Bill > AB1241

This bill mandates that the Student Aid Commission, in collaboration with the California State University and the University of California, conduct a study on the potential effects of a "Pay it Forward, Pay it Back Pilot Program." This program would allow students at participating University of California or California State University campuses to enroll without paying upfront tuition, fees, or room and board. Instead, upon graduation or leaving school and finding employment, these students would be required to pay a percentage of their annual adjusted gross income to the state for a set number of years. The bill also proposes establishing a "Pay-It-Forward Financial Aid Fund" to deposit these collected payments, which would then be used to cover the educational costs of future participating students. The study is required to identify specific campuses for a pilot program, determine the payment percentages and duration, and explore funding sources, including the possibility of using "social impact bonds" (agreements where a non-governmental entity funds a student's education in exchange for a claim on future student payments). The commission must report its findings by September 30, 2027, and the provisions related to this study will become inoperative on September 30, 2030, and repealed on January 1, 2031.

Budget and Finance, Education

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1241