There is a fiscal crisis in America that is affecting millions around the nation but is going on without anywhere near the attention it deserves. Americans now owe more than $1 trillion in student loan debt and the amount is growing.
Student debt is a drag on our economy, reducing the amount graduates save, or when they can start a small business, buy a home, or access capital. In Iowa, 72 percent of students graduate with debt, with the average student having $28,753 of it.
The state of Oregon is investigating a possible solution to the debt system that Iowa should look into, by having students pay no tuition upfront to go to college, and then have them pay their tuition back in the form of a higher tax rate over a preset number of years.
The need for students to take out large loans could be greatly reduced.
The “Pay it Forward, Pay it Back” plan is a possible solution to our students’ current situation.
The State of Iowa, with its commitment to education, should consider adopting, or at least investigating this system.
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