By Garrick Hoffman

Quite The “Venti” Announcement

On the 16th of June of this year, Starbucks announced that they would offer free college tuition for all of their employees. The program, entitled the Starbucks Education Achievement Plan, renders Starbucks as the first U.S. company to provide free tuition.

Howard Schultz, the Starbucks chairman and CEO, appeared on The Daily Show with Jon Stewart the day of and publicly broadcasted the announcement, receiving fervent response from the audience.

“It is my job to hate everything,” Stewart responded after Schultz shared the news. “I’m having a difficult time with this.”

Stewart continued, with a hint of skepticism and humor, “This sounds lovely. Uhh…where are you sending them?”

Schultz went on to discuss the facts: the nation’s college debt has climbed to over a staggering $1.1 trillion (an increase of over 300% since 2003); the average college student has over $30,000 in debt to his or her name; and the people of America are being “left behind” while Washington stalls. In a partnership with Arizona State University (ASU), Starbucks has effectively created a free educational opportunity for its employees through online means. ASU, Schultz claims, “has the best online program of any university in the country.”

But Stewart though supportive still remained a bit apprehensive noting that according to a source even if 3% of employees take the offer it’ll run Starbucks $50 million. Schultz didn’t deny it; he acknowledged his company would take a big hit in the event that his employees do embrace the opportunity. But it was a hit he was willing to afflict upon his company, recognizing his duty as a businessman that he encourages others to fulfill.

If any of the company’s 135,000 U.S. employees – including its baristas who only work twenty hours a week – do in fact take the offer, they can graduate from ASU with a bachelor’s degree – debt-free. However, to be eligible for the education, an employee must be working at least twenty hours of week.

Furthermore, according to BBC, “Starbucks staff who are successfully enrolled will receive partial tuition for the first two years, and full tuition for their final two years. The annual fee for online courses at the university can exceed $10,000. After they’ve completed their bachelor’s degree, the employees are not obligated to return to employment with Starbucks. Starbucks staff looking to attend college online at Arizona State University (ASU) can choose from about 40 programs including business, engineering, education and retail management.”

Starbucks is widely regarded as one of the more altruistic companies in the world of corporate titans, basing their virtues and principles – their business model even – on humanity for the people that make their company what it is. It has been placed on “Best Companies To Work For” lists, and is revered for its employee benefits, including health insurance.

In the wake of the news, however, comes some criticism and question marks. The Starbucks Educational Achievement Program is considered, according to education policy analyst Rachel Fishman of the New America Foundation, a “quasi-tuition reimbursement plan,” noting that even though the employer foots some of the bill, the students are financially burdened initially, save for some of the costs, until they complete the degree.

Further, students are encouraged to compare the costs of this plan with costs of, say, a community college that offers financial aid, and explore other bachelor degree options afterwards. The difference, however, is that students at ASU on behalf of Starbucks can receive a full, $10,000 university education for no cost, so long as they complete the degree. More notes of criticism stem from the fact that exclusively online education for many a student is ineffective, and also disables them from peer-to-peer interaction and new friendships, enriching class discussion, and more. Further, the school, though it offers a great myriad of majors, still may not offer a major that one would be seeking to pursue.