I 
113TH CONGRESS 
2D SESSION 
H. R. 3959 
To establish a Pay It Forward model for funding postsecondary education. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 29, 2014 
Ms. BONAMICI (for herself and Mr. KILDEE) introduced the following bill; 
which was referred to the Committee on Education and the Workforce 
A BILL 
To establish a Pay It Forward model for funding 
postsecondary education. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pay It Forward Col-
lege Affordability Act of 2014’’. 
SEC. 2. FINDINGS; PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) Postsecondary education has expanded op-
portunities for people in the United States to qualify 
for high-quality jobs and entry into the middle class, 
providing clear benefits to the Nation’s economy. 
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(2) Public investment by the States in higher 
education has decreased significantly, especially in 
the past 5 years before the date of enactment of this 
Act, as a result of the 2008 fiscal collapse. 
(3) With college costs rising beyond the reach 
of many people in the United States, financial aid 
programs are inadequate to reach all students with 
financial need. 
(4) The increasing unaffordability of a college 
education has forced students to borrow more money 
to pay for higher education, causing two-thirds of 
college seniors to graduate with an average student 
debt of $26,600. 
(5) High levels of student debt are damaging 
not only to the individual student’s ability to succeed 
financially but also will have grave consequences for 
the future economy of the United States. 
(6) Congress must halt the decrease in State 
support for education and, over time, must catalyze 
increases in State funding for higher education. 
(7) There is a need to encourage a new ap-
proach to financing the students’ share of the cost 
of higher education that will not result in graduates 
who are overburdened with student debt. 
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(8) The Pay It Forward model presents a new 
opportunity for financing and expanding higher edu-
cation, through the replacement of tuition and man-
datory fees with a post-graduation contribution pro-
gram that establishes the funding for access to high-
er education for the next generational cohort of stu-
dents. 
(b) PURPOSE.—The purpose of this Act is to test and 
encourage the development of Pay It Forward model fi-
nancing programs. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ANNUAL INCOME.—The term ‘‘annual in-
come’’ means an amount equal to the sum of— 
(A) annual adjusted gross income, as de-
fined in section 62 of the Internal Revenue 
Code of 1986; and 
(B) any amount described under section 
103 of the Internal Revenue Code of 1986. 
(2) COST OF ATTENDANCE.—The term ‘‘cost of 
attendance’’ has the meaning given the term in sec-
tion 472 of the Higher Education Act of 1965 (20 
U.S.C. 1087ll). 
(3) INSTITUTION OF HIGHER EDUCATION.— 
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(A) 
INSTITUTION
OF
HIGHER
EDU-
CATION.—The term ‘‘institution of higher edu-
cation’’ has the meaning given the term in sec-
tion 102 of the Higher Education Act of 1965 
(20 U.S.C. 1002), except that for purposes of 
this Act, an institution of higher education does 
not include any program of postsecondary edu-
cation or training, including a degree or certifi-
cate program, that is designed to prepare stu-
dents for entry into a recognized occupation or 
profession that requires licensing or other es-
tablished requirements as a pre-condition for 
entry into such occupation or profession, un-
less— 
(i) the successful completion of the 
program fully qualifies a student, in the 
State in which the institution offering the 
program is located (and in any State in 
which the institution indicates, through ad-
vertising or marketing activities or direct 
contact with potential students, that a stu-
dent will be prepared to work in the occu-
pation or profession after successfully com-
pleting the program), to— 
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cates, through advertising or marketing ac-
tivities or direct contact with potential stu-
dents, that a student will be prepared to 
work in the occupation or profession after 
successfully completing the program) that 
require specialized accreditation— 
(I) the program meets that re-
quirement for specialized accreditation 
through its accreditation or pre-ac-
creditation by an accrediting agency 
or association recognized by the Sec-
retary of Education as a reliable au-
thority as to the quality or training 
offered by the institution in that pro-
gram; and 
(II) if the program is in a pre-ac-
credited, probation, or show cause sta-
tus by an accrediting agency or asso-
ciation described in subclause (I), and 
the requirement for specialized accred-
itation is for full accreditation, the in-
stitution— 
(aa) establishes, to the satis-
faction of the Secretary of Edu-
cation, that each student who en-
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rolls before the program is fully 
accredited attests of being ad-
vised that the program is in a 
pre-accredited, 
probation, 
or 
show cause status and of being 
informed of the effect on the stu-
dent’s eligibility for assistance 
under this Act and on the stu-
dent’s ability to satisfy State or 
professionally mandated require-
ments for entry into the recog-
nized occupation or profession if 
full accreditation is delayed, de-
nied, terminated, or withdrawn; 
and 
(bb) publicly and promi-
nently discloses in any adver-
tising, marketing, or recruitment 
materials and activities for the 
institution, the institution’s pre- 
accredited, probation, or show 
cause status and the implications 
of such status for prospective 
students; and 
(iv) the institution— 
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(I) discloses on the application to 
enroll in the institution that its pro-
gram does not necessarily satisfy out- 
of-State requirements, if applicable; 
and 
(II) upon receipt of an applica-
tion to enroll in the institution, noti-
fies the student, prior to enrollment, if 
the program in which the student in-
tends to enroll does not satisfy the re-
quirements of the State in which the 
student is a resident, if applicable. 
(B) SCHOOL, 
DEPARTMENT, 
OR
PRO-
GRAM.—The term ‘‘institution of higher edu-
cation’’ may include a particular school, depart-
ment, or program within an institution of high-
er education described in subparagraph (A). 
(4) PAY IT FORWARD MODEL.—The term ‘‘Pay 
It Forward model’’ means a system in which— 
(A) the Secretary, a State, or an institu-
tion of higher education pays all or part of a 
participating student’s cost of attendance, but 
not less than an amount equal to the cost of 
tuition and mandatory fees, for each such stu-
dent during some or all of the time that the 
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student is enrolled at an institution of higher 
education in order to replace the student’s need 
to borrow under the Federal Direct Stafford 
Loan and Federal Direct Unsubsidized Stafford 
Loan Programs under part D of title IV of the 
Higher Education Act of 1965 (20 U.S.C. 
1087a et seq.); and 
(B) such student signs a contract agreeing 
to contribute to the Secretary, a State, or an 
institution of higher education, as the case may 
be, a certain percentage (not to exceed 5 per-
cent) of the student’s annual income, for a 
specified number of years upon graduation or 
when the student ceases to be enrolled at such 
institution of higher education, except that the 
specified number of years for which the student 
agrees to contribute according to such contract 
shall not exceed 25 years, which shall be known 
as the ‘‘Pay It Forward Contribution Plan’’. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(6) TUITION
AND
MANDATORY
FEES.—The 
term ‘‘tuition and mandatory fees’’ means tuition 
and fees normally assessed a student carrying the 
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same academic workload as determined by the insti-
tution of higher education. 
SEC. 4. INITIAL STUDIES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary, in consulta-
tion with the Secretary of the Treasury— 
(1) and the Director of the Consumer Financial 
Protection Bureau, shall conduct a study on the fea-
sibility of, and options for, implementing the Pay It 
Forward model, in a manner that is in the best in-
terests of students; and 
(2) shall conduct a study— 
(A) on whether the student loan servicer 
payment program or the Internal Revenue Serv-
ice income tax withholding mechanism (such as 
preauthorized automatic electronic funds trans-
fers) of collection for the Pay It Forward model 
would work best; 
(B) on how best to establish a participant’s 
agreement described under section 5(g)(3), or a 
similar agreement made under another Pay It 
Forward model, including what percentage of a 
participant’s income the participant should be 
required to contribute and what is an appro-
priate time period for contribution; 
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(C) on how the rates of contribution under 
the Pay It Forward model may differ— 
(i) according to different income lev-
els; and 
(ii) based on whether the student pur-
sues a graduate or professional education 
program 
immediately 
after 
completing 
their undergraduate education or at a fu-
ture time; 
(D) on how best to streamline the collec-
tion process and ensure compliance; and 
(E) on ways to prevent increases in tuition 
and other education costs. 
(b) REPORT.—Not later than 30 days after the com-
pletion of the studies described in subsection (a), the Sec-
retary shall prepare and submit a report containing the 
results of the initial studies described in subsection (a), 
to the Committee on Health, Education, Labor, and Pen-
sions of the Senate, the Committee on Banking, Housing, 
and Urban Affairs of the Senate, the Committee on Fi-
nance of the Senate, the Committee on Education and the 
Workforce of the House of Representatives, the Com-
mittee on Financial Services of the House of Representa-
tives, and the Committee on Ways and Means of the 
House of Representatives. 
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SEC. 5. GRANTS FOR STATE PAY IT FORWARD PILOT PRO-
GRAM. 
(a) IN GENERAL.—Unless the Secretary determines, 
as a result of the initial studies described in section 4, 
that the Pay It Forward model is not feasible or otherwise 
not in the public interest or in the best interest of stu-
dents, the Secretary shall, not later than 1 year after the 
completion of such initial study, award grants, on a com-
petitive basis, to not more than 3 States in the first 2 
years and not more than 7 additional States in subsequent 
years (while limiting the number of students participating 
to 15,000 annually in the first 2 years and 50,000 annu-
ally in subsequent years in all States) to enable such 
States to establish and carry out a Pay It Forward model 
State pilot program as described in subsection (e). 
(b) APPLICATION; DURATION.— 
(1) APPLICATION.—Each State that desires to 
receive a grant under this section shall submit an 
application to the Secretary at such time, in such 
manner, and containing such information as the Sec-
retary may reasonably require. 
(2) DURATION.—Grants awarded under this 
section shall be for a period of not less than 10 
years and not more than 25 years and the Secretary 
shall make grant funds available to each State on an 
annual basis. 
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(c) STATE CONTRIBUTION REQUIREMENT.—A State 
receiving a grant under this section shall provide, either 
directly or through private contributions, non-Federal 
funds for each award year in an amount that is not less 
than the greater of— 
(1) the difference between— 
(A) the amount for an award year that the 
State has agreed to pay for all students partici-
pating in the State Pay It Forward Contribu-
tion Plan described in subsection (e); and 
(B) the amount of the Federal funds de-
scribed in subsection (e)(2); or 
(2) the amount that is 10 percent of the 
amount of the Federal funds described in subsection 
(e)(2). 
(d) MAINTENANCE OF EFFORT.—Each State receiv-
ing a grant under this section for a fiscal year shall pro-
vide the Secretary with an assurance that the aggregate 
expenditures by the State, from funds derived from non- 
Federal sources, for the contribution to higher education 
costs, including student loans and grants for higher edu-
cation for each fiscal year for which a grant is awarded 
under this section (excluding funds for a State Pay It For-
ward model) are not less than the aggregate expenditures 
by the State for the contribution to higher education costs, 
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including student loans and grants for higher education, 
for the fiscal year preceding the first fiscal year for which 
a grant was awarded to the State under this section, as 
adjusted for inflation using the Consumer Price Index for 
All Urban Consumers published by the Department of 
Labor (CPI–U). 
(e) STATE PILOT PROGRAM.— 
(1) STATE
ACTIVITIES.—In accordance with 
subsection (a), each State receiving a grant under 
this section shall establish and carry out a State Pay 
It Forward model pilot program, through which the 
State shall— 
(A) select eligible institutions, in accord-
ance with subsection (f), for participation in the 
program; 
(B) in coordination with the Secretary, es-
tablish an application and enrollment process 
through which a student who is enrolled at a 
participating eligible institution who wishes to 
participate in the program, and fulfills the re-
quirements of the enrollment process, as deter-
mined by the State, shall be enrolled in the Pay 
It Forward Contribution Plan, subject to para-
graph (3); 
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(C) provide each student at each partici-
pating eligible institution with a written no-
tice— 
(i) that such student has the option to 
participate, or to decline to participate, in 
the Pay It Forward Contribution Plan on 
an annual renewable basis, subject to para-
graph (3); 
(ii) of the application and enrollment 
process described in subparagraph (B); 
and 
(iii) of the terms and conditions of the 
Pay It Forward Contribution Plan, as de-
scribed in subsection (g); 
(D) ensure that, subject to subsection 
(g)(5)(A) and in accordance with paragraphs 
(4) and (5) of subsection (g), an eligible stu-
dent’s cost of attendance will be reduced by the 
amount of any assistance considered estimated 
financial assistance, as defined in section 
428(a)(2)(C) of the Higher Education Act of 
1965 (20 U.S.C. 1078(a)(2)(C)) prior to the 
awarding of aid under the Pay It Forward Con-
tribution Plan toward the student’s cost of at-
tendance; 
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(E) award funds, from amounts made 
available under subsection (c), any other State 
funds, and amounts made available under para-
graph (2)(B) to pay— 
(i) each participating institution an 
amount equal to the tuition and mandatory 
fees for each student at that institution 
who is enrolled in the Pay It Forward Con-
tribution Plan, as described in subsection 
(g), except that such amount shall, for 
each student, not exceed the lesser of— 
(I) the amount of the tuition and 
mandatory fees for each such student 
at the most expensive public institu-
tion of higher education in the State 
for the type of institution the partici-
pating student attends (including a 4- 
year institution, 2-year institution, or 
1-year institution) for that award 
year; or 
(II) the cost of attendance for 
each such student to attend the insti-
tution at which the student is en-
rolled; and 
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(ii) each participating student any ad-
ditional costs of attendance that have been 
agreed to in the student’s contract de-
scribed in subsection (g), except that such 
additional costs shall be in an amount such 
that the sum of such additional costs and 
the amount of tuition and fees described in 
clause (i) shall, for each such student, not 
exceed the lesser of— 
(I) the amount of the tuition and 
mandatory fees for a student at the 
most expensive public institution of 
higher education in the State for the 
type of institution the participating 
student attends (including a 4-year 
institution, 2-year institution, or 1- 
year institution) for that award year; 
or 
(II) the cost of attendance for 
the student to attend the institution 
at which the student is enrolled. 
(2) FEDERAL FUNDS.—The Secretary shall pay 
each State receiving a grant under this section, for 
each award year for the purpose of carrying out 
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paragraph (1)(E), an amount equal to the product 
of— 
(A) the number of students in the State 
that are enrolled in the Pay It Forward Con-
tribution Plan for that award year; multiplied 
by 
(B) an amount equal to the sum of— 
(i) the maximum amount that a stu-
dent is eligible to receive through a Fed-
eral Direct Stafford loan under part D of 
title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) for that 
award year; plus 
(ii) the maximum amount that a stu-
dent is eligible to receive through a Fed-
eral Direct Unsubsidized Stafford loan 
under part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a 
et seq.) for that award year. 
(f) ELIGIBLE INSTITUTIONS.— 
(1) IN GENERAL.—An eligible institution, for 
purposes of this section, means an institution of 
higher education, that— 
(A) submits an application to the State at 
such time, in such manner, and containing such 
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information as the State may reasonably re-
quire; 
(B) agrees to participate in the Pay It 
Forward Contribution Plan and commits to 
participation in research that may be related to 
the Pay It Forward Contribution Plan; and 
(C) agrees to maintain— 
(i) in the case of an institution of 
higher education in which the entire insti-
tution is participating, the level of institu-
tional financial aid, including the level of 
institutional funding for student grants 
and loans, as adjusted for inflation by the 
Consumer Price Index for All Urban Con-
sumers published by the Department of 
Labor (CPI–U), that the institution pro-
vides at the time of the application to par-
ticipate in the Pay It Forward Contribu-
tion Plan throughout the duration of the 
Pay It Forward Contribution Plan; or 
(ii) in the case of a department, 
school, or program within an institution of 
higher education, maintain the level of aid 
described in clause (i) on a department, 
school, or program-wide basis. 
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(2) SELECTION
OF
PARTICIPATING
INSTITU-
TIONS.— 
(A) IN GENERAL.—If a sufficient number 
of eligible institutions in a State receiving a 
grant under this section wish to participate in 
the Pay It Forward Contribution Plan, such 
State shall establish methods for selecting eligi-
ble institutions to participate, or otherwise set 
standards for participation, in such a way that 
meets the requirements of this paragraph and 
maximizes the utility of the research that re-
sults from the evaluation of the Pay It Forward 
Contribution Plan. 
(B) CRITERIA.—In selecting eligible insti-
tutions under subparagraph (A), the State shall 
consider the extent to which selected institu-
tions will represent varied geographic locations 
and types of institutions (such as community 
colleges, institutions that offer 4-year programs, 
or other variations in the types of institutions 
that are selected). 
(C) PREFERENCE.—In selecting eligible in-
stitutions under subparagraph (A), the State 
shall give preference to eligible institutions that 
have a history of making an effort to reduce or 
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hold constant tuition and mandatory fees and 
cost of attendance or have a plan to reduce or 
hold constant tuition and mandatory fees and 
cost of attendance, as determined by the State. 
(3) ANNOUNCEMENT OF PARTICIPANTS.—Each 
State receiving a grant under this section shall an-
nounce each eligible institution that is selected for 
participation in the Pay It Forward Contribution 
Plan at a time that provides students at partici-
pating eligible institutions with adequate notice in 
advance of the commencement of the Pay It For-
ward Contribution Plan at that institution. 
(4) STATE
AS
GRANT
RECIPIENT.—The Sec-
retary may award grants to States that have devel-
oped, or are in the process of developing, pilot Pay 
It Forward grant programs at the State level to en-
able the State to carry out the activities described 
in this Act as if such State were an eligible institu-
tion selected for participation in the Pay It Forward 
Contribution Plan. 
(g) TERMS OF THE PAY IT FORWARD CONTRIBUTION 
PLAN.—If a student who attends a participating eligible 
institution has applied for and enrolled in the Pay It For-
ward Contribution Plan as described in subsection 
(e)(1)(B)— 
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(1) the State shall pay— 
(A) to the participating institution that 
such student attends not less than an amount 
equal to the cost of tuition and mandatory fees 
during the time that the student is enrolled as 
an undergraduate at the participating eligible 
institution and is participating in the Pay It 
Forward Contribution Plan, and for a period of 
not more than— 
(i) 4 years; or 
(ii) another period of time (such as a 
certain number of college credits or aca-
demic years completed) that the State, the 
institution, and the student shall determine 
and specify in the agreement described 
under paragraph (3); and 
(B) a student who attends a participating 
eligible institution and has applied for and en-
rolled in the Pay It Forward Contribution Plan 
any additional costs of attendance that are 
agreed to by the State, the institution, and the 
student and are established in the contract de-
scribed in paragraph (3), except that such addi-
tional costs shall be in an amount such that the 
sum of such additional costs and the amount of 
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tuition and fees described in subparagraph (A) 
shall, for each such student and for each award 
year, not exceed the amount of the tuition and 
mandatory fees for a student at the most ex-
pensive public institution of higher education in 
the State for the type of institution the partici-
pating student attends (including a 4-year insti-
tution, 2-year institution, or 1-year institution) 
for that award year; 
(2) the State shall ensure that variations in the 
time that a student’s tuition and mandatory fees is 
paid by the State shall be reflected in— 
(A) the length of the contribution period 
established in the student’s Pay It Forward 
Contribution Plan agreement described under 
paragraph (3), except that the length of such 
contribution period shall not exceed 25 years; 
and 
(B) the percentage of annual income that 
such student shall contribute, as established in 
the student’s Pay It Forward Contribution Plan 
agreement described under paragraph (3); 
(3) the student shall sign a contract agreement, 
which shall include— 
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(A) the period of time (such as a certain 
number of college credits or academic years 
completed) during which the State will pay the 
institution that the student attends not less 
than an amount equal to the cost of tuition and 
mandatory fees that the student requests to 
have provided through the Pay It Forward Con-
tribution Plan while the student is enrolled at 
such participating eligible institution; and 
(B) any additional costs of attendance that 
the State agrees to pay for such student 
through the Pay It Forward Contribution Plan 
while the student is enrolled at such partici-
pating eligible institution; and 
(C) a statement that the student will con-
tribute to the State a certain percentage (not to 
exceed 5 percent) of the student’s annual in-
come for a specified number of years upon 
graduation from such institution of higher edu-
cation, successful completion of the student’s 
course of study, or when such student ceases to 
be enrolled at such institution of higher edu-
cation, as determined by the State, and the stu-
dent shall be required to begin making such 
contributions on the date that is the later of— 
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(i) 1 calendar year after graduation 
from such institution of higher education, 
successful completion of the student’s 
course of study, or when such student 
ceases to be enrolled at such institution of 
higher education, as determined by the 
State; or 
(ii) 1 calendar year after the comple-
tion of a year that the student is enrolled 
in the Pay It Forward Contribution Plan; 
(4) the student shall continue to be eligible to 
obtain any grants, scholarships, or funds that do not 
have to be repaid (including Federal Pell Grants or 
any other Federal, State, or institutional grant 
money) that the student would otherwise be eligible 
to receive if the student was not a participant in the 
Pay It Forward Contribution Plan and that are ap-
plied toward the student’s tuition and mandatory 
fees at the eligible institution, and the amount of 
such grants, scholarships, or funds shall be deducted 
from the amount that the State would otherwise pay 
toward the student’s tuition and mandatory fees 
under the Pay It Forward Contribution Plan, there-
by proportionately reducing the percentage of a par-
ticipating student’s annual income that the student 
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will be required to contribute or the duration of the 
student’s contribution period, as described under 
paragraph (3); 
(5) the student shall continue to be eligible to 
obtain any other student loans, including Federal 
student loans (except for Federal Direct Stafford 
Loans under part D of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087a et seq.)), that 
the student would otherwise be eligible to receive if 
the student was not a participant in the Pay It For-
ward Contribution Plan except that— 
(A) any funds received by a student under 
the Pay It Forward Contribution Plan shall be 
considered estimated financial assistance for 
purposes 
of 
calculations 
under 
section 
428(a)(2)(C) of the Higher Education Act of 
1965 (20 U.S.C. 1078(a)(2)(C)); and 
(B) the amount of such loans shall be de-
ducted from the amount that the State would 
otherwise pay toward the student’s tuition and 
mandatory fees under the Pay It Forward Con-
tribution Plan, thereby proportionately reducing 
the percentage of a participating student’s an-
nual income that the student will be required to 
contribute or the duration of the student’s con-
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tribution period, as described under paragraph 
(3); and 
(6) if the student obtains Federal student 
loans, such student shall remain eligible for applica-
ble Federal loan repayment, forgiveness, or similar 
programs regarding such Federal student loans to 
the same extent that the student would be eligible 
for such repayment, forgiveness, or similar programs 
if the student were not also participating in the Pay 
It Forward Contribution Plan. 
(h) METHOD OF CONTRIBUTION COLLECTION.—The 
Secretary, in consultation with the Secretary of the Treas-
ury or a designee of the Secretary of the Treasury, shall 
work with appropriate State agencies to develop an effi-
cient mechanism for students who enroll in the Pay It 
Forward Contribution Plan, including using existing stu-
dent loan repayment structures, wage withholding (such 
as preauthorized automatic electronic funds transfers), or 
other suitable methods as the respective State agencies 
may determine and as approved by the Secretary. 
(i) STATE REPORT.—Each State receiving a grant 
under this section shall annually prepare and submit a re-
port to the Secretary containing such information about 
the grant program as the Secretary may require. 
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SEC. 6. ADVISORY COUNCIL. 
(a) IN GENERAL.—The Secretary shall establish, and 
appoint members to, a technical advisory council to make 
recommendations to the Secretary about— 
(1) how to design an evaluation of the Pay It 
Forward Contribution Plan described under section 
5; 
(2) how to maximize the utility of the research 
results that may be used to evaluate such program; 
and 
(3) implementation issues and solutions for 
State-based Pay It Forward model pilot programs, 
which may include applying a State-based Pay It 
Forward model pilot program for nontraditional stu-
dents, including students who are older, already 
working, or attending school at night, and in cases 
in which graduates voluntarily leave the workforce. 
(b) MEMBERS OF THE COUNCIL.—The technical ad-
visory council established under this section shall include 
not more than 11 members, of whom— 
(1) not less than 3 members shall be academic 
researchers with expertise in higher education; 
(2) not less than 2 members shall have exper-
tise in quantitative program evaluation; 
(3) not less than 2 members shall be student 
advocates; and 
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(4) not less than 2 members shall be experts in 
budgetary and financial matters. 
(c) REPORT.—The technical advisory council estab-
lished under this section shall prepare and submit a report 
to the Secretary containing the recommendations de-
scribed in subsection (a). 
SEC. 7. IMPLEMENTATION STUDY. 
(a) INITIAL EVALUATION.—Not later than 5 years 
after the establishment of the State Pay It Forward mod-
els under section 5, the Secretary shall, after consideration 
of the advisory council recommendations regarding how to 
evaluate the Pay It Forward Contribution Plan described 
under section 6(a), conduct an initial evaluation of the 
Pay It Forward Contribution Plan, which may include an 
evaluation of— 
(1) how the rates of contribution under the Pay 
It Forward model may differ according to different 
income levels; 
(2) the rates of students who fail to contribute 
funds as agreed to under the Pay It Forward model; 
(3) how best to establish a student’s agreement 
described under section 5(g)(3), or a similar agree-
ment made under another Pay It Forward model, in-
cluding what percentage of a student’s income the 
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student should be required to contribute and what is 
an appropriate time period for contribution; 
(4) ways to prevent increases in tuition and 
other education costs; and 
(5) ways to integrate existing Federal student 
loan repayment and forgiveness programs into the 
Pay It Forward model. 
(b) EVALUATION.—Not later than 10 years after the 
establishment of the Pay It Forward Contribution Plan 
described under section 5, the Secretary shall, after con-
sideration of the advisory council recommendations re-
garding how to evaluate the Pay It Forward Contribution 
Plan— 
(1) evaluate whether existing student loan debt 
could be converted into a Pay It Forward model; 
(2) evaluate the impact of the Pay It Forward 
model on a student’s career choices and employment, 
including how such model may impact a student’s 
employment in public service jobs and level of em-
ployment (such as whether a student participating in 
the Pay It Forward model will go on to part time 
or full time employment); 
(3) evaluate mechanisms through which employ-
ers could provide funds toward the contributions 
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that an employee is required to make under a Pay 
It Forward model contribution agreement; 
(4) examine the long-term solvency and feasi-
bility of an expanded Pay It Forward program; and 
(5) examine the distributional implications of 
allowing students to opt out of participation in a 
Pay It Forward model program as compared to re-
quiring all students who are enrolled at a partici-
pating institution to participate in a Pay It Forward 
model program. 
(c) REPORT.—Upon completion of the evaluation de-
scribed under subsection (a), the Secretary shall prepare 
and submit a report containing the results of such evalua-
tion to the Committee on Health, Education, Labor, and 
Pensions of the Senate, the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate, the Committee on 
Finance of the Senate, the Committee on Education and 
the Workforce of the House of Representatives, the Com-
mittee on Financial Services of the House of Representa-
tives, and the Committee on Ways and Means of the 
House of Representatives. 
SEC. 8. EXPANDED IMPLEMENTATION. 
The Secretary may expand the Pay It Forward 
model, including by developing Pay It Forward model pilot 
programs for students pursuing post-baccalaureate de-
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grees that relate to the medical profession in order to meet 
the need for more primary medical care providers, increas-
ing the number or duration of grants to States for car-
rying out a Pay It Forward State pilot program, or estab-
lishing a Federal program based on the Pay It Forward 
model, if the Secretary determines that doing so— 
(1) will not increase the cost to the Federal 
Government for carrying out Federal loan programs 
under title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.); 
(2) may be carried out using amounts available 
for the programs under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.); and 
(3) is in the best interests of students and the 
Nation in advancing national priorities for edu-
cation, health, and economic development. 
SEC. 9. WAIVER. 
(a) STATE APPLICATION
FOR WAIVER.—A State 
awarded a grant under this Act may apply to the Sec-
retary to waive a requirement of the grant. 
(b) SECRETARY AUTHORITY.—The Secretary may 
waive any provision in this Act if the Secretary determines 
that doing so would be in the best interest of students 
and achieve the goals of the Pay It Forward model. 
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SEC. 10. PAY IT FORWARD FUND. 
(a) ESTABLISHMENT OF A FUND.—There is estab-
lished in the Treasury a fund, to be known as the ‘‘Pay 
It Forward Fund’’ (referred to in this section as the 
‘‘Fund’’), to be administered by the Secretary of Edu-
cation, in which all funds received in Pay It Forward con-
tributions under this Act shall be deposited. 
(b) USE.—The amounts in the Fund shall be made 
available to the Secretary of Education in order to carry 
out this Act. 
SEC. 11. AMOUNTS AVAILABLE FOR PAY IT FORWARD FROM 
STAFFORD LOAN PROGRAM. 
Amounts made available under any Act to carry out 
the Federal Direct Stafford Loan Program under part D 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1087a et seq.) shall be available to the Secretary of Edu-
cation to carry out the Pay It Forward program under 
this Act. 
Æ 
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