AK HB272

Creates a three percent annual interest rate reduction on state postsecondary education loans for borrowers who establish and maintain residency in Alaska while repaying the loan.

Eligible borrowers must have non-defaulted loans, not have loan portions otherwise eligible for state repayment or forgiveness, and complete their degree or certificate program in a timely manner.

Provides prorated reductions up to five years for borrowers who were Alaska residents for at least one year before enrollment and either established residency within two years of program completion or maintained residency during the program.

Allows the Alaska student loan corporation to maintain a minimum three percent interest rate if necessary to protect bond ratings and future loan funding, with reductions only available if appropriated funds cover the costs.

Permits borrowers who were Alaska residents for five years after program completion to continue receiving the interest reduction if they leave the state for no more than one year during repayment.