This week, we’re proposing new ideas here at Warren Reports. Over the next few months, Elizabeth Warren, Sandy Baum and I will be proposing a bold idea – any student who works in public service after college can have her loans forgiven. We call it Service Pays, and we think it has the potential to transform American education and the American economy. Details below.

Under Service Pays, the government would increase the amount students can borrow through the unsubsidized Stafford loan program. Students could get money for four years of college – tuition, room and board, fees, the works. After graduation, a student who works for a year in public service would have a year of loans forgiven (or could go the normal route of paying the loans back directly). With Service Pays, the typical student would begin adult life at 26 with a college diploma and four years of work experience - and be debt free. 

What kind of things can students expect to do after college? Service Pays is open to all kinds of public service – from teaching in public schools and community organizing to the Peace Corps and military to working for a state or federal government agency. Many of these jobs give young people extraordinary experiences at a young age, and would provide an opportunity to live in parts of the country or world they’ve never experienced.

The benefits of Service Pays are substantial: young people will know they can pay for college, without worrying about paying off loans. At a time in life when they are racking up debt on their credit cards and setting up their lives, buying a house or car and having a family, this security is essential. Young people will begin life on a sound economic footing, thus promoting a stronger, more vibrant middle class.

As importantly, they’ll contribute to the great challenges America faces and will develop a commitment to public service. In education, homeland security, health care, and international development, among others, America faces great challenges. Service Pays would engage a new generation in overcoming those challenges and creating a better country and a better world.