College tuition. OK. Breathe… Yes, it’s high- very high. It amazes me that the highest tuition in the land is to be found at a STATE university. When I was going to college – back before we were a free nation- you could bank on two things. State schools were cheap. State schools were easier to get into.
But, I am not going to talk about state schools per se. No, this is about all colleges. Because no matter where you (or, more likely, your children) want to go- unless it is a two year, state or locally run community college, you are about to have your coffers drained.
Admittedly, I was pretty lucky. I did not have to address college costs (directly). And, this is the right time for me to again thank Samuel Ruben, the fellow who invented the dry cell battery. Because he never went to college, but wanted people to get that chance- as long as they would become chemical engineers- and he chose me as the recipient of his beneficence.
That is not true (nor was it then) for most students. With tuition and fees now averaging $ 35K a year (Michigan is north of $ 50K, as is MIT), it is not atypical for students to graduate owing $ 100 K or more. And, that’s before they decide to go to grad school, law school, or med school. Which can leave the young soul with a debt larger than the majority of Americans owe on their homes. It also means that buying a new car- forget about a house- is a big stretch for most graduates, since their college debt is a big chunk of their first paychecks. (Student loan debt is currently $ 1 trillion- and growing!)
We need to do something. Schools like MIT and Harvard that have large endowments can afford to do this. Do what? NOT charge tuition. No, this is not a pipe dream. Instead of charging tuition, they could be collecting 10% of the graduates pay for ten years after they graduate.
What this means is that students could elect to work as teachers or social workers – and not worry how they will pay back their student loans. Or physicians could elect to work on an Indian reservation or an inner city clinic. Oh, graduates can still go to work on Wall Street or be plastic surgeons in Beverly Hills, but that’s their choice- not set by the demands of the student loan.
You can see that some folks could end up paying only $ 60K for tuition- while other would be hit with $ 250K. But, no one will be paying more than 10% of their salary.
The other reason why MIT and Harvard can do this is because most of their graduates will be at the higher income levels. So, their coffers won’t be drained by this program.
There also needs to be safeguards to insure that students who drop out still have financial obligations and that filing for bankruptcy does not absolve anyone of this obligation. (That last provision is nothing new for students- you can’t walk away from student loans by filing bankruptcy now.)
This concept is almost operational, now. Oregon (they always seem to be at the forefront of social issues, such as healthcare) is going to let students attend their state schools tuition-free. Their repayment plan (“Pay if Forward, Pay it Back”) is 3% of the graduate’s salaries over 24 years. The plan is to have the state endow the program with $ 9 billion, and the fund would be self-funding once it got rolling. (There are provisions for those students who drop out to fulfill their obligations, too.)
There’s another alternative. There is a company, Upstart, that has a means to fund students going to professional schools. It seeks out investors who will back these students for a percentage of the graduate’s future earnings. (Think of it as crowdfunding the education of your next doctor or CEO.)
Now, this is an education!
What a great plan. Not wanting tuition debt has deterred many kids I know from going to 4 year schools.
If we change your term to “some” and not “many”, I agree, Alessa.
The number of matriculating students has not dropped over the past few years- despite the economy.
I think the time for formal college education might be coming to an end. I mean how many families can afford the costs and the jobs aren’t able to be found.
Shawn recently posted..Putting My Money Behind My Mouth
Shawn:
I don’t see that AT all! I see that the jobs – without a college education- are virtually non-existent. Even places like K-Mart and Target and seeking out college educated (albeit 2 year program) instead of highs school graduates.
I see a need for plans like Oregon’s. I see a need for folks to impress upon their Congressperson that the old method (the one they killed last year) for college loans is of desperate need.
Brilliant plan! I think of how expensive it is just to LIVE on your own after college, even without all that debt. Computers, internet, cell phones have all tacked on a great deal to the standard cost of living (from when I was out of college, since we didn’t have these way back then), and most people need these things if they are going to be seeking employment. What about those graduates who can’t find work? Would they only pay once they are employed?
I agree, Suerae. We need to find ways for our best and brightest to get the education they need (and we need) to help our economy stay vibrant. Making tuition unaffordable is NOT the right answer….
If higher education is the only way to stay out of poverty and people with low incomes can afford to get their kids higher education, there is something wrong.
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That is exactly why the legislators in Oregon thought, Ann. That’s why instead of waiting for the Ivy League to make their play, they started the program now. We can only hope others follow- soon!
Being French, I never paid anything for my master degree (or less than 500 dollars a year). In France, if you have got the grades, sometimes you can even get paid. I thought it was normal until I moved to London! I like your idea of a cut of the salary. I also think that we should use more lectures on the Internet and the likes to decrease the costs of learning.
That said, nothing tops up experience and sometimes, rightly or wrongly, I wish I had set up my business before Uni. I know that it is easy to say, but, in fact, also I am glad I graduated, I am not sure that I really needed it.
Muriel:
It seems that you had a similar experience to mine…
I have been told by many that I don’t use my education- and am positive that are incorrect. From knowing how and why to seek out answers, to how I approach issues, and the (dis)organization of my process… they are all clearly the result of my learning…
This is an amazing idea. Good for Oregon!! More places should be doing this!!
I’m with you, Carol!!!!
I’m with you, Carol. I hope that MIT and Harvard can get the law written so that filing bankruptcy will not absolve one from restitution. Otherwise, the program can’t proceed. (Oregon has the power of the state…)