,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #ciei  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #bi1 #bjad    
,ms4 ,bonamici 7= h]self & ,mr4 ,kildee7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,education & !       
,work=ce  ,a ,,bill  ,to e/abli% a ,pay 
,x ,=w>d model = fund+ po/second>y      
education4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,pay ,x ,=w>d ,college  
,af=dability ,act ( #bjad4  #b4 ,f9d+s2 
,purpose  7a7 ,f9d+s ,congress f9ds !   
foll[+3  7#a7 ,po/second>y education has
 exp&$ opportunities = p 9 ! ,unit$     
,/ates to qualify = high-quality jobs & 
entry into ! middle class1 provid+ cle> 
b5efits to ! ,nation's economy4  7#b7   
,public inve/m5t by ! ,/ates 9 high]    
education has decreas$ significantly1   
especially 9 ! pa/ #e ye>s be=e ! date (
 enactm5t ( ?is ,act1 z a result ( !    
#bjjh fiscal collapse4  7#c7 ,) college 
co/s ris+ beyond ! rea* ( _m p 9 !      
,unit$ ,/ates1 f9ancial aid programs are
 inadequate to rea* all /ud5ts )        

f9ancial ne$4  7#d7 ,! increas+         
unaf=dability ( a college education has 
=c$ /ud5ts to borr[ m money to pay =    
high] education1 caus+ two-?irds (      
college s5iors to graduate ) an av]age  
/ud5t debt ( #bf1fjj4  7#e7 ,high levels
 ( /ud5t debt are damag+ n only to !    
individual /ud5t's ability to succe$    
f9ancially b also w h grave consequ5ces 
= ! future economy ( ! ,unit$ ,/ates4   
7#f7 ,congress mu/ halt ! decrease 9    
,/ate support = education &1 ov] "t1 mu/
 catalyze increases 9 ,/ate fund+ =     
high] education4  7#g7 ,!re is a ne$ to 
enc\rage a new approa* to f9anc+ !      
/ud5ts' %>e ( ! co/ ( high] education t 
w n result 9 graduates :o are ov]burd5$ 
) /ud5t debt4  7#h7 ,! ,pay ,x ,=w>d    
model pres5ts a new opportunity = f9anc+
 & exp&+ high] education1 ?r\gh !       
replacem5t ( tuition & m&atory fees ) a 
po/-graduation contribution program t   
e/abli%es ! fund+ = access to high]     
education = ! next g5]ational cohort (  
/ud5ts4  7b7 ,purpose ,! purpose ( ?is  

,act is to te/ & enc\rage ! developm5t (
 ,pay ,x ,=w>d model f9anc+ programs4   
#c4 ,def9itions ,9 ?is ,act3  7#a7      
,annual ,income ,! t]m annual income    
means an am\nt equal to ! sum (--  7,a7 
annual adju/$ gross income1 z def9$ 9   
section #fb ( ! ,int]nal ,rev5ue ,code (
 #aihf2 &  7,b7 any am\nt describ$ "u   
section #ajc ( ! ,int]nal ,rev5ue ,code 
( #aihf4  7#b7 ,co/ ( att5dance ,! t]m  
co/ ( att5dance has ! mean+ giv5 ! t]m 9
 section #dgb ( ! ,high] ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #ajhgll74  7#c7 
,in/itution ( ,high] ,education  7,a7   
,in/itution ( high] education ,! t]m    
in/itution ( high] education has ! mean+
 giv5 ! t]m 9 section #ajb ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajjb71 except t = purposes ( ?is ,act1 
an in/itution ( high] education does n  
include any program ( po/second>y       
education or tra9+1 includ+ a degree or 
c]tificate program1 t is design$ to     
prep>e /ud5ts = entry into a recogniz$  
occupation or pr(ession t requires      

lic5s+ or o!r e/abli%$ requirem5ts z a  
pre-condition = entry into su*          
occupation or pr(ession1 unless--  7i7 !
 successful completion ( ! program fully
 qualifies a /ud5t1 9 ! ,/ate 9 :i* !   
in/itution (f]+ ! program is locat$ 7& 9
 any ,/ate 9 :i* ! in/itution indicates1
 ?r\gh adv]tis+ or m>ket+ activities or 
direct contact ) pot5tial /ud5ts1 t a   
/ud5t w be prep>$ to "w 9 ! occupation  
or pr(ession aft] successfully complet+ 
! program71 to--  7,i7 take any         
exam9ation requir$ = entry into !       
recogniz$ occupation or pr(ession 9 !   
,/ate1 includ+ satisfy+ all ,/ate or    
pr(essionally m&at$ programmatic &      
specializ$ accr$itation requirem5ts1 if 
any2 &  7,,ii7 be c]tifi$ or lic5s$ or  
meet any o!r academically relat$        
pre-conditions t are requir$ = entry    
into ! recogniz$ occupation or pr(ession
 9 ! ,/ate2  7ii7 ! in/itution (f]+ !   
program provides timely placem5t = all (
 ! academically relat$ pre-lic5sure     
requirem5ts = entry into ! recogniz$    

occupation or pr(ession 9 ! ,/ate1 su* z
 cl9ical placem5ts1 int]n%ips1 or       
appr5tice%ips2  7iii7 9 ! case ( ,/ate  
lic5s+ or pr(essionally m&at$           
requirem5ts = entry into ! recogniz$    
occupation or pr(ession 9 ! ,/ate 9 :i* 
! in/itution (f]+ ! program is locat$ 7&
 9 any ,/ate 9 :i* ! in/itution         
indicates1 ?r\gh adv]tis+ or m>ket+     
activities or direct contact ) pot5tial 
/ud5ts1 t a /ud5t w be prep>$ to "w 9 ! 
occupation or pr(ession aft]            
successfully complet+ ! program7 t      
require specializ$ accr$itation--  7,i7 
! program meets t requirem5t =          
specializ$ accr$itation ?r\gh its       
accr$itation or pre-accr$itation by an  
accr$it+ ag5cy or association recogniz$ 
by ! ,secret>y ( ,education z a reliable
 au?ority z to ! quality or tra9+ (f]$  
by ! in/itution 9 t program2 &  7,,ii7  
if ! program is 9 a pre-accr$it$1       
probation1 or %[ cause /atus by an      
accr$it+ ag5cy or association describ$ 9
 subclause 7,i71 & ! requirem5t =       

specializ$ accr$itation is = full       
accr$itation1 ! in/itution--  7aa7      
e/abli%es1 to ! satisfaction ( !        
,secret>y ( ,education1 t ea* /ud5t :o  
enrolls be=e ! program is fully accr$it$
 atte/s ( be+ advis$ t ! program is 9 a 
pre-accr$it$1 probation1 or %[ cause    
/atus & ( be+ in=m$ ( ! effect on !     
/ud5t's eligibility = assi/ance "u ?is  
,act & on ! /ud5t's ability to satisfy  
,/ate or pr(essionally m&at$ requirem5ts
 = entry into ! recogniz$ occupation or 
pr(ession if full accr$itation is       
delay$1 d5i$1 t]m9at$1 or )drawn2 &     
7bb7 publicly & prom95tly discloses 9   
any adv]tis+1 m>ket+1 or recruitm5t     
mat]ials & activities = ! in/itution1 ! 
in/itution's pre-accr$it$1 probation1 or
 %[ cause /atus & ! implications ( su*  
/atus = prospective /ud5ts2 &  7iv7 !   
in/itution--  7,i7 discloses on !       
application to enroll 9 ! in/itution t  
its program does n necess>ily satisfy   
out-(-,/ate requirem5ts1 if applicable2 
&  7,,ii7 ^u receipt ( an application to

 enroll 9 ! in/itution1 notifies !      
/ud5t1 prior to enrollm5t1 if ! program 
9 :i* ! /ud5t int5ds to enroll does n   
satisfy ! requirem5ts ( ! ,/ate 9 :i* ! 
/ud5t is a resid5t1 if applicable4  7,b7
 ,s*ool1 dep>tm5t1 or program ,! t]m    
in/itution ( high] education may include
 a p>ticul> s*ool1 dep>tm5t1 or program 
)9 an in/itution ( high] education      
describ$ 9 subp>agraph 7,a74  7#d7 ,pay 
,x ,=w>d model ,! t]m ,pay ,x ,=w>d     
model means a sy/em 9 :i*--  7,a7 !     
,secret>y1 a ,/ate1 or an in/itution (  
high] education pays all or "p ( a      
p>ticipat+ /ud5t's co/ ( att5dance1 b n 
less ?an an am\nt equal to ! co/ (      
tuition & m&atory fees1 = ea* su* /ud5t 
dur+ "s or all ( ! "t t ! /ud5t is      
enroll$ at an in/itution ( high]        
education 9 ord] to replace ! /ud5t's   
ne$ to borr[ "u ! ,f$]al ,direct ,/af=d 
,loan & ,f$]al ,direct ,unsubsidiz$     
,/af=d ,loan ,programs "u "p ,d ( title 
,,iv ( ! ,high] ,education ,act ( #aife 
7#bj ,u4,s4,c4 #ajhg;a et seq472 &  7,b7

 su* /ud5t signs a contract agree+ to   
contribute to ! ,secret>y1 a ,/ate1 or  
an in/itution ( high] education1 z !    
case may be1 a c]ta9 p]c5tage 7n to     
exce$ #e p]c5t7 ( ! /ud5t's annual      
income1 = a specifi$ numb] ( ye>s ^u    
graduation or :5 ! /ud5t ceases to be   
enroll$ at su* in/itution ( high]       
education1 except t ! specifi$ numb] (  
ye>s = :i* ! /ud5t agrees to contribute 
accord+ to su* contract %all n exce$ #be
 ye>s1 :i* %all be kn[n z ! ,pay ,x     
,=w>d ,contribution ,plan4  7#e7        
,secret>y ,! t]m ,secret>y means !      
,secret>y ( ,education4  7#f7 ,tuition &
 m&atory fees ,! t]m tuition & m&atory  
fees means tuition & fees normally      
assess$ a /ud5t c>ry+ ! same academic   
workload z det]m9$ by ! in/itution (    
high] education4  #d4 ,initial ,/udies  
7a7 ,9 ,g5]al ,n lat] ?an #ahj days aft]
 ! date ( enactm5t ( ?is ,act1 !        
,secret>y1 9 consultation ) ! ,secret>y 
( ! ,treasury--  7#a7 & ! ,director ( ! 
,consum] ,f9ancial ,protection ,bureau1 

%all conduct a /udy on ! feasibility (1 
& options =1 implem5t+ ! ,pay ,x ,=w>d  
model1 9 a mann] t is 9 ! be/ int]e/s ( 
/ud5ts2 &  7#b7 %all conduct a /udy--   
7,a7 on :e!r ! /ud5t loan s]vic] paym5t 
program or ! ,int]nal ,rev5ue ,s]vice   
income tax )hold+ me*anism 7su* z       
preau?oriz$ automatic electronic funds  
transf]s7 ( collection = ! ,pay ,x ,=w>d
 model w\ld "w be/2  7,b7 on h[ be/ to  
e/abli% a p>ticipant's agreem5t describ$
 "u section #e7;g77#c71 or a simil>     
agreem5t made "u ano!r ,pay ,x ,=w>d    
model1 includ+ :at p]c5tage ( a         
p>ticipant's income ! p>ticipant %\ld be
 requir$ to contribute & :at is an      
appropriate "t p]iod = contribution2    
7,c7 on h[ ! rates ( contribution "u !  
,pay ,x ,=w>d model may diff]--  7i7    
accord+ to diff]5t income levels2 &     
7ii7 bas$ on :e!r ! /ud5t pursues a     
graduate or pr(essional education       
program imm$iately aft] complet+ _!     
und]graduate education or at a future   
"t2  7,d7 on h[ be/ to /reaml9e !       

collection process & ensure compliance2 
&  7,e7 on ways to prev5t increases 9   
tuition & o!r education co/s4  7b7      
,report ,n lat] ?an #cj days aft] !     
completion ( ! /udies describ$ 9        
subsection 7a71 ! ,secret>y %all prep>e 
& submit a report conta9+ ! results ( ! 
initial /udies describ$ 9 subsection    
7a71 to ! ,committee on ,heal?1         
,education1 ,labor1 & ,p5sions ( !      
,s5ate1 ! ,committee on ,bank+1 ,h\s+1 &
 ,urban ,affairs ( ! ,s5ate1 !          
,committee on ,f9ance ( ! ,s5ate1 !     
,committee on ,education & ! ,work=ce ( 
! ,h\se ( ,repres5tatives1 ! ,committee 
on ,f9ancial ,s]vices ( ! ,h\se (       
,repres5tatives1 & ! ,committee on ,ways
 & ,means ( ! ,h\se ( ,repres5tatives4  
#e4 ,grants = ,/ate ,pay ,x ,=w>d ,pilot
 ,program  7a7 ,9 ,g5]al ,unless !      
,secret>y det]m9es1 z a result ( !      
initial /udies describ$ 9 section #d1 t 
! ,pay ,x ,=w>d model is n feasible or  
o!rwise n 9 ! public int]e/ or 9 ! be/  
int]e/ ( /ud5ts1 ! ,secret>y %all1 n    

lat] ?an #a ye> aft] ! completion ( su* 
initial /udy1 aw>d grants1 on a         
competitive basis1 to n m ?an #c ,/ates 
9 ! fir/ #b ye>s & n m ?an #g additional
 ,/ates 9 subsequ5t ye>s 7:ile limit+ ! 
numb] ( /ud5ts p>ticipat+ to #ae1jjj    
annually 9 ! fir/ #b ye>s & #ej1jjj     
annually 9 subsequ5t ye>s 9 all ,/ates7 
to enable su* ,/ates to e/abli% & c>ry  
out a ,pay ,x ,=w>d model ,/ate pilot   
program z describ$ 9 subsection 7e74    
7b7 ,application2 ,duration  7#a7       
,application ,ea* ,/ate t desires to    
receive a grant "u ?is section %all     
submit an application to ! ,secret>y at 
su* "t1 9 su* mann]1 & conta9+ su*      
in=mation z ! ,secret>y may reasonably  
require4  7#b7 ,duration ,grants aw>d$  
"u ?is section %all be = a p]iod ( n    
less ?an #aj ye>s & n m ?an #be ye>s & !
 ,secret>y %all make grant funds        
available to ea* ,/ate on an annual     
basis4  7c7 ,/ate contribution          
requirem5t ,a ,/ate receiv+ a grant "u  
?is section %all provide1 ei!r directly 

or ?r\gh private contributions1         
non-,f$]al funds = ea* aw>d ye> 9 an    
am\nt t is n less ?an ! great] (--  7#a7
 ! diff]5ce betwe5--  7,a7 ! am\nt = an 
aw>d ye> t ! ,/ate has agre$ to pay =   
all /ud5ts p>ticipat+ 9 ! ,/ate ,pay ,x 
,=w>d ,contribution ,plan describ$ 9    
subsection 7e72 &  7,b7 ! am\nt ( !     
,f$]al funds describ$ 9 subsection      
7e77#b72 or  7#b7 ! am\nt t is #aj p]c5t
 ( ! am\nt ( ! ,f$]al funds describ$ 9  
subsection 7e77#b74  7d7 ,ma9t5ance (   
,ef=t ,ea* ,/ate receiv+ a grant "u ?is 
section = a fiscal ye> %all provide !   
,secret>y ) an assurance t ! aggregate  
exp5ditures by ! ,/ate1 f funds d]iv$ f 
non-,f$]al s\rces1 = ! contribution to  
high] education co/s1 includ+ /ud5t     
loans & grants = high] education = ea*  
fiscal ye> = :i* a grant is aw>d$ "u ?is
 section 7exclud+ funds = a ,/ate ,pay  
,x ,=w>d model7 are n less ?an !        
aggregate exp5ditures by ! ,/ate = !    
contribution to high] education co/s1   
includ+ /ud5t loans & grants = high]    

education1 = ! fiscal ye> prec$+ ! fir/ 
fiscal ye> = :i* a grant 0 aw>d$ to !   
,/ate "u ?is section1 z adju/$ =        
inflation us+ ! ,consum] ,price ,index =
 ,all ,urban ,consum]s publi%$ by !     
,dep>tm5t ( ,labor 7,,cpi-,u74  7e7     
,/ate ,pilot ,program  7#a7 ,/ate       
,activities ,9 accordance ) subsection  
7a71 ea* ,/ate receiv+ a grant "u ?is   
section %all e/abli% & c>ry out a ,/ate 
,pay ,x ,=w>d model pilot program1 ?r\gh
 :i* ! ,/ate %all--  7,a7 select        
eligible in/itutions1 9 accordance )    
subsection 7f71 = p>ticipation 9 !      
program2  7,b7 9 coord9ation ) !        
,secret>y1 e/abli% an application &     
enrollm5t process ?r\gh :i* a /ud5t :o  
is enroll$ at a p>ticipat+ eligible     
in/itution :o wi%es to p>ticipate 9 !   
program1 & fulfills ! requirem5ts ( !   
enrollm5t process1 z det]m9$ by ! ,/ate1
 %all be enroll$ 9 ! ,pay ,x ,=w>d      
,contribution ,plan1 subject to p>agraph
 7#c72  7,c7 provide ea* /ud5t at ea*   
p>ticipat+ eligible in/itution ) a      

writt5 notice--  7i7 t su* /ud5t has !  
option to p>ticipate1 or to decl9e to   
p>ticipate1 9 ! ,pay ,x ,=w>d           
,contribution ,plan on an annual        
r5ewable basis1 subject to p>agraph     
7#c72  7ii7 ( ! application & enrollm5t 
process describ$ 9 subp>agraph 7,b72 &  
7iii7 ( ! t]ms & conditions ( ! ,pay ,x 
,=w>d ,contribution ,plan1 z describ$ 9 
subsection 7g72  7,d7 ensure t1 subject 
to subsection 7g77#e77;,a7 & 9          
accordance ) p>agraphs 7#d7 & 7#e7 (    
subsection 7g71 an eligible /ud5t's co/ 
( att5dance w be r$uc$ by ! am\nt ( any 
assi/ance consid]$ e/imat$ f9ancial     
assi/ance1 z def9$ 9 section            
#dbh7;a77#b77;,c7 ( ! ,high] ,education 
,act ( #aife 7#bj ,u4,s4,c4             
#ajgh7;a77#b77;,c77 prior to ! aw>d+ (  
aid "u ! ,pay ,x ,=w>d ,contribution    
,plan t[>d ! /ud5t's co/ ( att5dance2   
7,e7 aw>d funds1 f am\nts made available
 "u subsection 7c71 any o!r ,/ate funds1
 & am\nts made available "u p>agraph    
7#b77;,b7 to pay--  7i7 ea* p>ticipat+  

in/itution an am\nt equal to ! tuition &
 m&atory fees = ea* /ud5t at t          
in/itution :o is enroll$ 9 ! ,pay ,x    
,=w>d ,contribution ,plan1 z describ$ 9 
subsection 7g71 except t su* am\nt %all1
 = ea* /ud5t1 n exce$ ! less] (--  7,i7 
! am\nt ( ! tuition & m&atory fees = ea*
 su* /ud5t at ! mo/ exp5sive public     
in/itution ( high] education 9 ! ,/ate =
 ! type ( in/itution ! p>ticipat+ /ud5t 
att5ds 7includ+ a #d-ye> in/itution1    
#b-ye> in/itution1 or #a-ye> in/itution7
 = t aw>d ye>2 or  7,,ii7 ! co/ (       
att5dance = ea* su* /ud5t to att5d !    
in/itution at :i* ! /ud5t is enroll$2 & 
7ii7 ea* p>ticipat+ /ud5t any additional
 co/s ( att5dance t h be5 agre$ to 9 !  
/ud5t's contract describ$ 9 subsection  
7g71 except t su* additional co/s %all  
be 9 an am\nt su* t ! sum ( su*         
additional co/s & ! am\nt ( tuition &   
fees describ$ 9 clause 7i7 %all1 = ea*  
su* /ud5t1 n exce$ ! less] (--  7,i7 !  
am\nt ( ! tuition & m&atory fees = a    
/ud5t at ! mo/ exp5sive public          

in/itution ( high] education 9 ! ,/ate =
 ! type ( in/itution ! p>ticipat+ /ud5t 
att5ds 7includ+ a #d-ye> in/itution1    
#b-ye> in/itution1 or #a-ye> in/itution7
 = t aw>d ye>2 or  7,,ii7 ! co/ (       
att5dance = ! /ud5t to att5d !          
in/itution at :i* ! /ud5t is enroll$4   
7#b7 ,f$]al ,funds ,! ,secret>y %all pay
 ea* ,/ate receiv+ a grant "u ?is       
section1 = ea* aw>d ye> = ! purpose (   
c>ry+ out p>agraph 7#a77;,e71 an am\nt  
equal to ! product (--  7,a7 ! numb] (  
/ud5ts 9 ! ,/ate t are enroll$ 9 ! ,pay 
,x ,=w>d ,contribution ,plan = t aw>d   
ye>2 multipli$ by  7,b7 an am\nt equal  
to ! sum (--  7i7 ! maximum am\nt t a   
/ud5t is eligible to receive ?r\gh a    
,f$]al ,direct ,/af=d loan "u "p ,d (   
title ,,iv ( ! ,high] ,education ,act ( 
#aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 = 
t aw>d ye>2 plus  7ii7 ! maximum am\nt t
 a /ud5t is eligible to receive ?r\gh a 
,f$]al ,direct ,unsubsidiz$ ,/af=d loan 
"u "p ,d ( title ,,iv ( ! ,high]        
,education ,act ( #aife 7#bj ,u4,s4,c4  

#ajhg;a et seq47 = t aw>d ye>4  7f7     
,eligible in/itutions  7#a7 ,9 g5]al ,an
 eligible in/itution1 = purposes ( ?is  
section1 means an in/itution ( high]    
education1 t--  7,a7 submits an         
application to ! ,/ate at su* "t1 9 su* 
mann]1 & conta9+ su* in=mation z ! ,/ate
 may reasonably require2  7,b7 agrees to
 p>ticipate 9 ! ,pay ,x ,=w>d           
,contribution ,plan & commits to        
p>ticipation 9 rese>* t may be relat$ to
 ! ,pay ,x ,=w>d ,contribution ,plan2 & 
7,c7 agrees to ma9ta9--  7i7 9 ! case ( 
an in/itution ( high] education 9 :i* ! 
entire in/itution is p>ticipat+1 ! level
 ( in/itutional f9ancial aid1 includ+ ! 
level ( in/itutional fund+ = /ud5t      
grants & loans1 z adju/$ = inflation by 
! ,consum] ,price ,index = ,all ,urban  
,consum]s publi%$ by ! ,dep>tm5t (      
,labor 7,,cpi-,u71 t ! in/itution       
provides at ! "t ( ! application to     
p>ticipate 9 ! ,pay ,x ,=w>d            
,contribution ,plan ?r\gh\t ! duration (
 ! ,pay ,x ,=w>d ,contribution ,plan2 or

  7ii7 9 ! case ( a dep>tm5t1 s*ool1 or 
program )9 an in/itution ( high]        
education1 ma9ta9 ! level ( aid describ$
 9 clause 7i7 on a dep>tm5t1 s*ool1 or  
program-wide basis4  7#b7 ,selection (  
p>ticipat+ in/itutions  7,a7 ,9 ,g5]al  
,if a suffici5t numb] ( eligible        
in/itutions 9 a ,/ate receiv+ a grant "u
 ?is section wi% to p>ticipate 9 ! ,pay 
,x ,=w>d ,contribution ,plan1 su* ,/ate 
%all e/abli% me?ods = select+ eligible  
in/itutions to p>ticipate1 or o!rwise   
set /&>ds = p>ticipation1 9 su* a way t 
meets ! requirem5ts ( ?is p>agraph &    
maximizes ! utility ( ! rese>* t results
 f ! evaluation ( ! ,pay ,x ,=w>d       
,contribution ,plan4  7,b7 ,crit]ia ,9  
select+ eligible in/itutions "u         
subp>agraph 7,a71 ! ,/ate %all consid] !
 ext5t to :i* select$ in/itutions w     
repres5t v>i$ geographic locations &    
types ( in/itutions 7su* z community    
colleges1 in/itutions t (f] #d-ye>      
programs1 or o!r v>iations 9 ! types (  
in/itutions t are select$74  7,c7       

,pref]5ce ,9 select+ eligible           
in/itutions "u subp>agraph 7,a71 ! ,/ate
 %all give pref]5ce to eligible         
in/itutions t h a hi/ory ( mak+ an ef=t 
to r$uce or hold con/ant tuition &      
m&atory fees & co/ ( att5dance or h a   
plan to r$uce or hold con/ant tuition & 
m&atory fees & co/ ( att5dance1 z       
det]m9$ by ! ,/ate4  7#c7 ,ann\ncem5t ( 
p>ticipants ,ea* ,/ate receiv+ a grant  
"u ?is section %all ann\nce ea* eligible
 in/itution t is select$ = p>ticipation 
9 ! ,pay ,x ,=w>d ,contribution ,plan at
 a "t t provides /ud5ts at p>ticipat+   
eligible in/itutions ) adequate notice 9
 advance ( ! comm5cem5t ( ! ,pay ,x     
,=w>d ,contribution ,plan at t          
in/itution4  7#d7 ,/ate z grant recipi5t
 ,! ,secret>y may aw>d grants to ,/ates 
t h develop$1 or are 9 ! process (      
develop+1 pilot ,pay ,x ,=w>d grant     
programs at ! ,/ate level to enable !   
,/ate to c>ry out ! activities describ$ 
9 ?is ,act z if su* ,/ate 7 an eligible 
in/itution select$ = p>ticipation 9 !   

,pay ,x ,=w>d ,contribution ,plan4  7g7 
,t]ms ( ! ,pay ,x ,=w>d ,contribution   
,plan ,if a /ud5t :o att5ds a p>ticipat+
 eligible in/itution has appli$ = &     
enroll$ 9 ! ,pay ,x ,=w>d ,contribution 
,plan z describ$ 9 subsection           
7e77#a77;,b7--  7#a7 ! ,/ate %all pay-- 
7,a7 to ! p>ticipat+ in/itution t su*   
/ud5t att5ds n less ?an an am\nt equal  
to ! co/ ( tuition & m&atory fees dur+ !
 "t t ! /ud5t is enroll$ z an           
und]graduate at ! p>ticipat+ eligible   
in/itution & is p>ticipat+ 9 ! ,pay ,x  
,=w>d ,contribution ,plan1 & = a p]iod (
 n m ?an--  7i7 #d ye>s2 or  7ii7 ano!r 
p]iod ( "t 7su* z a c]ta9 numb] (       
college cr$its or academic ye>s         
complet$7 t ! ,/ate1 ! in/itution1 & !  
/ud5t %all det]m9e & specify 9 !        
agreem5t describ$ "u p>agraph 7#c72 &   
7,b7 a /ud5t :o att5ds a p>ticipat+     
eligible in/itution & has appli$ = &    
enroll$ 9 ! ,pay ,x ,=w>d ,contribution 
,plan any additional co/s ( att5dance t 
are agre$ to by ! ,/ate1 ! in/itution1 &

 ! /ud5t & are e/abli%$ 9 ! contract    
describ$ 9 p>agraph 7#c71 except t su*  
additional co/s %all be 9 an am\nt su* t
 ! sum ( su* additional co/s & ! am\nt (
 tuition & fees describ$ 9 subp>agraph  
7,a7 %all1 = ea* su* /ud5t & = ea* aw>d 
ye>1 n exce$ ! am\nt ( ! tuition &      
m&atory fees = a /ud5t at ! mo/ exp5sive
 public in/itution ( high] education 9 !
 ,/ate = ! type ( in/itution !          
p>ticipat+ /ud5t att5ds 7includ+ a      
#d-ye> in/itution1 #b-ye> in/itution1 or
 #a-ye> in/itution7 = t aw>d ye>2  7#b7 
! ,/ate %all ensure t v>iations 9 ! "t t
 a /ud5t's tuition & m&atory fees is    
paid by ! ,/ate %all be reflect$ 9--    
7,a7 ! l5g? ( ! contribution p]iod      
e/abli%$ 9 ! /ud5t's ,pay ,x ,=w>d      
,contribution ,plan agreem5t describ$ "u
 p>agraph 7#c71 except t ! l5g? ( su*   
contribution p]iod %all n exce$ #be     
ye>s2 &  7,b7 ! p]c5tage ( annual income
 t su* /ud5t %all contribute1 z e/abli%$
 9 ! /ud5t's ,pay ,x ,=w>d ,contribution
 ,plan agreem5t describ$ "u p>agraph    

7#c72  7#c7 ! /ud5t %all sign a contract
 agreem5t1 :i* %all include--  7,a7 !   
p]iod ( "t 7su* z a c]ta9 numb] (       
college cr$its or academic ye>s         
complet$7 dur+ :i* ! ,/ate w pay !      
in/itution t ! /ud5t att5ds n less ?an  
an am\nt equal to ! co/ ( tuition &     
m&atory fees t ! /ud5t reque/s to h     
provid$ ?r\gh ! ,pay ,x ,=w>d           
,contribution ,plan :ile ! /ud5t is     
enroll$ at su* p>ticipat+ eligible      
in/itution2 &  7,b7 any additional co/s 
( att5dance t ! ,/ate agrees to pay =   
su* /ud5t ?r\gh ! ,pay ,x ,=w>d         
,contribution ,plan :ile ! /ud5t is     
enroll$ at su* p>ticipat+ eligible      
in/itution2 &  7,c7 a /atem5t t ! /ud5t 
w contribute to ! ,/ate a c]ta9 p]c5tage
 7n to exce$ #e p]c5t7 ( ! /ud5t's      
annual income = a specifi$ numb] ( ye>s 
^u graduation f su* in/itution ( high]  
education1 successful completion ( !    
/ud5t's c\rse ( /udy1 or :5 su* /ud5t   
ceases to be enroll$ at su* in/itution (
 high] education1 z det]m9$ by ! ,/ate1 

& ! /ud5t %all be requir$ to beg9 mak+  
su* contributions on ! date t is ! lat] 
(--  7i7 #a cal5d> ye> aft] graduation f
 su* in/itution ( high] education1      
successful completion ( ! /ud5t's c\rse 
( /udy1 or :5 su* /ud5t ceases to be    
enroll$ at su* in/itution ( high]       
education1 z det]m9$ by ! ,/ate2 or     
7ii7 #a cal5d> ye> aft] ! completion ( a
 ye> t ! /ud5t is enroll$ 9 ! ,pay ,x   
,=w>d ,contribution ,plan2  7#d7 ! /ud5t
 %all cont9ue to be eligible to obta9   
any grants1 s*ol>%ips1 or funds t d n h 
to be repaid 7includ+ ,f$]al ,pell      
,grants or any o!r ,f$]al1 ,/ate1 or    
in/itutional grant money7 t ! /ud5t w\ld
 o!rwise be eligible to receive if !    
/ud5t 0 n a p>ticipant 9 ! ,pay ,x ,=w>d
 ,contribution ,plan & t are appli$ t[>d
 ! /ud5t's tuition & m&atory fees at !  
eligible in/itution1 & ! am\nt ( su*    
grants1 s*ol>%ips1 or funds %all be     
d$uct$ f ! am\nt t ! ,/ate w\ld o!rwise 
pay t[>d ! /ud5t's tuition & m&atory    
fees "u ! ,pay ,x ,=w>d ,contribution   

,plan1 !reby proportionately r$uc+ !    
p]c5tage ( a p>ticipat+ /ud5t's annual  
income t ! /ud5t w be requir$ to        
contribute or ! duration ( ! /ud5t's    
contribution p]iod1 z describ$ "u       
p>agraph 7#c72  7#e7 ! /ud5t %all       
cont9ue to be eligible to obta9 any o!r 
/ud5t loans1 includ+ ,f$]al /ud5t loans 
7except = ,f$]al ,direct ,/af=d ,loans  
"u "p ,d ( title ,,iv ( ! ,high]        
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a et seq4771 t ! /ud5t w\ld       
o!rwise be eligible to receive if !     
/ud5t 0 n a p>ticipant 9 ! ,pay ,x ,=w>d
 ,contribution ,plan except t--  7,a7   
any funds receiv$ by a /ud5t "u ! ,pay  
,x ,=w>d ,contribution ,plan %all be    
consid]$ e/imat$ f9ancial assi/ance =   
purposes ( calculations "u section      
#dbh7;a77#b77;,c7 ( ! ,high] ,education 
,act ( #aife 7#bj ,u4,s4,c4             
#ajgh7;a77#b77;,c772 &  7,b7 ! am\nt (  
su* loans %all be d$uct$ f ! am\nt t !  
,/ate w\ld o!rwise pay t[>d ! /ud5t's   
tuition & m&atory fees "u ! ,pay ,x     

,=w>d ,contribution ,plan1 !reby        
proportionately r$uc+ ! p]c5tage ( a    
p>ticipat+ /ud5t's annual income t !    
/ud5t w be requir$ to contribute or !   
duration ( ! /ud5t's contribution p]iod1
 z describ$ "u p>agraph 7#c72 &  7#f7 if
 ! /ud5t obta9s ,f$]al /ud5t loans1 su* 
/ud5t %all rema9 eligible = applicable  
,f$]al loan repaym5t1 =giv5ess1 or      
simil> programs reg>d+ su* ,f$]al /ud5t 
loans to ! same ext5t t ! /ud5t w\ld be 
eligible = su* repaym5t1 =giv5ess1 or   
simil> programs if ! /ud5t 7 n also     
p>ticipat+ 9 ! ,pay ,x ,=w>d            
,contribution ,plan4  7h7 ,me?od (      
contribution collection ,! ,secret>y1 9 
consultation ) ! ,secret>y ( ! ,treasury
 or a designee ( ! ,secret>y ( !        
,treasury1 %all "w ) appropriate ,/ate  
ag5cies to develop an effici5t me*anism 
= /ud5ts :o enroll 9 ! ,pay ,x ,=w>d    
,contribution ,plan1 includ+ us+ exi/+  
/ud5t loan repaym5t /ructures1 wage     
)hold+ 7su* z preau?oriz$ automatic     
electronic funds transf]s71 or o!r      

suitable me?ods z ! respective ,/ate    
ag5cies may det]m9e & z approv$ by !    
,secret>y4  7i7 ,/ate ,report ,ea* ,/ate
 receiv+ a grant "u ?is section %all    
annually prep>e & submit a report to !  
,secret>y conta9+ su* in=mation ab\t !  
grant program z ! ,secret>y may require4
  #f4 ,advisory ,c\ncil  7a7 ,9 ,g5]al  
,! ,secret>y %all e/abli%1 & appo9t     
memb]s to1 a te*nical advisory c\ncil to
 make recomm5dations to ! ,secret>y     
ab\t--  7#a7 h[ to design an evaluation 
( ! ,pay ,x ,=w>d ,contribution ,plan   
describ$ "u section #e2  7#b7 h[ to     
maximize ! utility ( ! rese>* results t 
may be us$ to evaluate su* program2 &   
7#c7 implem5tation issues & solutions = 
,/ate-bas$ ,pay ,x ,=w>d model pilot    
programs1 :i* may include apply+ a      
,/ate-bas$ ,pay ,x ,=w>d model pilot    
program = nontraditional /ud5ts1 includ+
 /ud5ts :o are old]1 already work+1 or  
att5d+ s*ool at night1 & 9 cases 9 :i*  
graduates volunt>ily leave ! work=ce4   
7b7 ,memb]s ( ! ,c\ncil ,! te*nical     

advisory c\ncil e/abli%$ "u ?is section 
%all include n m ?an #aa memb]s1 ( :om--
  7#a7 n less ?an #c memb]s %all be     
academic rese>*]s ) exp]tise 9 high]    
education2  7#b7 n less ?an #b memb]s   
%all h exp]tise 9 quantitative program  
evaluation2  7#c7 n less ?an #b memb]s  
%all be /ud5t advocates2 &  7#d7 n less 
?an #b memb]s %all be exp]ts 9 budget>y 
& f9ancial matt]s4  7c7 ,report ,!      
te*nical advisory c\ncil e/abli%$ "u ?is
 section %all prep>e & submit a report  
to ! ,secret>y conta9+ ! recomm5dations 
describ$ 9 subsection 7a74  #g4         
,implem5tation /udy  7a7 ,initial       
,evaluation ,n lat] ?an #e ye>s aft] !  
e/abli%m5t ( ! ,/ate ,pay ,x ,=w>d      
models "u section #e1 ! ,secret>y %all1 
aft] consid]ation ( ! advisory c\ncil   
recomm5dations reg>d+ h[ to evaluate !  
,pay ,x ,=w>d ,contribution ,plan       
describ$ "u section #f7;a71 conduct an  
initial evaluation ( ! ,pay ,x ,=w>d    
,contribution ,plan1 :i* may include an 
evaluation (--  7#a7 h[ ! rates (       

contribution "u ! ,pay ,x ,=w>d model   
may diff] accord+ to diff]5t income     
levels2  7#b7 ! rates ( /ud5ts :o fail  
to contribute funds z agre$ to "u ! ,pay
 ,x ,=w>d model2  7#c7 h[ be/ to e/abli%
 a /ud5t's agreem5t describ$ "u section 
#e7;g77#c71 or a simil> agreem5t made "u
 ano!r ,pay ,x ,=w>d model1 includ+ :at 
p]c5tage ( a /ud5t's income ! /ud5t %\ld
 be requir$ to contribute & :at is an   
appropriate "t p]iod = contribution2    
7#d7 ways to prev5t increases 9 tuition 
& o!r education co/s2 &  7#e7 ways to   
integrate exi/+ ,f$]al /ud5t loan       
repaym5t & =giv5ess programs into ! ,pay
 ,x ,=w>d model4  7b7 ,evaluation ,n    
lat] ?an #aj ye>s aft] ! e/abli%m5t ( ! 
,pay ,x ,=w>d ,contribution ,plan       
describ$ "u section #e1 ! ,secret>y     
%all1 aft] consid]ation ( ! advisory    
c\ncil recomm5dations reg>d+ h[ to      
evaluate ! ,pay ,x ,=w>d ,contribution  
,plan--  7#a7 evaluate :e!r exi/+ /ud5t 
loan debt c\ld be conv]t$ into a ,pay ,x
 ,=w>d model2  7#b7 evaluate ! impact ( 

! ,pay ,x ,=w>d model on a /ud5t's c>e] 
*oices & employm5t1 includ+ h[ su* model
 may impact a /ud5t's employm5t 9 public
 s]vice jobs & level ( employm5t 7su* z 
:e!r a /ud5t p>ticipat+ 9 ! ,pay ,x     
,=w>d model w g on to "p "t or full "t  
employm5t72  7#c7 evaluate me*anisms    
?r\gh :i* employ]s c\ld provide funds   
t[>d ! contributions t an employee is   
requir$ to make "u a ,pay ,x ,=w>d model
 contribution agreem5t2  7#d7 exam9e !  
long-t]m solv5cy & feasibility ( an     
exp&$ ,pay ,x ,=w>d program2 &  7#e7    
exam9e ! di/ributional implications (   
all[+ /ud5ts to opt out ( p>ticipation 9
 a ,pay ,x ,=w>d model program z comp>$ 
to requir+ all /ud5ts :o are enroll$ at 
a p>ticipat+ in/itution to p>ticipate 9 
a ,pay ,x ,=w>d model program4  7c7     
,report ,^u completion ( ! evaluation   
describ$ "u subsection 7a71 ! ,secret>y 
%all prep>e & submit a report conta9+ ! 
results ( su* evaluation to ! ,committee
 on ,heal?1 ,education1 ,labor1 &       
,p5sions ( ! ,s5ate1 ! ,committee on    

,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate1 ! ,committee on ,f9ance ( !     
,s5ate1 ! ,committee on ,education & !  
,work=ce ( ! ,h\se ( ,repres5tatives1 ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives1 & ! ,committee 
on ,ways & ,means ( ! ,h\se (           
,repres5tatives4  #h4 ,exp&$            
,implem5tation ,! ,secret>y may exp& !  
,pay ,x ,=w>d model1 includ+ by develop+
 ,pay ,x ,=w>d model pilot programs =   
/ud5ts pursu+ po/-baccalaureate degrees 
t relate to ! m$ical pr(ession 9 ord] to
 meet ! ne$ = m prim>y m$ical c>e       
provid]s1 increas+ ! numb] or duration (
 grants to ,/ates = c>ry+ out a ,pay ,x 
,=w>d ,/ate pilot program1 or e/abli%+ a
 ,f$]al program bas$ on ! ,pay ,x ,=w>d 
model1 if ! ,secret>y det]m9es t do+ s--
  7#a7 w n increase ! co/ to ! ,f$]al   
,gov]nm5t = c>ry+ out ,f$]al loan       
programs "u title ,,iv ( ! ,high]       
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgj et seq472  7#b7 may be c>ri$ out  
us+ am\nts available = ! programs "u    

title ,,iv ( ! ,high] ,education ,act ( 
#aife 7#bj ,u4,s4,c4 #ajgj et seq472 &  
7#c7 is 9 ! be/ int]e/s ( /ud5ts & !    
,nation 9 advanc+ national priorities = 
education1 heal?1 & economic developm5t4
  #i4 ,waiv]  7a7 ,/ate application =   
waiv] ,a ,/ate aw>d$ a grant "u ?is ,act
 may apply to ! ,secret>y to waive a    
requirem5t ( ! grant4  7b7 ,secret>y    
au?ority ,! ,secret>y may waive any     
provision 9 ?is ,act if ! ,secret>y     
det]m9es t do+ s w\ld be 9 ! be/ int]e/ 
( /ud5ts & a*ieve ! goals ( ! ,pay ,x   
,=w>d model4  #aj4 ,pay ,x ,=w>d ,fund  
7a7 ,e/abli%m5t ( a fund ,!re is        
e/abli%$ 9 ! ,treasury a fund1 to be    
kn[n z ! ,pay ,x ,=w>d ,fund 7ref]r$ to 
9 ?is section z ! ,fund71 to be adm9i/]$
 by ! ,secret>y ( ,education1 9 :i* all 
funds receiv$ 9 ,pay ,x ,=w>d           
contributions "u ?is ,act %all be       
deposit$4  7b7 ,use ,! am\nts 9 ! ,fund 
%all be made available to ! ,secret>y ( 
,education 9 ord] to c>ry out ?is ,act4 
#aa4 ,am\nts available = ,pay ,x ,=w>d f

 ,/af=d ,loan ,program ,am\nts made     
available "u any ,act to c>ry out !     
,f$]al ,direct ,/af=d ,loan ,program "u 
"p ,d ( title ,,iv ( ! ,high] ,education
 ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et 
seq47 %all be available to ! ,secret>y (
 ,education to c>ry out ! ,pay ,x ,=w>d 
program "u ?is ,act4