The cost of higher education is a major headache for people, even years after they've graduated. A program in Washington state aims to make borrowing for college a little easier.

State lawmakers passed a measure this year that will establish a 1% interest rate student loan program. It will get started with a one time $150 million investment from the state, after an actuary analyzes the plan.

The bill's sponsor, state Rep. Pat Sullivan - D-Covington - said the state had big budget surplus this year.

"We had a decent amount of one time money that was available," said Sullivan, "and I really thought that putting it into a student loan account for 1% student loans just made a lot of sense. The timing was just perfect."

The state had a $15 billion surplus to work with during the 2022 session.

Most Republicans voted against the legislation, saying the money should have gone back to Washingtonians through tax breaks.

Washingtonians owe an average of about $33,000 in student debt, according to the website Student Loan Hero. Sullivans said that debt is a burden for people long after they leave college.

"Interest rates are too high," said Sullivan. "You're having people graduate unable to take out a loan even for a car in some instances, and buying a home is way out of reach given the debt load that they graduate with."

The Biden administration is considering canceling some amount of people's student debt - possibly up to $10,000.

Sullivan - who is also the Majority Leader in the state House - said that's great, but his 1% loan program aims to help students going forward.

"That'll help a lot of students but this is into the future," said Sullivan, "and so until the federal government can come up with a better solution for students, then they're going to continue to rack up debt."

A report on how the program could work long-term, and what funding level it might need, is due on the governor's desk December 1.

Support for this reporting was provided by Lumina Foundation.

The state has just launched the California Student Loan Debt Challenge, to let public service employees - like teachers, law enforcement, nurses, and government workers - know that time is running out to restructure their student loans.

The Biden administration has temporarily loosened the rules of the Public Service Loan Forgiveness program, which wipes away a person's remaining college debt after 10 years on the job.

But State Attorney General Rob Bonta warned that people need to apply for a waiver by October 31 - or miss out on tens of thousands of dollars in debt relief.

"Nearly 1 million Californians can qualify for Public Service Loan Forgiveness," said Bonta, "but only about 10,000 have received it. So, let's get those numbers up."

The state is also asking public service employers to publicize the waiver to their workers, who can now claim credit for years of payments that had been excluded under previous rules - and thus reach the ten-year mark earlier.

The waiver applies regardless of the repayment plan, the loan type, or the timeliness and extent of past payments. Find out more on the website 'studentaid.gov/pslf.'

Bonta pointed out that he sued the last administration because the Department of Education was denying the vast majority of PSLF applications.

"During the first round of eligible loan cancellations, the Trump administration denied 99%," said Bonta. "My office sued, Congress took action, we joined with the advocates here - and ultimately, we won the fight."

The state blames the low rate of participation on poor administration of the program, misconduct by some of the loan servicers, and a highly complex application process.

Support for this reporting was provided by Lumina Foundation.

CORRECTION: The $3.7 billion figure represents an increase in education investments during the eight-year Wolf Administration, not the Pennsylvania state education budget, which is $16 billion. (1:25 p.m. MDT, Aug. 10, 2022)

After eight years, the Pennsylvania school-funding lawsuit is in the hands of the judge, creating a waiting game heading into the new school year.

The oral argument ended in July. Advocates argued the way Pennsylvania schools are funded violates the education clause and equal-protection provision of the state constitution.

Deborah Gordon Klehr, executive director of the Education Law Center, said students of color are disproportionately affected in underfunded districts in low-wealth communities, where they lack such basics as functioning school libraries and up-to-date textbooks.

"The inadequate resources prevent many Pennsylvania students from meeting academic standards set by the state," Klehr asserted. "The state legislature has an obligation to ensure that every student, not only those living in select ZIP codes, receive the basic resources they need."

Klehr added Pennsylvania has one of the widest gaps between low-wealth and high-wealth school districts in the nation. A typical high-wealth district in the commonwealth spends about $4,800 more per student than a low-wealth district, and the gap has been growing.

With trial proceedings are over, Klehr acknowledged the judge's decision may take some time, and predicted it may not signal the end of the battle.

"We are confident about our case," Klehr stated. "But whatever the outcome, an appeal by the losing side is likely, to the Pennsylvania Supreme Court."

Klehr noted the General Assembly does not have to wait for the outcome of the case. It has a legal obligation under the state constitution to solve the school-funding crisis as soon as possible.

Gov. Tom Wolf recently announced his administration had increased education funding by more than $3.7 billion since 2015, including a $1.8 billion increase for the coming school year.

Klehr emphasized it is an important confirmation of the spending levels needed in coming years.

"Those kinds of increases will need to be sustained in the years ahead to help get local districts to adequate, equitable levels of funding," Klehr contended. "And bring Pennsylvania up from the bottom in the share of education funding that is provided by the state."

Klehr stressed Pennsylvania currently relies on local funding for schools more than almost any other state. Her organization advocates shifting the funding system to recognize the very different needs of different communities.

Hispanic and Latino workers have high employment rates in the U.S. but continue to experience a shortage of jobs paying enough to lift them into the middle class, according to a new study.

Jessica Vela, research assistant in tax and budget policy at the Center for American Progress, said America relies on millions of front line workers, but the typically low-wage jobs are often held by people of color, and the darker their skin, the more discrimination they face.

She added many Latino workers, particularly those of Mexican, Guatemalan, Honduran and Salvadoran descent, work in jobs where labor violations are common, including hospitality or caregiving.

"This is the root of systemic racism within the U.S.," Vela asserted. "This can impact individuals trying to find a job, trying to keep a job."

Census data show the percentage of Latino adults with at least an associate's degree is 20 points lower than for white adults. Earlier this year, the Texas Higher Education Coordinating Board began efforts to examine whether a postsecondary degree is producing credentials of value leading to higher earnings for all, and not just some students.

Latinos are 17% of the overall workforce, but represent 24% of the tipped worker population. According to the report, tipped workers often make subminimum wages, are at the mercy of the economy, and were laid off by the millions during the pandemic.

Vela added many of them were Hispanic women, who lost jobs at alarming rates starting in April 2020.

"Hispanic women 20 and older experienced one of the highest unemployment rates by race, gender, ethnicity; a little over 20%," Vela reported. "Losing jobs, it can be really difficult with labor markets to find other jobs, leaving them vulnerable to not being able to provide."

The U.S. Hispanic and Latino population is projected to comprise the majority of net new workers this decade. At the same time, the U.S. wage gap is related to education levels, work experience and immigration status.

Advocates want a higher federal minimum wage and more grants to help people afford to go to college or a trade school.

Support for this reporting was provided by Lumina Foundation.