Obama Announces College Affordability Plan Today

Appearing in Michigan today, Barack Obama unveiled his plan to increase college affordability:

College affordability: John McCain doesn’t have a real plan to put college within reach

When it comes to education, Senator McCain is out of touch with the needs of hardworking Americans. It’s not just that he doesn’t have a real plan to make college affordable; it’s that he’s voted time and time again to stop us from making college affordable. A couple of years ago, he even voted against funding for students so he could protect billions of dollars in corporate tax loopholes.

Barack Obama’s plan to make college affordable for every student:

Provide a $4,000 American Opportunity Tax Credit. This fully refundable credit will ensure that the first $4,000 of a college education is completely free for most Americans, and will cover two-thirds the cost of tuition at the average public college or university. Recipients of the credit will be required to give back by serving their community for 100 hours a year, either during the school year or over the summer.

Eliminate Costly Bank Subsidies. Obama will save taxpayers billions by eliminating the more expensive private loan program that exists today, and directing that money into direct aid for students. A transition to the direct lending system will also ensure that access to federal financial aid isn’t disrupted future market turmoil.

Simplify the Application Process for Financial Aid. The current application for federal financial aid is longer and more involved than many federal tax return. Obama will simplify the financial aid process by eliminating the current form altogether. Instead, he’ll base aid on a much simpler but equally accurate formula, so that students can predict their eligibility well in advance. And families will be able to apply simply by checking a box on their tax form, eliminating the need for a separate application.

Create a Community College Partnership Program. This initiative will help community colleges analyze what skills are needed to prepare students to work in local industry, and rewarding success by providing grants to community colleges that graduate more students and increase the number of their students who transfer to four-year colleges.

Help Students Become Aware of College Readiness. Too many high school students discover they are unprepared for college when it’s already too late. Barack Obama will provide $25 million in matching funds annually to states that develop Early Assessment Programs that help inform students early what they’ll need to do to prepare for college.