Oregon’s College Funding Scheme

In the state of Oregon a new mechanism for funding university studies has been proposed. The scheme is called “Pay It Forward“. The idea is that instead of charging students tuition to go to universities, the state will fund their education and then extract payment after the degree is finished as a percentage of their income. For a student with a bachelor’s degree, the expected repayment would be 3% of income for the following 20 years. This presents a very different alternative to the university funding system presently in force throughout the United States, so let’s dissect it. Would Pay It Forward make Oregon’s university system better than it presently is? Is it the ideal alternative, and if not, in what respects does it differ from that ideal?

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