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Unfortunately, so far, this progressive legislation has not been signed into law. The proposed changes were originally introduced back in February of 2017, but the prospects of their passage aren’t positive. With the next gubernatorial election slated for November 6, 2018, it’s doubtful much will change before then.

Radical Ideas – Tuition Free

Some idealists are even suggesting more radical changes to the California student loan system. This might include freezing tuition rates at their current levels, or doing away with tuition all together. There are some countries in Europe such as Germany, France, and the Scandinavian countries that offer higher education free of charge, so it can be done, but the costs are relatively prohibitive. With the state debt of California exceeding $150 billion, these types of programs are not realistic in this case.

Private Sector Opportunities

Innovative private sector businesses could offer a better way forward for the state of California. We may not be able to eliminate the need for student loans entirely, but we really don’t have to. If graduates have a chance to establish themselves with well-paying business ventures of their own, the student loan burden upon graduation would become much more manageable. There are companies providing solutions to the student debt crisis based on this idea. Bay Area Energy (BAE) is one of a new breed of green conscious company’s trying to breathe new life into the energy sector by taking advantage of industry deregulation. They’re offering alternative sources of supply for clean natural gas that benefits both the consumer and young entrepreneurs. The company also offers franchisee opportunities to recent graduates with no start-up costs. This is important for young entrepreneurs that don’t have the funds available to fund such an enterprise on their own. For ambitious graduates, the BAE program offers a chance to leave the student loan debt problem behind them for good. With no start-up costs, the program is open to anyone with the right credentials. If more private sector companies adopt similar initiatives there may be no need for significant changes to the government student loan program in California.