On Getting to College

According to the College Board, a national testing group, campus tuition is rising faster than the cost of living for the seventh straight year. That makes AB 278, sponsored by Assemblyman Tom Hayden (D-Santa Monica), timely and welcome.

It would allow relatives, friends or even interested corporations to invest in a public trust fund that would guarantee the payment of a child’s tuition at a state university, no matter the cost, when the youngster was ready for college. The Senate is expected to vote on the bill on Tuesday. It is a sound idea that should be approved.

A deposit--$3,100 is under consideration--shortly after a child’s birth would start the tuition fund growing. Parents of older children, like teenagers, would make much larger investments to get the same guarantee. If a student chose a private university or decided on an out-of-state campus, the money would pay at least part of the tuition. If a youngster failed to go to college, the investment would be refunded with interest minus an administrative fee.

Michigan set up the first fund, and eight states have followed its lead. The funds are too new to permit real-time experience, but the concept seems actuarially sound. The alternative for students whose parents cannot afford tuition is to borrow, either under a federal student-loan program or from a private institution. The Joint Economic Committee of Congress estimates that students shouldered nearly $10 billion of debt to meet tuition and expenses last year. Unless Washington reverses policy on scholarships, grants, work-study jobs and other aid, the debt will rise more steeply in the future.

The prepaid-tuition program cannot put a lid on the costs of college, but it can reassure families that their children will be able to go to college. The Legislature should approve the bill, and the governor should sign it.