This bill introduces the Guaranteed Opportunity Program, a student and institutional funding system where high school graduates or resident taxpaying students attend higher education in a degree program in this state may postpone the payment of costs of attendance, including tuition, housing, textbooks and fees, in exchange for payment of a set percentage of future salary. The percentage is based on the type of degree ranging from two to five percent of adjusted gross income with a payment period from three month after completing the degree to the later of age 65 or retirement.
The program reads like a school loan program with administration and upfront cost funded by a 20 year bond proposing to provide college funding by 2043.
The Higher Education Coordinating Commission will establish eligibility including grade point average to participate that may eliminate the under privileged who struggle with schooling.
The student must allow access to income tax data and payments will rise with income. The amount of loan forgiveness at age 65 is based on if their income can measure up to projections. The State Workforce and Talent Development Board will analyze the workforce and make adjustments to the percentages of future income that participants are required to pay. The percentage of repayment is based on the level of degree obtain, not the amount of income, so repayment amounts will vary. Failure to pay may involve a collection agency.
The Guaranteed Opportunity Program appears to be for non-traditional students that need it the most, or do they? The difference to traditional student loans is, the state treasury is the lending institution, and students pay back at a lower rate for their working life-time.