The industry of student loans is profiting, and not to the benefit of students. The question of free tuition has seen numerous responses; such as online colleges, bursaries, and “last dollar” scholarships. Each response has its criticisms, but the benefits of free tuition are clear upon investigation of the education industry.
According to a Ted Talk by Sajay Samuel, the two biggest sources of loans in the United States - Sallie Mae and Navient - reported a combined profit of 1.2 billion dollars in 2015.
Samuel argues that post secondary education and student loans are being sold to students through false advertising. The average wage in the U.S. is not keeping up with the rising costs of tuition, and the industry is not being honest with their target markets.
“Even a college grad earned 10 percent more in 2001 than she did in 2013,” says Samuel.
The Tennessee Promise is the pioneer of state programs offering free tuition to community colleges. The Tennessean reported a seven percent increase in graduation rates between 2014 and the beginning of the Promise initiative in 2015.
Last year the Nicola Valley Institute of Technology (NVIT), located in Merritt, announced that it would offer an “immediate entry secondary school transition bursary” for the first year of post secondary studies, to all grade 12 graduates from School District 58. NVIT President Ken Tourand says that there is evidence to suggest that students who attend post-secondary school within the same district as their high school have higher retention rates than those who relocate. Tourand hopes that the program will have a positive impact on the quality of life in Merritt.
Some criticisms of free-tuition initiatives are that it may force larger institutions to shut down. According to a 2015 article from Education Dive, the redirection of funds that have supported bigger schools will limit the financial aid that they have to offer.
In a more recent article from Education Dive, “where four-year institutions, specifically privates that wouldn't benefit from the broader pushes to make the first two years of college free for students, lose out on tuition, they win on completion rates and incentive funding tied to those metrics.”
With all of this said, it is clear that free tuition is a worthwhile endeavor. Some of the potential repercussions - such as the side effects of redirecting federal and provincial funding - have equal, if not greater benefits. An increase in graduation rates will evidently lead to an increase in healthy, happy, contributing members of society.
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