Student financial aid: Pay it Forward, Pay it Back Pilot Program: study.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill proposes a pilot program called ‘Pay-It-Forward, Pay-It-Back’ to explore a new financing option for students attending California State University and University of California campuses. The program would allow students to enroll without upfront tuition payments, but would require them to pay a percentage of their annual income after graduation. Revenue generated from these payments would be deposited into a dedicated fund to help future students cover tuition, fees, and room and board. The bill mandates a study of the program’s effects and requires participation from multiple campuses, with a goal of enrolling at least 10,000 students annually by 2031.
Key provisions
- Requires the Student Aid Commission to establish a ‘Pay-It-Forward Financial Aid Program’.
- Allows students to enroll in CSU or UC campuses without upfront tuition payments.
- Requires graduates to pay a percentage of their annual adjusted gross income after graduation.
- Establishes a ‘Pay-It-Forward Financial Aid Fund’ to manage collected payments.
- Moneys in the fund will be used to cover future student tuition, fees, and room and board.
- Requires at least 10,000 students to participate in the program annually by 2031.
- Mandates a study of the program’s effects to be submitted to the Assembly Committee on Higher Education and the Senate Committee on Education by September 30, 2027.
- The provisions of the bill will expire on September 30, 2030.
Who is affected
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