Hillary Clinton Joins Debt-Free College Push With a Big Plan

Hillary Clinton Joins Debt-Free College Push With a Big Plan

Hillary Clinton Joins Debt-Free College Push With a Big Plan

All three major Democratic candidates embrace the idea of free public higher education.

Facebook
Twitter
Email
Flipboard
Pocket

Hillary Clinton outlined her plan to nearly eliminate student debt on Monday at a town hall meeting in New Hampshire—joining two of her opponents in the Democratic primary and a growing activist push to make college debt a central issue of the presidential campaign.

Dubbed the “New College Compact,” Clinton’s plan contains several different approaches to reducing student debt, which now averages $30,000 per student each year. But the central feature is expanded federal aid to states that guarantee “no-loan” tuition at public four-year universities. The think tank Demos and the Progressive Change Campaign Committee also made increased federal aid to states a central feature of their recent push for “debt-free college.”

Clinton also adopted a proposal pushed by Elizabeth Warren in the Senate which would allow students who already have student debt to refinance it at lower rates. Other features of Clinton’s “New College Compact” would give additional grants to states that offer child care services to students, along with simplifying financial aid applications and forcing colleges to pick up part of the tab when students default on their debt.

Students would be required to work or contribute community service for 10 hours per week in order to qualify, and their parents would still need to take out loans based on their income ability.

Overall, Clinton estimates the plan would cost $350 billion over 10 years; she would close unspecified tax loopholes to pay for it. (An anonymous top Clinton aide told the Washington Post that Clinton would reinstate Reagan-era cuts on itemized tax deductions for the wealthy). Warren would similarly re-institute the Buffet Rule to pay for her refinancing proposal, while Sanders proposed a financial transactions tax to fund his college debt plan.

Aside from the policy merits, Clinton clearly believes that an aggressive plan to ameliorate current and future student debt will help draw a contrast with her Republican opponent in the general election. She suggested as much during her Monday town hall. “If you’re going to hear people in this campaign talk to you about improving the economy, helping incomes rise, then ask them what they’re going to do to make college affordable and begin to deal with the debt burden that is holding too many Americans back,” she said.

Two of her opponents in the Democratic primary, Sanders and Martin O’Malley, have plans that would also dramatically reduce or eliminate college debt at public institutions. O’Malley would also increase federal aid to states and require that public university tuitions be tied directly to statewide median incomes.

Sanders would also use federal aid to “eliminate” tuition at public universities, sending $47 billion annually to the states to cover two-thirds of public tuition costs, while states pick up the remainder.

Some activists criticized Sanders plan for not covering room and board, books, and other expenses. Clinton’s doesn’t explicitly do that, though she says that since tuition fees will be reduced by her federal aid plan, students can use Pell Grants to cover non-tuition expenses. Presumably this would also be the case if Sanders’ version of debt-free college was enacted.

Overall, activists who have long been pushing debt-free college as a necessary element of the 2016 campaign were pleased. “The center of gravity on higher education has shifted from tinkering with interest rates to making college debt free—and Clinton’s bold proposal is emblematic of the rising economic populist tide in American politics,” said PCCC co-founder Adam Green in a statement.

Natalia Abrams of Student Debt Crisis said her group is “gratified that all three major Democratic presidential candidates have committed to addressing student debt and lowering the cost of higher education.” Student Debt Crisis has been fighting for an outright cancellation of student debt, however, and Abrams added that “we are discouraged by the lack of attention given to relieve existing borrowers from their crippling student loan debt.”

Thank you for reading The Nation!

We hope you enjoyed the story you just read, just one of the many incisive, deeply-reported articles we publish daily. Now more than ever, we need fearless journalism that shifts the needle on important issues, uncovers malfeasance and corruption, and uplifts voices and perspectives that often go unheard in mainstream media.

Throughout this critical election year and a time of media austerity and renewed campus activism and rising labor organizing, independent journalism that gets to the heart of the matter is more critical than ever before. Donate right now and help us hold the powerful accountable, shine a light on issues that would otherwise be swept under the rug, and build a more just and equitable future.

For nearly 160 years, The Nation has stood for truth, justice, and moral clarity. As a reader-supported publication, we are not beholden to the whims of advertisers or a corporate owner. But it does take financial resources to report on stories that may take weeks or months to properly investigate, thoroughly edit and fact-check articles, and get our stories into the hands of readers.

Donate today and stand with us for a better future. Thank you for being a supporter of independent journalism.

Thank you for your generosity.

Ad Policy
x