In 2017, I embarked on a journey as a counselor for a nonprofit organization aimed at assisting first-time homebuyers. This role afforded me a profound look into the financial lives of countless individuals, examining paycheck stubs, bank statements, and engaging in deep, often revealing conversations about their financial realities. What became starkly apparent was that America operates in two distinct financial realities.
In Miami, where this part of my journey began, many people of color were employed in the hospitality and service industries. In stark contrast, non-melanated borrowers often held jobs I had never even heard of, yet they earned substantial incomes. This disparity extended to asset accumulation as well; some borrowers had significant savings and assets, while others struggled with minimal resources, burdened by debt and negative credit, often due to parental misuse of their identity during childhood.
Throughout this experience, I noticed a troubling pattern among educated people of color. We've been told that education is the key to advancing in society. However, many of us are first-generation college students, and far too often, we are the first in our families to graduate. We lack the family assets—home equity, cash reserves, or private lending options—that our non-melanated counterparts often have at their disposal.
Consequently, the burden of student loan debt is astronomical. I recall a young woman with over $300,000 in student loan debt, despite holding a bachelor's degree and two master's degrees. Her credit was impeccable, yet she was overeducated and undercompensated, making it impossible for her to qualify for a mortgage due to her debt-to-income ratio.
This situation underscores a critical issue: education for many, but particularly for people of color, does not always translate into higher earnings. The wealth gap persists because certain groups can accumulate assets and restore equity, while others, regardless of their income, remain trapped in a cycle of consumption.
As an educator, I witness firsthand how many young people view education as their pathway to better opportunities. We teach this across the globe and, for at least 2 generations, have all believed this at some point. However, the financial burden of traditional education models often outweighs the benefits. And unfortunately, high incomes alone don’t guarantee homeownership or wealth accumulation if student loan debt is a significant barrier.
To address this at VertexYou, we developed a subscription model for access to bachelor's and master's degrees. This model aims to provide affordable, debt-free education, enabling students to build equity and challenge the wealth gap. Here’s how it works:
1. Affordable Entry: Most people have at least $500 to $600 available on a credit card or in savings. We set our registration fees at less than $1,000 to make education accessible from the start.
2. Subscription-Based Tuition: Students pay a monthly fee - $99 for certificates and associates, $149 for bachelor's degrees, and $199 to pursue a master's degree. This fee covers access to 12-15 units of coursework at a time. This flexible, on-demand solution allows students to complete their degrees at their own pace, whether in a few months or over several years. Though these prices are very affordable, they are further reduced with preferred partnerships.
3. Relevant Degrees: We offer degrees only in fields with substantial earning potential. This ensures that graduates can enter expanding markets equipped with the skills needed to secure well-paying jobs without the burden of student loan payments, effectively diminishing the wealth gap within their families upon their next job or promotion.
By adopting this innovative approach, VertexYou aims to bridge the educational and economic gaps, providing a viable pathway for individuals to achieve financial stability and homeownership without the crippling burden of student loan debt. This subscription model not only democratizes access to higher education but also empowers a generation to build wealth and equity in ways previously unimageable and certainly unattainable.
"Education should not be a debt sentence. It should be the steppingstone to economic independence and generational wealth." – Dr. Claud Anderson