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Gara Seeks Lower State Student Loan Interest Rates
An Alaska lawmaker says he will try again to revise the state's interest rate for college student loans.
ANCHORAGE- An Alaska lawmaker says he will try again to revise the state's interest rate for college student loans.
State Rep. Les Gara says the federal student loan rate is 3.86 percent while Alaska's is nearly twice that at 7.3 percent.
The Anchorage Democrat is hoping for movement next session on House Bill 17, which would have the effect of reducing Alaska student loan rates by about 3 percent for students who study in Alaska or live in the state after graduating from colleges elsewhere.
The head of the Alaska Student Loan Corp. says the federal government subsidizes its lower rates.
Diane Barrans says Gara's plan would need an annual legislative appropriation to reduce the interest rate.