Plan Would Make Tuition Free at Ore. Colleges

[Judi Lynn]

Source: Associated Press

Plan Would Make Tuition Free at Ore. Colleges
By STEVEN DUBOIS Associated Press
PORTLAND, Ore. July 4, 2013 (AP)

On college campuses across the United States, the eternal optimism of youth has been throttled out by a fear of crushing student debt. That's certainly the case in Oregon, where the cost of tuition has soared as public funding for higher education has declined.

But the state Legislature this week approved an idea that might ease the economic dread for future philosophy and art history majors. The concept — called Pay It Forward — calls for students to attend public universities tuition free and loan free. In exchange, students would have 3 percent deducted from their post-graduation paychecks for about a quarter-century. The money would go into a fund to pay for future students.

The bill, which passed unanimously and is expected to be signed this month by Gov. John Kitzhaber, directs the state's Higher Education Coordination Commission to develop a Pay It Forward pilot project for consideration by the 2015 Legislature. One question that must be resolved is how to fund the program's start-up costs, estimated at $9 billion, since the initial students who attend tuition-free would be years away from entering the labor force.

Though the timing was coincidental, the bill won final approval on Monday, the same day that federal student loan interest rates doubled from 3.4 percent to 6.8 percent.


Read more: http://abcnews.go.com/US/wireStory/plan-make-tuition-free-ore-colleges-19574119#.UdU_A-oo7_Q

[Ash_F]

1. I like the idea but...

..but I think the deduction should only occur if your paycheck is over a certain amount. If you come out of college after 4 years and land a whopping 12 dollar per hour job then no.

Oh and this needs to be federal.

[MrScorpio]

2. Why is this NOT just like Indentured Servitude? nt

[penultimate]

3. It's basically just 3% tax on people who opt into it so that

they can get their degree. It's not much different than any other tax that me use to fund services, other than the fact it's only applied if you use the service. I think it's an interesting concept and I'm curious if it will work.

[groundloop]

7. It's a damned sight better than 50 or 60 Thousand Dollars in student loan debt

My son is going to graduate with between 50 and 60 K in student loan debt, nearly all of it to private lenders, which cannot ever be discharged through bankruptcy should he become disabled or whatever. Paying off THAT is far closer to indentured servitude, I believe, than agreeing to a 3 percent tax for a number of years. Personally I think 25 years is too long, but in general I think that concept has promise.

[Doctor_J]

8. More like socialized higher ed

I like it, a lot.

[Posteritatis]

19. The lack of a "servitude" part, for one. (nt)

[silvershadow]

4. Interesting concept, though I'm not really sure 3% for 25 years is a realistic formula ?? Seems a

little high to me.

[Kolesar]

6. My employers "defined contribution" retirement plan is only 6%

You sure got that right.

[Doctor_J]

13. If you bag a 50K job, 3% is 1500. If you work there 30 years that's 45000

Or, another way, at 3% you'd pay back one year's salary over 33 years. Not that bad. and since you're financing someone's education say 20 years from now, inflation will probably raise the need. It's sort of like SS in reverse (paying it forward). More details are needed but it sounds like a good way to share the cost of higher ed. It is also progressive in that the person who get a 100K job will be contributing more than the person who's living on 50K.

[Yo_Mama]

24. It isn't

Currently most are paying far more.

At a 30K salary, the annual payment would be $900, or approximately $75 a month. At 50K, the annual repayment would be $1.500, or $125 a month. That's very reasonable.

Also, on this plan, a period of low earnings would merely mean a period of very low repayments, rather than a period in which one's loan balances are increasing because you don't even have enough to pay the interest on the loan.

[Yo_Mama]

25. No, it's very low

Compared to student loan repayments, that is.

A person making 20K a year would only be repaying $30 a month or $600 a year.

Of course, a person making 50K would be repaying $1,500 a year or $125 a month, but that person's education paid off for them.

[thenooch]

5. Didn''t read the link...

but, what happens if you never get a W-2 job?

I am old enough to remember when the UC system was free to California residents.

/thank you saint Reagan

[vinny9698]

10. I got that free education.

The theory being that with a college degree you would make a lot more money, which in turn would make you pay more in the California State Income Tax. So the state would get its money back by taxing you through out your working life time. The plan worked, but St. Ronnie destroyed it by cutting back on state funding for higher ed.

[Doctor_J]

9. we're getting closer and closer to cutting the red states loose

Every step like this toward civilized living in the blue states makes it seem to me that at some point soon we'll kiss the blood-sucking psychopaths good-bye. We'll have education, health care, clean water, and trees, and they can have KeystoneXL, fracking, and biblical law. It can't happen soon enough

[vinny9698]

11. I believe people would then start leaving the red states

Why live in a red state with minimum wage job and no future? When you could move to a blue state and have all those liberal perks for you and your family.

[Doctor_J]

12. Works for me. We'll have a 6-month amnesty period where people can migrate

to the real America, and gun nuts and anti-choice freaks and religious loonies can head for the Confederacy. After that we'll have strict immigration procedures, and quick, harsh deportation for anyone who decides to try to turn real America into a Republican sewer.

[vinny9698]

14. Future Ads for Red VS Blue States

Red States: Mandated home schooling, no health care, no child labor laws, no minimum wage, part-time minimum wage jobs with no benefits, no food stamps, no unemployment insurance, no medicaid, no medicare, no regulations on businesses, able to dump toxic and store toxic waste, air pollution, no abortions, no unions, no gun control, large sales tax to compensate for no taxes on the job creators and corporations

Blue States: Free college education, affordable health care, living wages, regulated businesses, unions, strict gun control, taxes on wealth and corporations.,

Where would you like to live?

[classof56]

15. I live in a blue state and like it just fine.

As the grandmother of one current and one soon-to-be college student here in Beautiful Blue Oregon, I also like the Pay-It-Forward plan just fine. I'd intended to assist more with their expenses, but along came Bushie and his Pay-It-Backward plan. So far we've avoided the student loan trap, hope we can hold on long enough Pay-It-Forward to be implemented.

Thanks for breaking down the Red State/Blue State differences so well. Proud that Oregon's such a progressive state, have worked hard to keep it on the forefront of so many issues that benefit our critizens. Our motto is "Alis Volat Propriis -- She Flies with Her Own Wings". May it ever be thus!

Fourth of July blessings to all!

[jmowreader]

16. Minimum wage? Really?

There's not a winger in the world who wouldn't kill the minimum wage if given a chance."Part-time poverty-level jobs" is accurate, though.

I don't think West Somalia would require schooling at all. They really couldn't; since everyone in your very large family will have to work to survive, there'll be no time for book-learnin'.

You forgot a couple of things: arranged marriages, refusal to marry punishable by imprisonment, childlessness only allowable in cases of uncorrectable sterility, families required to start one pregnancy every two years (even a theocracy has to account for miscarriages) until the family has six children and then any further pregnancies are optional, free "national hero of parenting" license plates for families with more than ten children, free Hero Homes for families with more than fifteen children...oh yeah, and any perceived homosexual tendency, act or intention reported to the government punished by public stoning.

[davidpdx]

21. Arranged marriage

would be taking women's rights back to the 12th century.

[jmowreader]

23. Then they'd be 200 years ahead of the men

The modern day GOP would be happy to return to 10th century feudalism. Maybe earlier than that...the Egypt scenes in Stargate are probably right up their alley.

[jmowreader]

17. I would change it just a little

Do the FAFSA thing and determine how much the student and family can afford to pay in. Also enroll the student in a loan program. Put the family contribution in a bank account.

If the student graduates or transfers to an out-of-state college, forgive the loan, return the money paid in, and start the tax thing...with the option to do a lump-sum buyout. This way, if an Oregon grad invents the cure for cancer they can write a check and get their picture on the front page of every paper in the state.

If the student flunks out or drops for a reason not on some big list of Good Reasons that they can come up with, he loses the contribution and loan repayments kick in.

I am going to assume Saint Ronnie came up with a tale about long haired draft dodgers hiding in California colleges as justification for killing the California program. This will shut up the three teabaggers remaining in Oregon.

[Kennah]

18. First talk of Oregon state universal healthcare, now this. What's up with Oregon?

Are they trying to get an influx of people in the Northwest 'cause it just might happen. I work for the State of Washington, but I'll be looking for gigs in Salem if this goes through.

[davidpdx]

20. That may be the problem

Last edited Sat Jul 6, 2013, 06:16 AM - Edit history (1)

A flood of people from other states taking advantage of it. I think it should be for Oregon residence and require showing Oregon residency. If not, you risk colleges and universities at maxed out enrollment with not enough spots for Oregonians.

[Kennah]

27. I would have no problem with a residency requirement

Heck, I'd be OK with a "you have to live here for 3 years before you can take advantage of this benefit" provision.

On the flip side of maxing enrollment, it would allow for Oregon universities and colleges to hire on more professors. Could create a real stimulus effect in education.

[davidpdx]

28. It could be

I think 3 years would be the minimum requirement as 2 wouldn't be enough. They have similar laws for assistance in the EU for those who are in another EU country (other than their own) can get a living stipend, but I can't remember how many years. I'm taking a class about EU law online.

I'm still trying to figure out how they are going to get the money back. They can't do it as an employee withholding, and the person will have to verify their income for their job as well as every time they change jobs.

[Kennah]

29. NSA could keep track of it

[davidpdx]

30. I don't think that's really funny

Here's your spanking.

[Kennah]

31. When I wrote it, I thought, "Wonder if they already are?"

[Marrah_G]

22. Question:

Is this JUST tuition or tuition and fees?

Because here in MA kids get tuition at state college free if they do well on grade ten MCAS tests. What they don't tell you is that tuition is around 1000 and fees (not covered) are like 8000.

[liberal N proud]

26. Sine college graduates are not finding jobs...

3% of nothing is still nothing.

[Brickbat]

32. Is there an opt-out option? Can you pay if you want?