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09/20/2021 02:23 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=30419
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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: September 25, 2019 02:13 PM
From: Representative Eddie Day Pashinski
To: All House members
Subject: Burden-Free Community College for PA: The Delayed Payment Plan Bill Package
 
Student debt is crushing Pennsylvania’s higher education students and discouraging young people from pursuing a degree that can significantly increase their ability to find a good job. Meanwhile, well-paying jobs go unfilled across the state because we don’t have enough workers with the education needed to fill those roles.

This is unacceptable. Every Pennsylvanian should be able to continue their education without fear of taking on outrageous amounts of debt. That’s why I am introducing a Delayed Payment Plan (DPP) legislative package that would allow community college students at any of Pennsylvania’s 14 state community colleges a chance to complete their two-year degree and land a steady job before having to begin repaying their tuition.

Without onerous debt payments, graduates and students will have more money to support their families, purchase a home, and help grow Pennsylvania’s economy. According to one study, “adding one year to the average years of schooling among the employed in a metropolitan area is associated with an increase in real GDP per capita of 10.5 percent, and an increase in real wages per worker of 8.4 percent.”

It’s time for Pennsylvania to take the lead when it comes to addressing the student debt crisis, while simultaneously providing a better-educated workforce for employers.

Please join me in supporting this important legislative package to remove financial barriers for prospective students and help Pennsylvanian’s get better jobs and improve the economic health of communities across the state.



Document #1

Introduced as HB2287

Description: The first bill would establish the Delayed Payment Plan program.

Once established, the state would pay up-front for the community college education for participating PA students who attend one of our 14 state community colleges, pursue a degree in a high-need career path, and who stay in Pa after graduating. The agreement would require the graduate to pay back what they owe using a minimum of 2% of their future earnings within 10 years of graduating. Anyone with an outstanding balance following those 10 years would be required to pay the standard loan rate, minus 2% of that rate, on their remaining balance until they’ve finished paying for their tuition.
 

Document #2

Introduced as HB2286

Description: The second bill would extend the state Sales and Use Tax only to Dry Cleaning services in order to provide a mechanism to fund the program.

The Delayed Payment Plan has the potential to help thousands of Pennsylvanian’s every year find an affordable pathway to obtaining a degree – but it can’t work without funding. By expanding the current 6% state sales and use tax to include dry-cleaning services only, we would ensure that this innovative program has enough funding to get started and help as many Pennsylvania students as possible participate and expand the program into the future. If enacted, this expansion would bring in an estimated $47 million per year, allowing for the possibility of expanding participation in the Delayed Payment Plan to students at Pennsylvania’s 4-year state institutions higher education as well.