Bill To Create State-Run Student Loan Fund Passes WA House

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."

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."

The bill now sits before the state Senate, and this year's legislative session is scheduled to conclude on March 10.