If they can make this happen, and I sincerely hope they do, this is an important step in college access. The cost of college no longer becomes a factor, and the burden of student loans becomes relative to potential earnings rather than a static number. The math is more logical with this plan, although it will require an up front investment and long-term view.
. Take for example two majors: Sociology and Electrical Engineering
Major: SociologyBy having students pay for college after they finish, students pay for their education and then some but aren’t burdened by starting out with enormous student loans that need to be paid back regardless of their actual income. This plan allows students to major in their passions and not make decisions based on upon the threat of large debt. A plan such as the one proposed is likely to increase college graduation (many people leave or don’t enter college because of the high cost) and better serve the community. My fingers are crossed for Michigan and other states such as Oregon which are considering similar proposals. Now, if the lawmakers around the country would get on board.
Average total earned salary in first 20 years $1,267,000
Four percent of earnings for 20 years $50,680
Major: Electrical Engineering
Average total earned salary in first 20 years $2,011,140
4% of earnings for 20 years $80,445.60