It’s Time to Make College Tuition Free and Debt Free
April 27, 2018
In a highly competitive global economy, we need the best-educated workforce in the world. It is insane and counter-productive to the best interests of our country and our future, that hundreds of thousands of bright young people cannot afford to go to college, and that millions of others leave school with a mountain of debt that burdens them for decades. Lane Siekm,an beleives that this shortsighted path to the future must end.
We must ensure that every American who studies hard in school can go to college regardless of how much money their parents make and without going deeply into debt.
HERE ARE THE SIX STEPS THAT WE CAN TAKE TO MAKE COLLEGE DEBT FREE:
1. MAKE TUITION FREE AT PUBLIC COLLEGES AND UNIVERSITIES.
This is not a radical idea. In 2015, Germany eliminated tuition because they believed that charging students $1,300 per year was discouraging Germans from going to college. Chile will do the same. Finland, Norway, Sweden and many other countries around the world also offer free college to all of their citizens. If other countries can take this action, so can the United States of America.
In fact, it’s what many of our colleges and universities used to do. The University of California system offered free tuition at its schools until the 1980s. In 1965, average tuition at a four-year public university was just $243 and many of the best colleges – including the City University of New York – did not charge any tuition at all.
2. STOP THE FEDERAL GOVERNMENT FROM MAKING A PROFIT ON STUDENT LOANS.
Over the next decade, it has been estimated that the federal government will make a profit of over $110 billion on student loan programs. Our current Representative in Congress, Luke Messer (R-IN) believes young people should assume responsibility for their student loans and support the GOP's high interest rate student loan bill because, as he told MSNBC, "personal responsibility is pretty cool."
This is morally wrong and it is bad economics. We need to prevent the federal government from profiteering on the backs of college students and use this money instead to significantly lower student loan interest rates.
3. WE MUST SUBSTANTIALLY CUT STUDENT LOAN INTEREST RATES.
Congress need to take the formula for setting student loan interest rates back to where it was in 2006. If this plan were in effect today, interest rates on undergraduate loans would drop from 4.29% to just 2.37%.
4. WE SHOULD ALLOW AMERICANS TO REFINANCE STUDENT LOANS AT TODAY’S LOW INTEREST RATES.
It makes no sense that you can get an auto loan today with an interest rate of 2.5%, but millions of college graduates are forced to pay interest rates of 5-7% or more for decades. Americans need to be able to refinance their student loans at available lower interest rates. We should also reform our bankruptcy laws to allow for debt relief and a fresh start in severe financial situations.
5. WE CAN ALLOW STUDENTS TO USE NEED-BASED FINANCIAL AID AND WORK STUDY PROGRAMS TO MAKE COLLEGE DEBT FREE.
Congress should require public colleges and universities to meet 100% of the financial needs of the lowest-income students. Low-income students would be able to use federal, state and college financial aid to cover room and board, books and living expenses. We also need to increase the federal work study program to build valuable career experience that will help them after they graduate.
6. COLLEGE TUITION CAN BE FULLY PAID FOR BY IMPOSING A TAX ON WALL STREET SPECULATORS.
In his presidential campaign, Bernie Sanders proposed to pay the cost of this $75 billion a year plan by imposing a tax of a fraction of a percent on Wall Street speculators who nearly destroyed the economy seven years ago. More than 1,000 economists have endorsed a tax on Wall Street speculation and today some 40 countries throughout the world have imposed a similar tax including Britain, Germany, France, Switzerland, and China. If the taxpayers of this country could bailout Wall Street in 2008, we can make public colleges and universities tuition free and debt free throughout the country.
College is the only pathway for our students. We should encourage and foster apprenticeships and trade schools that will allow them to pursue careers in skilled trades such as mechanics, electricians, and plumbers. We need skilled trades for our economic future.