Alaska Commission on Postsecondary Education officials walked lawmakers through the state's higher education funding programs Tuesday during a lunch presentation at the Capitol.

The briefing covered how Alaska students access scholarships, grants, and low-interest loans to pay for college and career training. Executive Director Carrie Thomas and Communications Director Kate Hillenbrand outlined eligibility rules, funding sources, and recent changes that expanded who qualifies for state aid.

The commission operates as the state's higher education agency but receives no general funds. The Alaska Student Loan Corporation funds its operations and loan programs, Thomas said. The commission administers financial aid programs including the Alaska Performance Scholarship, the Alaska Education Grant, and several loan programs.

Scholarship and Grant Programs

The Alaska Performance Scholarship allows eligible students to earn up to $28,000 across eight full-time semesters within eight years of high school graduation. Students must complete a rigorous high school curriculum and meet minimum grade point average or test score requirements. House Bill 148, passed in 2024, expanded the curriculum options from one to three pathways.

The class of 2025 saw 53 percent of graduates qualify for the scholarship, the highest rate on record. More than 1,100 students from that class used the award.

The Alaska Education Grant provides $500 to $4,000 per year based on financial need shown through the Free Application for Federal Student Aid. Students must enroll at least half-time at a qualified institution. When funds run short, the commission prioritizes awards by highest need, earliest FAFSA completion date, prior recipients, and enrollment level.

Both programs draw funding from the Alaska Higher Education Investment Fund. The commission receives 7 percent of the fund balance each June 30, with two-thirds allocated to scholarships and one-third to grants.

Projections through fiscal year 2029 show scholarship demand may exceed available funding in several years as more students qualify under the expanded eligibility rules.

Loan Programs

The commission also offers education loans at lower interest rates than private lenders. The supplemental and family education loans currently carry lower rates than federal PLUS loans, Thomas said. Students save between $12,000 and $55,000 in interest over the life of their loans by borrowing through the state instead of for-profit lenders.

Loans require Alaska residency or attendance at an Alaska institution, a minimum credit score, and at least half-time enrollment. Students can borrow up to $24,000 per year with a $96,000 lifetime limit. The loans carry fixed interest rates and no fees.

A refinance loan program lets borrowers consolidate multiple education loans into one fixed lower rate. Borrowers must have Alaska ties through residency, prior state loans, or graduation from an Alaska high school or college. The program requires at least $7,500 in qualifying loans but caps refinancing at $250,000. Current refinance rates start at 4.85 percent.

Specialty programs include Winn-Brindle loans for fisheries students and WAMI funding for up to 30 Alaska students annually at the University of Washington School of Medicine. Both offer loan forgiveness benefits. The WICHE program helps Alaska students pursue health degrees not available in-state.

Additional Services

The commission also runs the Alaska Career Information System, which provides free online career and education planning tools for all ages. The Success Center delivers financial literacy training and helps students complete the FAFSA. Alaska historically ranks last or next to last nationally in FAFSA completion rates.

The Alaska Performance Scholarship can fund graduate and doctoral programs if students have remaining eligibility within eight years of high school graduation. Commission loans also cover professional degrees for in-state and out-of-state students.

The commission no longer offers the 50 percent loan forgiveness program that operated in the 1970s and 1980s. That program ended because many borrowers who did not return to Alaska failed to repay their loans, making it financially unsustainable, Thomas said.