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Where They Stand: Barack Obama on Higher Ed

With Democratic Senators Barack Obama and Hillary Clinton continuing to slug it out for their party’s Presidential nomination, we’ve decided to highlight some of their key higher education policy proposals. Sen. John McCain, the presumptive Republican nominee, has not yet offered a detailed plan on these issues.

Last week we took a look at the proposals offered by Hillary Clinton, the junior Senator from New York. Today we examine those of her challenger, Sen. Barack Obama. The junior Senator from Illinois laid out his education plans in November.

Obama’s plan for higher education would:

Increase Federal Financial Aid and Make It Easier for Students to Apply for Aid

  • American Opportunity Tax Credit: The centerpiece of Obama’s plan is a higher education tax credit worth $4,000, more than double the current $1,650 of the HOPE tax credit, which it would presumably replace. Keeping with the Senator’s desire to encourage students to engage in community service, recipients of the new tax credit would be required to perform 100 hours of community service per year. The tax credit would be fully refundable, meaning that low-income students whose famiies don’t pay taxes would still be eligible to receive it. In addition, the credit would be “advanceable” to allow families to receive the benefit when their tuition bills are due. To achieve this, the government would use prior year’s tax data to determine eligibility for the credit.
  • Pell Grants: Obama calls for boosting the maximum Pell Grant, although he doesn’t provide specifics as to how high. Instead, Obama pledges to readjust the maximum award every year to take account of the inflationary costs of college tuition.
  • Work-Study: Obama would increase the proportion of Federal Work-Study slots that colleges must devote to community service jobs from 7 percent to 25 percent. His campaign estimates the requirement would help more than 200,000 students take part in community service each year while in college.
  • Simplification: Obama’s plan would eliminate the Free Application for Federal Student Aid, which he says is too “cumbersome” and “complicated.” Students and their parents would simply check a box on their income tax returns to apply for aid.
  • Early Intervention: The Senator has expressed support for both the TRIO and GEAR UP programs, which aim to prepare and motivate low-income and first generation students for college. His plan would also provide $25 million a year in matching funds for states to develop Early Assessment Programs that help high school juniors to determine whether they are on track to be ready for college. States would be able to use Early Assessment Program funds to raise awareness about the availability of federal and state financial aid.

Overhaul the Federal Student Loan Programs

  • Student Loan Delivery: Obama’s proposal would eliminate the FFEL program and provide federal loans entirely through the Direct Student Loan Program. He has said that he would use the savings from making this change to increase spending on Pell Grants.

Strengthen Community Colleges and Provide Incentives to Improve Their Performance

  • Community College Partnership Program: Obama’s plan calls for creating a new grant program aimed at helping strengthen community colleges. Under his plan, the federal government would provide grants to help community colleges identify the types of skills and technical education that are in high demand from students and local industry; create new associate’s degree programs in these fields; and provide financial incentives to encourage these institutions to increase the rates at which they graduate students and transfer them to four-year colleges. The Senator has not specified how much this proposal would cost.

On the campaign trail, particularly in Ohio and Pennsylvania, Obama increasingly has highlighted: (1) his community college partnership proposal, and (2) his plan’s linking of increased higher education tax benefits to required community service. Apparently, he believes those two elements of his plan in particular appeal to blue collar voters. He’s probably right.

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Christina Satkowski

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Where They Stand: Barack Obama on Higher Ed