WASHINGTON – Today, Reps. Mark Green (R-TN) and Vicente Gonzalez (D-TX) introduced a bipartisan bill designed to allow prospective students to reach innovative agreements with universities on how to pay for college. The bill authorizes “income share agreements,” where students borrow money from the school to pay tuition and repay the college or university with a percentage of future earnings. This way, colleges and universities are incentivized in helping students secure good paying employment after they graduate.
“When our country is reeling from bombshell reports that have taught us some members of America’s elite class have gamed the systems of higher learning by bribing admissions counselors and bumping deserving kids from families with less money and influence onto wait lists, now more than ever we need policy solutions that would open up the college admissions process to deserving children from struggling families,” said Rep. Mark Green (R-TN). “The Kids to College Act would do just that. It would allow promising, hardworking youth to get an education and pursue their career goals without facing a mountain of crippling debt or hefty admissions price tags. It would also push colleges and universities to help students land good paying jobs after graduation. By participating in income share agreements, America’s institutions of higher education can regain the public’s trust and show us they exist to build the next generation and not just make quick bucks.”
“Every prospective college student deserves fair, equal access and consideration to a higher education - without the threat of monumental student loan debt,” Congressman Gonzalez said. “Currently, over 44 million Americans are burdened by $1.5 trillion in outstanding federal student loan debt. This bipartisan legislation would aim to level the playing field by allowing alternative repayment options through income share agreements. More importantly, the bill would ensure colleges and universities are doing their part to put graduating students on the pathway to a good paying job. I look forward to working with Congressman Green to take bold steps to tackle the student loan debt crisis and make college affordability a reality.”
A nonpartisan think tank has said that this policy has the “potential to revolutionize college financing” by moving away from a government loan system. The government loan system is $1.5 trillion in debt with taxpayers on the hook for students who cannot pay back loans.
Rep. Mark Green is a former employer and businessman. He previously started and ran a medical company that had $200 million in annual revenue. He is also a former Tennessee state senator who’s hallmark achievement was repealing the Hall income tax, only the second time a state income tax has been repealed in the nation’s history.