Instead of raising tuition, Fix UC suggests getting rid of it altogether. Under the proposal, in-state students would pay nothing upfront to attend any University of California campus. But upon gaining employment after graduation, they would be required to pay back 5% of their income for 20 years.
The students thought through various contingencies and incentives schemes, as well. If a graduate is unemployed for a period of time, his or her repayment total would adjust accordingly. If graduates stay in California, they would pay half a percent less because they would be contributing to the local tax base. Further, those graduates who go into California’s public sector, government workers, teachers, etc., would have an additional percent taken off their bill. And, because out-of-state and international students pay more to attend UC schools, they would pay back 6% of their income to the school.
Fix UC says is $52,936, but that difference paid over 20 years is the equivalent of paying an interest rate of less than 1%. That’s extremely low, as student loans today carry interest rates that range from 6% to 8%.
No comments:
Post a Comment