This bill amends existing laws related to financial aid awards for students attending private four-year institutions of higher education in Washington. It updates the definitions of financial aid and financial need, and specifies the maximum Washington college grant amounts for students attending various types of institutions, including private four-year not-for-profit and for-profit institutions. Notably, the bill establishes that for the 2019-20 academic year, the maximum grant for students at private four-year for-profit institutions will be $8,517, with provisions for annual increases based on a tuition growth factor. Starting in the 2026-27 academic year, the grant amount for these institutions will be adjusted to 50% of the average awards granted to students at public research institutions, contingent upon meeting specific requirements.

Additionally, the bill introduces a new section that mandates the establishment of a gainful employment standard for private four-year for-profit institutions seeking to participate in the Washington college grant and college bound scholarship programs. This standard requires 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 and specifies the criteria for eligibility, including income limits and academic performance. Overall, the legislation aims to enhance financial support for students in private higher education while ensuring accountability for institutions regarding student outcomes.

Statutes affected:
Original bill: 28B.92.030