The proposed bill establishes a student loan repayment pilot program administered by the Alaska Commission on Postsecondary Education. This program is designed to provide grants to full-time certificated teachers in public schools and full-time state employees who have completed a postsecondary degree or certificate program and have outstanding student loans. Applicants must submit their applications by a deadline set by the commission, and grants can be awarded for up to three years, with varying amounts based on the total outstanding student loan balance. The commission is also tasked with evaluating the program's effectiveness in improving recruitment and retention rates for teachers and state employees.

Additionally, the bill mandates that the commission submit reports on the program's impact on recruitment and retention by specific deadlines in 2026, 2027, and 2028, with a comprehensive analysis due by December 31, 2029. The program is limited to a maximum of 125 grants per fiscal year, with a total funding cap of $1,000,000. The provisions of the bill will be repealed on January 1, 2028, and the act will take effect immediately upon passage.