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Oregon Lawmakers Pioneer Tuition-Free 'Pay it Forward, Pay it Back' College Plan
ABC News ^ | 07/05/2013 | SUSANNA KIM

Posted on 07/05/2013 8:02:02 AM PDT by Kid Shelleen

The Oregon state legislature unanimously approved a plan to provide free tuition to students while they attend community college and public university. In return, they'll pay back the state with a percentage of their incomes after graduation.

Called "Pay it Forward, Pay it Back," the plan passed unanimously in Oregon's Senate on Monday and in the House the previous week. The state's Higher Education Coordinating Commission will next develop a pilot program and in 2015 lawmakers will decide whether to implement the program.

(Excerpt) Read more at abcnews.go.com ...


TOPICS: News/Current Events; US: Oregon
KEYWORDS: college; oregon; taxes; tuition
What could go wrong ???
1 posted on 07/05/2013 8:02:02 AM PDT by Kid Shelleen
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To: Kid Shelleen

Doesn’t sound free to me.


2 posted on 07/05/2013 8:02:50 AM PDT by al_c (http://www.blowoutcongress.com)
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To: Kid Shelleen

This is just so stupid.


3 posted on 07/05/2013 8:04:29 AM PDT by Resolute Conservative
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To: Kid Shelleen

Since the repayment for free tuition is a percentage of income, this program encourages low paying careers over higher paying ones.

More proof that Oregon democrats want a socialist state where everyone makes about the same.


4 posted on 07/05/2013 8:05:11 AM PDT by staytrue
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To: al_c

It will be relatively free for liberal arts and women’s studies majors who are unlikely to generate any income after they graduate.


5 posted on 07/05/2013 8:06:03 AM PDT by Busywhiskers ("Once you have wrestled, everything else in life is easy" -Dan Gable)
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To: Kid Shelleen
In olden days this was called indentured servitude, but now that the Progressives want to do it we won't call it anything so gauche.
6 posted on 07/05/2013 8:07:13 AM PDT by E. Pluribus Unum (Who could have known that one day professional wrestling would be less fake than professional news?)
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To: Kid Shelleen

Isn’t that what students who get student loans are doing right now?


7 posted on 07/05/2013 8:07:40 AM PDT by Slyfox (Without the Right to Life, all other rights are meaningless.)
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To: Kid Shelleen

From each according to their abilities, to each according to their need.


8 posted on 07/05/2013 8:07:57 AM PDT by E. Pluribus Unum (Who could have known that one day professional wrestling would be less fake than professional news?)
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To: Kid Shelleen

Good luck with that.


9 posted on 07/05/2013 8:08:02 AM PDT by headstamp 2 (What would Scooby do?)
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To: Kid Shelleen

Also called ‘indentured servitude’, or ‘working for the company store’. I assume this obligation is carried to the grave.


10 posted on 07/05/2013 8:08:42 AM PDT by DaxtonBrown (http://www.futurnamics.com/reid.php)
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To: Kid Shelleen
The rate will eventually be based on income.

Low income will pay a low percentage, high income will pay a high percentage.

It will be bait and switch. Once they have you, they can do anything they want.

11 posted on 07/05/2013 8:09:22 AM PDT by E. Pluribus Unum (Who could have known that one day professional wrestling would be less fake than professional news?)
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To: Kid Shelleen

Oregon democrats want “a percentage”

Now explain to me how they are not a criminal enterprise.


12 posted on 07/05/2013 8:11:17 AM PDT by kidd
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To: Kid Shelleen

The government should have nothing to do with college tuition. Doing this kind of thing will only allow colleges to raise tuition far higher than they already have.


13 posted on 07/05/2013 8:15:01 AM PDT by I want the USA back (If I Pi$$ed off just one liberal today my mission has been accomplished.)
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To: al_c
"Doesn’t sound free to me."

I agree. If you have to pay something back, it isn't free.
14 posted on 07/05/2013 8:19:06 AM PDT by Steve_Seattle
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To: Kid Shelleen

Then the kids making 0 reported income dont pay back a dime? Okay.

So I go study botany, and then grow tons of weed and sell it all off the books of course, I don’t have to pay them back. I just say “I’m unemployed”.


15 posted on 07/05/2013 8:19:53 AM PDT by FreedomStar3028
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To: Kid Shelleen

Free candy for everybody. Guess who pays the front part of this plan?

Pray for America to Wake up


16 posted on 07/05/2013 8:21:53 AM PDT by bray (Stop tolerating beheading!)
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To: Kid Shelleen
So the state franchise tax board will have arbitrary access to deduct a percentage of income? Will it be off net or gross? What percentage? what if they move out of state to get that job?

surely, this will be implemented as perfectly as Obamacare, right?

17 posted on 07/05/2013 8:22:40 AM PDT by IllumiNaughtyByNature ($1.84 - The price of a gallon of gas on Jan. 20th, 2009.)
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To: Kid Shelleen

That should work just fine to drive costs down./s


18 posted on 07/05/2013 8:26:49 AM PDT by blackdog (There is no such thing as healing, only a balance between destructive and constructive forces.)
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To: Kid Shelleen
It might work, assuming the degrees earned actually land the students a financially lucrative job, and the field of study was in some worthwhile field. Underwater basket weaving, and womyn’s studies in the arts are not worthwhile pursuits. Believe it or not, once you're east of the cascades, there's plenty of job openings that need to be filled. Unfortunately, those jobs need real world skills, like welders, electricians, machinists, truck drivers, engineers, agriculture specialists, and all of the supporting people, you get the picture. Limit the program to real world skills, and NOT underwater basket weaving bullcrap, and it might just work.
19 posted on 07/05/2013 8:28:42 AM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: Kid Shelleen

So it ain’t free and they can still screw the taxpayers.


20 posted on 07/05/2013 8:29:21 AM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: Kid Shelleen

“This is what thinking outside of the box looks like.”

No...this is what paying off the plantation owner professors looks like. Can’t have the Massahs going without their new BMWs.


21 posted on 07/05/2013 8:32:15 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: Kid Shelleen

Ummm.....who pays for the university costs until they start paying it back? Oh......the taxpayers. What a great idea.


22 posted on 07/05/2013 8:33:56 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: blueunicorn6

Exactly. I paid off my debt, and I don’t owe anything to anybody. With this plan I’d be their slave for life.


23 posted on 07/05/2013 8:34:15 AM PDT by JCBreckenridge ("we are pilgrims in an unholy land")
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To: Kid Shelleen

Sounds like a plan they would have used in the old Soviet Union.


24 posted on 07/05/2013 8:37:41 AM PDT by FlingWingFlyer (If America is a nation of immigrants, where's my free stuff?)
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To: IllumiNaughtyByNature

Excellent observations. Suppose someone moves out-of-state or out of the country. How does the state of Oregon enforce this law?


25 posted on 07/05/2013 8:40:03 AM PDT by Maine Mariner
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To: JCBreckenridge

I am sure that in a few years when the “artists”, social workers, and so forth complain about the tremendous burden that has been placed on them, the law will be changed and limited to say the first 10 or 15 years after you graduate
and then the debt is forgiven.


26 posted on 07/05/2013 8:43:20 AM PDT by Maine Mariner
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To: al_c
According to the University of Oregon site, you need 220 credits for a BA or BS degree. Tuition is currently $9,300/yr (resident) and $28,000/yr (non-resident). Multiply by 4, and you get about $37,000 and $112,000. (Assuming you graduate in 4 years, which many students do not - the tuition is based in 15 credits/quarter, and - unless you attend summer school - it would take five years to get the required credits.) So for five years, the figures would be $46,000 and $140,000.

If we take a middle figure of $40,000 and $120,000 and average it over 20 years, we come up with $2,000/yr and $6,000/yr. Dividing by 12, we get a monthly payment - assuming no interest - of $167.00 and $500.00. Doesn't sound free to me.
27 posted on 07/05/2013 8:44:31 AM PDT by Steve_Seattle
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To: Slyfox
"Isn’t that what students who get student loans are doing right now?"

For all practical purposes, this seems like a student loan program in disguise. Then, in a few years, when there are massive defaults on the stealth loans, the politicians will buy votes by forgiving the debt.
28 posted on 07/05/2013 8:48:35 AM PDT by Steve_Seattle
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To: Maine Mariner

College administrators are boomers. This is a way to indenture young people forever while ensuring your pension gets paid.

It won’t change at least while Boomers are in power.


29 posted on 07/05/2013 8:51:56 AM PDT by JCBreckenridge ("we are pilgrims in an unholy land")
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To: Kid Shelleen
Good news for useless professors teaching ridiculous courses:

Good for bloated administrations too.

30 posted on 07/05/2013 9:17:38 AM PDT by RightGeek (FUBO and the donkey you rode in on)
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To: Kid Shelleen

When I was in grade school, we were taught about the horrors of indentured servitude. This is different... how?


31 posted on 07/05/2013 9:28:46 AM PDT by Pearls Before Swine
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To: Kid Shelleen

The Oregon student moves to another state after graduation. The state of Oregon has no jurisdiction to impose a percentage tax on income earned outside of Oregon.


32 posted on 07/05/2013 9:50:59 AM PDT by Myrddin
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To: Slyfox
"Isn’t that what students who get student loans are doing right now?"

I am not sure but in my day you could pay off the loan early and you knew how much you had to pay off.. With this "progressive" idea the government has their hooks in you for 20 years AND using a payment based on percentage is a backdoor way to adjust for inflation. Loan sharks got nothing on these guys.
33 posted on 07/05/2013 10:13:55 AM PDT by Kid Shelleen (Beat your plowshares into swords. Let the weak say I am strong)
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To: Myrddin
"The Oregon student moves to another state after graduation. The state of Oregon has no jurisdiction to impose a percentage tax on income earned outside of Oregon."

It's not a tax on income, it's - no matter how they try to spin it - the repayment of a de-facto loan - on a sliding basis, based on income.

There IS the issue of enforcement, however, because it could very well be difficult to track the income of these former students, if they live out-of-state. (I think Oregon has a state income tax and no sales tax, so it could monitor in-state income.) It seems like the state of Oregon would need access to the out-of-state students' IRS records in order to verify their income, and I don't know if they could get that information. Otherwise, you just have an honor system - in other words, no system.
34 posted on 07/05/2013 10:19:55 AM PDT by Steve_Seattle
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To: Kid Shelleen

People could move?


35 posted on 07/05/2013 10:21:55 AM PDT by Kozak (The Republic is Dead. We now live in a Judicial Tyranny.)
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To: Kid Shelleen

When the government sets itself up as God, it should be entitled to a tithe, right?


36 posted on 07/05/2013 10:35:28 AM PDT by CommerceComet (Obama vs. Romney - clear evidence that our nation has been judged by God and found wanting.)
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To: Kid Shelleen

both for the duration of 20 years after graduation.


37 posted on 07/05/2013 12:33:32 PM PDT by ThisLittleLightofMine
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To: Kid Shelleen

a “student loan” by an another name

and how will the state fund a kids schooling before they graduate and start to pay it back - raise taxes and borrow (’cause any ‘revenue’ they assign to this will not remain restricted to this and will not achieve predicted levels for it) - and then how many students will “default” - move out of state and not “pay it back”

a disaster waiting to happen

limited merit scholarships for economicly challenged but meritorious students is a preferrable objective over “pay it back later”

they’re mad

“Essentially what it does is allows you not to carry a debt load,” Dudley said. “It’s not a debt that you graduate with — your debt-to-credit ratio is not mucked up and you can participate in the economy, which is a novel thought.”

when applying for a loan, that contract and the % of income the person is required (one hopes, required by Oregon law) to pay, WILL BE RATED as a debt obligation by credit rating agencies - whether or not the promotors call it a loan

and if the lawmakers do not permit the students the right to go get a real loan and pay off the “tuition contract” at once, getting the 30 year obligation moved down to a five or ten year obligation, then it should be rejected, because for many students removing that burden from their income sooner rather than later could be a good move, even if interest is added


38 posted on 07/05/2013 1:05:23 PM PDT by Wuli (qu)
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To: Kid Shelleen
I am not sure but in my day you could pay off the loan early and you knew how much you had to pay off..

I did two tours of duty in college. The first I paid $42.00 per credit hour for a state college. I had that sucker paid off the moment I signed up for my classes. Granted we ate beans but we had no debt.

The second time, in 2004, I decided to go to a private college and even though I got a half-tutition I ended up owing about $48,000. I am aggressively working to pay it off.

Loan sharks is right. We have to put up with any "adjustments" because they got us by the nads.

39 posted on 07/05/2013 1:14:28 PM PDT by Slyfox (Without the Right to Life, all other rights are meaningless.)
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To: staytrue

Since the repayment for free tuition is a percentage of income, this program encourages low paying careers over higher paying ones.

only partially correct
what it really does is encourage the successful to move.

hard to believe even a rat could be stupid enough to implement
something this thoughtless.


40 posted on 07/05/2013 4:00:13 PM PDT by genghis
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To: Slyfox
Your remark about "eating beans" reminded me of my first 6 months in Springfield, VA (1966 time frame). My dad took a position at the Pentagon and was permitted an advance on his pay to put a down payment on a house in Rolling Valley. We literally ate hot dogs and beans for dinner for 6 months. Breakfast was cream of wheat and orange juice. Lunch was at the whim of the school cafeteria menu. I managed to rake leaves, mow lawns and wash cars to earn some pocket money for an occasional Slurpee at the 7-Eleven.
41 posted on 07/05/2013 8:42:26 PM PDT by Myrddin
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