This bill amends existing laws related to financial aid awards for students attending private four-year and two-year institutions of higher education in Washington. It updates the definitions of "financial aid," "financial need," and "institutions of higher education," while also specifying the maximum Washington college grant amounts for various types of institutions. Notably, the bill introduces new provisions for private for-profit institutions, establishing that for the 2019-20 academic year, the maximum grant will be $8,517 for four-year institutions and $2,823 for two-year institutions, with future awards tied to the average of grants awarded to students at public research institutions. Additionally, starting in the 2026-27 academic year, these institutions must meet specific requirements to qualify for 50% of the average awards granted to public research institutions.

Furthermore, the bill establishes a new section that mandates the office to create rules for a gainful employment standard for private for-profit institutions wishing to participate in the Washington college grant and college bound scholarship programs. This standard will ensure that debt payments for graduates do not exceed 8% of their annual earnings or 20% of discretionary earnings. The bill also outlines the automatic enrollment process for eligible students in the Washington college bound scholarship program, ensuring they receive necessary notifications and support to facilitate their educational endeavors.

Statutes affected:
Original bill: 28B.92.030
Substitute bill: 28B.92.030