WASHINGTON -- Calling for a "new college compact," Hillary Rodham Clinton today will unveil a $350 billion plan aimed at making college more affordable and reducing the crushing burden of student debt.
At an event in New Hampshire, the state with the highest average student debt in the country, Clinton will propose steps to reduce the cost of four-year public schools, make two-year community colleges tuition-free and cut student-loan interest rates, according to campaign aides.
The proposal centers on a $200 billion federal incentive system aimed at encouraging states to expand their investments in higher education and cut student costs. States that guarantee "no-loan" tuition at four-year public schools and free tuition at community colleges will be eligible to receive federal funds.
But Clinton doesn't go quite as far as some party politicians and activists, who have made "debt-free college" an early litmus test for the presidential primary field. In May, Vermont Sen. Bernie Sanders released a plan that would eliminate tuition and fees for public universities. The $70 billion annual proposal would be funded by imposing a tax on transactions by hedge funds, investment houses and other Wall Street firms.
While military veterans, lower-income students and those who complete a national service program, such as AmeriCorps, would go to school for free in the Clinton plan, others would incur costs for their schooling and living expenses at four-year public universities. "For many students, it would translate into debt-free tuition," said Carmel Martin, executive vice president for policy at the Center for American Progress, who advised Clinton on the plan. "It will depend on the student circumstances and the institution they are going to."
For most students, their families will still be expected to make a "realistic" contribution under the plan, said Clinton's aides, and students will contribute wages from 10 hours of work per week.
The cost of Clinton's plan would be offset by capping itemized tax deductions for wealthy families at 28 percent, like those taken by high-income taxpayers for charitable contributions and mortgage interest. That proposal, which has long been included in President Barack Obama's annual budget, would raise more than $600 billion in the next decade, according to the Treasury Department.
A Section on 08/10/2015