CA AR49

Encourages the Student Aid Commission and Legislative Analyst to study a "Pay it Forward, Pay it Back" pilot program allowing students to attend college without upfront tuition and fees in exchange for paying 2-4 percent of annual adjusted gross income for a specified number of years after graduation.

Pilot program should identify participating campuses from UC, CSU, California Community Colleges, and nonprofit private institutions that are regionally diverse to test the income-based repayment model.

Study should specify contract terms (years and income percentage) that would reimburse attendance costs at each institution based on current research and state subsidy projections.

Recommends identifying immediate funding sources for the first 15-20 years, including establishment of a revolving fund for student payments and consideration of social impact bonds as an alternative funding mechanism.

Legislative Analyst must submit a report on the pilot program study to the Assembly Committee on Higher Education and Senate Committee on Education by September 30, 2015.