HOUSE MEMORIAL 44

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

W. Ken Martinez

A MEMORIAL

REQUESTING THE LEGISLATIVE FINANCE COMMITTEE TO STUDY THE FEASIBILITY OF ADAPTING OREGON'S "PAY IT FORWARD" DEFERRED TUITION PAYMENT PROGRAM FOR IMPLEMENTATION IN NEW MEXICO.

     WHEREAS, since 1978, the cost of a college education has increased by one thousand one hundred twenty percent, more than any other good or service in the United States economy; and

     WHEREAS, nationally, over two-thirds of college students who graduate from four-year colleges use student loans to help cover their educational costs; and

     WHEREAS, nationally, two-thirds of college seniors graduated with loans in 2010 and carried an average of twenty-five thousand two hundred fifty dollars ($25,250) in debt per student; and 

     WHEREAS, as of 2012, the average student borrower had more than twenty-nine thousand dollars ($29,000) in debt; and

     WHEREAS, the cumulative student loan debt in the United States is over one trillion dollars ($1,000,000,000,000), more than the nation's credit card debt; and

     WHEREAS, the United States department of education has reported a sharp increase in the rate at which student loan borrowers are defaulting; and 

     WHEREAS, the Oregon legislature passed a comprehensive measure to address the student college debt crisis; and

     WHEREAS, the Oregon measure, called "Pay It Forward", directs that state's higher education coordinating committee to examine and implement a pilot program and tuition freeze for Oregon's higher educational institutions; and

     WHEREAS, "Pay It Forward" waives upfront tuition costs at the time of college attendance and defers them until participants are employed after completing college; and

     WHEREAS, "Pay It Forward" requires participants in Oregon to pay back up to three percent of their income for twenty-four years, and such payments fund the waiver of tuition for current and future students; and

     WHEREAS, "Pay It Forward" may serve as a model for addressing the student debt crisis in New Mexico;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the legislative finance committee be requested to study the Oregon "Pay It Forward" model, focusing on the feasibility and ways to adapt the model for implementation in New Mexico; and

     BE IT FURTHER RESOLVED that the legislative finance committee study the costs of implementing a "Pay It Forward" model in New Mexico and analyze the inclusion of the costs of fees, books, room and board, transportation and other costs of college attendance in its analysis; and

     BE IT FURTHER RESOLVED that the legislative finance committee be requested to produce and publish on its web site, by October 1, 2014, a report of its study and an analysis of the benefits and detriments to implementing the "Pay It Forward" model in the state; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the legislative finance committee and the higher education department.

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