Problem

The cost of post-secondary education continues to rise and so does student debt. Accessible workforce training and college education are essential to achieving financial security for individuals and economic growth for our state. The existing tax incentive for post-secondary education savings is a flat deduction that has been utilized disproportionately by higher-income earners. Current account holders have higher incomes (just 12% earn less than $70,000) and are more likely to be white and reside in metropolitan areas. We are trying to improve the accessibility of post-secondary training and education by fixing our state’s tax incentive for saving. We can make our state more equitable while also boosting the economy & helping state budgets.

Solution

The Education Savings Credit will refund up to $300 per year to Oregon taxpayers, and will equal a percentage of the dollars they save in College Savings Plan accounts, on a sliding scale based on financial need:
-Contributors making less than $30,000: 100% refund up to $300
-Between $30,000 and $70,000: 50% refund up to $300
-Between $70,000 and $100,000: 25% refund up to $300
-Between $100,000 and $250,000: 10% refund up to $300
-More than $250,000: 5% refund up to $300

Research shows that having a College Savings account in a child’s name makes them 3x more likely to enroll in job training or college, and 4x more likely to complete it. We can reduce the barriers to accessibility and make a dent in the crushing load of student debt.

Problem

Today’s economy favors those with college degrees and has been unforgiving to those without. Of the 7.2 million jobs lost in the recession, nearly 80% required only a high school diploma. Conversely, 99% of the jobs created post-recession went to workers with a college education. Our best projections tell us the gap between workers’ skills and employers’ demands will grow.

In Washington, less than half of working adults hold a two- or four-year college degree, while almost 70% of our state’s job openings in the next seven years will require a postsecondary credential. However, for many working adults, college is a long, expensive commitment incompatible with family needs, the constraints of an inflexible work schedule, and a tight budget.

Solution

Complete Washington programs are designed to address the barriers that most often prevent adults from returning to college: cost, scheduling issues, and uncertainty for career advancement. To limit out-of-pocket costs, Complete Washington pathways are designed to capture credit for prior learning, so students who return to school with knowledge gained on the job can bank their experiences toward their degrees. Unlike most online degree programs, Complete Washington courses are offered on a flexible schedule based on competencies gained, rather than time spent. We actively engage industry and labor with two- and four-year institutions in the degree design process to ensure that the program meets the needs of both workers and employers.

Problem

Student loans are a burden which prevents many from fully participating in our economy and which can make higher education inaccessible in the first place. Student loan debt delays home purchases, business start-ups and other major economic investments. And the fear of accruing debt can prevent students from enrolling or completing a degree.

Seventeen percent of Illinois residents – more than two million people – carry student loan debt, the median value of which is $17,748. Twelve percent of those borrowers have student loan debt in collections. Refinancing private loans and investing in new financing tools are opportunities for the state to earn a reasonable investment return while supporting the aspirations of our residents.

Solution

Alleviating debt for Illinois borrowers will generate increased personal investment and fuel our state’s economic growth. We currently run several programs which increase access to capital in alignment with our mission and priorities. We can do this because our expected return on investments in the state portfolio is relatively low – in the range of 2-3 percent. For this program, our office will use up to five percent of our investment portfolio (approximately $600 million) to invest in student loans. With our relatively low expected return, we can refinance private student loans on advantageous terms for the borrower and establish pools of funds for promising new higher education financing programs, such as income share agreements.