SSB 5022

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 154 L 17

Synopsis as Enacted

Brief Description: Providing information to students about education loans.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Bailey, Rolfes, Liias, Keiser, Conway, Wellman, Hasegawa, Mullet, Frockt and Kuderer; by request of Attorney General).

Senate Committee on Higher Education

Senate Committee on Ways & Means

House Committee on Higher Education

House Committee on Appropriations

Background: Federal Student Loan Options. Federal loans include direct loans in which the U.S. Department of Education is the lender. Federal Perkins Loans are for undergraduates and graduate students with exceptional financial aid from the school they attend. Direct loans include subsidized loans in which students are able to demonstrate financial need to help cover the costs of higher education, and unsubsidized loans that do not require a demonstration of financial need. Undergraduate students can borrow up to $5,500 per year in Perkins loans, and between $5,500 and $12,500 in direct subsidized and unsubsidized loans depending on certain factors. Graduate students are eligible for up to $8,000 each year in Perkins loans and up to $20,500 in direct unsubsidized loans.

Options for Repayment of Direct Federal Student Loans.

Federal Perkins Loan repayment options are not the same as the Direct Loan Program and can vary by institution.

Student Loan Debt in Washington. According to the Institute for College Access and Success' Project on Student Debt, the an average debt balance of a student loan in Washington State is $24,804. The percentage of graduates with student loan debt is 58 percent.

Summary: The act is known as the Washington Student Loan Transparency Act.

Information Required to Be Made Available to Student Borrowers by Post Secondary Institutions. Subject to appropriations, student borrowers, who have applied for financial aid, are entitled to receive notification about their loans from the institution every time the institution certifies a new financial package to the student that includes loans. The notification must include an estimate on the:

The estimates and/or ranges provided must be noted to be general in nature and must provide a statement that a variety of repayment plans are available for student loans that may limit the monthly repayment amount based on income. The notification must also include information on how to access resources for student loan borrowers from federal and state agencies.

Reporting and Compliance Requirements for Post Secondary Institutions. Institutions must provide notifications by e-mail. In addition, notification may be provided in writing, electronic format, or in person. An institution does not incur liability, including actions by the Attorney General, for any good faith representations made by providing estimates on future debts. The notifications provided by institutions must begin July 1, 2018, and must be provided every time a new financial aid package that includes a new or revised student education loan is offered to a student.

Reporting and Compliance Requirements. Subject to appropriations, an organization representing the four-year public colleges and universities, an organization representing the private non-profit institutions, the State Board for Community and Technical Colleges, the Workforce Training and Education Coordinating Board, and the Department of Licensing to develop a form for reporting compliance by July 1, 2018. Beginning December 1, 2019, and biennially thereafter, the organizations and agencies must submit a compliance report to the Legislature that details how the institutions are in compliance with the reporting requirements. This reporting requirement expires December 25, 2025.

Votes on Final Passage:







(House amended)




(Senate concurred)


July 23, 2017