HB 2148
In CommitteeHouse
Pay it forward program
Creating the pay it forward program.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
The bill creates a new 'pay it forward' program that allows graduate students at Washington’s public universities to receive tuition and fee support in exchange for agreeing to pay a percentage of their future income for up to 15 years after graduation. The program is designed to increase access to graduate education without upfront costs, with repayments flowing into a dedicated trust fund to help future students.
- Creates the 'pay it forward' program to help graduate students cover tuition and fees at Washington’s public universities, regional universities, and The Evergreen State College.
- Participants sign a contract to contribute a percentage of their income (up to 5% for state universities, 3.5% for regional universities and The Evergreen State College) for up to 15 years after graduation or leaving the program.
- Contribution amounts are proportional to the number of credits taken while in the program, and participants can receive support for up to four years (or 125% of their program’s published length).
- Establishes the pay it forward trust fund account in the state treasury, funded by participant payments, state appropriations, and private donations — money in the account does not expire and can only be used for the program.
- The Student Achievement Council is responsible for managing the program, setting contribution rules, and authorizing all fund disbursements.
Who is affected
- Graduate students at public Washington higher education institutions — Graduate students enrolled (or accepted) in degree programs at Washington's public universities, regional universities, or The Evergreen State College who meet income eligibility criteria and sign the pay-it-forward contract.
- Student Achievement Council — Will manage and administer the program, including determining contribution amounts, verifying eligibility, and overseeing the trust fund.
- Participants in the pay it forward program — Will receive tuition and fee support while enrolled, and later contribute a percentage of income for up to 15 years after graduation or program exit.
- Future graduate students at Washington public institutions — May benefit from increased access to graduate education due to deferred payment options, but may also face income-based repayment obligations after graduation.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The program removes upfront tuition barriers for graduate students who would otherwise be priced out — particularly beneficial for first-generation students, non-traditional learners, and those in fields with delayed high earnings (e.g., public service, humanities), thereby expanding access to advanced credentials.
EducationPeopleRef: Sec. 2(1)By capping income contributions at 3.5–5% for up to 15 years, the program avoids the predatory debt traps of private student loans (which often carry 6–12% interest and no income sensitivity), offering a more equitable repayment structure for moderate-income graduates.
FinancialPeopleRef: Sec. 2(2)(i)-(ii)The pay-it-forward model creates a self-sustaining pipeline of funding that could reduce long-term reliance on state general fund subsidies for graduate education, potentially stabilizing public higher education financing amid demographic shifts and budget volatility.
Public SafetyPeopleRef: Sec. 3(2)By enabling more Washingtonians to obtain graduate degrees without debt, the program may increase the supply of highly skilled workers in high-demand fields (e.g., healthcare, STEM, education), supporting economic diversification and wage growth — though benefits will accrue most to employers, not workers, in the short term.
Business & EmploymentPeopleRef: Sec. 2(3)The program may increase the number of graduate-level healthcare professionals (e.g., nurses, public health specialists, therapists) in underserved areas by reducing financial barriers to advanced training — though the bill does not include service commitments, so impact is uncertain.
HealthcareLean peopleRef: Sec. 2(1)
Potential Concerns (5)
The income-share agreement structure disproportionately burdens low- and middle-income graduates who earn modest salaries but are still required to pay 3.5–5% of gross income for up to 15 years — a significant ongoing liability that may exceed the value of the tuition received, especially for those in lower-paying fields (e.g., social work, education, nonprofit sectors).
FinancialPeopleRef: Sec. 2(2)(i)-(ii)The program’s 4-year (or 125% of program length) cap may force students to accelerate graduation or reduce course load, potentially compromising degree quality and completion rates — especially in fields requiring internships, research, or clinical training (e.g., nursing, engineering, law).
EducationPeopleRef: Sec. 2(3)The binding contract, enforced by state authority, creates a legally enforceable income obligation without the due-process safeguards typical of private loan agreements (e.g., no federal bankruptcy discharge, limited appeal rights), potentially trapping graduates in long-term financial dependency.
Rights & LibertiesLean peopleRef: Sec. 2(1)The trust fund’s non-lapsing structure and exclusive use restriction may reduce legislative flexibility to reallocate resources during economic downturns or emergencies, potentially constraining state budget autonomy and responsiveness to emerging higher education needs.
Local GovernmentLean peopleRef: Sec. 3(2)Requiring contributions proportional to credits taken may penalize students who take fewer credits due to financial need, caregiving, or disability — effectively increasing their effective hourly cost of education and discouraging part-time enrollment.
FinancialLean peopleRef: Sec. 2(2)(iii)
Who Is Most Affected
Graduate students from low- and middle-income backgrounds benefit most — they gain access to education otherwise unaffordable, but face long-term income obligations that may exceed the value of their degree if they enter lower-paying fields.
Future students benefit from expanded access and reduced debt risk, but may inherit a system where repayment obligations become more burdensome over time if income caps aren’t adjusted for inflation or wage stagnation.
The Student Achievement Council gains new administrative authority and funding, but faces significant operational challenges — including income verification, default management, and political pressure to adjust contribution terms.
Employers in high-skill sectors (healthcare, tech, education) may benefit from a larger pool of credentialed workers, but may not see wage increases for employees burdened by long-term repayment obligations.
Wealthier graduates (earning >$150K/year) may end up paying more in absolute dollars, but their repayment burden as a share of income remains capped — while lower earners may struggle to meet obligations, increasing financial stress and default risk.