Report Criticizes "Pay It Forward" Plans

A new report released by the American Association for State Colleges and Universities refutes the proposed "Pay It Forward" model of paying for college, reports The Chronicle of Higher Education and Inside Higher Ed.

The model, first proposed by students at Portland State University, would allow students to devote a portion of their future incomes to paying off tuition. The new report finds that such a model would leave more graduates deeper in debt than if they had taken out loans and would result in uncertain balance sheets for colleges.

The Chronicle reported other criticisms highlighted in the report, including: Pay It Forward does not account for non-tuition costs; students who typically have more debt (those at private and for-profit schools) would not be eligible; and the program has significant start-up costs.

 

Related Links

The "Pay It Forward" College Financing Concept: A Pathway to the Privatization of Public Higher Education

http://www.aascu.org/policy/publications/policy-matters/PayItForward.pdf

The Chronicle of Higher Education

http://chronicle.com/blogs/ticker/pay-it-forward-plans-are-no-cure-for-rising-college-costs-report-says/82231

Inside Higher Ed

http://www.insidehighered.com/quicktakes/2014/07/18/state-college-group-blasts-pay-it-forward-financing#sthash.Mcykq9R4.t1wIYc6r.dpbs