Official Text and Analysis.

Establishes the Washington Student Loan Program to issue student loans with 1 percent interest rates to resident students with financial need pursuing undergraduate or high-demand graduate programs.

Establishes the Washington Student Loan Program to issue student loans with 1 percent interest rates to resident students with financial need pursuing undergraduate or high-demand graduate programs.

Removes the income-based repayment plan option from the Washington Student Loan program and requires the Student Achievement Council to use a standard loan repayment plan with a 10 year repayment period.

Permits the Washington Student Loan Program to be considered a need-based financial aid program by removing the specification that a state student loan may not exceed a student's cost of attendance, minus all gift aid the student receives. Removes the requirement that the state student loan be awarded before federal and private student loans. Requires the Washington Student Achievement Council to contract with one or more state-based financial institutions for loan origination instead of a credit union.

Directs the Washington Student Achievement Council, in consultation with the Office of the State Treasurer and the State Investment Board (SIB) to design a student loan program and provide a report to the legislature by December 1, 2022. At a minimum the program design must include: (1) A low interest rate, which may be 1 percent; (2) Loans for undergraduate and graduate students; (3) The terms of the loans; (4) The terms and administration of the repayment program; and (5) The types of borrowers permitted to participate. The program must prioritize low-income borrowers.

House concurred in Senate amendments. Passed final passage.