CA AB1456

Requires the Student Aid Commission and Legislative Analyst to conduct a study of a "Pay it Forward, Pay it Back Pilot Program" that would allow students to attend higher education without upfront tuition and fees by signing a binding contract to pay 2-4% of their annual adjusted gross income upon graduation for a specified number of years.

Designates the Legislative Analyst as the lead agency responsible for preparing the study, which must identify at least one campus each from the University of California, California State University, California Community Colleges, and a nonprofit private institution to participate in the pilot program.

Requires the study to establish an immediate funding source for the first 15-20 years of the pilot program, including consideration of social impact bonds where nongovernmental entities fund student costs in exchange for a security interest in future student payments.

Mandates the Student Aid Commission submit a report on the study to the Assembly Committee on Higher Education and Senate Committee on Education by September 30, 2015, with the study requirement becoming inoperative on June 30, 2016 and repealed January 1, 2017 unless extended by subsequent legislation.

Establishes legislative findings that California's rising higher education costs have far outpaced inflation and family incomes, forcing 51% of four-year institution graduates to borrow an average of $18,879, and recognizes the need for alternative financing strategies.