October 16, 2007

While none of the candidates for the Republican presidential nomination have issued proposals for postsecondary education or student financial aid, four of the candidates for the Democratic presidential nomination have, including the frontrunners and likely nominee.

It is very early in the process with only one candidate to be nominated by the party next summer after a primary season that will stretch from January through May 2008 (even though the nominee will probably be known after the rash of primaries scheduled in January and February when most of the delegates will be chosen).

The election, of course, is not until November 2008. So, we have a long way to go. And proposals have a way of evolving as a campaign unfolds and, afterward, as a new administration works with a new 535 member congress to pass legislation.

Senator Hillary Clinton has, so far, the most detailed proposal of the candidates to make postsecondary education more affordable by:

Creating a New $3,500 College Tax Credit — This doubles the HOPE tax credit, raising the maximum amount of benefits that students and their families can receive from $1,650 to $3,500. This new credit will cover more than 50 percent of the typical tuition of public colleges and universities and more than the full cost of tuition for community colleges. Under the new credit, taxpayers will be able to claim 100 percent of the first $1,000 of college expenses and 50 percent of the next $5,000. This new credit will also be partially refundable in order to increase its value to low-income individuals. It will phase out in a manner similar to the current HOPE credit and will also be "advanceable" to allow families to receive the tax credit when their tuition bills are due instead of 16 months later.

Increasing the Maximum Pell Grant — This proposal would maintain the increases included in the College Cost Reduction Act.

Strengthening Community Colleges — This proposal would provide $500 million in incentive grants for investments by community colleges to ensure that students complete their degrees, and in partnerships between community colleges and four-year colleges to increase graduation rates at community colleges and promote smooth transfers from community colleges to a four-year college or university.

Creating a Graduation Fund to Increase Graduation Rates — This proposed $250 million Graduation Fund will set out to close the diploma gap with incentive grants that challenge four-year colleges to launch performance-based efforts to improve their graduation rates, especially among low-income and minority students.

Supporting Apprenticeships and Workforce Training Initiatives — This proposed $250 million would support innovative on-the-job training and apprenticeship programs that are aligned to the needs of the local economy.

Doubling funding for AmeriCorps — This proposal would double the education award to $10,000 to cover a larger portion of the cost of going to college for people who devote a year or two of full-time public service to our country.

Simplifying the application process for student aid — This proposal eliminates the FAFSA and uses the 1040 income tax form to allow people to apply for financial aid by checking a box on their income tax return. Upon checking that box, they would receive a letter from the Department of Education with a coupon showing the amount of federal aid-grants and loans-to which they are entitled. They would then include their eligibility information on their college applications, and the schools will reach out directly to the Department of Education to collect the funds.

Holding College Costs Down and Colleges Accountable for Results — Students and their families should be able to make educated decisions about where to spend their money through use of the following.

A new online Higher Education Cost Calculator — This calculator will provide an estimate of the amount of aid (from all sources — federal, state, local and the institution), a student is likely to receive. Under this proposal, colleges and universities will submit information about a typical range of low to high income students and their financial aid in their freshman and sophomore years to the Department of Education. The Department of Education will use it to develop a cost calculator, which students and families would be able to access online to find out roughly how much they should expect to owe out of pocket in their first and second years, if they chose to attend that institution.

A College Graduation and Employment Rate Index — The Department of Education will make available information about the outcomes produced by all colleges and universities, including the four-year and six-year graduation rates and the percent of the senior class that is employed upon graduation or enrolled in further education, including information on earnings and field of employment.

Truth in Tuition Disclosure — As a condition of federal financial aid eligibility, state and local institutions of higher education will be required to set multi-year tuition and fee levels for each cohort of students at the beginning of each student's freshman year, so students and families will have a sense of how much their costs will be in the coming years.

These proposals build on her pending legislation in the Senate as follows.

A Public Service Academy — Creates The United States Public Service Academy to tap into the renewed sense of patriotism and civic obligation among our young people. This academy will be like the West Point of public service, cultivating future leaders in the fields of education, government, public health, environmental conservation, and more by instilling in them leadership skills for the public sector.

A New GI Bill — A new GI Bill of Rights for the 21st Century. This bill would provide the full cost of tuition and fees, and a living allowance for 36 months of schooling for those who enlist for four years of active duty military service. Right now, the Montgomery GI Bill (MGIB) pays less than two-thirds of the average cost of attending a four-year public college. This legislation would also increase the basic benefit for those currently in the MGIB or who serve less than four years to $1,300 per month, and eliminate the current reduction in their basic pay to get the educational benefits.

A Student Borrower's Bill of Rights Legislation — to make it easier for students to repay loans and give them a basic set of enforceable rights. It would give student borrowers the right to fair monthly payments that do not exceed a percentage of their incomes, as well as access to fair interest rates and fees. The bill would also give students the right to shop in a free marketplace for their lender and to borrow without exploitation. Finally, the bill will give students access to better information about their loans to provide students with better options during repayment.

Non-Traditional Student Success Act — This bill is aimed at expanding access to college for working adults, those who go back to school later in life, and first generation college students. This legislation increases the maximum Pell Grant. It also creates a pilot program to allow students attending college less than half-time to receive federal student aid. It increases the income protection allowance to allow working students to keep more of their income without losing crucial student aid. And it expands the Lifetime Learning Credit from 20 to 50 percent and allows students to receive the money in advance — when they need it to pay tuition.

The new college tax credit and other initiatives in this agenda will cost approximately $8 billion per year. These costs will be financed without increasing the deficit by eliminating the guaranteed student loan program and allocating a portion of the savings from freezing the estate tax at $7 million per couple rather than allowing it to be completely repealed. Freezing the estate tax at $7 million per couple will have no effect on 99.7 percent of estates. It will mean instead that the 10,000 wealthiest estates in the U.S. do not receive a further tax cut.

Senator Barack Obama's proposals to make postsecondary education more affordable are, so far, limited to random sound bites in speeches that propose increasing the annual maximum Pell Grant, paid for through reducing the cost of student loans by "cutting out the middleman and giving loans and grants directly to students".

John Edwards proposes to make postsecondary education more affordable by nationalizing the College for Everyone program in place in Greene County Central high School which he helped start.

The College for Everyone pilot program at Greene Central High School in Snow Hill, North Carolina was launched by the Center for Promise and Opportunity Foundation, a North Carolina nonprofit organization. Located in rural, eastern North Carolina, Greene County's income and education attainment are lower than North Carolina averages. Its school system has an above-average percentage of students who are economically disadvantaged.

The College for Everyone program is based on a proposal that Edwards first talked about in his 2004 presidential campaign. It helps pay for the first year of tuition, fees and books for college students who agree to work part-time. Students must also complete coursework that prepares them for further education, stay out of trouble, and enroll in a participating public university or community college.

The program works with College Summit and North Carolina's universities and community colleges. Last year the program announced that more than $300,000 in scholarship funding was available, and 72 students just completed their first year of college. More than 125 students from this year's graduating class are expected to attend college in the fall with the help of College for Everyone. The projected college-going rate for Greene Central seniors has increased from 54 percent before the program started to 74 percent today.

John Edwards College Opportunity Agenda includes the following.

Creating a National "College for Everyone" Initiative — pays one year of public-college tuition, fees, and books for more than 2 million students. In return, students will be required to work part-time in college, take a college-prep curriculum in high school, and stay out of trouble.

Lower Costs — College for Everyone's universal eligibility for qualifying students would bypass the current student aid system and go directly to the student and family that qualified students can afford college.

Strong Preparation — College for Everyone students will be required to complete a college-prep curriculum in high school. Edwards will also work with school districts to strengthen high school curricula.

Overhauling the Student Loan Program — Students will borrow directly from the FDLP. By eliminating bank subsidies on student loans, approximately $6 billion a year is transferred to programs to make college more affordable.

Simplifying Financial Aid — The application process is simplified by using information the federal government already has, eliminating two-thirds of the questions.

Giving Students the Tools They Need to Apply for College and Aid — Funding will ne made available to help every low-income high school eligible for Title I hire a new college counselor, helping students choose college-track courses and navigate the admissions and financial aid process.

Governor Bill Richardson's plan for improving access to postsecondary education includes:

Increasing graduation rates by investing $1 billion a year in states' dropout prevention programs to encourage the one million students who drop out each year to stay in school.

Eliminating the FAFSA, expanding access to student aid, and increasing college affordability by simplifying and consolidating the federal government's loans, grants, and scholarship programs, and providing financial incentives for schools to keep their tuition costs under control.

Increasing aid to those who need it most by expanding LEAP and GEAR UP and need based federal programs that assist students from low-income families and eliminate the enormous subsidies to banks and private lenders and redirect that money to students who need it.

As stated previously, none of the Republican candidates have unveiled postsecondary education proposals. These are initial proposals from candidates from which only one Democrat and one Republican will eventually be selected to campaign against one another in November of 2008, and the congress will be the ultimate determiner in the shape, type, and role of the federal student loan program.

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