When enrolling in select post secondary institutions, students have the ability to take out a loan directly from the government with no interest to pay for enrollment. Then, money would be taken out of the student’s income as taxes once the student has attained a sustainable income.
The loans are interest free, preventing large amounts of debt from piling up and increasing over time as well as requiring that the loan be paid off only when the student is financially stable and able to pay off the loan, preventing the loan from leading to long term debt and financial instability.
Without interest, students are able to attain a higher education without being dragged down by the loans.
Loans are taken out through taxes automatically making it easy to pay for the student and easy to collect for the government.
Can be progressive to scale with how much the student is making.
Extremely simple and does not cause high levels of uncertainty or confusion, making it easy for anyone to understand.
Approved post secondary institutions as it makes it even easier for students to enroll and thus the institution makes more money
Students as the fear of huge debt or instability in paying said debt can be detrimental and deter students from enrolling
Parents, specifically those seeking to enroll their children in a post secondary institution, as the threat of a huge amount of debt is lessened
Government does not gain any money directly through the loan because there is no interest
In the event that the student is unable to reach the minimum income or moves out of the country, the government is unable to receive the money to pay the loan
Since the money is taken out with taxes, it can provide a burden on students immediately after they start in the workforce, creating instability
Not approved post-secondary institutions as they would most likely be overshadowed by the approved institutions without a significant reputation as they would get less students because it is easier for students to enroll in an approved institution
Older citizens that do not plan to enroll in post secondary education (or already have) as tax dollars going towards education could be spent on other things that they deem to be more important
By supporting education, more people can get higher paying jobs allowing them to contribute more to the economy and the country thus providing more tax dollars to invest in other things
Higher education advances the country as a whole to be globally competitive in fields such as science, medicine, and technology
This policy shows that the government is doing something and trying to help in the issue
To implement, the government can transition the existing systems such as the Free Application for Federal Student Aid (FAFSA) into the new system, preventing the need for more funding or new government systems. This transition includes the budget, funding, personnel, and existing connections, allowing the new system to transition and fit seamlessly into the government federal aid program.