Seven Democrats pre-filed a bill on Friday aimed at cutting loan debt for Alaska students, according to Josh Edge of the Alaska Public Radio Network.
The measure would cut the principal of a loan 2.5 percent a year if the student stays in Alaska or moves back to Alaska after graduation, according to the Alaska Student Loan Corporation.
“We believe that money should never be a barrier to college, to job training, to vocational education, but in Alaska, the student loan rate hovers around 7 percent, when at the same time you can get a used car loan for 2.5-3 percent,” said Rep. Les Gara, D-Anchorage, one of the sponsors.
If the legislation passes, Alaska’s Student Loan Corporation is expected ask for a state appropriation from to help fund student loan reduction, Gara said.
Nationwide, student loan debt is about $1 trillion dollars, second only to mortgage debt in America.