AK HB17

Creates a new loan principal reduction program providing 2.5 percent annual reductions to the principal of postsecondary education loans issued under specified statutes.

Requires borrowers to establish and maintain Alaska residency for one year before obtaining the loan and continue residing in the state while repaying.

Limits eligibility to loans not in default, not otherwise eligible for full repayment or forgiveness under another state program, and where the borrower completed their degree or certificate program in a timely manner.

Makes reductions subject to legislative appropriation and authorizes the commission to establish an equitable prorating system if appropriated amounts are insufficient.

Applies the new principal reduction provision to loans made under AS 14.43.170 - 14.43.175 by amending the applicability of other laws section.