After another week of turning comments and late nights, this idea popped into my head, and I am actually surprised this has not been proposed by any democrats because I think it solves a few "problems" that they have on their plate.
Now I know I am probably not the first person to think of something like this, but at first glance, I cannot find where any outstanding articles that are similar ( granted, I may not be doing my research correctly). But the plan goes like this.
If you have an employee under the age of 30, a company must set aside $1.50 per hour worked for that employee's education. This expense can be used for future educational expenses and past educational expenses (paying for student debt).
Pros:
- Increases wages (approx. $3120 per employee)
- Increases educational opportunities
-Tackle college debt slowly
Cons:
- Slow solution to the student debt "Crisis"
-Limits spending for individuals
- Effectively a Tax on a Corporation
Curious to hear thoughts on the above?
There are so many approaches to this. Some EU countries either subsidize state schools heavily or they are entirely free. Unfair to people without kids or who pay private tuition (which is less common in the EU) or to taxpayers who don't want to study at all. However, it is also an approach that seems to work if you ask those people in the countries that do this.
Companies off-setting loans or tuition is the other side, they would effectively pay for what they need in the first place - an educated work force. Challenge here is there are typically more unemployed qualified people than jobs available, at least in some regions. How do you incentivize private companies to do this if applicants are lining up outside?
Probably some form of a tax credit. I mean, it would require companies to care about their employees as well. but if the government required it, then put a tax credit on it could significantly reduce the student debt burden. By no means is it a perfect Idea, but I would be curious to see if it would actually be effective at limiting student debt.
My firm is in many different jurisdictions and one of our operating companies had a limited program to get qualified, unemployed staff on-board with additional education. The education was paid for by the state the company was incorporated in. Unfortunately, I don't have any numbers or feedback whether this worked out. But they eventually hired the people they selected before.
(this scenario was not in the US or the UK)
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