Hillary Clinton Education Plan Would Cost $350 Billion Over 10 Years, Includes Free Community College

By Michael Oleaga Aug 10 2015, 16:22 PM EDT

Democratic presidential candidate Hillary Clinton revealed her affordable college plan aimed to combat student debt, and as expected, the proposal was met with varied responses.

Referred to as the "New College Compact," Clinton said it was time for the federal government, states, colleges and universities to "step up" to do their part in alleviating student debt. In Clinton's proposal, students can attend an in-state public university, to obtain a four-year degree, without applying for a loan. As an alternative, students can receive free tuition from a community college. The proposal also calls for Pell Grants to cover living expenses, allow students to access low-interest student loan rates, and not pay more than 10 percent of the individual's income when repaying loans.

Clinton's also wants students to work 10 hours a week.

Although not as specific, Clinton wants colleges and universities to control their costs, ensure tuition is affordable and students graduate with a degree.

On a state level, Clinton wants state government to "step up and meet their obligation to invest" in higher education by maintaining existing funding and reinvesting over time. On a federal level, Clinton wants the government to make an investment into the New College Compact and not profit from college students' student loans.

Specifically on student debt, the former New York senator wants students to have the ability to refinance their loans. For future undergraduates, Clinton stated an interest rate cut would occur to reflect the government's low cost of lending.

According to Clinton, the New College Compact will cost $350 billion over 10 years and will be paid by "limiting certain tax expenditures for high-income taxpayers."

Progressive Change Campaign Committee (PCCC) Co-Founder Adam Green said Clinton's plan is both "big and ambitious." In a statement, he added, Clinton's plan could lead to debt-free college and improved economic opportunity for millions.

"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," continued Green.

Charles Chamberlain, executive director for Democracy for America (DFA), one of the organizations behind the "Run Warren Run" campaign encouraging Sen. Elizabeth Warren, D-Mass., to run for the White House, also called Clinton's proposal "ambitious" and said the plan demonstrates her campaign listened to Democrats' call for "big, bold ideas to address our growing income inequality crisis."

"If you had any doubt that the populist, progressive Warren Wing is the driving force in the Democratic Party today, the emerging competition among Democratic presidential candidates to establish the biggest, most comprehensive plan to tackle student debt should erase it," said Chamberlain. "And that's a good thing for Democrats' chances, up and down the ballot, in 2016."

Fellow Democratic presidential candidate Martin O'Malley released his education plan in early July. O'Malley for President Deputy Campaign Manager Lis Smith said the former Maryland governor has led the issue of debt-free college instead of being a follower.

"[O'Malley] is also the only candidate in the race who actually has a record of making college more affordable," Smith said in a statement. "While many states were making deep cuts to higher education during the recession, Governor O'Malley made Maryland the only state in the nation to actually freeze tuition for four years in a row. We need big, bold goals like Governor O'Malley's vision to make college debt-free for all students, and Governor O'Malley's plan to expand Pell Grants and freeze college tuition is the standard of how to get us there."

On the other side of the political aisle, the Republican National Committee (RNC) described Clinton's education plan as the latest tax hike proposal by the former secretary of state.

"Hillary Clinton's solution to every pressing policy issue is to expand government and raise taxes, and this plan is no different as it will cost hardworking Americans another quarter trillion in tax hikes," said RNC National Press Secretary Allison Moore in a statement. "Americans deserve a real leader, not someone like Hillary Clinton who will simply call for a tax hike to check a political box after pocketing millions in speaking fees from struggling universities for her own personal benefit."

Jeb Bush's campaign described her plan as fiscally irresponsible for higher education. According to the former Florida governor, Clinton's education plan increases tax, the government debt and "double-down on the failed Obama economic policies" that resulted in "sluggish economic growth, rising college costs spurred by Washington, and limited opportunities for all Americans -- including recent college graduates."

"We don't need more top-down Washington solutions that will raise the cost of college even further and shift the burden to hardworking taxpayers. We need to change the incentives for colleges with fresh policies that result in more individualization and choices, drive down overall costs, and improve the value of a college degree, which will help lead to real, sustained four-percent economic growth," Bush said in a statement.

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