July 8, 2013
The state of Oregon has proposed an investment – approach to enslaving students with debt. In exchange for free tuition, public universities will syphon out 3% of earnings from students for the first 25 years after graduation.
The Oregon legislature has agreed to beta-test a plan that will facilitate residents of the state to attend college without having to pay tuition.
Called “Pay Forward, Pay Back”, this project is the brainchild of the Higher Education Coordinating Commission (HECC).
Students at the Portland State University presented this idea to lawmakers as a group project.
Oregon State Representative Michael Dembrow r emarked that “everybody is concerned about the problem of student debt load and the rising cost of tuition. Not everybody agrees on the causes, but everybody agrees on the effect. We all hear about it when we’re knocking on doors, running for office.”
Students who have graduated can contribute 3 cents to a fund for their counter-parts still attending college.
Oregon Governor John Kitzaber explained : “We need to fundamentally alter how we think about education. This is the first step to doing it. We need to start down the path because what we’re doing right now is absolutely crazy, and it’s not only bad for graduates and students, but it’s bad for the economy. The advantage is, all (payments are) going to the cost of the program. What we were really trying to get at is eliminate the role that banks are playing in charging interest and fees to students.”
One concept of this plan has community college student contributing 1.5% of their incomes over the next two decades to four-year colleges and public universities.
Start-up costs are estimated at $9 billion.
John Burbank, executive director of the Economic Opportunity Council (EOC) said : “When they graduate, then they start to pay into, through the contributory system, into pay it forward.”
Peter Thiel, member of the steering committee of the Bilderberg Group, has been a strong critic of higher education.
Thiel said: “Probably the only candidate left for a bubble — at least in the developed world (maybe emerging markets are a bubble) — is education. It’s basically extremely overpriced. People are not getting their money’s worth, objectively, when you do the math.”
President Obama began the Income – Based Repayment (IBR) system to replace student loans in 2012. This scheme was modeled after similar plans implemented in the UK and Australia.
Obama blames the ignorance displayed by the general public over the student loan scam for the unsuccessful use of the IBR.
However, knowing that this idea was first introduced in the US by the Bush administration in 2007, the plan was doomed.
Obama figured that 10% of the graduates income syphoned back to the federal government until the loan was paid would be reasonable. Without factoring in low-wage jobs and lack of employment in the field of study, the college student would be an indebted slave to the government indefinitely.
Legally, this scheme is called a guaranteed investment contract (GIC), a.k.a. a participating guaranteed investment contract, which is defined as “a contract giving an investor a share of earnings from an asset portfolio. This happens when a profit occurs.”
As of this year, 284,000 Americans with a Bachelor’s degree are working a job making minimum wage, or under. Sub-minimum wage jobs translate to being waiters, working for tips.
Responding to the depressed job market, economists for the University of British Columbia suggested that student’s in college pursue a “skills – based technological college” to learn a skill to be used, rather than seek higher education.