Current through February 24, 2025
(a) Under former
AS
14.43.120(j), a borrower of
a loan awarded for the 1986-87 and preceding school years is eligible to have
up to 50 percent of all loans and accrued interest paid by the state if the
borrower remains an Alaskan resident after the successful completion of the
course of study for which the loan was granted, is awarded an appropriate
degree, diploma, or certificate, and remains, except for brief periods not to
exceed a total of 180 days within a 12-month period, in the state during the
period for which forgiveness is claimed. A borrower who does not qualify for
forgiveness under this subsection may qualify under (h) or (j) of this
section.
(b) To qualify for
forgiveness benefits under former
AS
14.43.120(j), a borrower
must
(1) except as provided in (i) of this
section, be physically residing in Alaska within one year after completion of
the course of study for which the loan was granted, or an extension of that
period by deferment under
AS
14.43.120(k);
(2) provide a copy of the borrower's degree,
diploma, or certificate of completion for the course of study for which the
loan was granted;
(3) provide
certification on a form provided by the commission that the borrower has
satisfied the requirements of former
AS
14.43.120(j) and this
section;
(4) be current in
repayment under
AS
14.43.120 on the loan for which forgiveness
is claimed; and
(5) not have
defaulted on the loan.
(c) Forgiveness payments under this section
will be computed for the first six years following the completion of the course
of study as follows:
(1) if the recipient
satisfies the requirements of (a) and (b) of this section for at least two, but
less than three, years, the recipient will be eligible for a first forgiveness
payment in an amount equal to 10 percent of his total loan, plus 10 percent of
the interest accrued as of the second anniversary of the date the recipient
first returned to Alaska;
(2) if
the recipient satisfies the requirements of (a) and (b) of this section for at
least three, but less than four, years, the recipient will be eligible for a
second forgiveness payment in an amount equal to 10 percent of his total loan,
plus 10 percent of the interest accrued as of the third anniversary of the date
the recipient first returned to Alaska;
(3) if the recipient satisfies the
requirements of (a) and (b) of this section for at least four, but less than
five, years, the recipient will be eligible for a third forgiveness payment in
an amount equal to 10 percent of his total loan, plus 10 percent of the
interest accrued as of the fourth anniversary of the date the recipient first
returned to Alaska;
(4) if the
recipient satisfies the requirements of (a) and (b) of this section for at
least five, but less than six, years, the recipient will be eligible for a
fourth forgiveness payment in an amount equal to 10 percent of his total loan,
plus 10 percent of the interest accrued as of the fifth anniversary of the date
the recipient first returned to Alaska;
(5) if the recipient satisfies the
requirements of (a) and (b) of this section for six years, the recipient will
be eligible for a fifth forgiveness payment in an amount equal to 10 percent of
his total loan plus 10 percent of the interest accrued, as of the sixth
anniversary of the date the recipient first returned to Alaska.
(d) A portion of the forgiveness
payment based on all loans will be credited against principal and a portion of
the forgiveness payment based on accrued interest will be credited against
interest. Subject to the requirements of this section, any previous forgiveness
payment due will be credited against principal. The forgiveness payment does
not alter the amount of monthly principal and interest payments due or the
terms and conditions of the repayment schedule.
(f) A recipient who is absent from Alaska for
a period that exceeds a total of 180 days within a 12-month eligibility period
will forfeit one 10 percent forgiveness increment for that eligibility period.
However, if the recipient has obtained a deferment for this period and the loan
is not in repayment status, this forfeiture provision does not apply.
(h) A recipient who receives an initial
determination of failure to meet the requirements of (a) of this section may
request an exception from loan personnel in accordance with this subsection.
The request for an exception must be postmarked within 30 days after the date
of mailing of the initial determination, must be filed on a form provided by
the commission for that purpose, and must set out the specific reasons for the
exception. Loan personnel will, in their discretion require additional
documentation in order to determine if an absence is allowable under (j) of
this section or is of a nature and temporary duration that is consistent with
an intent to return to Alaska and remain permanently in the state. In making a
determination under this section, loan personnel will determine the recipient's
eligibility based upon relevant documentation, including
(1) Alaska Permanent Fund Dividend
applications for the 12-month eligibility period;
(2) voter registration and voting
records;
(3) licenses to drive,
fish, hunt, or trap;
(4) rent
receipts, proof of home ownership, or other proof that the individual maintains
a principal place of abode in this state, including the location of the
recipient's household goods;
(5)
school, employment, unemployment, or military records;
(6) tax, court, or other government agency
records;
(7) hotel receipts, and
records or receipts of travel on an airline, Alaska Marine Highway System, or
other carrier;
(8) evidence
indicating in which state the individual maintains personal and business bank
accounts or owns or operates a business; and
(9) affidavits by persons acquainted with or
related to the recipient who have reason to know facts that support the
recipient's intent.
(i)
A recipient who completes the program of study for which the loan was obtained,
but who fails to meet the deadline in (b) of this section for physical
residence in Alaska, may still be eligible for forgiveness benefits under this
section, but those benefits will be reduced at the rate of one 10-percent
forgiveness increment for each year by which the recipient fails to meet the
deadline in (b) of this section.
(j) Notwithstanding the requirements of (a)
and (f) of this section, if a recipient is absent from the state for more than
180 days in a 12-month eligibility period and can demonstrate a continuing
intent to return to and remain permanently in the state, loan personnel
(1) will award forgiveness benefits if the
absence is due solely to serving on active duty as a member of the armed forces
of the United States; or
(2) will,
in their discretion, award forgiveness benefits if the recipient is or was out
of Alaska on one of the following allowable absences:
(A) receiving medical treatment if the
treatment is on the advice of a licensed physician and does not include a
seasonal or permanent change of residence;
(B) serving in the United States Congress as
a representative or senator for Alaska;
(C) serving on the staff of a congressional
representative or senator from Alaska;
(D) serving as an employee of the State of
Alaska, including employment in a field office;
(F) accompanying a member of the borrower's
immediate family who is receiving medical treatment on a licensed physician's
advice, if requested or required by the family member's physician.
(k) If payments have
been accelerated, so that time remains under the terms of the original
repayment schedule, a forgiveness refund may be made to the borrower for a loan
that has been satisfied by repayment.
Authority:AS
14.43.105
Former
14.43.120(j)
Former
AS
14.43.120(o)
