Schools
Bill To Create State-Run Student Loan Fund Passes WA House
If the bill clears the Senate, it would create a new student loan option for college students, with interest rates capped at 1 percent.
![Undergraduate and graduate students would be eligible for the new low-interest loans starting in the 2024-25 academic year.](https://patch.com/img/cdn20/shutterstock/23562256/20220217/031101/styles/patch_image/public/shutterstock-398418100___17151016063.jpg)
OLYMPIA, WA — A bill seeking to establish a state-funded student loan program was the last piece of legislation to clear the state House of Representatives ahead of a key deadline for proposed bills to make it out of their chambers this week.
House Majority Leader Pat Sullivan (D-Covington) sponsored House Bill 1736, which aims to provide Washington college students with a new low-interest option to help fund their studies.
"We've heard stories over and over about how debt is overburdening students, and it's time to do something about it," Sullivan said in a statement Wednesday. "While the state can't cancel federal student loan debt, we can provide hope for students to be able to access a college education without taking on crushing, high-interest debt that puts things like home ownership out of reach after they graduate."
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Sullivan's bill would establish the Washington Student Loan Account with $300 million from the state's general fund, with a flat interest rate of 1 percent. The fund would offer up to $3,000 in low-interest loans for undergraduate students and up to $5,000 for graduate students, starting in 2024. Sullivan said interest would only begin accruing six months after students graduate or are no longer taking classes at least half-time.
"Students shouldn't have to be saddled with ridiculously high-interest student loans just so they can get a degree that opens doors for good-paying jobs in our state," Sullivan said. "With this program, they have a more affordable option."
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The bill now sits before the state Senate, and this year's legislative session is scheduled to conclude on March 10.
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