HIGHER EDUCATION BUBBLE UPDATE: No Money Down!

With public university administrators continually arguing for tuition increases to counter state appropriations cuts, it seems far-fetched that their budget problems could be solved by eliminating student tuition and fees altogether.

But that’s the idea put forth by a group of students from the University of California at Riverside, who in January proposed a new funding model for the University of California system that seeks to solve two of the system’s biggest problems: unpredictable and large decreases in state appropriations, and the steady increase in tuition costs.

Under the students’ plan, called the UC Student Investment Proposal, students in the system would pay no upfront costs for their education but would agree to pay 5 percent of their income to the system for 20 years after graduating and entering the workforce.

Well, this would give universities some skin in the game.