Staff Writer
Michigan’s legislature recently proposed a plan that could change the future of student’s options for higher education by creating a “Pay It Forward” system, allowing students to start paying for college after graduation and joining the work force completely interest-free.
Students wouldn’t pay while in school and would only begin paying when they have a job and are above the federal poverty line. Once they begin, students would owe a fixed percentage of their paychecks for about 20 years, or five years per year of college, with absolutely no interest at any time. The money that these graduates pay back to the school would go toward new students’ costs.
“I think this is a good idea, especially since the cost of college keeps rising,” said Martin Petrillo, a Salisbury University junior Geography major. “It will give more opportunity to people trying to go to college.”
As a test-run, Michigan plans to set up a fund of two million dollars for 200 students whose household income is below $250,000 annually. After graduation, community college students entering the work force will pay two percent of their paycheck and university students will pay four percent. If this program proves to be a success, supporters of the bill hope to expand the program, as reported by the Associated Press.
D-Representative Theresa Abed of the Detroit Free Press agreed.
“I think $2 million is a drop in the bucket when you consider the payback and benefits,” Abed said.
Michigan is not the only state creating plans similar to the “Pay it Forward” plan, either; 20 other states are discussing similar programs. Oregon is currently debating the possibilities of such a plan, and if approved by the 2015 legislature, it may begin a test-run similar to Michigan’s in 2016, according to The Oregonian.
“I think it sounds great,” said SU sophomore Jordyn Walker. “It will be incredibly helpful for kids with the intelligence to go to college but not the money; or for those students who are working multiple jobs in order to pay for college and their studies are suffering because of it.”