The Politics of Free College
The cost and debt associated with education has become a hot topic in the 2016 presidential election, with many Democratic candidates proposing programs that would alter the landscape of education in the U.S. dramatically.
Bad Debts:
70% of 2015 graduating seniors carried an average of $35,000 in student debt. (1)
U.S. student loan debt: $1.2 trillion (2)
Smart Money: School Isn’t Cheap
The cost of tuition can range broadly by location:
The average annual in-state tuition at a four-year, public university in 2015: $9,280 (3)
Most expensive
Pennsylvania: $13,395 (3)
Vermont: $14,993 (3)
New Hampshire: $15,160 (3)
Cheapest
Wyoming: $4,891 (3)
Montana: $6,351 (3)
New Mexico: $6,355 (3)
Trending upward: On average, tuition has risen 25% nationwide over the past 5 years. (3)
Hillary Clinton’s New College Compact
Emphasizing collaborative reform and finance of higher education, Clinton’s compact includes: (4)
- Average of $17 billion annually in new federal grants to states
- Parent and student contributions
- Single point of payment
- Increased standardized transparency
- Capping loan interest rates
Cost: $35 billion per year. (4)
Who pays for it? The entirety of the plan is intended to be paid for by reducing undisclosed tax deductions on the wealthiest Americans. (4)
Bernie Sanders’ College for All Act
Following a popular European model, the Sanders Plan promises to deliver education as a right. The plan focuses on: (5)
- Federal guarantee of 67% of undergraduate tuition
- Eliminate student loan profits
- Allow existing aid programs to cover room and board
- Triple work-study funding
- Capping student loan payments
Cost: $70 billion per year in state and federal funding (5)
Robin Hood Tax: Sanders’ plan calls for taxes and fees that target Wall Street speculators to pay for 100% of the federal cost (6)
So What’s the Catch?
All of the programs depend on states increasing spending on higher education, which may be difficult to achieve. Other hurdles include:
- Funding/levying taxes requires an act of Congress. (9)
- Disrupts the private college sector (10)
- Larger classroom sizes (10)
- Fewer educational offerings (10)
Across the Aisle
Some GOP candidates have their own ideas; for Marco Rubio, Chris Christie and Jeb Bush, it seems they weren’t enough to keep voters interested.
Marco Rubio
Ties loan repayment to income (11)
Creates alternative financing (11)
Requires statistical transparency from schools (11)
Chris Christie
Demands budget transparency (12)
Supports Income sharing agreements (12)
Increases need-based grants (12)
Jeb Bush
Creating online and alternative schools (13)
Risk sharing (14)
Merit based education awards (11)
Middle Ground
With over 50% of Americans supporting free tuition in principle, and many Americans facing increasing tuition costs, there are some areas where candidates from both sides of the aisle meet. (20)
Student loans need reform
Since 1999 student debt burdens have more than doubled:
1999: $15,000 (1)
2015: $35,000 (1)
Lifetime student loan default rate: over 18% (18)
Profiteering on student debt is bad government
Student loan interest rates by 2018?
A projected 7% (19)
Up from 3.86% in 2013(19)
Expected government profits through 2025?
Over $11 billion per year (5)
Donald Trump: “That’s probably one of the only things the government shouldn’t make money off.” (21)
Parting Shots
The 2016 election stands to mean huge changes when it comes to higher education. Still it’s easy to see that there’s an ideological divide to span before debt-free college is a reality.
Bernie Sanders: “This is not a radical idea.”
Chris Christie: “That is a typical liberal approach. It is wrong.”
Sources:
1. http://blogs.wsj.com/economics/2015/05/08/congratulations-class-of-2015-youre-the-most-indebted-ever-for-now/
2. http://www.themaneater.com/stories/2015/10/28/presidential-candidates-reform-higher-education/
3. http://trends.collegeboard.org/college-pricing/figures-tables/tuition-and-fees-sector-and-state-over-time-1
4. http://time.com/money/3990445/hillary-clinton-college-plan/
5. https://berniesanders.com/issues/its-time-to-make-college-tuition-free-and-debt-free/
6. http://www.sanders.senate.gov/download/collegeforallsummary/?inline=file
8. http://www.cbsnews.com/news/martin-omalley-pitches-debt-free-college-plan/
9. http://www.wsj.com/articles/price-tag-of-bernie-sanders-proposals-18-trillion-1442271511
10. http://www.educationdive.com/news/debt-free-college-plans-could-have-far-reaching-consequences/403876/
11. http://www.popecenter.org/commentaries/article.html?id=3236
12. http://fusion.net/story/224346/where-all-the-2016-presidential-candidates-stand-on-fixing-student-debt/
13. http://www.huffingtonpost.com/stephen-dash/would-jeb-bush-put-an-end_b_7037638.html
14. https://www.insidehighered.com/news/2015/09/10/republican-presidential-candidates-begin-getting-weeds
16. http://www.usnews.com/news/articles/2015/06/11/chris-christie-comes-out-against-free-college
17. http://www.mediaite.com/online/rand-paul-compares-receiving-free-tuition-to-getting-free-makeup-shoes/
18. https://today.yougov.com/news/2015/08/20/three-fifths-want-debt-free-college/
19. http://www.studentdebtrelief.us/news/donald-trump-on-the-student-loan-crisis/
20. http://www.businessinsider.com/bernie-sanders-debt-free-college-plan-2015-6