Ad if the student doesn't pay it back? Guess who gets the bill Then?
Taxpayers. Oregon is crazy.
As I said for 20 years when I lived in Oregon, they need some better economists.
I found quite laughable this quote: "The Oregon program would
leave students without debt...."What percentage of the overall
expense of going to college is the tuition? Since they are only talking about
state schools, the average student in a technical field pays about 50% of what
tuition costs in Books and Fees. Not to mention living expenses, room and
board. They will still be borrowing for these, and still graduate with student
loan debt.How will this program be enforced? When 75% of Oregon
graduates leave the state for (less green) greener pastures, the State
can't control payroll deductions. There is no stick, only carrot.3% of income for 24 years? So some of them will still be paying back the
State of Oregon when they are grandparents?Yeah, this is going to
Debt by any other name is still debt. When Oregon sets up a program like this
with a required payback involved, it is still debt by definition. The student
will owe money to the state. Lenders will see right through this program and
start asking for disclosure when considering whether to give credit or not.
Apparently the Oregon legislators aren't as smart as most creditors and
lenders. They seem to have spent too much time trying to be like the big kids in
I agree with the posts and think this is in general probably no better than
getting a regular student loan. If coming up with up-front money is the barrier
to higher education and there was some way to guarantee pay back, possibly they
are on the right track.If Oregon churns out McDonald's
employee, no real reward for the state, however, if they churn out
engineers...I believe more and more, kids are now avoiding college
because of sticker shock. This appears to be an attempt to remove that barrier
and allow people to pay back debt at a manageable rate. At least Oregon is
trying to solve student loan/college tuition problems.This is
somewhat similar to what the LDS church did with the Perpetual Immigration fund
and now does with their Perpetual Education Fund.
The best solution to student debt is shut of the money taps. I finished college
by working my way through. I did not go to parties and other social gatherings
unless they took place after my school work was done and did not conflict with
either of my two jobs. I was blessed to be able to save up for college by
working many years before I was able to attend but failed to amass much for the
reason that I did not think it important. My sisters and older brother did much
better at that. Today kids aren't even able to work a job because of all
the labor laws. Most have only two years that they can work before college and
many of those don't save much because they have too many immediate wants
(which of course they define as needs). I also think that the higher
education system is broken. There should be differences in what is scheduled to
be learned based on the expectation of jobs available and lifetime earnings.
Many colleges turn out degrees that are useless in terms of career because the
likelihood of a career in the field is small.
All you have to do is go to college for free. Then get a job outside of the
states and you don't have to pay it back. Win Win for the students.