Bill > AR49

This Resolution encourages the Student Aid Commission and the Legislative Analyst to study the potential implementation of a "Pay it Forward, Pay it Back" pilot program for higher education financing in California. The program aims to offer an alternative to traditional student loans by allowing eligible California residents to attend college without paying upfront tuition, fees, or room and board. Instead, upon graduation, students would agree to pay a percentage of their annual adjusted gross income (between 2% and 4%) to the state or institution for a specified number of years. The study would explore variations in program details across different institutions, including the University of California (UC), California State University (CSU), California Community Colleges, and nonprofit private institutions, and would also consider immediate funding sources like a revolving fund or social impact bonds. The goal is to find a way to finance higher education that doesn't burden students with debt, addressing concerns about rising college costs, increased student borrowing, and projected future workforce shortages of college graduates in California. The Legislative Analyst is expected to present a report on this study by September 30, 2015.