Bill > AB1241

This bill aims to establish a Pay-It-Forward Financial Aid Program to address the rising costs of higher education in California. The program would allow students at California State University (CSU) and University of California (UC) campuses to enroll without paying upfront tuition, fees, or room and board. Instead, participating students would agree to pay a percentage of their annual adjusted gross income to the state for a predetermined number of years after graduation or leaving school and becoming employed. The Student Aid Commission would be responsible for developing and administering the program, with the goal of having at least 10,000 students participate annually starting in the 2030-31 academic year. The bill highlights the current financial burden of higher education, noting that California students graduating with a bachelor's degree typically borrow around $21,125, and the state collectively owes over $142 billion in student loan debt. The collected payments would be deposited into a new Pay-It-Forward Financial Aid Fund, which would then be used to fund future students' education expenses. Importantly, the program is designed to supplement existing financial aid options and ensure that students do not pay more than the amount they initially received through the program.

Education

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