Clinton Proposes Plan to Reduce College Costs by Limiting Tax Deductions
Hillary Clinton has rolled out a plan to make college affordable that her presidential campaign has dubbed the New College Compact, enabling students to pay for higher education without taking out costly student loans.
“Under the New College Compact, no student should have to borrow to pay tuition at a public college,” said Clinton on her Web site. “Schools will have to control their costs and show more accountability to their students. States will have to meet their obligation to invest in higher education. The federal government will increase its investment in education, and won’t profit off student loans. And millions with student debt will be able to refinance it at lower rates.”
The incentive-based program would give money to states that offer “no-loan” tuition at four-year public universities and community colleges. Those who are already paying off their student loans would be able to refinance at today’s current interest rates. Under her plan, students who qualify for Pell grants would be able to use them for living expenses—and middle-class students would get more help to cover their living expenses. Clinton introduced the plan during a speech Monday at Exeter High School in New Hampshire.
The estimated $350 billion plan would in part be paid for by reinstituting limits on itemized deductions for high-income families that were in effect during the Reagan administration, according to the Washington Post. Read more on Accounting Today.