Business View Magazine | September 2019

14 BUSINESS VIEW MAGAZINE SEPTEMBER 2019 How Do We Make College More Affordable in the Future? 1. Keep Colleges Accountable for Raising Tuition Washington can incentivize public universities to maintain lower tuition by using its influence over the federal student loan market. Colleges that increase their tuition faster than an index of inflation could lose access to federal student loans, or the colleges would have to pay for the overage in tuition prices themselves. 2. Expand (And Reform) College Promise Programs Nationwide America needs better solutions for graduating high school students who don’t want to go to a four-year college. One is the College Promise Campaign, a national nonprofit initiative that aims to make community college education free and accessible. Making several changes to the design of these college promise programs, such as eliminating strict eligibility requirements, would make both access and affordability a reality for students who currently don’t have the same opportunity to pursue higher education. 3. Personal Financial Education for Every High School Kid in America Most high school students aren’t financially literate and do not understand what a loan will mean for their long-term economic security. Given the general lack of knowledge about personal finance—and the negative impact this will inevitably have upon students’ lives—states and localities should make it a priority to ensure that every high school student receives a course in personal financial education. 4. Increase the Maximum Federal Pell Grant Award Federal Pell Grants are subsidies provided to students based on financial need and make higher education possible for seven and a half million Americans each year. The maximum Federal Pell Grant Award needs to be roughly doubled to close income gaps in access and attainment of a college education. 5. Encourage Businesses to Provide Loan Repayment as an Employee Benefit The Retirement Parity for Student Loans Act proposed by Senator Ron Wyden would permit retirement plans to make matching contributions to workers as if their student loan payments were salary reduction contributions. This proposal addresses the growing problem that many young people burdened by student loans aren’t able to invest in tax-protected savings vehicles like a 401(k), which are critical to achieving a secure retirement.