Oregon's New College Funding Idea: No Money Down

Paying for College
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<p>I think the connection --believe I read this somewhere, but could be wrong-- was that the project was started by some UW grad students in conjunction with EOI, which in turn published the report.</p>

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<p>Ive known the founder & exec director of the EOI for years, he was why for years my D was planning to attend Evergreen.
He did go to the UW afterwards though.</p>

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<p>[Plan</a> would make tuition free at Ore. colleges - Education - Boston.com](<a href=“http://www.boston.com/news/education/2013/07/04/plan-would-make-tuition-free-ore-colleges/uXtpQwCMERsuA49GhGYcyK/story.html]Plan”>http://www.boston.com/news/education/2013/07/04/plan-would-make-tuition-free-ore-colleges/uXtpQwCMERsuA49GhGYcyK/story.html)</p>

<p>It’s an interesting concept, I hope they can actually make it work.</p>

<p>I have some doubts though:</p>

<p>

Yeah, minor little detail there. :rolleyes:</p>

<p>Anyone who strikes it rich will be looking for loopholes. For example, if you tie all your money up in stock, how much will you pay? The Bill Gates factor, so to speak.</p>

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<p>There is a thread in the Financial Aid section talking about this idea.</p>

<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1523218-oregons-new-college-funding-idea-no-money-down.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1523218-oregons-new-college-funding-idea-no-money-down.html&lt;/a&gt;&lt;/p&gt;

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<p>Ah, missed it. This can be closed then.</p>

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<p>Some people rarely go to the financial aid section of CC. </p>

<p>I find this subject interesting.</p>

<p>Is 3 percent of income a year for 24 years a good deal?</p>

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<p>Say you make $75,000 after taxes…3% is deducted for 25 years…$56,250 over 25 years is payed back…</p>

<p>Hmm…this plan is genius! But for who…;)</p>

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<p>How much is in state tuition at Univ of Oregon?</p>

<p>I admit I havent read the link for a few days.</p>

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<p>It’s about $9,000.
[2012-2013</a> Cost of Attendance | Office of Student Financial Aid and Scholarships](<a href=“http://financialaid.uoregon.edu/12_13_cost_of_attendance]2012-2013”>http://financialaid.uoregon.edu/12_13_cost_of_attendance)</p>

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<p>So that would be at least 36,000. Doesnt include loan costs. Depends on your income if that is a good deal. If you average 75,000 a year in income over that time…the 3 percent of income is probably a good deal for students.</p>

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It would be before taxes.</p>

<p>In 25 years the average salary will (hopefully) be much higher than it is now, which lowers the attractiveness of this plan.</p>

<p>I wonder if you can bankrupt your way out of the obligation.</p>

<p>If you are majoring in a high-paying field, this doesn’t seem like it would be a good deal.</p>

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<p>Would those who might expect higher salaries be less likely to want to subsidize a system that would support those who make lower wages? If so, will Oregon public schools attract fewer stem students and those who might be less prepared? Just curious.</p>

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<p>I would think those students who think they will make a lot of money will just pay up front or take loans, rather than participate in the Pay It Forward program.</p>

<p>Unless it’s not optional.</p>

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<p>“In 25 years the average salary will (hopefully) be much higher than it is now, which lowers the attractiveness of this plan.”</p>

<p>Money earned early is worth more than money earned in the latter years.</p>

<p>So a few years making a small amount of money can do wonders…</p>

<p>“I wonder if you can bankrupt your way out of the obligation.” </p>

<p>I doubt it. Looks like the program is income based. Not net worth based. Unless I am missing something.</p>

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<p>"I would think those students who think they will make a lot of money will just pay up front or take loans, rather than participate in the Pay It Forward program.</p>

<p>Unless it’s not optional."</p>

<p>Yeah…</p>

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<p>If I knew I’d be getting a six figure salary, I would not do this program. It’s a large amount if money that would be going down the drain. </p>

<p>Say a person makes $120,000. I would have paid almos $100,000 to the university through this program. Not worth it. I could’ve done a lot more beneficial things with that amount if money.</p>

<p>If I made only 50,000 a year…this program would be less of a financial burden for me.</p>

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<p>^ On the other hand, with no loans hanging over your head, you don’t have to worry about defaulting or trashing your credit or being unable to ever afford a house or car.</p>

<p>I know people who spend 3% of their pay at Starbucks. </p>

<p>Ok, that may be a slight exaggeration.</p>

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<p>Loans within a certain amount can be manageable. </p>

<p>And one can say the same thing about a car or a house.</p>

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<p>Sure, unless you are unemployed or decide to go back to school or become a stay-at-home parent, and have no income for a while.</p>

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<p>If you’re unemployed after you get out then this plan would’ve been great. If I knew that I had a lucrative, in-demand job I still wouldn’t do this program. I’d rather pay the interest on the loan (almost double what i was given) than spend almost three times what I was given in the first place. That’s just me.</p>