(a) A person is eligible for a loan if the person

1. (1) is

   1. (A) enrolled as a full-time student in a career education, associate, baccalaureate, or graduate degree program;

   2. (B) enrolled as a half-time student in a career education, associate, baccalaureate, or graduate degree program

      1. (i) in the state; or
      2. (ii) out of the state and is physically present in this state while attending that program; or
   3. (C) a graduate of a high school or the equivalent, or scheduled for graduation from a high school within six months, who, at the time of loan disbursement, will be enrolled in compliance with (A) or (B) of this paragraph;
2. (2) is not delinquent and has never been in default on a loan previously awarded by the commission;

3. (3) is a resident of the state at the time of application for the loan; for purposes of this section, a person qualifies as a resident of the state if at the time of application for the loan the person

   1. (A) has been physically present in the state for at least one year immediately before the time of application for the loan with the intent to remain indefinitely;
   2. (B) is dependent on a parent or guardian for care, the parent or guardian has been present in the state for at least one year immediately before the time of application for the loan with the intent to remain indefinitely, and the person has been present in the state for at least one year of the immediately preceding five years except that the commission may by a two-thirds vote, acting upon a written appeal by the person, grant an exemption to the requirement that the person has been present in the state for one year of the immediately preceding five years;

   3. (C) has been physically present in the state for at least one year immediately before the applicant was absent from the state, the person intends to return permanently to the state, and the absence is due solely to

      1. (i) serving an initial period of up to three years on active duty as a member of the armed forces of the United States;
      2. (ii) serving for up to three years as a full-time volunteer under the Peace Corps Act;
      3. (iii) serving for up to three years as a full-time volunteer under the Domestic Volunteer Service Act of 1973;
      4. (iv) required medical care for the applicant or the applicant's immediate family;
      5. (v) being a person who otherwise qualifies as a resident and is accompanying a spouse who qualifies as a resident under (i) — (iv) of this paragraph;
      6. (vi) an absence allowed under (D)(i) — (iv) of this paragraph; or

   4. (D) is a dependent of a parent or guardian who has been physically present in the state for at least one year immediately before the parent or guardian was absent from the state, the parent or guardian intends to return permanently to the state, and the absence is due solely to

      1. (i) participating in a foreign exchange student program recognized by the commission;
      2. (ii) attending a school as a full-time student;
      3. (iii) full-time employment by the state;
      4. (iv) being a member of or employed full-time by the state's congressional delegation;
      5. (v) being a person who otherwise qualifies as a resident and is accompanying a spouse who qualifies as a resident under (i) — (iv) of this paragraph;
4. (4) does not have a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 — 25.27.220 at the time of application or loan disbursement;
5. (5) has not, within the previous five years, had a loan discharged or written off by the commission for any reason;
6. (6) does not have a status, at the time of the application for a loan or disbursement of loan funds, that would prevent the person from repaying the loan as it becomes due;
7. (7) has not within the previous seven years defaulted on another loan made to the person by a lending entity unless the person can show good faith efforts to repay the loan and extraordinary circumstances that led to the default;
8. (8) does not have a credit history, at the time of application for a loan, that demonstrates chronic inability or unwillingness to pay an extension of credit or loan as it becomes due; and
9. (9) has complied with the military selective service registration requirements imposed under 50 U.S.C. App. 453 (Military Selective Service Act), if those requirements were applicable to the person.