Clinton: ‘No Student’ Should Borrow to Pay for Public College

“It’s time to show some tough love to colleges and universities that let significant numbers of students” fall behind, Democratic candidate Hillary Clinton says during town hall in Exeter, N.H.

  • “No student should have to borrow to pay tuition at a public college or university”
  • Fed govt “will not profit any longer off of student loans”; existing student debt should be refinanced at lower rates
  • NOTE: Clinton is rolling out her $350b college affordability and student debt relief plan, which includes cutting student loan rates for ~25M borrowers through refinancing programs for both private and federal loans and a “Borrower Bill of Rights” to increase servicer responsibilities
    • Most proposals would require congressional approval, as would Clinton’s preferred way of funding them, by capping value of itemized tax deductions for the wealthy
  • NOTE: Republican candidate Jeb Bush says Clinton’s “irresponsible proposal would raise taxes, increase government debt and double-down on the failed Obama economic policies”
  • NOTE: “Low likelihood” that Clinton’s calls to increase incentives for states to boost public higher-education spending and to enact institutional risk-sharing for colleges would become law, Compass Point’s Isaac Boltansky wrote in note earlier today
    • Boltansky says he’s more optimistic on prospects for simplifying income-based repayment and boosting student loan servicers’ requirements
Earlier: Clinton to Outline $350 Billion College Affordability Pitch

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