Dubbing it a "new college compact,'' Hillary Clinton unveiled a $350 billion plan Monday that she says would enable more Americans to pay for college without becoming mired in debt that can impede them from starting a business or even buying a home.
The multi-pronged plan includes giving grants to states to make them partners in a pledge that no student should have to take out a loan to pay for tuition if attending a four-year public college in their state. It would require students to help pay their way through school by contributing based on what they earn from 10 hours of work per week. And, echoing a plan already proposed by President Obama, students would be able to attend community college for free.
In a tweet from @HillaryClinton, the Democratic presidential candidate's campaign said, "Let's make college affordable, relieve the crushing burden of student debt and help every family get ahead."
Hillary Clinton: 75 moments
Student loan debt has reached staggering levels in the U.S., soaring past $1.1 trillion as tuition rises at a feverish pace. According to statistics released by the Clinton campaign, from 2004 to 2014, in-state tuition and fees at four-year public colleges rose 42%, counting inflation.
Clinton's plan would slash the rates on student loans to a level where the government doesn't make money from them, a move she claims would lead to savings of tens of billions of dollars over the next decade for student borrowers, put in place a fund to assist private colleges that target students of color or a large number of lower-income students, and bolster the G.I. bill that came into place after the Sept. 11 terror attacks to help veterans secure an education.
The $350 billion price tag covers a 10-year period and would be financed by more affluent taxpayers who would see a drop in possible tax deductions. Roughly $175 billion would cover the grants to states and schools, while another third would target student debt, providing relief by letting borrowers refinance student loans at current low interest rates, and enabling more Americans to enroll in repayment plans based on their wages.
The remaining monies would fuel educational innovations, such as offering more aid to parents who want to go back to school.
Tamara Draut, vice president of policy and research for the public policy organization Demos, praised Clinton's proposal.
"Hillary Clinton's new college compact is a bold plan to return the United States to debt-free public college for future students and relieve the burden for existing borrowers," she said in an emailed statement.
But one of Clinton's Republican opponents, Jeb Bush, criticized the plan.
On his campaign website, the former Florida governor who is vying for the GOP's presidential nomination said, "this irresponsible proposal would raise taxes, increase government debt and double down on the failed Obama economic policies that have led to a new normal of sluggish economic growth, rising college costs spurred by Washington and limited opportunities for all Americans — including recent college graduates."
John Ebersole, president of Excelsior College, also voiced concerns.
"The continued regulatory war on the for-profits has profound spillover effects and serves neither sector well,'' Ebersole, whose school is a non-profit online institution, said in an email. "We need more
sophistication in identifying 'bad actors' and common reporting standards. Expanding 'gainful employment' data collection and reporting will certainly raise costs."
Clinton's plan could appeal to the more progressive wing of the Democratic Party, which is rallying around Bernie Sanders, the Vermont senator who is challenging Clinton for the Democratic presidential nomination. Sanders has been drawing huge crowds, most recently on Sunday where 28,000 people turned out to see him speak at the Moda Center in Portland Ore.
Economic inequality has been a focal point of Sanders' campaign, and in recent weeks Clinton has been outlining how she would raise incomes for the middle class, and now, make it easier for Americans to pay for college and get out from under a mountain of student debt.
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