Dive Summary:
- Oregon's “Pay It Forward, Pay It Back” plan would have students at state schools such as the University of Oregon agreeing to pay the government a portion of their income over decades in exchange for their college education.
- The repayment amount would be small: The plan seeks 0.75 percent of annual income per year of schooling, meaning a four-year degree would have students handing over 3 percent of their income for as much as 25 years.
- One of the big questions: How could a state pay up front the hundreds of millions or billions of dollars that might be required to implement the plan before making the money back decades later?
From the article:
... Many of the brightest economic minds think that an income-based repayment plan will eventually be the way to go, in one form or another. Roughly half of the white papers submitted in the Reimagining Aid Design and Delivery project sponsored by the Bill & Melinda Gates Foundation recommended universal income-based repayment. ...
