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Portrait of Senator Gary Wilken Session:
State Capitol, Room 514
Juneau, AK 99801-1182
Phone: (907) 465-3709
Fax: (907) 465-4714
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Alaska Student Loan Corporation Shows First - Modest Profit

For Immediate Release: March 22, 1999
Contact: Senator Gary Wilken at (907) 465-3709.

Juneau -- For the first time since the elimination of General Fund subsidies to the program, the Alaska Student Loan Corporation (ASLC) achieved a modest profit of approximately $300,000 in fiscal year 1998.

"I'm pleased to see the ASLC is making progress toward its goal of financial self-sufficiency," said Senator Gary Wilken (R-Fairbanks). "As we work to build a long-term financial strategy for Alaska, it is rewarding to see a previously subsidized program move toward the goal of self-sufficiency."

Wilken was recently appointed to the Alaska Commission on Post-Secondary Education (ACPE) which oversees the State's student loan program.

Wilken credits ASLC's profit to the Commission's continuing effort to improve service to loan recipients and to work closely with them to ensure repayment of loans.

"As the Commission increases contact with customers, and works with improved collection methods, I expect that they will continue to see more cash flow, a higher percent of loan repayments, fewer defaults, and continued profits," said Senator Wilken.

The current default rate on student loans runs approximately 14 percent. That compares favorably with the 1988 rate of 23 percent.

Another plus for the ASLC's cash flow is the elimination of "forgivable" student loans. Prior to 1987, students could have the principal of their loans forgiven if they returned to Alaska to work. In 1988, 41 percent of the ASLC's loans were subject to forgiveness. Today, just 3 percent of the "forgiveness loans" remain on the books.

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