Section 20 AAC 15.060 - Resident forgiveness benefits(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.Eff. 2/3/77, Register 61; am 12/7/80, Register 76; am 7/9/82, Register 83; am 12/13/84, Register 92; am 7/27/86, Register 99; am 7/11/87, Register 103; am 11/29/87, Register 104; am 5/18/90, Register 114; am 11/28/92, Register 124; am 6/23/95, Register 134; am 3/22/97, Register 141Authority:AS 14.43.105
Former
14.43.120(j)
Former
AS 14.43.120(o)