Lifting incomes for everyday Americans is the defining economic challenge of our time. And to raise wages, there is no better investment we can make than in education. College graduates earn $570,000 more on average in their careers than high school graduates. Graduates of community college, career training, certificate programs, and coding boot camps also earn more.

The Problem
The barriers to obtaining a degree are becoming increasingly steep. At 4-year public colleges and universities, for example, between 2004 and 2014 in-state tuition-and-fees rose 42 percent, after adjusting for inflation. The recession accelerated the trend of state disinvestment in higher education, with states spending $1,805, or 20 percent, less per student on average than they did 7 years ago.

Colleges have responded not by tightening belts but by raising tuition, passing the costs on to students and families who must fill the gap by taking out loans. The federal government has responded by pumping more and more money into federal student aid to help fill the gap but has not done enough to address the underlying problem of rising costs.

Too little has been done to address the lack of accountability for colleges and universities that do not deliver on the promise of a degree. At 4-year public colleges, more than four out of every ten students do not graduate within six years. The statistics are even more troubling for 2-year institutions.

The New College Compact
Clinton’s plan breaks down the barriers to obtaining a degree by establishing the New College Compact. The New College Compact ensures that students can attend a 4-year public college without taking loans for tuition, attend community college tuition-free, pushes states to re-invest and schools to reduce costs and raise graduation rates, and rewards innovation that makes a real difference in student outcomes.

Here is how it works:

The New College Compact Promotes College Affordability
The New College Compact will make sure cost in not a barrier to anyone who wants to receive higher education. Clinton’s plan will:

• Provide grants to states that commit to ensuring that no student should borrow for tuition and improved affordability for other costs at 4-year public colleges and universities. States will have to halt disinvestment in higher education, ramp up that investment over time, and work with public colleges and universities to cut costs and increase innovation.
  • States will be rewarded for ensuring that no student should graduate with debt for tuition – and limiting costs for non-tuition expenses. Pell Grants are not included in the calculation of no-debt-tuition, so Pell recipients will be able to use their grants fully for living expenses.
  • States that commit to the compact will work with colleges and universities and distribute funds to meet these guarantees by lowering the cost of college on their campuses, ensuring that all funds received will be applied to instruction and learning, and improving the prospects for completion.
  • The size of federal investment for each state meeting the compact will depend on the number of in-state students enrolled in public colleges and universities, with higher grant amounts for low- and middle-income students.
  • States will be allowed a ramp-up period in which they can receive a portion of funds while adapting their levels of support and cost structure to meet this goal.
  • Families will be expected to make a realistic and simplified family contribution. Students will contribute based on wages from ten hours per week of work. But students and their families should be able to afford college without borrowing for tuition, and with lower costs for other expenses.
• Provide tuition-free community college. Following President Obama's plan, the New College Compact will provide tuition-free community college.
• Significantly cut the interest rate on student loans so the government does not profit when students borrow to pay for living costs or for private college. This one change, if enacted today, would cut interest rates nearly in half – and reduce future interest rates. It would reduce loan payments by tens of billions of dollars in the next ten years, easing the burden on undergraduate borrowers.
• Support private colleges, including Minority Serving Institutions, working to improve affordability and student outcomes. Clinton knows that in addition to public colleges, many private schools, including HBCUs, HSIs and other MSIs, help underserved students graduate and build the skills they need, including many first generation college attendees. But too many colleges struggle to keep tuition affordable and too many of their students struggle to complete their degrees. Clinton’s plan provides a dedicated fund to help modest-endowment private colleges that serve a high percentage of Pell Grant recipients lower the cost of attendance and implement supports to improve outcomes for students.
• Provide robust educational benefits for those who serve their country.Hillary Clinton believes our country should honor those who serve. She will work to continue to strengthen the educational benefits provided by the GI Bill and will invest in and expand opportunities for more Americans to receive educational benefits in return for national and community service.
• Strengthen and Protect the GI Bill's Educational Benefits: The Post-9/11 GI Bill provides veterans who have served our country for at least three years since September 11, 2001 with fully-paid-for tuition-and-fees at public schools, a stipend for books, and a housing allowance for cost-of-living. More than 1 million of our veterans have now benefited from the Post-9/11 GI bill. But vets need support to be sure they are not being defrauded of these benefits, have full information on the success rate of college and universities, and receive educational counseling and support along the way to complete their education.
  
  Clinton's New College Compact will close the 90-10 loophole for-profit schools use to prey on veterans, ban schools from receiving federal student aid if they are found guilty of fraudulently recruiting students, build on the VA’s effort to provide full and easy access to information on the retention rates, transfer-out rates, and graduation/program completion rates of schools serving veterans, expand the VetSuccess on Campus program to support veterans transitioning to college, and include zero tolerance for loan servicers that overcharge service members and veterans.
• Clinton's New College Compact will close the 90-10 loophole for-profit schools use to prey on veterans, ban schools from receiving federal student aid if they are found guilty of fraudulently recruiting students, build on the VA’s effort to provide full and easy access to information on the retention rates, transfer-out rates, and graduation/program completion rates of schools serving veterans, expand the VetSuccess on Campus program to support veterans transitioning to college, and include zero tolerance for loan servicers that overcharge service members and veterans.
• Expand AmeriCorps: Clinton believes that if you serve your country through national and community service, you should also be awarded with educational benefits. Today, there are 75,000 people who participate in AmeriCorps by serving in communities across the country to address pressing problems through nonprofits, schools, public agencies, and community and faith-based group.
  
  Clinton's New College Compact will expand AmeriCorps from 75,000 to 250,000 members. And it will build on the current AmeriCorps Segal education award by partnering with state and university leaders to enable volunteers who complete two years of community service and one year in a public service job to attend an in-state public college or university without having to take out loans for any expenses or to have their loans forgiven upon completion of their service commitment.
• Make income-based repayment simple and universal so that all students know they can enroll, and never have to repay more than they can afford.
• Extend the American Opportunity Tax Credit ensuring that middle-class families avoid a tax increase of up to $2,500 per year. Hillary Clinton's plan will permanently extend the American Opportunity Tax Credit, which now provides up to $2,500 in tax relief for tuition and other expenses to everyday American families – including $1,000 that is refundable and fully available for lower-income families. If the AOTC expires as scheduled after 2017, up to 11 million American families trying to pay for college could see tax increases.
The New College Compact Promotes College Completion The New College Compact will change the trajectory of too few students completing college and too few low- and middle-income students enrolling in the first instance. Clinton's plan will:
• Increase college enrollment by simplifying the FAFSA, providing early Pell notification and other key nudges to remove barriers and obstacles to applying in the first place.
• Push colleges to raise graduation rates. Building on initiatives like TRIO and GEAR UP, Clinton’s plan will make new grants to the colleges and universities that invest in student support, quality child care, partnerships with early childhood providers, emergency financial aid, and other interventions proven to boost completion, especially for low-income and first-generation students.
The New College Compact Expands Educational Pathways and Rewards Innovation Hillary Clinton knows that in addition to four-year and community college, many students are rebooting their careers and improving their economic prospects through innovative on-line programs offering badges, specializations, certificates, or Nanodegrees, as well as more traditional career and technical training programs. Clinton's plan will:
• Provide added support for rebooting careers and participating in lifelong learning in fields ranging from advanced manufacturing to health care services to 12-week coding boot camps. Online coursework, when well-designed and integrated with student support services, often provides the flexibility that many students need to complete career credentials. Yet, many students cannot use federal student aid to pay for these badges, specializations, certificates, or Nanodegrees. Clinton’s plan will build on experiments allowing federal student aid to be used for high-quality career and lifelong learning programs with promising or proven records.
• Ensure that accreditation does not stifle innovation and keep out promising new entrants – but set standards high for existing and new entrants. Title IV funds will be a lever to ensure accreditors are open to low-cost, technology-enabled programs. But we will rigorously evaluate outcomes to make sure these programs work. We must bring integrity to online learning and will not tolerate programs that fall short.
The New College Compact Will Force Schools to Focus on Student Outcomes Rather Than Their Bottom Lines. Too many students work hard and are supported by taxpayer dollars, only to emerge without a degree, a worthless degree, or a degree weighed down by debt. Hillary Clinton's plan will:
• Require colleges and universities to have some skin in the game. Too many colleges are loading up students with debt for programs that don't let them climb the economic ladder. And when things go wrong and students default on their loans, it is students and taxpayers who end up holding the bag. We need our nation’s colleges to have strong incentives to keep debt low, and they need to be penalized when their graduates are unable to repay their loans. Clinton will embrace bipartisan efforts for schools to share in the risk, such as the principles envisioned in the Student Protection and Success Act, introduced by Senators Orrin Hatch and Jeanne Shaheen. She will ensure that these efforts encourage, not discourage, enrollment in quality programs for underserved students.
• Defend and strengthen the gainful employment rule to ensure that for-profit schools adequately support students to complete their degrees and prepare students for work.
• Crack down on law-breaking for-profits by expanding support for the CFPB, FTC, DOJ, and VA to enforce laws against deceptive marketing, fraud, and other illegal practices.
• Require transparency. Our colleges and universities should be upfront about graduation rates, likely earnings, and likely debt, and how those metrics compare with other schools. Clinton's plan will make sure that students can shop around, rather than roll the dice.

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College Compact: Debt Won’t Hold You Back

The Cost – and How We Will Pay It
Clinton's New College Compact plan costs in the range of $350 billion over 10 years and will be fully paid for by closing tax loopholes and expenditures for the most fortunate. We need to make ambitious investments so that cost is no longer a barrier to college education, and the burden of debt does not hold back everyday Americans.
• More than half of the total will go towards grants to states and colleges. These grants will ensure that students do not need to take out loans for tuition and that support will also help reduce the burden of living expenses at 4-year public colleges. They will provide free tuition at community colleges, support private non-profit colleges that keep costs low and provide value, and relieve debt for students who commit to national service. These new grants will be paired with holding states and colleges accountable for bringing down costs.
• Around one-third of the funds will go toward relief on interest from student debt. This includes allowing every American with outstanding public debt to refinance their student loans at today's low interest rates, cutting interest rates to reflect the government’s cost of debt, and making it far easier for students to enroll in income-based repayment that limits crushing debt.
• The remaining funds will support innovative new investments to create a higher education system for the 21st Century. That means new funds to expand new models of life-long learning, rewarding college completion and enrollment, and broadening support for student parents. Some of these costs will be offset by risk-sharing with colleges.

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Hillary for America

Ambitious,’ ‘Bold,’ ‘Sweeping:’ Clinton’s New College Compact Hailed By Higher Education Stakeholders

Hillary Clinton announced her plan to confront the student debt crisis and to bend the cost curve in higher education – the New College Compact – during a town hall meeting in New Hampshire. The plan makes a direct promise to American students and their families: costs won’t be a barrier, and debt won’t hold you back.
 
Take a look at the coverage of Hillary Clinton’s New College Compact and the wide praise the plan is receiving in media reports and from experts, activists and key state stakeholders:
  
Barmak Nassirian, director of federal policy analysis at American Association of State Colleges and Universities:
“Barmak Nassirian, director of federal policy analysis at American Association of State Colleges and Universities, said overall he thinks it’s a ‘very positive plan’ touching on many pieces of the puzzle. He said it’s good that it encourages state investment in colleges and universities. ‘It’s a pretty solid approach.’”
 
Molly Corbett Broad, President of the American Council on Education:
“A presidential election is the time to consider broad changes to public policy, and this is a big, bold and complex proposal.”
 
Sandy Baum, a senior fellow at the Urban Institute and an expert on college costs:
“I think it’s very important that she is stepping up and addressing what everyone knows is a very real problem, that too many students are struggling with student debt, and too many students are not succeeding with college.”
 
Adam Green, Progressive Change Campaign Committee:
“Hillary Clinton’s plan is very big and ambitious – leading to debt-free college and increased economic opportunity for millions of Americans. 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.”
 
Tamara Draut, Demos:
“With the plan, millions of America’s working families will have access to debt-free public college at both two- and four-year institutions.”
 
Robert Shireman, former U.S. Department of Education higher education official:
“There is a lot of bipartisan interest in issues of college affordability, and bipartisan support for Pell Grants, student loans and other federal programs. The compact proposed by Hillary Clinton is a strong starting point for a discussion that zeros in on the issues that are in the public mind and have been raised by leaders in both parties: accountability, outcomes, college costs, and manageable loan repayment.”
 
Rohit Chopra, former student loan ombudsman at the Consumer Financial Protection Bureau:
“As a regulator, I spotted manipulation of payments to maximize fees, steering into repayment plans that were not in the best interest of borrowers, and illegal mistreatment of military families. The plan helps to fix all of these problems.”
 
Chris Hicks, an organizer for Jobs With Justice’s Debt-Free Future campaign:
“This plan would go further to help the 40 million Americans with student debt than any other plan right now, and other candidates and Congress need to pay attention. With more than 8 million student loan borrowers in default and even more in delinquency and unable to pay, we need these fixes immediately.”
 
Iowa Treasurer Michael Fitzgerald:
“Levels of student debt in Iowa are deeply concerning and completely unsustainable. Hillary Clinton's plan to reduce rates through refinancing, simplify income-based repayment, and crack down on predatory lenders, will make important strides for our students. Iowa is at it's best when we reduce barriers for our young people and no one should be buried in debt just as they're starting their career.”
 
Nevada System of Higher Education Regent Sam Lieberman:
“As a senator, Hillary Clinton worked to boost awareness of student aid, improve borrower transparency, and help veterans with their education. Her plan to tie student loan repayment to income will help prevent those looking to better themselves from getting trapped under crushing student loan debt. Student debt in our country has surpassed $1.1 trillion. That is unacceptable, and Hillary Clinton has a plan to prevent that debt from rising.”
 
Bryanta Maxwell, President of the Young Democrats of South Carolina:
“Student debt not only affects the borrower - it affects their families, parents, children and spouses, which is why we need real action from our next President. Hillary is offering serious reform for a struggling generation.”
 
Mic: Hillary Clinton Just Unveiled a Sweeping Proposal to Deal With the Student Debt Crisis
“On Monday, White House hopeful Hillary Clinton unveiled her program for making higher education in America more affordable. It is arguably the most significant proposal to address the $1.2 trillion student debt crisis that's ever been devised. The former secretary of state's vision on higher education, entitled the ‘New College Compact,’ calls for sweeping reforms that would create pathways to a college degree that require little to no debt and provide substantial relief to current student loan borrowers.”
 
Inside Higher Ed: Clinton’s Big Plan for Higher Ed
“Hillary Clinton will today unveil a massive plan to make higher education more affordable, student loan debt less burdensome and states accountable for supporting their public colleges. … The plan, if adopted, would create many more opportunities for Americans to earn a four-year degree at a public college without spending or borrowing as much as they do now. And the plan would create -- for many students -- options that are debt-free or effectively free.”
 
Vox: Hillary Clinton’s plan to bring down college costs, explained
“Hillary Clinton is announcing her higher education plan today — a wide-ranging proposal that calls for lowering student loan interest rates, making it possible for students to avoid borrowing to pay tuition at public universities, and changing how students repay their loans. … Clinton’s vision for higher education also reflects two big Democratic ideas that have become prominent more recently: that the federal government needs to step in to reverse years of state cuts to higher education, and that student loan interest rates should be as low as possible. … [H]er plan is an important look at the future of Democratic higher education policy. ... Clinton's plan reflects a growing consensus within the party that states alone can no longer keep tuition affordable at public colleges and universities, and that the federal government needs to step in to share the cost or force them to spend more.”
 
Politico: Hillary Clinton’s $350 billion plan to kill college debt
“Hillary Clinton on Monday rolled out a sweeping higher education plan — a $350 billion proposal that would help millions pay for college and reduce interest rates for people with student loans.
The plan, which would change the way a large swath of Americans pay for college, borrows ideas from the left and the right and even expands a program enacted by her husband. … Another Hillary Clinton trademark is a focus on veterans.Her plan would expand a program that supports vets who pursue their degree. And it would change the way for-profit colleges calculate how much revenue they draw from federal student aid programs by including GI Bill benefits and Defense Department tuition assistance money, which aren’t part of the calculation now.”
 
New York Times: Hillary Clinton to Offer Plan on Paying College Tuition Without Needing Loans
“With Americans shouldering $1.2 trillion in student loan debt, and about eight million of them in default, Hillary Rodham Clinton on Monday will propose major new spending by the federal government that would help undergraduates pay tuition at public colleges without needing loans. … [H]er proposals, which would cost $350 billion over 10 years and include new refinancing options for those already struggling with debt, are an aggressive response to what many Americans — Democrats and Republicans alike — see as a worsening crisis forcing young adults to move back home with their parents and struggle to get out from under repayment bills.”
 
Wall Street Journal: Hillary Clinton Proposes Debt-Free Tuition at Public Colleges
“Hillary Clinton is proposing an expansive program aimed at enabling students to attend public colleges and universities without taking on loans for tuition, her attempt to address a source of anxiety for American families while advancing one of the left’s most sweeping new ideas. … The Clinton campaign views this proposal as a centerpiece of its domestic agenda, akin in importance to health care in 2008, and it is her most expensive proposal so far.”
 
 
 
For Immediate Release, August 10, 2015

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Democracy for America

Statement from Democracy for America's Charles Chamberlain on Sec. Clinton's higher education plan:

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O'Malley for President

STATEMENT: O’Malley Has Led On Debt-Free College

BALTIMORE, MD—O’Malley for President Deputy Campaign Manager Lis Smith released the following statement on Governor O'Malley's leadership on the issue of debt free college:

“Debt-free college is an issue where Governor O'Malley has led, not followed. He is also the only candidate in the race who actually has a record of making college more affordable. 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."

Background:

O’MALLEY INTRODUCED A PLAN TO TACKLED STUDENT DEBT, TUITION AND FEES, BY FREEZING TUITION, INCREASING STATE INVESTMENT, ALLOWING FOR REFINANCING OF DEBT, EXPANDING PELL GRANTS, AND 

 

NH1: “To Stop Skyrocketing Tuition Rates, O'Malley Will Urge States To Immediately Freeze Tuition Rates, And Will Call On States To Restore Investments In Higher Education.” “The campaign says 70% of students now graduate college in debt, averaging $28,000 in loans. To help reduce that percentage, O'Malley will propose that students and parents be allowed to refinance their loans at lower rates, tie minimum payments to income, To stop skyrocketing tuition rates, O'Malley will urge states to immediately freeze tuition rates, and will call on states to restore investments in higher education. And to slow down the dramatic rise in tuition costs, "O’Malley would set a national goal of reducing the cost of tuition – to no more than 10 percent of state median income at four-­-year public universities, and to no more than 5 percent of median income at two-­-year public colleges." [NH1, 7/8/15]

 

O’Malley Planned To Increase Pell Grants And Federal Work Study Programs, As Well As Set A Goal Of Increasing College Completion Rates By 25 Points As Part Of His Debt Free College Plan. “To help low and middle income students cover rising non-tuition costs, O'Malley would increase Pell Grants and modernize and expand federal work study programs. O'Malley will also propose setting a nation goal of increasing college completion rates by 25 percentage points within a decade and eliminate discrepancies in graduation rates based on race and income. O'Malley would partner with states and schools to improve completion rates. The campaign also says O'Malley will highlight supporting part-time and mid-career students, and making child care affordable on campus.” [NH1, 7/8/15]

 

O’Malley’s Higher Education Proposal Would Allow Students To Refinance Their Debt, Tie Minimum Payments Based On Incomes And Create A Cap For Tuition Rates. “The O’Malley proposal, which his campaign is calling the first comprehensive plan, would allow students with loans to refinance their debt and be able to tie minimum payments based on incomes. He proposes tying tuition rates to median incomes so that the cost of tuition would be no more than 10 percent of state median income at four-year public universities, and no more than 5 percent of median income at two-year public colleges.” [Union Leader, 7/7/15]

 

Washington Post: “O’Malley Says He Would Set A Goal Of Limiting College Tuition To 10 Percent Of A State’s Median Income At Four-Year Institutions And 5 Percent At Two-Year Institutions.” “Under O’Malley’s plan, a copy of which was shared with The Washington Post, students and parents would be able to refinance their debt at lower interest rates. And O’Malley would base the repayment terms for student borrowers on their income upon graduation. For the long term, O’Malley says he would set a goal of limiting college tuition to 10 percent of a state’s median income at four-year institutions and 5 percent at two-year institutions. Federal matching grants would help states that participate in reaching the goal. Under his plan, O’Malley would also increase Pell Grants and revamp federal work-study programs to help cover non-tuition costs, such as room and board.” [Washington Post, 7/8/15]

 

MSNBC: On College Debt, “What Sets O’Malley’s Plan Apart From Others Is That It Would Also Attempt To Tackle Non-Tuition Costs, Like Room And Board.” “What sets O’Malley’s plan apart from others is that it would also attempt to tackle non-tuition costs, like room and board. To do that, O’Malley proposes increasing federal Pell Grants and tripling the federal work-study program to let two million students participate. He also calls for the federal government to use federal money as leverage to encourage colleges to increase on-time graduation rates, improve education quality, and direct financial aid toward students who need it most.” [MSNBC, 7/8/15]

 

MSNBC On O’Malley’s Debt Free College Plan: “For Mid-Career Students, He Proposes Expanding Child Care. And For All, He Suggests Creating Different Pathways To Graduation”. “For mid-career students, he proposes expanding child care. And for all, he suggests creating different pathways to graduation, including alternatives like online courses and blended education. On top of that, he proposes strengthening how high school prepare students for college. He would also crack down on for-profit colleges, which have recently come into the crosshairs of the Obama administration.” [MSNBC, 7/8/15]

O’MALLEY INCREASED EDUCATION FUNDING, FROZE TUITION RATES, AND ACHIEVED THE 2^ND LOWEST GROWTH IN TUITION AND FEES AT PUBLIC FOUR YEAR COLLEGES

From 2005-2006 To 2014-2015, Maryland Had The 2^nd Lowest Growth In Tuition And Fees At Public Four Year Institutions. [College Board Trends in Higher Education, accessed 1/26/15]

 

Baltimore Sun Editorial In 2014: “Over The Last Decade, University System Of Maryland Schools Have Become Much More Affordable As In-State Tuition And Fees Have Essentially Risen No Faster Than Inflation.” “Over the last decade, University System of Maryland schools have become much more affordable as in-state tuition and fees have essentially risen no faster than inflation. It's bumped Maryland's four-year tuition, once regarded as among the most costly in the nation, to middle-of-the-pack status. According to the College Board, Maryland has had the second- lowest increase in four-year tuition and fees of any state in the nation over the last five years, with only Missouri ranked higher. Today, that amounts to $8,475 in the current academic year, compared with $6,770 in 2004-2005.” [Baltimore Sun Editorial, 3/17/14]

 

In 2005-2006, Before Gov. O’Malley Took Office, Maryland’s Public Four Year Institutions Were The 8^th Most Expensive In The Nation, In 2014-2015 They’re The 26^th Most Expensive. [College Board Trends in Higher Education, accessed 1/26/15]

 

Washington Post Local Government Reporter Reid Wilson: “A Big Part Of Maryland’s Success Comes From A Four-Year Tuition Freeze, Which Gov. Martin O’Malley (D) Implemented In 2007. Every Year Since, The Legislature Has Capped Tuition Hikes At Just 3 Percent A Year.” [Washington Post, 6/13/14]

 

Under O’Malley, Maryland Boosted State Spending On Higher Education 30.7%. In Fiscal Year 2007 the state of Maryland spent $1.43 in state operating funds on higher education. The FY 2015 Budget allocates $1.87 billion on state operating funds for higher education, a 30.7% increase. [Maryland Higher Education Commission, accessed 1/26/15, Maryland Budget, FY15 Budget Highlights, 1/15/14]

 

Over O’Malley’s Tenure, Maryland Increased Spending On Community Colleges By 45%. The FY 2015 budget provides $297.5 million for the local community colleges, including a 5% growth in funding under the Cade formula. This reflects an increase of $92 million or nearly 45% since the O’Malley administration took office. [Maryland Budget, FY15 Budget Highlights, 1/15/14]

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Sean Savett

O’Malley For President

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Rubio for President

FOR IMMEDIATE RELEASE                                                      Alex Conant
August 10, 2015                                                 

Clinton's and Rubio's Higher Education Reforms are Choice Between Yesterday and The Future

Today, as Hillary Clinton unveils her higher education proposals, the Marco Rubio for President campaign released the following statement and fact-sheet comparing her plan to Marco Rubio's: 

“Hillary Clinton's higher education plan is Obamacare for college. Clinton's plan doubles down on the outdated system that's created skyrocketing tuitions and degrees that don't lead to jobs. Rather than modernize our system by embracing new innovations, Clinton will raise taxes and pour more money into a broken system. 

"Hillary Clinton can't lecture Marco Rubio on student loans. Marco understands firsthand the burden of student loans because he had over $100,000 in student loans as recently as four years ago. Marco understands our higher education system is outdated, which is why he's fighting to overhaul it. In his first 100 days as president, Marco Rubio will bust the higher education cartel by establishing a new accreditation process that welcomes low-cost, innovative providers. By embracing 21st Century innovations, Marco will help more Americans get the skills they need to achieve the American Dream." 

- Alex Conant, Rubio Spokesman

BACKGROUND … 


Clinton’s plan is effectively ObamaCare for America's higher education system. “The so-called New College Compact is designed to do the same thing for higher education that the Affordable Care Act did for health care, bending the cost curve, and requiring that non-educational costs—expenses like marketing a university or building a new football field—compose a smaller percentage of an institution’s spending.” (Hillary Clinton to Outline $350 Billion College Affordability Pitch, Bloomberg, 08/10/15)

Clinton blames state government for the rising cost of higher education. “Clinton’s plan places the blame on states for cutting back on their investment in higher education …” (Hillary Clinton's $350 billion plan to kill college debt, Politico, 08/10/15)

Clinton calls for more federal dollars to be spent on state colleges. “Her compact calls for more federal investment in colleges …” (Hillary Clinton's $350 billion plan to kill college debt, Politico, 08/10/15)


FACT: States are spending more on higher education, but tuition continues to increase. “Even though states increased higher education spending in 2014, tuition accounted for nearly half of public school revenue for the third year in a row, according to a new report from the State Higher Education Executive Officers Association.” (States are spending slightly more on higher education. But so are families., The Washington Post, 04/13/15)

FACT: Federal aid has increased but colleges continue to increase tuition rates. “And while the federal government stepped in with increased grant aid for students, the money has failed to keep pace with the cost of college.” (States are spending slightly more on higher education. But so are families., The Washington Post, 04/13/15)

FACT: Clinton’s higher education plan comes from the same ideas and advisers who built Barack Obama’s college affordability agenda. “Drawing on many of the same ideas and advisers on which President Barack Obama built his college affordability agenda, Clinton’s proposals—to be formally unveiled at campaign stops in New Hampshire on Monday and throughout the rest of the week—include federal incentives for states to boost their spending on public higher education, options for students to graduate from state colleges and universities without taking out loans, and pushing for a program to help borrowers refinance existing debt first pitched by Obama.” (Hillary Clinton to Outline $350 Billion College Affordability Pitch, Bloomberg, 08/10/15)

Marco Policy To Reform Higher Education

Simplify Existing Incentives to Help Students Pursue Higher Education

• Simplify tangled system of higher education tax incentives into one simple provision for post-secondary education.
• Reduce complexity of the federal financial aid application.

Equip Students and Families with Information Necessary to Make Informed College Decisions

• Make existing higher education information (including graduation rates for non- traditional students, transfers rates, student debt, post-graduation earnings, and likely employment outcomes) available online in an easily-accessible format to help students and families make well-informed decisions.

Reduce Burden of Student Loan Debt by Establishing Automatic Income- Based Repayment

• Establish income-based repayment (IBR) as the universal repayment method for federal student loans. 
• Empower new borrowers to make loan payments in proportion to what they earn, and give graduates the option of consolidating existing loans into the new, simplified IBR system.

Reform Outdated Accreditation System to Accommodate Non-traditional Education

• Promote innovative learning programs by establishing a new accrediting entity to ensure quality of these courses, review eligibility for financial aid, and make credits transferable into the traditional system.

Invest in Student Success

• Allow students to apply for innovative “Student Investment Plans” from approved investors to help Americans finance postsecondary education without taking on the burden of student loans.
• Establish legal, accountable framework for students to repay loans based on what they earn after college.

Modernize Higher Education System to Fit 21st Century Economy

• Increase access to career and vocational education.
• Better utilize apprenticeships and valuable on-the-job training.
• Ease access to state colleges and online educational opportunities.
• Increase hiring of non-degree holding workers.

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Jeb 2016
August 10, 2015

Jeb Bush on Hillary Clinton’s Fiscally Irresponsible Higher Education Proposal

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.

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.

We also need additional pro-growth economic policies that will give more college graduates the opportunity to achieve earned success rather than continuing down the path of declining workforce participation and access to jobs.

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Generation Opportunity

Generation Opportunity Statement On Hillary Clinton's Higher Education Plan

Washington, DC – (8/10/15) – Today, former Secretary of State Hillary Clinton released a policy proposal that does nothing to improve the quality of our higher education system. Like President Obama’s “free” community college idea, Mrs. Clinton’s plan has a feel-good sound to it, but will actually end up driving up costs for hard-working taxpayers.

Generation Opportunity National Spokeswoman Patrice Lee issued the following statement:

“Empty promises of ‘free’ college is the Washington equivalent of pouring students another drink to cure their massive debt hangover. What’s being sold as a sweet deal for students is actually a repackaging of the same government programs that caused debt and tuition to skyrocket in the first place. Nothing is free, and any increase in federal funding for higher education will fall directly on the backs of the very students it’s supposed to help."

Generation Opportunity is a national, non-partisan organization advocating for economic opportunity for young people through less government and more freedom.

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