A solid education is fundamental in a job market that seems to become more and more competitive as the years progress. This can be challenging as students struggle to pay tuition costs, or can no longer afford to stay in school and ultimately accumulate college debt.
According MSNBC, Americans hold more student loan debt than credit card debt. Today the U.S. is at a whopping $1.2 trillion deficit in student loans and the numbers are continuously rising. One of Hillary Clinton’s proposals during her 2016 presidential election campaign is to eliminate this by offering student loan forgiveness, also known as the “New College Compact.”
“Students will be able to attend an in-state public university to get a 4-year degree without ever having to take out a loan for tuition,” according to Clinton’s fact sheet that was shared with reporters. While the proposal is quite enticing to the youth of America, it is gaining the publicity from the viewers Clinton needs in order to gain a victory such as Obama’s– America’s young adults. Some may describe this as strategic, but could this actually work?
Clinton’s proposal sounds appealing, however, is it realistic? She addresses, “undisclosed tax loopholes on the wealthy” and claims to use these dollars toward tuition, instead of unpayable student loans. This is not going to happen anytime soon, as her tuition piggybank will take approximately 10 years to build. Her goal is to raise $350 billion dollars for universities, non-profit colleges and grants.
Lastly, she plans on using the remaining dollars toward debt relief for students. Ultimately, the student is not obligated to repay more than 10 percent of his or her income and the remainder shall be forgiven and repaid by Clinton’s debt relief reform. One of the stipulations for qualifying students is to contribute by working at least 10 hours per week. Clinton has added an extra tax credit of $1,000 to $2,500 to individuals paying for college.
This is not the first proposal of its kind and while other politicians have failed to plan properly, its been said that Clinton’s proposal is the most detailed, prepared and expensive.