Most Americans see college education as the key to financial success, independence, and economic mobility. But, as the Great Recession deepened, legislatures around the country dipped into their higher education funds to plug gaping holes in their budgets… and Washington was no different. Reappropriation of these funds caused the cost of higher education to soar in Washington.
In the ’06-’07 academic year, tuition at the two big public universities was a touch under $6000 per year. In ’13-’14, tuition at the same institutions is now a touch under $12,000 per year. That is a 100% increase in just six years.
This has caused students to take out huge loans to make up the difference in what they can afford and what must be paid, with many negative long-term implications for our economy.
People with burdensome student debt have a harder time buying homes, purchasing cars, and are waiting longer to start families. And student loan debt can’t be discharged the way most other debt can be. In fact, some families even inherit the private student debt of a deceased loved one.
Many state governments are still finding the political will to re-invest in higher education
hard to come by. But a couple states are trying to find altogether new methods for funding college.
In 2013 the Oregon Legislature passed, unanimously, a bill which called for a study of a program called Pay Forward, Pay Back. The program essentially asks students to pay nothing upfront for their educations if the students agree to pay back the cost of that education through a small share of their future earnings.
Chairman of the Washington House Higher Education Committee Larry Seaquist sees this idea as one worth looking into for our state.
He has proposed legislation that mimics Oregon’s bill. HB 2720 will charge the Washington State Student Achievement Council with putting together a pilot program to look at the functionality and viability of a “Pay it Forward” system of higher education funding for Washington.
We will keep a close eye on the progress of this exciting new funding model for our state’s college bound students.