HB 1499

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

C 13 L 18

Synopsis as Enacted

Brief Description: Creating protections and fairness for students in the student loan disbursement process.

Sponsors: Representatives Pollet, Ryu, Sells, Lovick, Bergquist and Stanford.

House Committee on Higher Education

Senate Committee on Higher Education

Senate Committee on Ways & Means

Senate Committee on Higher Education & Workforce Development


Postsecondary institutions receiving federal financial aid must comply with federal regulations regarding the disbursement of funds. After the institution credits the student's account for tuition and fees and other allowable charges, any aid that is left must be paid to the student within a certain time. An institution may issue a check to the student, directly deposit the funds into a student's bank account, or contract with a third-party servicer or financial institution to process the refunds to students on behalf of the institution. Third-party servicers or financial institutions may provide the student's refund on a debit card or other access device.

Recently enacted federal regulations created new requirements for institutions using third-party servicers or financial institutions to process federal financial aid refunds to students. In general, the new requirements include the following:


Federal regulations applicable to federal financial aid disbursements using third-party servicers or financial institutions also apply to the disbursement of state financial aid.

Postsecondary institutions disbursing federal or state financial aid refunds by means other than direct deposit or issuing a check to the student must:

An institution is not required to duplicate notices or disclosures or provide additional notices or disclosures on federal financial aid that would otherwise be required under federal law.

The WSAC's rules must assure that contracts between postsecondary institutions and third-party servicers or financial institutions:

The WSAC must compile a list on its website of all the postsecondary institutions that use third-party servicers or financial institutions.

Postsecondary institution means the public institutions of higher education and any degree-granting institution, for-profit institution, or for-profit vocational institute, operating in the state and offering instruction and training beyond the high school level for gainful employment in a recognized profession.

Votes on Final Passage:











June 7, 2018