HB 109 Summary

• Amends Alaska supplemental education loan eligibility requirements in AS 14.43.172(c) to change credit history standard from "does not have" chronic inability or unwillingness to pay to "has" an ability and willingness to pay credit obligations.

• Establishes an 8.25 percent annual interest rate cap for loans made under the Alaska family education loan program (AS 14.43.710 - 14.43.750), replacing previous rate provisions.

• Changes apply to loans made for school years beginning on or after July 1, 2009, and thereafter.

• Authorizes the Alaska Commission on Postsecondary Education to adopt emergency regulations to implement the changes, finding them necessary to ensure supplemental education loans qualify as security for bonds issued by the Alaska Student Loan Corporation.

• Takes effect immediately upon enactment.