The implementation of a global Student Financial Responsibility Agreement (SFRA) is essential to ensure compliance with state and federal laws, mitigate institutional financial risks, and provide a consistent framework across all community and technical colleges (CTCs) in Washington. The SFRA will address the critical need for statutory compliance while enhancing the operational efficiency and consistency of financial processes within the system.

Under its legislative and operational mandates, the Washington State Board for Community and Technical Colleges (SBCTC) is required to establish systemwide standards where statutory compliance is necessary. Considering the needs, risks and administrative efficiencies, it was determined that SBCTC will implement a policy and configure the SFRA globally within ctcLink to support compliance while simplifying administrative processes and eliminating redundancies across colleges.

•  Regulatory Compliance: A standardized agreement ensures all colleges can comply with the applicable Revised Code of Washington (RCW) statutes, Washington State Constitution and federal laws.
• Operational Consistency: Colleges currently have varying practices, which create inconsistencies in policy enforcement, administrative processes, and potential  for financial risk. A global SFRA provides a uniform standard, enhancing system efficiency and student understanding.
• Risk Mitigation: Without a consistent SFRA, colleges face increased financial burden from unpaid student debts, delayed collections, and legal vulnerabilities.

This Student Financial Responsibility Agreement is designed to comply with the following state and federal laws:

·         RCW 28B.10.293: Permitting educational institutions to impose reasonable financing and late charges, as well as debt collection charges, but only if so provided for in an agreement signed by the student debtor. The statute transcripts in certain circumstances. See SSHB 2513 (2020)

·         RCW 43.17.240: Requiring state agencies and institutions to impose a financing charge of 1% a month on unpaid accounts starting on the date the unpaid account becomes past due.

·         RCW 19.16.500: Authorizing state agencies and institutions to refer delinquent accounts to a collection agency and to require the debtor to pay reasonable collection agency fees and costs.

·         U.S. Bankruptcy code, 523(a)(8): Student educational debts are generally non-dischargeable in bankruptcy without a court order based on undue hardship, but may garden-variety student debts (bookstore purchases, for example) remain dischargeable in bankruptcy unless the student signs a promissory note or other agreement to pay the debt.

To achieve these objectives, the following process attributes are proposed:

1. Universal Student Agreement: All students who are charged and may owe a balance should submit an SFRA.
   1. Excluded populations are limited to students under 18 years of age and Department of Corrections (DOC) students (Updated due to clarification on the regulations and policy information).
2. Annual Agreement Submission: Agreements should be obtained once per academic year for each active student.
3. System Integration and Management: Agreement data will be stored and managed using the delivered functionality within ctcLink, ensuring consistent tracking and availability across all colleges.
4. College Staff Operations: College staff will have the capability to accept signed SFRA agreements and update ctcLink accordingly.
5. Support and Communication: SBCTC will host a dedicated webpage explaining the SFRA, providing resources and information for both colleges and students. ctcLink Support will provide a Quick Reference Guide (QRG.

By implementing a standardized, legally compliant SFRA, SBCTC can assist in ensuring a consistent approach to student financial responsibility agreements across the system. This supports institutional financial health, aligns with statutory requirements, and fosters transparency and accountability in student financial obligations.

Students enrolling via ctcLink

Students using ctcLink to enroll will be required to accept the SFRA conditions prior to registration.  In ctcLink, a hold blocking enrollment titled “Financial Agreement Required” will include a link to a page that will be used to relay the SFRA terms and conditions.  Upon selecting the link, the student will be asked to accept the terms and conditions listed on the page. Upon acceptance, the student will immediately be able to register for classes.​.

Students that do not enroll via ctcLink

Students who don't use ctcLink to enroll should be required to sign a paper version of the SFRA. Upon reviewing the signed document, college staff should update ctcLink and retain the agreement for safekeeping.  This agreement may be reviewed by State Auditors to ensure that manual entry of the SFRA into the system of record (ctcLink) is validated/reconciled. To update ctcLink, staff will apply a hold (service indicator) into ctcLink that will update the system to reflect a SFRA has been submitted. This hold will not impact on student services.