An Interdisciplinary Federal Solution to Attending University: Tuition Contracting

The only way we are going to reform higher education is if we take an interdisciplinary approach.

Policy Objective: This proposal is a three-pronged approach to encourage students to stay and complete their undergraduate (and trade school) degree (certificate) at their first-choice/accepted University. Upon graduation, graduates will then can have the opportunity to reside in one of the federally designated opportunity zones through a homebuyer’s credit provided by the Department of Housing and Urban Development. Lastly, graduates will have the ability to make their student loans [up to a certain predetermined amount] defaultable; the government will negotiate with the financial industry and regulators a new lower student loan rate and repayment process. All student loans and grant formulas would be reformed as part of this proposal.

Policy Outline:

1. Tuition Contracting: Encourage students to stay at their “home institution” of higher education and complete an undergraduate degree within nine (9) semesters.

Policy Details: Students entering University (effective Class of 2026) would sign an agreement to attend a particular University (“home institution”) for a minimum of four and a half (4.5) years. If a student opted to extend their degree program beyond four and a half (4.5 years)/ Nine (9) semesters, the student’s tuition would be adjusted to the “incoming freshman” rate (which in our working example would be Class of 2031). Objective: Cost Management of Higher Education

2. Economic Development: Implementation of a spin-off “Learn Here Live Here” policy in connection with federal opportunity zones.

Policy Details: Graduates of higher education institutions starting with those who have a degree conferred on or after May 1, 2021, a $2,500 yearly homebuyers credit to encourage them to reside in federal designed opportunity zone within their state. Applicants would have to commit to residing in the Opportunity Zone for a minimum of five (5) years — and in the state for ten (10) years — if they leave the opportunity zone they must repay the government for these earnings. Objective: Economic Development

3. Student Loan Reform: Allow for the government and the private sector to bring down student loan rates and improve repayment plans to establish easy formulas for students and inject certainty for all into the process.

Policy Details: Students who successfully complete a degree or certificate program starting on or after July 1, 2022, would be eligible to have their student loans [up to a certain predetermined amount] defaultable. Next, the Education Department would negotiate with the financial industry and regulators a new lower student loan rate and repayment plan process. Lastly, all student loans and grant formulas would have to be reformed as part of this proposal. Objective: Student Loan Reform

Implementation Period: The goal of this policy is to be passed by Congress and signed by the President of the United States by August 1, 2021, with implementation starting effective the signature of the President and effective dates outlined below.

• Tuition Contracting: August 1, 2022
• Student Loan Reform: July 1, 2022
• Economic Development: May 1, 2023