Educating the World, One Barista at a Time

Jonathan Fernandez
Copy Editor

    Contrary to the popular belief that corporations are greed-infested, profit-seeking, sociopathic machines, Starbucks has declared it would pay college tuitions for its employees, starting this fall. The Starbucks College Achievement Plan is a collaborative effort between Starbucks and Arizona State University (ASU) that offers part- and full-time employees the opportunity to finish their Bachelor’s degrees through online classes. So, is this legit? Or shall I prepare my pockets for when the devil comes to collect?

    The program is available to any “partners” (the term used by Starbucks to refer to its employees) as long as they work at least 20 hours a week. The company promises to pay the full costs of tuition, not covered by financial aid, for juniors and seniors that enroll in ASU’s online courses. ASU provides College Achievement Plan (CAP) scholarships that cover up to $2,420 per semester (based on a student enrolled for 12 credits), approximately 40 percent of the cost of the lower-priced degree programs, according to The Chronicle of Higher Education. After CAP scholarships, students will obtain Pell Grants and other government student aid, and Starbucks will pay for the remaining fees. Freshman and sophomores, on the other hand, will receive CAP scholarships of less value than those received by upper-classmen, and Starbucks won’t reimburse them for the remaining costs after student aid.

    In an email to USA Today, Jaime Riley, a Starbucks spokeswoman said that the scholarship represents 22 percent of tuition costs for freshmen and sophomores and 42 percent for juniors and seniors. The coffee shop giant will reimburse students on their paychecks after they complete 21 credit hours, rather than pre-pay for fees.

    In a recent interview on “The Daily Show,” Chairman and CEO of Starbucks, Howard Schultz said, “We are a public company. We have to build long-term value for the shareholder, but we've recognized a long time ago when we provided health care for our people, ownership for our people, the only way you can build a great enduring company is by linking shareholder value with value for employees.”

    When asked why other companies failed to do programs like this, Schultz responded, “there has been a zero-sum game, that the only thing that matters is profitability...You can’t just focus on profitability, and an enduring great company has to be based on more than that.”

    Nevertheless, there are critics of the college plan. Some see the program as a savvy PR move and criticize the fact that the College Achievement Plan forces Starbucks baristas to attend ASU, rather than a college of their choice. Others argue that Starbucks isn't paying for much of the costs.

    Joe Carter of the Action Institute Power Blog says, “Students who don’t work for Starbucks will be paying the normal tuition rates in order to subsidize the education for out-of-state baristas. That ‘free tuition’ Starbucks claims as a ‘benefit’ is actually being paid for not by coffee profits but by the students in Phoenix who don’t get the benefit of working for a crony in Seattle.”

    It’s obvious that Starbucks and ASU both benefit from the deal. The College Achievement Plan fortifies Starbucks’ reputation as a people based company; meanwhile, ASU gains access to a steady flow of students. Additionally, baristas are inspired to continue working for Starbucks—a byproduct that saves Starbucks money by potentially reducing turnover. In a sense, the plan can be considered an investment.

    Despite its criticisms, it is my belief that the intentions of a corporation (usually to make more money) don’t matter, as long as the public isn’t being wronged. In this rare scenario, corporate interests and the benefits of workers were synchronized, and therefore, it is irrelevant to compare the amount of money Starbucks spent versus ASU on the College Achievement Plan. The sole fact that these institutions are combatting income inequality and record-high student debt costs, is an admirable endeavor. Let’s just hope this new educational model is functional and effective.