AK HB63

Reduces interest rates on Alaska postsecondary education loans by 2.5 percent per year for eligible borrowers, applied at the end of each calendar year.

Borrowers must establish one year of state residency before obtaining the loan and maintain residency while repaying at the reduced rate.

Interest rate reduction is only available for loans not in default, where the principal is not eligible for forgiveness under another program, and borrowers are making timely progress toward degree or certificate completion.

Interest rate reduction requires legislative appropriation to offset costs; if appropriations are insufficient, the commission shall prorate reductions among eligible borrowers.

Borrowers who were state residents for five or more years after program completion may retain the interest reduction even if they leave the state for up to one year during repayment.