Alaska Statutes Sec. 18.29.025 - Loan Repayment

(a) The commissioner shall repay a portion of eligible education loans described in this section that are held by or made to eligible tier I and tier II health care professionals under the program according to the loan repayment procedures established in this section.

(b) A loan is eligible for repayment under the program if the loan was issued by a government or commercial entity for the payment of actual costs of tuition and other reasonable educational and living expenses related to the undergraduate or graduate education of a participant who is eligible under AS 18.29.035 and that resulted in a degree required for employment as a tier I or tier II health care professional under the program.

(c) A loan repayment under this section when combined with a matching payment shall be in an amount not to exceed 33.3 percent of the unpaid loan balance existing in the first year of program participation, multiplied by the percentage of full time equivalent employment for each of up to three years of qualified employment less a matching loan repayment or incentive amount from an employer or other entity as determined under AS 18.29.015 (d).

(d) The commissioner shall make a loan repayment under this section in quarterly installments payable to the lending institution or to the eligible health care professional.

(e) A loan or interest on a loan is not eligible for repayment under this section if the loan or interest is

(1) to be repaid by another source, including another loan repayment or forgiveness program or an employer-sponsored repayment program;

(2) consolidated with a loan that is not eligible for repayment; or

(3) refinanced as a loan that is not eligible for repayment.

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Last modified: November 15, 2016