Matthew Hiles

Professor McCampbell
ENGL 101
7th December, 2015
A Proposal to Alleviate College Debt
College debt is a problem that cripples the American people. The average student
in this country faces an intimidating $28,950 in student debt, culminating to a staggering
$1.2 trillion in academic debt nationwide. And while the stereotype of the struggling
graduate seems like an unavoidable byproduct of furthering ones education, European
countries such as Germany, Norway, Chile, and more have eliminated most, if not all,
student debt and received a significant economic and social gain as a result. Germany, a
country that was burdened financially for decades due to war reparations, has recently
become the fourth largest economy in the world (There Is No...), and Europes fastest
growing economy (There Is No...). Their happiness is also rising at a steady 3% per year.
Sweden has recently made college free as well and since has risen up to 8th place in the
World Happiness Index (Fasko) as well as had a steady growth in their economy since
2013 (Forbes). Meanwhile, American education continues to decline relative to other
nations (Fasko). In a study done by the Organization for Economic Cooperation and
Development, the US ranked 21 out of 23 countries in math and 17 out of 19 countries in
problem solving (Fasko). This educational deficit affects the entirety of our nation. A
nation with increased access to education creates a society with advanced creativity,
generating higher performance and intelligence in both personal and professional

applications. (Fasko). This creative boost would not only benefit the American economy,
but also allow for the people of the U.S to move forward as more fulfilled individuals in
academia and the arts while simultaneously allowing for social mobility (Fasko). By
implementing a 0.5% fee on stock trades, 0.1% fee on bonds and a 0.005% fee on
derivatives, the United States can manage to make college free for all of its citizens
without running the risk of lowering their financial stability through taxation on Wall St..
By implementing this plan, the United States would be able to absolve the nation
of student debt by creating a system that neither bankrupts the federal or state
government. Proposed by the University of Massachusetts, a system with this approach is
capable of raising three-hundred billion dollars in its first year. These funds would allow
the federal government to match $2 for every dollar states spent making public college
debt virtually free, as seen in case studies done at the University of Massachusetts
(Sanders). Transactions of under 1% are ideal since they are small enough not harm stock
traders, but are still large enough to be substantial when combined with revenue
generated from the upper class (Sanders).
This plan would be able to become a reality if it was rallied behind by the
American people, allowing it to hold weight in the House of Representatives. Once there,
it would be able to proceed through the congressional brackets and into law should the
American people truly promise not to reelect any officials that deny this plan of action.
The bill must contain a clause stating the revenue must be spent on the application of free
colleges in order to succeed. The state governments must also properly readjust their
budgeting in order to allow this plan to succeed. By increasing the tax rates on the highest

income bracket from thirty-nine to fifty-one percent, the states would be able to fund the
rest of the expenditure without having to reach into their pockets they dont have.
A government funded or assisted college program is not without precedent. The
University of California system offered free tuition at its schools until the 1980s under
government funding (Free College...), and in 1965, average tuition at a four-year public
university was just $243, or $1863 after inflation. This is significantly cheaper than the
$9341 a year public colleges cost on average today s - a 1120% increase since 1978
(Resnikof). Free college has paid for itself in Germany (There Is No...). The nation
currently is listed as having the strongest economy in Europe - a movement that coincides
with the removal of the stress of paying for higher education. (There Is No...) . Australia
and New Zealand have a system of paying tuition and fees, backed with student loan
repayment that is entirely based on what you earn after leaving school. Student borrowers
who make less than $50,000 a year owe zero monthly payment (Sanders). Plans like these
are critical to promoting the economic health of citizens. It prevents the poor from falling
even further behind and allows for socioeconomic advancement (Free College...). These
four nations have all seen advancement in their world wide economic placement, and
their happiness with the government is substantially higher than the US 18% (Forbes).
In short, the boost in education has created a happier and more prosperous people
for multiple nations in world wide polling. While initially requiring minor legal change to
implement, the long term use of the program would allow for American people to be
happier and better off both financially and personally. America would be more fulfilled
as a nation if it put more of an advancement into the education of its people.

Bibliography
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Stevenson University. Stevenson University, 13 Mar. 2000. Web. 6 Dec. 2015.
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Resnikof, Ned. "Bernie Sanders Defends His Democratic Socialism in Landmark
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Bernie Sanders Defends Democratic Socialism. Alajzeera America, 9 Nov. 2015.
Web.
06 Dec. 2015.
"There Is No Such Thing As A Free College Education." Forbes. Forbes Magazine, 3
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Sanders, Bernie. "Summary of Sen. Sanders College for All Act." Sanders Senate. The
Congress of the United States of America, 7 May 2017. Web. 6 Dec. 2015.