Education in the 2016 race: Clinton’s plan endorsed by Harkin

Iowa State Daily

The Clintons make their entrance with Sen. Tom Harkin at the 37th annual Harkin Steak Fry in Indianola, Iowa on Sept. 14. Harkin has endorsed Clinton during her campaign in 2016.

Alex Hanson

During one of her most recent trips to Iowa, Democratic presidential candidate Hillary Clinton unveiled her plan on education, specifically what she would do to make sure cost is not a barrier to higher education and a plan to address high levels of student debt after college.

Dubbed “Hillary Clinton’s New College Compact,” her campaign says it has two goals — “Costs won’t be a barrier” and “Debt won’t hold you back.” Former Iowa Sen. Tom Harkin has endorsed the plan, along with numerous other state officials.

“We have seen over the years that the cost of college just keeps going up, but the incomes of everyday Iowans are not keeping up,” Harkin said. “I think there is a broad consensus that even crosses partisan lines, that a college education is one of the best ways to get a good paying job, to increase their economic security and provide for prosperity for Americans.”

At the center of her plan is the idea that students should not have to borrow money to pay for tuition, books or fees, but families will still have to make contributions that the campaign calls “realistic.” This is in contrast to Vermont Sen. Bernie Sanders, one of Clinton’s challengers, who calls for 100 percent subsidized education.

“Today the cost of attending college in Iowa is about $18,900 per year at the largest public college in the state,” Harkin said. “For our students attending four-year public colleges, the average debt will be between $23,200 and $29,900.

The campaign says Clinton’s plan will require states to maintain current funding levels for education, but must “reinvest” over time. Clinton says colleges must improve outcomes and control costs to make sure tuition is affordable and students can graduate.

Harkin said through a combination of those reinvestments and college cost controls, a family in Iowa making $50,000 a year could save about $25,700 over four years of college and the life of their loans.

“These reductions would have a real impact on families in Iowa and would put us closer to putting college in reach for more Iowans,” Harkin said.

One more goal the campaign says will help control cost is to encourage “innovators” to design new ways to provide education and crack down on abusive practices that burden students with debt, but don’t provide them with quality education.

During a conference call with reporters last week, Trent Seubert, senior at the University of Iowa, said he and other students in Iowa are increasingly worried about the burden of college debt and how they will pay for it after they graduate.

“When I graduate, I know a large amount of my monthly paycheck will be going toward servicing my debt and trying to pay that off,” he said. “[Clinton’s plan] would make a real difference for students like me.”

For those still owing debts on loans, Clinton wants to allow students to refinance old loans at current rates. The campaign estimates this could save most students about $2,000.

Future undergraduates would have interest rates cut significantly lower than current levels under Clinton’s plan. Clinton also wants those with debt to be able to enroll in plans that allow them to contribute no more than 10 percent of their income toward paying off loans.

“Levels of student debt in Iowa are deeply concerning and completely unsustainable,” said Iowa Treasurer Michael Fitzgerald. “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 its best when we reduce barriers for our young people and no one should be buried in debt just as they’re starting their career.”

The campaign says the plan will cost somewhere around $350 billion over 10 years. Clinton says it will be fully paid by “limiting certain tax expenditures for high-income taxpayers.”

Clinton is one of five Democrats running for the party’s nomination in 2016.