Proposal looks to increase opportunities with less student debt
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SALEM, Ore. – On the Capitol steps Thursday, supporters of a plan to dramatically increase the money the state spends on college scholarships held a sort of starving student rally.
The rally offered free pizza and a log to post how much student loan debt is waiting for college graduates. Portland Timbers mascot "Timber Joey" fired up his chainsaw and sliced through the log to symbolically cut student debt.
The Oregon Opportunity initiative calls for borrowing half a billion dollars then reinvesting the money in the stock market.
Right now is one of the best times in history to borrow money because interest rates are low. So the plan from state Treasurer Ted Wheeler is to borrow $500 million now, lock in the interest rate, and then invest at a profit in order to benefit students in financial need.
"I already have $25,000 in debt," said Portland Community College student Wendy Hemken.
With her 7-year-old Kimberly by her side, Hemken told a committee of lawmakers her daughter’s future college plans are in doubt.
"I don't want my education to mean that my children are not going to be able to go to school," she said.
Right now roughly four out of five low and middle income students who apply and qualify for Oregon's Opportunity Grant don't receive a dime.
"It is absolutely unacceptable for such young people to face such great challenges when it comes to being able to attend college," West Linn High School student Taylor Harding told lawmakers.
Enter Wheeler and his Oregon Opportunity initiative.
"It creates a permanent growing financial vehicle dedicated toward student aid," he told lawmakers during his testimony.
His plan takes advantage of low interest rates to borrow $500 million now and invest more than $400 million over the next 30 years with the expectation that the money will nearly double by 2044.
"It's not just for now, it's for all the way down the line," Hemken said during an interview.
And for her daughter, Kimberly, that means a greater shot at being who she wants to be.
"I decided that I would be a doctor that would go to outer space," the 7-year-old said.
The plan to borrow money for higher education grants needs to be approved not only by lawmakers, but eventually by voters as well because it calls for a change to the state Constitution, creating the permanent Student Opportunity Fund.
@tobiasread Oregon Opportunity initiative calls for borrowing money then reinvesting the money in the stock market. For stundent loans in Or
These people made a choice to except this debt to gain their education! Why should the taxpayers of Oregon have to pay anything to help them escape their obligation!
Will they pay for my mortgage? No!
Will they pay for my bills? No!
Then why should I be forced to pay for their bills?
If it is the state's obligation to pay for their bills isn't it the states obligation to pay for all Oregonian's bills?
I THINK NOT!!!
"Symbolically sliced through college debt".
Problem solved!
Well, I suppose granting in-state tuition to illegal aliens could be considered foreign aid. And we know there's plenty of that being given away!Â
"His plan takes advantage of low interest rates to borrow $500 million now and invest more than $400 million over the next 30 years with the expectation that the money will nearly double by 2044."
Isn't that the exact mindset that got us where we are?
the event needed just a little bit more flair and pizzazz. perhaps some dancing midgets or sword swallowers
What happens if the stocks tank? Then what?????
@cpt.iceman Just one short year ago, the trendy thing was to villainize Wall Street, and now we want to borrow a half billion dollars and invest it with the same people?  I'm so confused...
I am glad a 7 year old weighs in on the issue
She is going to be a doctor in outer space - I think her opinion means a lot.
@Bert Well we always like to hear what you think lol
What does 25,000Â dollars buy in education at PCC?
@Bert About 3 years, certainly not very much if you're starting from scratch.
@axpman @Bert Is not community supposed to be 2 year? Or does include what the student missed in high school?
It made me to be really glad that I had no college debt when I got my degree ten years ago! Today college students facing HUGE debt that are way more than credit cards itself, you guys have to work really hard to pay it all off. Degrees are really worth it when you have this HUGE debt??? Probably not.
@Sunny It depends on what the degree is in, of course.  On the other hand, degrees these days are the way that employers are legally able to screen out "undesirables."  There's been a few stories lately about some employers requiring a four year degree just to get a twelve dollar per hour job.
The writers at KATU seem to have decent jobs without degrees in journalism.
So the plan is to borrow money that we don't have and invest it in the stock market when it's hitting all time highs? Â Geez, I wonder what could possibly go wrong? Â Why isn't everybody doing that?
I guess that it doesn't matter to the bureaucrats though, because the taxpayers will end covering the short fall in the end.  It's a win-win situation.  Think of the children!
Is this exclusive to legal Oregon citizens? Or is this another back door to include illegal aliens?
Why are you asking? Figure you must be an immigant to ask that.
Let them pay for their own education.
When a college degree was worth something, this might have been a good cause. Now a bachelors is often worth the equivalent of a high school diploma.
Especially in some useless major!
http://newyork.cbslocal.com/2013/03/07/officials-80-percent-of-recent-nyc-high-school-graduates-cannot-read/
@samsloohouse But that is OK, we have lots of social media to keep the masses occupied.Â
What a waste of money going to college for what to work at WalMart.Â
The Oregon Opportunity will pick winning stocks until they are broke. We need to hurry on this so they do not miss another opportunity like solyndra.
Lower tuition for the illegals
The crayon tax will fix everything in the future
 There is too much pressure on kids to go to college.  Most will end up dropping out or not getting a good enough education to compete with other countries where they have an education system that works.  This whole plan stinks of democrats, again, trying to buy votes.  They just don't get it.  Deadbeats don't think they need an education.  They have been told for the last four years that they are entitled to part of everything the working man makes, without earning it.
Hey how about all those timber payment counties crying now. They should pull themselves up by there boot straps don't you think. They have had years to work on it. After collecting all that welfare from the Government. Sounds like takers to me.
In the first place the conservative supporters are the real takers, Banks, Corporations not paying any taxes and so on.Â
People with degrees/certificates make more and pay more in taxes.That ease's the burden on all.  Also if you read the bill, there ends up being no Debt service on this in the long run and now is the perfect time for bonds with the interest rate so low. We end up with  long term funding for grants with no service is pretty much a conservative ideal. Well it was before the ignorance of the Tea party. They also have the support of groups like the business association and home builders association. Groups not none for these liberal stances.Â
You have to have a post high training or education even for a manufacturing job now. That could mean a nine month or one year program not four years.
But hey if you want Oregon remain behind the times and not attract new companies keep up with your BS. Oh and buy the way. Oregon has the lowest business taxes in the west. The GOP had a study done.Â
@Techchefpdx You seem to have it all figured out techchefpdx, free money is free, right? Do you know what the Tea Party was advocating for? I bet not.Â
Oh, and buy the way, perhaps you should read your statement prior to accusing others of ignorance.Â
The Oregon Opportunity initiative calls for borrowing half a billion dollars then reinvesting the money in the stock market. " lol. This is a guaranteed disaster. They might as well buy lottery tickets. If they truly want to see college costs go down they would eliminate government loan guarantees. It amounts to free money for the universities and free money is what has increased the costs. Everyone associated with a university has a free ride for life. Cut them back a bit.
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@feral If a person is ignorant enough to earn a degree that will land $25K job, then they deserve what they get. It is easy enough to get above $50K a year in the tech fields, more if you are any good.
So in other words, once again we are taking a little bit more from those who actually produce, and make things a little easier for the takers.
And yes, I am paying off my own student debt. Not looking to see who to foist it on somehow.
And hey, this is just in time to make sure we reward the illegal aliens just a little bit more by making more free money available to them.