No loans needed: Clinton proposes plan to help students pay for college

Eight million dollars of student loan debt is now in default out of the $1.2 trillion owed.  Today, Presidental hopeful Hillary Rodham Clinton will propose federal government spending to help undergraduates pay tuition for public colleges without loans.

Photo Source:
Melissa Lyttle
New York Times

Her plan would still require a family contribution that could involve parents taking out loans to cover some tuition.

Democrats and Republicans agree that there is a worsening crisis forcing young adults to move back home with their parents as they struggle to get out from under their student loans. Her proposals–a cost of $350 billion over 10 years– would include new refinancing options for those already struggling with debt.

Under the plan, about $175 billion in grants would go to states that guarantee that students would not have to take out loans (at four-year public colleges and universities). These states would have to end budget cuts to increase spending over time on higher education and would have to work to slow the growth of tuitions (though not requiring a cap on them).

College spending has been reduced in many states. For instance, Gov. Scott Walker of Wisconsin, signed a two-year budget last month cutting $250 million in spending for the University of Wisconsin system.

Since 2004, there has been a 40 percent increase in tuition and fees for in-state residents  at public colleges nationwide (an adjustment to inflation).

Mrs. Clinton will officially announce the plan at a campaign event today in Exeter, N.H. and it even looks to have a chance in a Republican-led House and Senate as high tuition has become a bi-partisan anxiety.

“There is a lot of bipartisan interest in issues of college affordability, and bipartisan support for Pell Grants, student loans and other federal programs,” said Robert Shireman, educational issues adviser to Pres. Clinton and Pres. Obama.

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