Seeking to jump-start congressional discussions on higher education, a coalition of Democrats is proposing an ambitious new higher education plan that could include more than $150 billion in new funds over the next 10 years.
Called Saving the American Dream, the plan would provide states with incentive funds based on the number of students who enroll in and eventually graduate from college. States could receive $150 billion under this program, based on two and four-year college enrollment, as well as the number of graduates. In exchange, states would agree to maintain spending on higher education and hold tuition to the overall inflation rate.
The incentive grant would translate into extra funding of about $2,000 per college student, sponsors say.
The plan also would simplify the growing maze of federal tax incentives into one program. In the new approach, all families that put students through college, graduate school or job training could receive a $3,000 college-tuition tax credit.
The credit would cover up to four years of postsecondary education, and families too poor to owe federal taxes would receive the same aid through a refund. The credit would replace the current HOPE Scholarship and lifelong learning tax credit.
“America needs a bold new plan to produce 1 million more college and community college graduates a year by 2015,” states the Democratic plan, proposed by a group of leaders that includes Sen. Hillary Clinton, D-N.Y., Sen. Tom Carper, D-Del., and Gov. Tom Vilsack, D-Iowa.
