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Thoughts on this? "Free" Higher Education in Oregon

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Thoughts on this? "Free" Higher Education in Oregon

Sound like a good deal? Think this will catch on in other states?


"Oregon has come up with a plan to help provide higher education for free at their 7 state universities. Advocates of the legislation are calling it the “pay it forward” model. Students will be able to initially attend state universities free of cost. Upon graduating students will pay 3 percent of their paycheck for 24 years in order to help fund the program for future students. The model is partially based on the Australian model which has been fairly successful. Students will be able to enter college without the fear of being buried in debt by the time they graduate. Currently students who attend universities in Oregon graduate with an average of 24,616 dollars in debt.

The bill passed the Oregon legislature unanimously on Monday, ironically the same day interest on federal subsidized Stafford Loans doubled from 3.4 percent to 6.8 percent. The bill is expected to be signed into law by Governor John Kitzaber this month."




Read more: Oregon Legislature Unanimously Passes Tuition Free Higher Education -

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Re: Thoughts on this? "Free" Higher Education in Oregon

The is a great idea
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Re: Thoughts on this? "Free" Higher Education in Oregon

This sounds good to me
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Re: Thoughts on this? "Free" Higher Education in Oregon

Owl2Doc said

Sound like a good deal? Think this will catch on in other states?


"Oregon has come up with a plan to help provide higher education for free at their 7 state universities. Advocates of the legislation are calling it the “pay it forward” model. Students will be able to initially attend state universities free of cost. Upon graduating students will pay 3 percent of their paycheck for 24 years in order to help fund the program for future students. The model is partially based on the Australian model which has been fairly successful. Students will be able to enter college without the fear of being buried in debt by the time they graduate. Currently students who attend universities in Oregon graduate with an average of 24,616 dollars in debt.

The bill passed the Oregon legislature unanimously on Monday, ironically the same day interest on federal subsidized Stafford Loans doubled from 3.4 percent to 6.8 percent. The bill is expected to be signed into law by Governor John Kitzaber this month."




Read more: Oregon Legislature Unanimously Passes Tuition Free Higher Education -

Good deal for the state…Avg debt per story $24k; if you get a job at $40k a year and never get a raise for 24 years you will pay the state $28k over 24 years.  Since you probably will get raises and bonuses the state will rake in more than that $28k.  I didn't calculate the time value of the cash flows, but it seems like a great deal for the state.  Other problems I see…it would drive to even a higher rate of under reporting of income.

Sounds good on the surface…
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Re: Thoughts on this? "Free" Higher Education in Oregon

Tim said

Owl2Doc said

Sound like a good deal? Think this will catch on in other states?


"Oregon has come up with a plan to help provide higher education for free at their 7 state universities. Advocates of the legislation are calling it the “pay it forward” model. Students will be able to initially attend state universities free of cost. Upon graduating students will pay 3 percent of their paycheck for 24 years in order to help fund the program for future students. The model is partially based on the Australian model which has been fairly successful. Students will be able to enter college without the fear of being buried in debt by the time they graduate. Currently students who attend universities in Oregon graduate with an average of 24,616 dollars in debt.

The bill passed the Oregon legislature unanimously on Monday, ironically the same day interest on federal subsidized Stafford Loans doubled from 3.4 percent to 6.8 percent. The bill is expected to be signed into law by Governor John Kitzaber this month."




Read more: Oregon Legislature Unanimously Passes Tuition Free Higher Education -

Good deal for the state…Avg debt per story $24k; if you get a job at $40k a year and never get a raise for 24 years you will pay the state $28k over 24 years.  Since you probably will get raises and bonuses the state will rake in more than that $28k.  I didn't calculate the time value of the cash flows, but it seems like a great deal for the state.  Other problems I see…it would drive to even a higher rate of under reporting of income.

Sounds good on the surface…

Not to bad a burden on the paycheck later either. At the 40K income level you repay $100 a month or less than $24 a week.
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Re: Thoughts on this? "Free" Higher Education in Oregon

GeorgiaOwl said

Tim said

Owl2Doc said

Sound like a good deal? Think this will catch on in other states?


"Oregon has come up with a plan to help provide higher education for free at their 7 state universities. Advocates of the legislation are calling it the “pay it forward” model. Students will be able to initially attend state universities free of cost. Upon graduating students will pay 3 percent of their paycheck for 24 years in order to help fund the program for future students. The model is partially based on the Australian model which has been fairly successful. Students will be able to enter college without the fear of being buried in debt by the time they graduate. Currently students who attend universities in Oregon graduate with an average of 24,616 dollars in debt.

The bill passed the Oregon legislature unanimously on Monday, ironically the same day interest on federal subsidized Stafford Loans doubled from 3.4 percent to 6.8 percent. The bill is expected to be signed into law by Governor John Kitzaber this month."




Read more: Oregon Legislature Unanimously Passes Tuition Free Higher Education -

Good deal for the state…Avg debt per story $24k; if you get a job at $40k a year and never get a raise for 24 years you will pay the state $28k over 24 years.  Since you probably will get raises and bonuses the state will rake in more than that $28k.  I didn't calculate the time value of the cash flows, but it seems like a great deal for the state.  Other problems I see…it would drive to even a higher rate of under reporting of income.

Sounds good on the surface…

Not to bad a burden on the paycheck later either. At the 40K income level you repay $100 a month or less than $24 a week.

It sounds like a perfect government program….unsustainable.
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Re: Thoughts on this? "Free" Higher Education in Oregon

Sounds great in theory, but so do a lot of things.  I wonder what the tax implications would be? (Tim?).  Like everything else it'll probably turn into a giant bureaucracy program, but I'd like to see some of the details.  On the other hand, there's an argument that the inflation of college costs is due to the rising number of students which can now afford college through loans/grants/etc.  Seems like this will only continue that cycle, and not fix the problem.

FAU - We got Bowls!
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Re: Thoughts on this? "Free" Higher Education in Oregon

duder said

I'd like to see some of the details.

So would I. You'd think there would be a significant start-up cost for something like this… every college student in Oregon multiplied by, what, 4 years? (I assume you wouldn't be grandfathered in…)

duder said

On the other hand, there's an argument that the inflation of college costs is due to the rising number of students which can now afford college through loans/grants/etc.  Seems like this will only continue that cycle, and not fix the problem.

Very good point. Something that's happening is that universities like FAU are looking at the national average and saying, "we're lower than that, we're short-changing ourselves." And it's true: more money means more faculty and technology upgrades. But that cost is passed on to the consumer. With a 35% acceptance rate, even if you bow out because you refuse to pay it, somebody else will. So there's no incentive to lower it. The old adage of, "isn't it great that Florida colleges are so much cheaper than elsewhere in the country" is no longer a serious part of the conversation.

There will be a tipping point, of course. I don't see students paying >$10k a year to attend college, especially considering how difficult it is for recent graduates to find employment in their field. At some point it's just not worth it.

P.S. I don't respond to guest posts. All guests are encouraged to register with the site.
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