The bill introduces a new section to chapter 28B.77 RCW that establishes protections for personally identifying and financial information related to applications for state financial aid. Specifically, it exempts such information from public inspection and copying under chapter 42.56 RCW. Additionally, it mandates that records of applicants to alternative state financial aid applications must be retained for no longer than one year after the end of a postsecondary institution's award year, unless there is an outstanding audit or appeal.

Furthermore, the bill restricts state agencies from sharing the protected information with any other entities, including the federal government, without a court order. However, it allows for the sharing of information between the council and higher education institutions to facilitate student enrollment. The bill also stipulates that records related to alternative applications for state financial aid cannot be disclosed or reproduced without a court order, except as required by law. The definition of "application for state financial aid" is clarified to exclude the free application for federal student aid.