Oregon thinking outside of box -- Free Tuition

i approve of this as long as the major and degree obtained has a national income floor of say 60k or so.

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i approve of this as long as the major and degree obtained has a national income floor of say 60k or so.

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I guess the hope is that over a 20-year span the salary increases and makes up for the lower entry-level jobs.

interesting, but what if a college grad goes on to be a stay at home mom and has no income? is there a balloon payment after 20 years that people will owe if they haven't paid off their debt?

Is there a maximum that someone would have to pay each year?

That's what I think. Coming out of college on average I could see maybe a $40k starting salary and within 10 years making close to if not more than 6 figures.

Thanks for the headache.

SUMMARY - Look at the first and last columns for reference since the formatting is messy.



TOTAL EARNINGS IN 20 YRS

STARTING SALARY TOTAL NPV
$30,000 $991,979 $743,077
$35,000 $1,157,308 $866,923
$40,000 $1,322,638 $990,769
$45,000 $1,487,968 $1,114,615
$50,000 $1,653,298 $1,238,461
$55,000 $1,818,627 $1,362,307
$60,000 $1,983,957 $1,486,153
$65,000 $2,149,287 $1,609,999
$70,000 $2,314,617 $1,733,845
$75,000 $2,479,947 $1,857,691
$80,000 $2,645,276 $1,981,538
$85,000 $2,810,606 $2,105,384
$90,000 $2,975,936 $2,229,230
$95,000 $3,141,266 $2,353,076
$100,000 $3,306,595 $2,476,922

1.5% INTEREST TOTAL NPV
$30,000 $14,880 $11,146
$35,000 $17,360 $13,004
$40,000 $19,840 $14,862
$45,000 $22,320 $16,719
$50,000 $24,799 $18,577
$55,000 $27,279 $20,435
$60,000 $29,759 $22,292
$65,000 $32,239 $24,150
$70,000 $34,719 $26,008
$75,000 $37,199 $27,865
$80,000 $39,679 $29,723
$85,000 $42,159 $31,581
$90,000 $44,639 $33,438
$95,000 $47,119 $35,296
$100,000 $49,599 $37,154

3.0% INTEREST TOTAL NPV
$30,000 $29,759 $22,292
$35,000 $34,719 $26,008
$40,000 $39,679 $29,723
$45,000 $44,639 $33,438
$50,000 $49,599 $37,154
$55,000 $54,559 $40,869
$60,000 $59,519 $44,585
$65,000 $64,479 $48,300
$70,000 $69,439 $52,015
$75,000 $74,398 $55,731
$80,000 $79,358 $59,446
$85,000 $84,318 $63,162
$90,000 $89,278 $66,877
$95,000 $94,238 $70,592
$100,000 $99,198 $74,308

1.5% seems like a pretty good deal even if you make some solid bank in your career. 3.0% starts getting pretty expensive if you actually do well financially.

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the 1.5% is for 2 year schools, 3% is for 4 year schools.

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3% for 4 year schools is steep based on the numbers I ran. However, you are not paying loan interest so that helps on opportunity cost.

Or students can take our modest loans and pay them back over the years.

I don't think it's too bad. I'm paying back 2.5% / year for my student loan and i've been out of school for 12 years. I think I have another 6-7 years left of paying it off unless I increase my payment. My interest is only 2% so there's not a viable reason to increase how much i'm paying back.