Now that the Democratic National Convention in Charlotte, N.C., has concluded, the presidential campaign will begin in earnest. But before we immerse ourselves in the fever pitch, let’s take a look at the Democrats’ plans for higher education in comparison to the Republican plan we examined last week.
While the Republican plan for education borrowed heavily from Paul Ryan’s proposals (which include extensive cuts to federal aid and an emphasis on privatization of higher education), the Democrats took the opposite approach, devoting a lengthier portion of their party’s platform to pledge greater federal involvement in higher education:
“To make college affordable for students of all backgrounds and confront the loan burden our students shoulder, we doubled our investment in Pell Grant scholarships and created the American Opportunity Tax Credit worth up to $10,000 over four years of college.”
The American Opportunity Tax Credit, instated under the Obama Administration in 2009, was extended through December 2012 in 2010 — this credit falls under the banner of the American Recovery and Reinvestment Act (ARRA), President Obama’s hallmark legislation, which invests heavily in developing a skilled, educated American workforce.
This means that students have expanded access to funding that does not have to be repaid — giving low-income students the opportunity to go to college and compete in a modern job market that demands skilled professionals.
But this part of the platform is about things the Democrats have already accomplished. What are their future plans for higher education in America if Obama is reelected?
“We’re creating avenues for students to manage their federal student loans so that their payments can be only 10 percent of what they make each month.”
What the Democratic platform is promising here is something called “income-based repayment,” a program designed primarily for students who enter low-paying jobs after college.
This would be a remarkable boon for students just leaving school and entering into the hyper-competitive job market — in our current economic climate it isn’t uncommon for highly qualified graduates to find themselves in a lower-paying job and crippled by student loan debt.
If the Democrats and President Obama actually manage to implement income-based repayment, it will save America’s college graduates from an enormous debt burden.
