Back in 2022, when the state was awash in cash, the Legislature parked $150 million from funds subject to the outlook (NGFO) in the new Washington student loan account (WSLA). It was meant to be seed money for a low-interest student loan program.

But the program, thin on details from the beginning, has never been implemented. The Washington Student Achievement Council raised important concerns about the sustainability of such a program in a 2023 report.

Meanwhile, the Legislature has diverted funds from the WSLA. The 2023–25 operating budget transferred $40 million from the WSLA to the general fund–state (GFS) and appropriated $20 million from the WSLA for two health professional loan repayment accounts. The 2024 supplemental increased the transfer to the GFS by $10 million. The remaining $80 million in the account was appropriated to implement the program, but none of this money has been spent.

The 2025–27 budget, as passed by the Legislature, transfers $89 million from the WSLA to the GFS. According to the Office of Financial Management, this is the remaining balance of the account ($80 million plus accrued interest).

Effectively, this eliminates the student loan program. (That said, the thin outline of the program itself remains in statute, so it could be funded in the future. If it is, a lot of work would need to be done to design a workable and sustainable program.)