JUNEAU, Alaska (AP) - The Senate Education Committee has moved a proposed constitutional amendment allowing for state backing for low-interest loans for students interested in college.
Sponsored by Republican Anna Fairclough of Eagle River, the proposal would allow Alaska’s general obligation debt to be a tool in funding education loans.
Constitutionally, the debt can only be currently used for capital improvements and housing loans for veterans. Fairclough said the proposed amendment would allow a cost-effective way for financing state education loans by leveraging Alaska’s AAA credit rating.
The committee on Monday also moved a bill sponsored by Fairclough streamlining the student loan process and updating procedures for the Alaska Student Loan Corporation.
Senate Joint Resolution 23 and Senate Bill 195 were moved to the Senate Finance Committee.
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