Committee hears HB 28 to pilot student-loan repayment for returning Alaskans to recruit teachers and state workers

Representative Andy Story presented House Bill 28 to the House Finance Committee on April 8, proposing a three-year pilot student-loan repayment program to encourage former Alaska residents with out-of-state postsecondary credentials to return and work as full-time state employees or public-school teachers.

Under the bill as described to the committee, the Alaska Commission on Postsecondary Education (ACPE) would administer a pilot program that could award up to 125 grants per fiscal year, each payable only after a participant completes one year of full-time state or public-school employment. Grants would be paid in up to three annual installments of no more than $8,000 per year, with a total per-participant cap of $24,000. The program would be subject to appropriation and capped at $1,000,000 per fiscal year ($3,000,000 total across three years). Participants might be required to refinance loans through the commission as part of program rules.

Acting ACPE Executive Director Carrie Thomas described student-loan repayment as an employer-sponsored benefit that differs from loan forgiveness; Thomas told the committee repayment programs provide a clearer return on investment for the state and have lower administrative and collection costs than forgiveness programs. Thomas cited national adoption trends and survey data indicating loan-repayment benefits aid recruitment and retention: employers with loan-repayment benefits hire faster and retain employees longer, and many graduates say they would commit to work longer in exchange for loan assistance.

Representative Story and ACPE said the program would draw on the Alaska Higher Education Investment Fund (HEAF) for the pilotdraws; ACPE and Department of Revenue staff noted recent programmatic draws on HEAF (WWAMI medical program increases and Alaska Performance Scholarship/Alaska Education Grant adjustments) have put pressure on the fundand that adding $1,000,000 per year for three years would modestly increase projected expenditures but not fundamentally alter the funds long-term sustainability, according to ACPE testimony.

ACPEs fiscal note included initial administrative costs: a partial range-16 position in FY26 (personal services $38,000 in FY26 and $22,000 in subsequent years), $6,000 for regulatory work in FY26, and $10,000 in FY28 for the required program evaluation and reporting. The fiscal note listed a FY26 total of approximately $1,044,000 funded from HEAF, with later years reflecting the $1,000,000 annual grant cap.

An invited testifier, Ricardo Wuerl of Juneau, described returning to Alaska after college and said earlier state loan-forgiveness programs influenced his decision; he urged the committee to approve the pilot as a recruitment tool. Representative Story framed the measure as a targeted tool to attract former residents who already have ties to Alaska and are more likely to remain.

Committee members asked about HEAF capacity, the commissions administration of the pilot, and whether the program should prioritize particular shortage areas. Carrie Thomas and Department of Revenue staff (Chief Investment Officer Zach Hanna was available for questions) explained ACPE would administer the program and that HEAF draws for the pilot would be feasible but would modestly increase projected spending pressure on the fund given recent programmatic changes.

Ending: The committee heard HB 28, received invited testimony and fiscal analysis, and did not take a final vote. Sponsors and ACPE said they would supply additional detail if requested; the measure remains at the committee stage for further consideration.