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04/19/2021 09:52 AM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20190&cosponId=30570
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Senate of Pennsylvania
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: October 22, 2019 05:10 PM
From: Senator Ryan P. Aument
To: All Senate members
Subject: Study and Implementation of Income Share Agreements to Finance a Portion of PA College Tuition Costs
 
In the near future, I intend to introduce legislation that would authorize and direct a study of the desirability and feasibility of using Income Share Agreements (ISA) to finance a portion of the cost to attend college in Pennsylvania and for Pennsylvanian’s to attend college in other states.

To be clear, the study proposed in this legislation is directed towards ISAs for current students, whereas the co-sponsor memo that I circulated earlier this month proposing to create a student loan debt refinancing program through the use of ISAs would apply to students who have already graduated – these two proposals are inherently different in that they target entirely different eligible populations.

In partnership with Pennsylvania and participating colleges and universities, my proposal would direct the Pennsylvania Higher Education Assistance Agency (PHEAA), in consultation with an oversight committee, to study one or more financial vehicles to support the use of ISAs for current students attending a post-secondary institution as a way to pay for their education.

In particular, the study will assess, among other things, whether a state sponsored program is feasible from a financial and policy perspective by:
  1. Helping meet the presently unmet financial and funding needs of Pennsylvania colleges and universities;
  2. Attracting out of state students to Pennsylvania’s colleges and universities, therefore helping to reverse declining enrollment;
  3. Reducing overall student indebtedness; and
  4. Aligning the interests of institutions of higher education with the interests of their students.

All without the incurrence of indebtedness backed by the general credit and taxing power of the Commonwealth!

If the evaluation concludes that the program is feasible, the program would be implemented without further action.

As we continue to look for additional ways to make college more affordable, please join me in co-sponsoring this proposal to gather more information on ways to accomplish this goal.



Introduced as SB1043