In the development of any such plans as called for within RCW
28B.76.640, the office shall use at least the following criteria:
(1) Students who are eligible to attend compact-authorized programs in other states shall meet the Washington residency requirements of chapter
28B.15 RCW prior to being awarded tuition assistance.
(2) For recipients named after January 1, 1995, the tuition assistance shall be in the form of loans that may be completely forgiven in exchange for the student's service within the state of Washington after graduation. The requirements for such service and provisions for loan forgiveness shall be determined in rules adopted by the office.
(3) If appropriations are insufficient to fund all students qualifying under subsection (1) of this section, then the plans shall include criteria for student selection that would be in the best interest in meeting the state's educational needs, as well as recognizing the financial needs of students.
(4) Receipts from the payment of principal or interest or any other subsidies to which the office as administrator is entitled, that are paid by or on behalf of participants under this section, shall be deposited with the office and placed in an account created in this section and shall be used to cover the costs of granting the scholarships, maintaining necessary records, and making collections. The office shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to grant conditional loans to eligible students.
(5) The Washington interstate commission on higher education professional student exchange program trust fund is created in the custody of the state treasurer. All receipts from loan repayment shall be deposited into the fund. Only the office, or its designee, may authorize expenditures from the fund. No appropriation is required for expenditures from this fund.