AK HB56

Amends Alaska statute AS 14.43.120 to add a new loan forgiveness program for state education loan borrowers who remain residents of Alaska after completing their course of study.

Borrowers qualify for forgiveness if they are state residents for at least two full consecutive years immediately upon completion of their education.

State pays a portion of the borrower's loan plus accrued interest based on length of residency: 10 percent for 2 years, additional 10 percent increments for 4, 5, 6, and 7 consecutive years of residency.

Maximum forgiveness amount capped at 50 percent of the total loan plus interest, achievable after seven full consecutive years of state residency.

Loan forgiveness payments are subject to legislative appropriation and cannot be funded from Student Loan Corporation bond sale proceeds.