The cost of college tuition seems to be on the rise with every passing semester–but the state of Michigan may have found a way to offer a four year degree for no money down. [Image via Tax Credits/Flickr]
The Detroit Free Press reported that the Michigan state legislature is considering a bill known as the “Pay It Forward” plan. This innovative idea allow students to attend a community college or state university with no upfront costs in exchange for an income agreement. Instead of paying back the tuition bill they would have racked up after they get their degree and start working, they agree to set aside a fixed amount of their income for five years that would go into a special fund to cover the tuition costs of other students who enter into the same plan.
The tentative percentages for such a plan are 2 percent of a community college graduate’s income and 4 percent of a university graduate’s income. Right now, Michigan would be the pilot point of such a program but 20 other states are either considering enacting their own “Pay It Forward” plan or are studying Michigan’s program to determine if they want to enact a similar plan for their future college students.
It’s actually a pretty ingenious idea, and way better than a money sucking student loan, which can take way more than five years to pay off thanks to fluctuating interest rates and dwindling public assistance to keep them from becoming too unwieldy for graduates to handle. Plus, anything that takes business away from or sticks it to student loan companies is A-OK with us.