Clinton to unveil plan to cut college costs

WASHINGTON – Calling for a “new college compact,” Hillary Rodham Clinton today will unveil a $350 billion plan aimed at making college more affordable and reducing the crushing burden of student debt.

At a town hall meeting in New Hampshire, the state with the highest average student debt in the country, Clinton will propose steps to reduce the cost of four-year public schools, make two-year community colleges tuition-free and cut student loan interest rates, according to campaign aides.

The college affordability plan, a main plank of her policy platform, is an effort to address a major financial stress for many American families and satisfy a central demand of the Democratic party’s liberal wing.

The proposal centers on a $200 billion federal incentive system aimed at encouraging states to expand their investments in higher education and cut student costs. States that guarantee “no-loan” tuition at four-year public schools and free tuition at community colleges will be eligible to receive federal funds.

But Clinton doesn’t go quite as far as some more liberal politicians and party activists, who’ve made “debt-free college” an early litmus test for the presidential primary field. In May, Vermont Sen. Bernie Sanders released his own plan that would eliminate tuition and fees for public universities. The $70 billion annual proposal would be funded by imposing a tax on transactions by hedge funds, investment houses and other Wall Street firms.