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DMGS Week in Review – June 23, 2019

Income-Share Agreement Alternative Sought

Colleges and investors are asking Congress to set rules for a growing alternative to student loans: financial agreements requiring students to repay schools directly from their earnings over time after graduation. A bipartisan group of lawmakers, citing worries the terms of those pacts could come back to haunt students, is crafting legislation to limit the programs, known as income-share agreements.

The agreements are contracts between students and their school. The school, usually in partnership with private donors, gives the student money for tuition and other expenses. In return, the student repays a percentage of earnings back to the school for a set period of time after graduation. The programs are meant for students who have maxed out their federal loans and grants or are attending a short-term certificate program, which can’t qualify for federal aid. While schools can make a profit on the agreements, they can be a better option for students than private loans.

The need for regulations is growing as more schools start offering income-share agreements. There are about 40 programs in use by colleges and skills-based programs. That’s expected to quadruple to 175 by the end of 2020, with about $500 million in agreements to be originated.

This Week in the States

  • Montana – What we expect from Legislative WSA Committee
  • New Jersey – Democrats scrap Murphy’s millionaires tax in budget, setting up showdown and possible shutdown
  • New Mexico – New laws take effect in New Mexico
  • Illinois – Despite Gov. J.B. Pritzker’s legislative wins, Illinois ‘not out of the woods’ financially
  • Oregon – Single-Family Zoning Bill Faces Crucial Votes In Legislature’s Last Days
  • Pennsylvania – Bill to eliminate cash assistance up for vote in Pa. House, Senate
  • North Carolina – Medicaid expansion shades state budget talks
  • Wisconsin – Property taxes same under plans of Tony Evers, GOP
  • Oregon – Opponents of House Bill 2020 hold rally on Oregon Capitol steps
  • Maine – Legislature approves recreational marijuana rules
  • Pennsylvania – House passes bill permitting (slightly) better odds for Pennsylvania Lottery players
  • Wisconsin – Democrats look to other lawsuits to block GOP lame-duck laws
  • New Jersey – Legislature passes $38.7B budget that defies Governor Murphy
  • California – Governor Proposes Safety Steps for Utilities
  • Massachusetts – Restrictive guidelines on selling CBD products worry hemp farmers

Categories: Politics & Elections

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