Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Approved: White House Proposal for Universal Access to College

January 12, 2015 at 1:00 AM

President Obama has announced a plan that would pay for 100% of the tuition for anyone who wants to attend a community college and can commit to remain on course to graduate from the two-year program in three years and maintain a 2.5 grade point average.

Essentially this proposal would extend our nation’s universal education system from K-12 to K-Associate’s Degree. I seriously Approve.


We all know that a high school degree is not enough to succeed in our globally competitive world, yet we also know from the obscene levels of student debt, that the cost of a four-year degree is far too steep for many. One of the key provisions of the proposal in my opinion is that to participate a community college would have to ensure its credits are transferable to a four-year school. So if this proposal was passed it would effectively reduce the cost of a four-year degree, as students with a community college degree could then leverage that by needing less than four years to continue on and complete a bachelor’s degree.

Not only could this community college proposal reduce the cost of obtaining a four-year degree, there is also a significant earnings power argument to create universal community college coverage.

In 2013 the median weekly wages (NOTE: LINK IS TO BLS WAGE DATA BY EDUCATION LEVEL) for someone with a two-year associate’s degree from a community college or vocational school was 20% higher than the weekly wage of a high school grad. Talk about a return on investment for students if this new proposal was approved: Get a degree from a community college for free, and make 20% more on average than if you just stopped with the high school diploma. The biggest payoff is if the community college grad then continues on to get a bachelor’s degree: median weekly wages for workers with a bachelor’s degree is about 40% higher than wages for the community-college grad, and 70% higher than the pay a high school grade can expect.

Yes, I realize this proposal has little chance of making much headway in a Republican controlled Congress. And there may be state pushback as well, given that this proposal calls for states to cover 25% of the cost after the federal government picks up 75% of the tab. There’s also the issue of supply and demand. More demand for community college classes without increasing community college budgets will exacerbate an all-too-common problem: not enough classes and teachers to accommodate student demand, forcing students onto wait lists for the next semester or beyond. But I applaud the White House for putting it on the agenda; and you never know, it may spur some compromise that increases accessibility to higher education. That’s a big win.

Tag Cloud

FICO at least 720no interestStudent Debt CrisisEmployer Matched ContributionYoung Adult adult childrencredit reportlearn good financial choicespublic service loan forgiveness programbudget40% toward financial goalmonthly benefit max employee matchgift not loanlower interest ratemax benefit covereddon't buy wantsdepreciating asset require chore in exchange for allowanceRichsuitablebreakdown projected monthly housing costdon't spend same-sex marriagebe good examplepeace of mindno retirement funds for down paymentget over life insurance phobiagrandparent IRA contribution traditional vs roth 401(k)financial aidGay Couplesearn more on savingsdeath benefit 20 to 25 times annual incomecommissionsapproved medical 100% tax-freemortgagehealthy youFinancialwomen outlive menteenshigh FICO scoreemergency fund savingsAmericans don't use all paid vacation timeHoliday SeasonNew York LifeInterestanticipated salaryBankPBS Specialmental healthhealthy gums4 Must Have Documents better loan dealsinsurance yearly reviewhighest possible benefitUniversity of Illinoisdebt freeteach your child good money habitsannual cost of living adjustmentFinancial Power of Attorneyinterest capitalizationonly offered while employed ARM Cautionschool one credit cardrolloverstretch out haircut appointmentsForeclosurequick closingshort term goal save fraudulent returnraise deductiblesno fee transferSelectQuote.comVital Documentsresponsible with moneyworst financial mistakepaid vacationmax employer matched 401(k) contributioninsurancemortgage disclosurefocus on needscreate new truthincrease retirement contribution rateVeterinary SchoolForbesprofessional advisorraise insurance deductiblehome buying seasonEasy Life Insurance repay student loansjuggle multiple financial goalsbest interest of investorcar leasingWashingtonPay Off Debt Before Retirementfinancial fearspay off debtFinancial Systembest interest ratesfinancial concerndon't blow tax refundCombo Insurance Productshealthy retirement blood pressurepowerful20 to 25 times annual income8 Rulesno negativityworkaholicMortgage Credit Availability Indextax ID theftConventional loan PMIAlarm Clock3 bucket approachbetter loan ratesnot gender specific Financial Solutions For Yousetup automatic savings withdrawlife insurance name trust as beneficiaryautomatic withdraw to savings pay 100% cashretirment savingsderailed planaffordable premiumreal estate mistakesFICO Scorecollege studentLovedream schooltaxesCommencementstandard deduction High Credit Scoresecured cardpercentage men widowed 75-84grandchild summer job IRA contributionHDHP/HSAgift up to 14,000comparison shoppingcredit utilization rateThe Suze Orman Showcommitdental insurance LTClet them have 50% controlfiduciaryBankruptcyFinancial Awareness Video Festivalswitch to spouse coverageBeautycostly legal Financial Gift CliffStock Investmentstitle insuranceovercome financial fearsincrease emergency savingscompare monthly expensesmoney-aware childRoth 401(k)bad decisionsSuze Orman spouse Kathy Travissmall changes advice for college graduateshigh down paymentlong-term care How To Build Creditprotect your familyretirement plansocial security not going brokeFinancial EducatorTelepictures10% donate to charityOne Wallet At A Timedoctor no longer in networkfile asapPrime Rate IncreaseFRA!00% tuition paidconfident of solution401KLTCi ASAPloved ones dependent on incomeTeachGoodbyechildren under 18doctors in networkbuy homeoverspend on dining outcollege graduatemortgage interest tax deductionbuying car 2016Adequate Auto and Home InsuranceSuze is my biggest mentortoo expensive schoolonly refinance if it paysMass Mutualspeak new goalCollege of Veterinary Medicinehigh credit score discountFundsraising mortgage rates unsubsidized Stafford loanInfluential CelebrityAshley Springersecure creditsidelinedoverspend on giftscontribute household expenses women long term carefamily save at least $100 monthlySchool of Social WorkCOLAavoid burn outcredit union3 step financial road maphigh premiumsconsider roth 401(k)tax refund fraudAARPSatisfyingcan you afford itcnbc alarm clockescrowloan big picture term insurancecar loanHeartmaintain standard of livingRevocable Truststay positiveadjust allocations home budget after tax costNewtownfocus on new truth pay more than minimumwaive home inspection bidpoint cost offset by savingsdon't ignore open enrollmentpreexisting condition not coveredno apologypay down car loanCredit Card Rate Increase19 years cash flow problemdangerous money seasondo not pay allowance for good behaviorInvest for savings growthLong Term Care premiumscut monthly cellular bill20% equity20% down payment avoid feesmonthly dental insurance premiumholiday spendingresponsibleMoney-SavingSelfishFixed Rate Mortgageoverspend on nights outvalue moneylife insuranceget the most out of social security Wall Streetcharges on credit cardsummer job match income OverspendingMust Have Documentsbetter termsalternative FICO scoreproperty taxFederal Funds Ratepaid in fullspring summer cut monthly cable billSuze approvedlow-cost index mutual fundlong term goalfinancing car higher insurance deductibleco-sign don't cover cosmetic dentistryhealthy aging marriage inequalitycar buying mistakesswitch to roth 401(k)don't charge a pennyallowanceno private loanFICO credit score credit card mortgageCivil Rightsno tax on withdrawlslower premiumstudent loan repaymentenjoy saving manage student loansLTC shoppingsavings pleasurewrite new goalkids schedule paymentsExhibitiondon't extend mortgage store credit cardsleave a legacylive below your meansidentity fraudHDHP Moneymortgage brokeris it necessary?borrowing plan lowest cost fund optionthree year car loandeath benefit needs for familyGiftGay RightsconfidentInflation BenefitAuto Savings social securityMoney MarketLong Term Care shoppingbecome member CPI-Wdebit cardBaby Boomersstudent loan debthigh deductible health care planage appropriate chorewould you decline a bonusWillEric Dodge real estate marketyours, mine & oursuniversal college accessDurable Power of Attorney for Health Carenear historic lowssame sex marriage band end Floridaretirement accountspaying for collegetelevision hosthome ownershipgay marriage ban end Florida face your financial fearno waiting periodone annual feeno splurge automatic paymenthome related tax break bonus protect dependent replace permanent life insurance with termpay interest while in schoolmarriage financial responsibilitystrained relationshipFree Debt EliminatorCiti Simplicity Card Forbes Top 10add teenis it necessaryverify retirement plan with HR or plan sponsorpublic service career student loan repayment Financial Advice2016 adjust estimated taxMinor Children not enough life insuranceschedule vacationpay high rate off firstUniversity of FloridaCommunication Skills eight month living expense CD'seliminate credit card debt20 year level term 50 over 50term life insurancemake saving a pleasure3% debt transferred financial independenceteach importance of helping othersSpendingFederal PLUS loandon't use allowance as briberetirementritual scheduleRevocable Living Trust3 savings buckets age appropriate goalsstudent loan repayment estimatorwomen longer life spanpercentage of women widowed 75-84Save Us Moneyreduce monthly paymentalways use all paid time offdon't defer interest paymentsengaged in financesUrbana-Champaignclosing costs 2% of loanprotect loved ones gift grandchild IRA contributionpurely financial standpointitemized deductionrefundcommunity bank10 year repayment plan physical healthhome insuranceDeath Benefit401(k) Contributionshome buying budgetfull retirement agesavingsmoney vowsclosing disclosureJose Rodriguezreferrals healthy teethreduce interest rateSwap Older Annuities or Life Insurance Holidaybuy down affordabilityprotect and provide for minor child push yourself to save more for retirementFinancial Cliffget health insurancelow credit scorelower overall drug costhousing marketWarner Bros Television Groupsocial security never insolventSandy Hook PromiseMost Influential Celebrities Listcostly insurance mistakehome buying mistakesbuying a carFHA loan feesroth irastaycationSuze Ormaninitial tax break multiple lendersstandard rateAmy Lacyetcommunity collegeHDHP's are good for youLegal Guardianemployer funding HSAsocial work2015 record year car salesback-to-school budgetSuze Orman Scholarshipbig results Retirement Incomebuy home you can affordzero rate transfer deals15-year refinance dealbalance transfer exercise reguarly2016 adjust withholdingBill and PennyFederal Stafford loanHoliday Shoppinglousy investmentdear suzebest loan deal allowance taskunexpected expenseprescription tierUS Tax Codeemergency fund origination feesfinancial argumentscredit managementPrime Rate Rise 2015higher monthly paymentbad retirement planningkeep a schedulerequired disclosureis it true? couple financesspecial saving accountpay down student loan debtCredit Card Interest Ratepremiumkid borrow firstiffy incomeshorter payback periodshop online guaranteed level term policy2015 financial roadmap8 month emergency fund15 year mortgageclosing feesFinancial Awarenesstake actiondon't do five year car loanmeet monthly women live longerverify wellness screening and programsburn outraising interest ratesFinal Goodbyelower mortgage interestbe true to yourselfcredit cardAARP Social security calculatoropen enrollment review HSA tax savingswives should be involved in retirementHDHP'sEmergency Savingsemotional stakespresident ObamaPost-DivorceMarlo Thomasdental savings planincentives for health care wellness screeningchildren's book8 month safety netdental discount planlow mileage discountignore 6 month grace period increase retirement savingsHDHP's are not badsave moneylong term carePhyllis Shelton expert long-term careCNBCNew american Dream permanent life insurancepositiveheartacheStudent Debtno private loanshealthy retirement weightChanging LivesHigh FICO Score = Better Rateno life insurance financially irresponsibleARMLong Term Care Insurance compare provider pricing2017 TaxesGiftsvalentines dayGraceloan is giftretain separate credit cards20% down paymentSuze changed my liferent vs buyrising home pricesFiscal ResponsibilityETF'semployer offered life insuranceincreased auto insurance premiumteens and moneyidentity theftinsurance mistakeborrow each year, capitalization is going to pile up new carnon conventional routeloan no longer than 36monthsat worst still pay 75% benefitlow down paymentStaffords this year have a fixed 6.8% interest rateback door Roth IRAearn allowancebe kind to yourselfgraduationhome loan credit score below 740 no late fee Influentialsaccelerate dental workcontribution 6 month waiting periodAccuQuote.commobile appautomate student loan paymentsrefinancedo you need life insurancesuccessraise your deductibleRetirement Savingsstudentpay credit debt ASAPdangerous retirement plan740 credit scoreunder 18 financial giftprovider of financial supportknow before you oweSandy Hook Elementary Schoollong-term care premiumsletter to suzeFederal Reserveinterest on student loansreduce withholdingfour steps to retirement savings 30 year mortgage negotiate points with bank or sellerlower ratecost of capitalization calculatorSuze Orman's Money Warsjanuary billsCory Bookercalculate dependents annual income needsLifestyledebtIRA contribution gifted moneyloan necessityfederal student loan deferment Personal Financeget credit cardMotherbill paying prioritiesfinancial goal phraseno sneaking in feesis it kind?Credit scoreplandon't derail retirement savingsultimate compounding giftfile taxes quicklystudent loan repayment planStudent Loan


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel