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Starbucks offers free college for veteran spouses and children

Despite generous government assistance, veterans take an average of $7,400 in student loans per school year to finance higher education.

By Amy R. Connolly
Starbucks announced it is expanding its free college tuition program to the children and spouses of its employees who have served in the military. Photo by Billie Jean Shaw/UPI
Starbucks announced it is expanding its free college tuition program to the children and spouses of its employees who have served in the military. Photo by Billie Jean Shaw/UPI

SEATTLE, Nov. 11 (UPI) -- Starbucks announced it is expanding its free college tuition program to the children and spouses of its employees who have served in the military.

The company, which already offers tuition-free education to some part-time and full-time employees, extended its College Achievement Plan, which reimburses students who earn a bachelor's degree through Arizona State University's online program. The company also announced a "pay for service" benefit for active duty and reservists, which will cover up to 80 hours of pay each year for service obligations.

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Starbucks said the program is part of a bigger plan to "bridge the gap between the military and civilians, since only 12 percent of the U.S. public understands the service and sacrifice of the 1 percent who have served."

To date, Starbucks said it has hired more than 5,500 veterans and military spouses, halfway to its goal of hiring 10,000 by 2018.

"We have a responsibility as a nation to honor our veterans and their families for their service and sacrifice, but it goes beyond saying thank you -- we must put our thanks into action and collectively help those who are making the transition from military to civilian life," Starbucks Chairman and Chief Executive Officer Howard Schultz said. "Not only do we have a moral duty to engage veterans once they leave the service, we know that doing so in a meaningful way will ultimately strengthen our nation."

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The move comes as a growing number of student borrowers, including veterans, struggle with debt to pay for higher education. Despite generous government-mandated veteran education benefits, more than 40 percent of active duty service members have student loan debt. Some 26 percent of undergraduates who used the GI Bill also took out student loans, many to finance living expenses while attending college.

The Los Angeles Times found the average higher-education loan taken by veterans was $7,400 -- slightly more than for students who never served in the military, suggesting military borrowers can accrue more than $25,000 in debt to graduate with a four-year degree.

"They're not your typical 18- to 20-year-old students who just got out of high school," Will Hubbard, a spokesman for Student Veterans of America, said. "In many cases, they have families with children."

Nationwide, 43 million people, most under age 40, owe an estimated $1.2 trillion in outstanding student loan debt. The average balance is about $30,000.

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