RCW 28B.15.820
Institutional financial aid fund—"Eligible student" defined.
(1) Each institution of higher education, including technical colleges, shall deposit a minimum of three and one-half percent of revenues collected from tuition and services and activities fees in an institutional financial aid fund that is hereby created and which shall be held locally. Moneys in the fund shall be used only for the following purposes: (a) To make guaranteed long-term loans to eligible students as provided in subsections (3) through (8) of this section; (b) to make short-term loans as provided in subsection (9) of this section; (c) to provide financial aid to students who demonstrate financial need as provided in subsection (10) of this section; or (d) to provide financial aid to students as provided in subsection (11) of this section.
(2) An "eligible student" for the purposes of subsections (3) through (8) and (10) of this section is a student registered for at least three credit hours or the equivalent, who is eligible for resident tuition and fee rates as defined in RCW 28B.15.012 and 28B.15.013, and who is a student who demonstrates financial need as defined in RCW 28B.92.030.
(3) The amount of the guaranteed long-term loans made under this section shall not exceed the demonstrated financial need of the student. Each institution shall establish loan terms and conditions which shall be consistent with the terms of the guaranteed loan program established by 20 U.S. Code Section 1071 et seq., as now or hereafter amended. All loans made shall be guaranteed by the Washington student loan guaranty association or its successor agency. Institutions are hereby granted full authority to operate as an eligible lender under the guaranteed loan program.
(4) Before approving a guaranteed long-term loan, each institution shall analyze the ability of the student to repay the loan based on factors which include, but are not limited to, the student's accumulated total education loan burdens and the employment opportunities and average starting salary characteristics of the student's chosen fields of study. The institution shall counsel the student on the advisability of acquiring additional debt, and on the availability of other forms of financial aid.
(5) Each institution is responsible for collection of guaranteed long-term loans made under this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Institutions shall cooperate with other lenders and the Washington student loan guaranty association, or its successor agency, in the coordinated collection of guaranteed loans, and shall assure that the guarantability of the loans is not violated. Collection and servicing of guaranteed long-term loans under this section shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency: PROVIDED, That institutions be permitted to perform such servicing if specifically recognized to do so by the Washington student loan guaranty association or its successor agency. Collection and servicing of guaranteed long-term loans made by community colleges under subsection (1) of this section shall be coordinated by the state board for community and technical colleges and shall be conducted under procedures adopted by the state board.
(6) Receipts from payment of interest or principal or any other subsidies to which institutions as lenders are entitled, that are paid by or on behalf of borrowers of funds under subsections (3) through (8) of this section, shall be deposited in each institution's financial aid fund and shall be used to cover the costs of making the guaranteed long-term loans under this section and maintaining necessary records and making collections under subsection (5) of this section: PROVIDED, That such costs shall not exceed five percent of aggregate outstanding loan principal. Institutions shall maintain accurate records of such costs, and all receipts beyond those necessary to pay such costs, shall be deposited in the institution's financial aid fund.
(7) The governing boards of the state universities, the regional universities, and The Evergreen State College, and the state board for community and technical colleges, on behalf of the community colleges and technical colleges, shall each adopt necessary rules and regulations to implement this section.
(8) First priority for any guaranteed long-term loans made under this section shall be directed toward students who would not normally have access to educational loans from private financial institutions in Washington state, and maximum use shall be made of secondary markets in the support of loan consolidation.
(9) Short-term loans, not to exceed one year, may be made from the institutional financial aid fund to students enrolled in the institution. No such loan shall be made to any student who is known by the institution to be in default or delinquent in the payment of any outstanding student loan. A short-term loan may be made only if the institution has ample evidence that the student has the capability of repaying the loan within the time frame specified by the institution for repayment.
(10) Any moneys deposited in the institutional financial aid fund that are not used in making long-term or short-term loans may be used by the institution for locally administered financial aid programs for students who demonstrate financial need, such as need-based institutional employment programs or need-based tuition and fee scholarship or grant programs. These funds shall be used in addition to and not to replace institutional funds that would otherwise support these locally administered financial aid programs. First priority in the use of these funds shall be given to students who demonstrate financial need who have accumulated excessive educational loan burdens. An excessive educational loan burden is a burden that will be difficult to repay given employment opportunities and average starting salaries in the student's chosen fields of study. Second priority in the use of these funds shall be given to single parents who are students who demonstrate financial need, to assist these students with their educational expenses, including expenses associated with child care and transportation.
(11) Any moneys deposited in the institutional financial aid fund may be used by the institution for a locally administered financial aid program for high school students enrolled in dual credit programs. If institutions use funds in this manner, the governing boards of the state universities, the regional universities, The Evergreen State College, and the state board for community and technical colleges shall each adopt necessary rules to implement this subsection. Moneys from this fund may be used for all educational expenses related to a student's participation in a dual credit program including but not limited to tuition, fees, course materials, and transportation.
[ 2019 c 406 § 33; 2009 c 215 § 9; 2007 c 404 § 4; 2004 c 275 § 66; 1995 1st sp.s. c 9 § 10. Prior: 1993 c 385 § 1; 1993 c 173 § 1; 1985 c 390 § 35; 1983 1st ex.s. c 64 § 1; 1982 1st ex.s. c 37 § 13; 1981 c 257 § 9.]
NOTES:
Findings—Intent—2019 c 406: See note following RCW 43.79.195.
Findings—Short title—2019 c 406: See notes following RCW 28B.92.200.
Findings—2019 c 406: See note following RCW 28B.94.020.
Findings—Intent—2019 c 406: See note following RCW 28C.30.050.
Findings—Intent—2019 c 406: See note following RCW 43.216.135.
Findings—Intent—Effective date—2009 c 215: See notes following RCW 28B.92.030.
Part headings not law—2004 c 275: See note following RCW 28B.76.090.
Intent—Purpose—Effective date—1995 1st sp.s. c 9: See notes following RCW 28B.15.031.
Effective date—Severability—1982 1st ex.s. c 37: See notes following RCW 28B.15.012.
Severability—1981 c 257: See note following RCW 28B.15.031.
Structure Revised Code of Washington
Chapter 28B.15 - College and University Fees.
28B.15.005 - "Colleges and universities" defined.
28B.15.011 - Classification as resident or nonresident student—Legislative intent.
28B.15.012 - Classification as resident or nonresident student—Definitions.
28B.15.0131 - Resident tuition rates—American Indian students.
28B.15.0139 - Resident tuition rates—Border county higher education opportunity project.
28B.15.014 - Exemption from nonresident tuition fees differential.
28B.15.015 - Classification as resident or nonresident student—Rules.
28B.15.020 - "Tuition fees" defined—Use.
28B.15.022 - "Nonresident tuition fees differential" defined.
28B.15.025 - "Building fees" defined—Use.
28B.15.031 - "Operating fees"—Defined—Disposition.
28B.15.041 - "Services and activities fees" defined.
28B.15.044 - Services and activities fees—Legislative declaration on expenditure.
28B.15.051 - "Technology fees"—Defined—Use—Student government approval.
28B.15.065 - Adjustment of state appropriations for student financial aid.
28B.15.066 - Appropriations to institutions of higher education—"Inflation" defined.
28B.15.067 - Tuition fees—Established.
28B.15.069 - Building fees—Services and activities fees—Other fees.
28B.15.071 - Degree program support—Change from state funding to self-supporting and fee-based.
28B.15.110 - Tuition and fees when joint program of four year institutions—Supplemental fees, when.
28B.15.120 - Board of trustees or regents—Annual budget requirements.
28B.15.210 - Fees—University of Washington—Disposition of building fees.
28B.15.220 - Fees—University of Washington—Disposition of special fees.
28B.15.310 - Fees—Washington State University—Disposition of building fees.
28B.15.385 - "Totally disabled" defined for certain purposes.
28B.15.395 - Waiver of tuition and fees for wrongly convicted persons and their children.
28B.15.411 - Fees—Installment payments.
28B.15.450 - Gender equity—Intent.
28B.15.455 - Gender equity—Goals.
28B.15.470 - Gender equity—"Underrepresented gender class," "equitable" defined.
28B.15.475 - Gender equity—Construction—1989 c 340.
28B.15.520 - Waiver of fees and nonresident tuition fees—Community and technical colleges.
28B.15.524 - Community college international student exchange program.
28B.15.540 - Waiver of tuition and fees for residents sixty years of age or older—Limitations.
28B.15.543 - Grants for undergraduate coursework for recipients of the Washington scholars award.
28B.15.555 - Waiver of tuition and fees for students of foreign nations—Intent.
28B.15.556 - Waiver of tuition and fees for students of foreign nations—Authorized—Limitations.
28B.15.558 - Waiver of tuition and fees for state employees and educational employees—Report.
28B.15.600 - Refunds or cancellation of fees—Four-year institutions of higher education.
28B.15.605 - Refunds or cancellation of fees—Community colleges and technical colleges.
28B.15.610 - Voluntary fees of students.
28B.15.624 - Early course registration period for eligible veterans and national guard members.
28B.15.725 - Home tuition programs.
28B.15.730 - Waiver of nonresident tuition fees differential—Washington/Oregon reciprocity program.
28B.15.734 - Washington/Oregon reciprocity tuition and fee program—Implementation agreement.
28B.15.740 - Limitation on total tuition and fee waivers.
28B.15.750 - Waiver of nonresident tuition fees differential—Washington/Idaho reciprocity program.
28B.15.760 - Loan program for mathematics and science teachers—Definitions.
28B.15.790 - Effective communication—Intent.
28B.15.792 - Effective communication—Principles.
28B.15.794 - Effective communication—Implementation of principles.
28B.15.800 - Pledged bond retirement funds to be set aside from tuition and fees—1977 ex.s. c 322.
28B.15.805 - Pledged bond retirement funds to be set aside from tuition and fees—1981 c 257.
28B.15.820 - Institutional financial aid fund—"Eligible student" defined.
28B.15.821 - Dual credit program—Definition.
28B.15.915 - Waiver of operating fees—Report.
28B.15.980 - Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.