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The Answer To Student Debt?

“For years, there have been protests in response to university budget cuts,” UC Riverside student Chris LoCascio told AOL Daily Finance’s Bruce Watson. “The system is clearly broken, and new solutions are needed.”

LoCasio and his group, FixUC, developed a plan to creatively solve the debt crisis while securing the university system long-term funding. Effectively, they propose the university replace tuition with a policy for charging graduates 5% of their salaries over 20 years.

This seemingly simple proposal has some very interesting implications for the university. First off, it would force the university to bank on its raison d’être: providing students the skills and knowledge they need to succeed in the workforce and life. If the university is successful, they will have continued and generous income.

It also connects universities and alumni in a long-term and meaningful way: the further a graduate’s degree takes them, the more they reward their alma mater.

However, if students aren’t earning the base income figure of $30,000 they contribute nothing, and if the student’s yearly wage is low, the university loses out on potential contributions.

While there are kinks to work out, LoCascio’s tuition-scrapping idea is a step in the right direction towards solving California’s impending higher education disaster.