in college will benefit from the reduction of their student loan burden. The bill also gives school district the ability to attract new teachers who are Alaskans.

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