The bill establishes a student loan repayment pilot program administered by the Alaska Commission on Postsecondary Education. This program is designed to provide grants to individuals who are full-time certificated teachers in public schools or full-time state employees, contingent upon their completion of a postsecondary degree or certificate program either outside the state or from the University of Alaska. Applicants must submit their applications by October 31, 2025, and may receive grants for up to three years, with specific eligibility criteria based on the amount of their outstanding student loans. The total number of grants awarded each fiscal year is capped at 125, with a maximum total funding of $1,000,000.

Additionally, the bill mandates the Commission to evaluate the program's effectiveness in improving recruitment and retention rates for teachers and state employees, with reports due by December 31 for the years 2025, 2026, and 2027. The final report must assess the overall success and effectiveness of the program. The provisions of the pilot program will be repealed on January 1, 2028, and the Act takes effect immediately.