BILL REQ. #:  H-4268.1 

Read first time 01/19/10.   Referred to Committee on Higher Education.

     AN ACT Relating to the state student financial aid program; amending RCW 28B.92.060, 28B.92.080, and 28B.92.120; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that, more than ever, attending college provides opportunities for graduates that are not as available to those who have not received a higher education. Providing student aid to assure Washington students a chance at college is a critical duty. However, the legislature also finds that resources are scarce and the state is no longer in a position to provide the breadth and depth of support it once did. In times of financial crisis, resources must be targeted to those with the most need.
     The legislature also finds that the majority of college entrants are still young people. Despite recent growth in incumbent workers returning to college, research indicates that even in community and technical colleges that typically serve higher proportions of nontraditional students, the median age of students ranges from twenty-six to twenty-nine depending on program of study. Data also indicates that retention is most challenging for students and institutions during the first two years of study.
     The legislature therefore intends to narrow the scope of the state need grant program and assure the state can honor its commitments to young people during the first two years of higher education.

Sec. 2   RCW 28B.92.060 and 2009 c 215 s 4 are each amended to read as follows:
     In awarding need grants, the board shall proceed substantially as follows: PROVIDED, That nothing contained herein shall be construed to prevent the board, in the exercise of its sound discretion, from following another procedure when the best interest of the program so dictates:
     (1) The board shall annually select the financial aid award recipients from among Washington residents applying for student financial aid who have been ranked according to:
     (a) Financial need as determined by the amount of the family contribution; and
     (b) Other considerations, such as whether the student is a former foster youth, or is a placebound student who has completed an associate of arts or associate of science degree or its equivalent.
     (2) The financial need of the highest ranked students shall be met by grants depending upon the evaluation of financial need until the total allocation has been disbursed. Funds from grants which are declined, forfeited or otherwise unused shall be reawarded until disbursed, except that eligible former foster youth shall be assured receipt of a grant.
     (3) A student shall be eligible to receive a state need grant for up to ((five)) two years, or the credit or clock hour equivalent of ((five)) two years, or up to one hundred twenty-five percent of the published length of time of the student's program, whichever is shorter. A student may not start a new associate degree program as a state need grant recipient until at least five years have elapsed since earning an associate degree as a need grant recipient, except that a student may earn two associate degrees concurrently. Qualifications for renewal will include maintaining satisfactory academic progress toward completion of an eligible program as determined by the board. Should the recipient terminate his or her enrollment for any reason during the academic year, the unused portion of the grant shall be returned to the state educational grant fund by the institution according to the institution's own policy for issuing refunds, except as provided in RCW 28B.92.070. Persons who were awarded a state need grant before the start of the 2010-11 academic year and have been continuously enrolled in an institution of higher education shall receive a maximum of five total years of eligibility.
     (4) In computing financial need, the board shall determine a maximum student expense budget allowance, not to exceed an amount equal to the total maximum student expense budget at the public institutions plus the current average state appropriation per student for operating expense in the public institutions. Any child support payments received by students who are parents attending less than half-time shall not be used in computing financial need.
     (5)(a) A student who is enrolled in three to six credit-bearing quarter credits, or the equivalent semester credits, may receive a grant for up to one academic year before beginning a program that leads to a degree or certificate.
     (b) An eligible student enrolled on a less-than-full-time basis shall receive a prorated portion of his or her state need grant for any academic period in which he or she is enrolled on a less-than-full-time basis, as long as funds are available.
     (c) An institution of higher education may award a state need grant to an eligible student enrolled in three to six credit-bearing quarter credits, or the semester equivalent, on a provisional basis if:
     (i) The student has not previously received a state need grant from that institution;
     (ii) The student completes the required free application for federal student aid;
     (iii) The institution has reviewed the student's financial condition, and the financial condition of the student's family if the student is a dependent student, and has determined that the student is likely eligible for a state need grant; and
     (iv) The student has signed a document attesting to the fact that the financial information provided on the free application for federal student aid and any additional financial information provided directly to the institution is accurate and complete, and that the student agrees to repay the institution for the grant amount if the student submitted false or incomplete information.
     (6) As used in this section, "former foster youth" means a person who is at least eighteen years of age, but not more than twenty-four years of age, who was a dependent of the department of social and health services at the time he or she attained the age of eighteen.

Sec. 3   RCW 28B.92.080 and 2009 c 238 s 9 are each amended to read as follows:
     Except for opportunity internship graduates whose eligibility is provided under RCW 28B.92.084, for a student to be eligible for a state need grant a student must:
     (1) Be a "needy student" or "disadvantaged student" as determined by the board in accordance with RCW 28B.92.030 (((3) and (4)));
     (2) Have been domiciled within the state of Washington for at least one year;
     (3) Be enrolled or accepted for enrollment on at least a half-time basis at an institution of higher education in Washington as defined in RCW 28B.92.030(((1)));
     (4) Be twenty-nine years of age or younger at the time of application, unless the student is solely responsible for a dependent child or received a state need grant before the 2010-11 academic year and has been continuously enrolled in an institution of higher education;
     (5) Until June 30, 2011, to the extent funds are specifically appropriated for this purpose, and subject to any terms and conditions specified in the omnibus appropriations act, be enrolled or accepted for enrollment for at least three quarter credits or the equivalent semester credits at an institution of higher education in Washington as defined in RCW 28B.92.030(((1))); and
     (((5))) (6) Have complied with all the rules adopted by the board for the administration of this chapter.

Sec. 4   RCW 28B.92.120 and 2004 c 275 s 41 are each amended to read as follows:
     Funds appropriated for student financial assistance to be granted pursuant to this chapter shall be disbursed as determined by the board; however at least fifty percent of funds must be reserved for students attending an institution of higher education on a part-time or less-than-half-time basis. If the board finds that demand for financial aid for part-time and less-than-half-time students will not account for fifty percent of funds, then remaining funds may be disbursed to provide grants to students enrolled full time.