Why Should Starbucks Pay for College Tuition?

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June 17 (Bloomberg) -- Starbucks will now begin picking up most of the tab for workers to get a degree through Arizona State University online. Center for American Progress’s David Bergeron speaks on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Advisor in the u.s. department of education and now works at the center of american progress.

Look, i preface this by saying that there are companies who pay for their workers' higher education tuition.

That is not unusual.

What is more unusual?

The key here is that starbucks is making commitments to its employees, getting a degree from a college that has a great reputation, arizona state university.

Really trying to make sure that they address the inequities in educational experiences for their employees.

Who often have not had a shot at a college education.

It sounds as if starbucks is not going to require, as we have seen other companies do, require employees to stay at the company after completing a degree.

Right.

They are direct about this.

They are providing this as an opportunity for employees to get a college degree in any major offered online by arizona state university.

So they are not tying it to the performance of their company and employees on the job.

That is very different from what we see typically employers providing.

What do you make of the partnership with arizona state?

Arizona state university is an institute that has been fostering innovation, working hard to deliver high-quality programs through its online offering at as low a cost as possible.

Now they are able to touch an even greater opportunity by entering into this partnership with a great company like starbucks.

Is a going to pressure others to follow suit?

Any employee or that is drawing from the same labor market is going to have to consider how they can match or provide a similar benefit for their employees.

If they do not, they will have trouble recruiting and retaining employees.

That clearly is something that is on the minds of every employer in our economy.

Why should private companies be responsible for paying college tuition for their and pulleys?

-- college tuition for their and pulleys -- college tuition for their employees?

I don't know that they have an obligation.

Starbucks is doing it for their own reasons to retain employees.

They are making a statement about their views on equity in the u.s. date -- they want to raise the educational attainment of our society, grow our economy, and improve lives by providing education.

They feel that as part of their corporate mission and goal.

But, that is right, david.

What does it mean when private enterprise has to make a stand and help their own employees in a higher education system that is overpriced in many respects?

And is graduating students that cannot pay their loans back and are getting no help from government.

It is a misstatement to say that they are getting no help from the government.

The federal government is providing $40 billion every year to low income and first-generation students.

They are providing student loans that are totaling $120 billion or more per year and generous repayment plans.

What starbucks is doing is saying they do not want to see their employees have to take on those loans.

They would prefer that their employees benefit from the federal -- or they would have to work two jobs to pay the loan back.

Certainly, that is a concern.

Under the pay as you work repayment plan, which has been implemented by the obama administration, their repayment obligations on federal student loans are capped at 10% of the stationary income.

-- of discretionary income.

You do not need to take on two jobs.

It is something we would prefer people not to do, we would like for them to be engaged in their communities.

That is the breathing room that this starbucks approach is going to provide.

David bergeron, vice president of post secondary education at the center for

This text has been automatically generated. It may not be 100% accurate.

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