Michigan Education Trust Program: A Public Policy Approach to Finance College Tuition

Abstract

The cost of higher education has increased at a much faster rate than the general price level in the past several years. Parents, policy-makers, and law-makers have very serious concerns that higher education in the United States is being priced out of reach for most Americans thus endangering the American Dream -- educational opportunity. Private schools have already begun to offer tuition programs. Furthermore, private savings institutions have capitalized on the increased interest to finance education, and other states have initiated other prepayment and savings plans. However, the State of Michigan has decided to intervene in this endeavor with the MET Program. This case study is not to which kind of approach seems most sensible and viable; rather, is the MET Program a sensible and viable approach to address the problem.