Alaska Governor Sarah Palin has signed legislation [on July 1, 2009] that will avert a disruption in new education loans originated by the Alaska Student Loan Corporation (ASLC). The corporation has financed its education loan program by issuing tax-exempt revenue bonds in the capital market. ASLC has been unable to issue bonds due to the catastrophic capital market (Student Loan Legislation, 2009, ¶1).
Governor Sarah Palin, joined by members of the Alaska Commission on Postsecondary Education and the State’s Department of Revenue, prepares to sign HB 172, a bill related to education loans for Alaskan students and the Alaska Student Loan Corporation fund.
Governor Sarah Palin applauds ACPE Commissioner Milton Byrd’s many years of excellent service to Alaska’s students at a bill signing related to student loans and the state’s student loan corporation. The governor was joined by Revenue Deputy Commissioner Jerry Burnett, ACPE Executive Director Diane Barrans and Jan Sieberts with Alaska Pacific University.
“This bill ensures Alaska’s students will not be left out in the cold despite the current economic downturn,” Governor Palin said. “Without this legislation, no Alaska student loans could be made this fall” (Student Loan Legislation, 2009, ¶2).
House Bill 172, sponsored by the governor, enables the Commissioner of Revenue to provide a bridge loan and directly invest in the corporation’s education loans. HB 172 also creates a credit enhancement facility to assist ASLC in the issuance of bonds during the current economic crisis when, without this facility, it would be uneconomical to issue bonds (Student Loan Legislation, 2009, ¶3).
Governor Sarah Palin signs HB 172, a bill related to education loans for Alaskan students and the Alaska Student Loan Corporation fund. The governor was joined by Revenue Deputy Commissioner Jerry Burnett, ACPE Executive Director Diane Barrans, ACPE Commissioner Milton Byrd, Senator Bettye Davis and Jan Sieberts with Alaska Pacific University.
ASLC’s largest education programs are AlaskAdvantage Stafford Loans and AlaskAdvantage Supplemental Loans. This year, more than 8,100 Alaska students relied on one or both of these low-cost education loan programs to aid in financing their postsecondary education and training program (Student Loan Legislation, 2009, ¶4).
Governor Sarah Palin visits with Kelly O’Brian Smith, Dean of Students at Alaska Pacific University. Governor Palin had just completed a signing ceremony for HB 172, a bill related to education loans for Alaskan students and the Alaska Student Loan Corporation fund.
Governor Sarah Palin met with an Alaska Pacific University student and his father at the signing of HB 172, a bill related to education loans for Alaskan students and the Alaska Student Loan Corporation fund.
Commentary
Governor Palin sponsored this legislation which in plain terms provides a bridge loan to the ASLC, enabling it to continue providing loans to students this fall. This is not a grant or free money. It must be paid back. A bridge loan is a short-term loan which helps the borrower fulfill financial obligations, until a long-term loan or other financing is secured. Bridge loans are most often issued to a corporation or institution — like a government agency.
According to a Tweet from Governor Palin, the actual bill was signed June 30, 2009 at her Anchorage office. This was a ceremonial signing at Alaska Pacific University. (Palin, 2009, ¶1).
This blog author cannot say it enough — he absolutely loves and adores these on-site bill signings at locations that they effect. This is a hallmark of the Governor’s Transformational Leadership style and her populist roots. Once again, we see Governor Palin focusing on substantial legislation that makes a real difference in the lives of the constituents she serves.
References
Governor takes final step in safeguarding student loans. (2009, July 1). State of Alaska, Governor. Retrieved July 1, 2009 from: http://www.gov.state.ak.us/news.php?id=1944
Palin, S.L.H. (2009, June 30). “HB172 sponsored and signed.” Twitter, AKGovSarahPalin. Retrieved July 1, 2009 from: http://twitter.com/AKGovSarahPalin/status/2412709876
Photo gallery (n.d.). State of Alaska, Governor. Retrieved July 1, 2009 from: http://www.gov.state.ak.us/photos.php
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