CA AB2479

California State University (and University of California as a condition of receiving appropriated funds) must each select one campus to establish a pilot program beginning in the 2020–21 academic year providing income share agreements to students as an alternative to loans for costs of attendance.

Income share agreements must specify a percentage of future annual income students pay monthly for a repayment period not exceeding 10 years, commencing 6 months after graduation, with no payments required when annual income is below $20,000.

Pilot program is open to sophomore, junior, and senior students; campuses may impose additional eligibility requirements and cap participants based on available appropriated funds.

Each participating campus must submit reports to the Legislature by November 1, 2022 and November 1, 2025 detailing student enrollment, amounts provided, degree program distribution, graduate income data, and revolving fund balances.

Income share agreements must include student disclosure documents clearly stating the agreement is not debt, payments may exceed or fall below amounts provided but are capped, and repayment obligations are not dischargeable under bankruptcy law.