Calls for free or nearly free college tuition are gaining momentum. That’s not surprising given the increasing cost of college and the skyrocketing level of student loan debt. In 2009, Americans owed $150 billion in student loans. In 2017, it’s up to $1.3 trillion. And that number will keep climbing as interest rates go up. Student loan interest is tied to the rate on treasury notes, which just took a jump. That means a seven-tenths of a percent hike on student loan rates.
What to do? Tennessee, Oregon and New York are experimenting with different ways of making college tuition free, at least for community colleges. Arizona gubernatorial candidate David Garcia has made the gradual move toward free tuition beginning at the community college level and eventually expanding to state universities part of his campaign platform. This year, our universities are piloting an Arizona Teacher Academy which will be tuition free for students willing to commit to teaching in high-need schools. It’s a good first step, but this first year, it will help only 200 students, mainly seniors. It’s hard to imagine our legislature giving the universities enough money to expand the program.
My favorite semi-utopian-but-plausible notion for free tuition is usually called income-share, though I’m fond of the name some people have given to a program Oregon is looking into: the Pay It Forward plan. The basic idea is, college is tuition free when students attend, then they pay for it after they leave. However, unlike loan programs where people have a fixed amount of debt they have to pay off, students pay a percentage of what they earn over a ten to twenty year period. In Oregon, the proponents say the program would be self sufficient if graduates pay back 3.5 to 4 percent of their earnings over twenty years. At Purdue University in Indiana where they’re trying out the idea, the payments are spread over ten years. The percentage graduates pay is determined by the amount of their tuition they defer.
The beauty of this idea is, graduates pay based on their actual earning power as young adults. People making six figures in their post-college years would pay handsomely for their educations. They may gnash their teeth when they have to pay, say, a $6,000 tab from their $150,000 income, but that $500 a month won’t take food off their tables. Meanwhile, someone who follows a career path resulting in lower income—say, a teacher, someone working in the nonprofit sector or someone trying to start a business—won’t be burdened with economically crippling loans. They’ll pay a sum proportional to their earnings. In some versions of this concept, people who make less than $20,000 pay nothing. The result of making payments proportional to income is, student loans won’t pressure people into going into money-making professions when they would prefer other lines of work, and crippling loan payments won’t force people into bankruptcy.
Holes have been poked holes in the income-share plan. It’s not hard to do in this simplified form. (Fun fact: For people who think this is a Commie income redistribution plan, it was introduced in 1955 by economist Milton Friedman, who is no one’s idea of a Communist.) The idea needs fleshing out. It’s worth exploring, tinkering with and trying out in pilot programs.
Of course, there’s another simpler, more direct way to lower the unsustainable rise in student debt. States can increase their subsidies to public colleges, making higher education, in the wise words of the Arizona constitution, “as nearly free as possible.”
This article appears in Jun 29 – Jul 5, 2017.
Free phones, free internet, free food, free housing, free healthcare,..and now free college?
My Mama used to say “something for free has no value.” She was so right.
A long time ago our society decided we would foot the bill for a student until they learned to read and write. Then we said that’s not enough all our students should graduate high school. Why stop there? You can’t get a decent job anymore with a high school degree. Our competitors on the international stage recognized the value of an educated work force years ago. We are falling very far behind. Rumor has it Google pulled out of Phoenix due to a lack of educated workers. I have first hand knowledge of how hard it is to hire qualified workers here in Tucson. Educated populace tends to make smarter decisions in regards to health choices environmental choices and participate less in criminal activities. I would much rather my taxes were used to build colleges instead of prisons.
I don’t remember education promising employment. Education promised education. Nothing more. If education promised jobs they would all be trade schools, when in fact the public schools eliminated trades. So now we market “social justice” advocates that produce hate. So education promises hatred?
I know you folks here like your free stuff, but when you realize a real person has to pay for it, maybe, just maybe you ought to feel just a little bit guilty. Work hard, earn it, and I guarantee you will protect it like it’s yours. The rest is just freebies. And that’s a dead end.
Here’s a suggestion for you, David. Look into how other 1st world nations finance higher education. Like single-payer healthcare, this is not rocket science and we do not need to behave like we live in a vacuum where there are no other successful models to look at.
How does Japan handle access to and financing of higher ed? France? Canada?
Here’s a hint to get you started: not a single one of these nations allows the financial industry to turn the next generation into indentured servants in exchange for receiving a B.A. and professional credentials in either private or public institutions of higher ed.
And if you’d like to understand WHY we’re in such a mess and to what degree your own morally bankrupt political party is responsible, consult Ralph Nader:
https://theintercept.com/2017/06/25/ralph-nader-the-democrats-are-unable-to-defend-the-u-s-from-the-most-vicious-republican-party-in-history/
Great idea! Let’s encourage people to get degrees in fields that are worthless and penalize people for learning skills that are in high demand like doctors, nurses, and engineers. What can go wrong? Socialism at its finest.
Offering a Knowledge Income Share Agreement … no fees for the exposure to high frequency electronics knowledge, lab, equipment, software, documents, processes … think the latest 5G … concentrating on fundamentals … agreement is that individual works in area that requires the attained skill set, a fixed fee of maybe 3% for 3 years would be paid out of future salary …
But stay in Tucson or work at Raytheon, 10% for 10 years ….
I am happy to hear this news here. I hope that the free tuition will motivate more people to make more efforts for their successful education. Personally I like the pay it forward plan, I think it means that you can get the necessary knowledge for free and then teach these information other kids who also need quality education. The best paper writing service reviews for customers isnt totally free but you should look at it as an investment into your education.