Hillary Clinton Campaign Press Release - Sen. Matthews Unveils SC Impact for Hillary's Plan to Help Families Afford College at Claflin University

Hillary's College Affordability Plan Could Help 36,000 SC H.S. Seniors

(ORANGEBURG) – State Senator and Hillary Clinton Campaign South Carolina Co-Chair John Matthews unveiled a report detailing the impact in South Carolina of Hillary's new proposal for college affordability, calling it the best chance to expand opportunity Palmetto State students. Hillary nationally released her plan to make college affordable today.

"South Carolinians recognize the tremendous value of a college education. But it's the means to get there, to get in school and to finish, that is the major obstacle as tuition costs skyrocket and families are left squeezing their budgets to pay for it," Matthews, surrounded by students at Claflin University, said. "Hillary's plan offers financial relief and the opportunity for a higher education, a better paying job and a higher standard of living to tens of thousands of South Carolina families and young people struggling to come up with the money for college."

Over the course of a 40-year career, college graduates can expect to earn, on average, nearly $1 million more than high school graduates, according to the impact report released today. But the share of family income, even after financial aid, needed to pay for college expenses has increased significantly in South Carolina from 1992 to 2006: 22 percent to 27 percent for community colleges; 28 percent to 36 percent for four-year public institutions, and 48 percent to 60 percent for four-year private institutions. Even at the lowest-priced colleges, the share of income that the poorest families have to pay for tuition in 2006 was 28 percent, up from 15 percent in 1992.

For the more than 36,000 South Carolina high school seniors considering going to college, or the more than 200,000 students already attending college, Hillary's plan will offer a new $3,500 tax credit. Hillary is proposing to more than double the HOPE tax credit, raising the maximum amount of benefitsthat students and their families can receive from $1,650 to $3,500. This new credit will also be partially refundable in order to increase its value to low-income individuals. It will phase out at about the same levels as the HOPE credit and will be advanceable to allow families to receive the tax credit when their tuition bills are due instead of 16 months later.

According to the state report, graduates from four-year public and private colleges in South Carolina face an average of $19,697 in debt, placing the state at 19th in the country in terms of debt level. Seventy-one percent of all graduates from four-year public and four-year private colleges in South Carolina carried debt after graduation. The average loan amount that a South Carolina student borrowed in 2006 was $4,118.

For the more than 80,000 South Carolina students enrolled in two-year programs or thinking of going to a community college, Hillary's plan to strengthen community colleges will offer tremendous benefit. Hillary's plan will provide $500 million in incentive grants for partnerships between community colleges and four-year colleges. In South Carolina, 43 percent of students are enrolled in community colleges. Those who are among the 40 percent of the population with the lowest income must spend half of their income – 43 percent – to go to community college.

The full impact report is included below.

On October 11, Hillary Clinton unveiled her plan to make college more accessible and more affordable. The plan will ensure that the nearly 36,000 South Carolina high school seniors and others who want to pursue a higher degree can do so. The plan will make applying for financial aid simpler and financing an education easier for them and the approximately 200,000 South Carolina students already enrolled in various two- and four-year programs in the state. Today, students and families throughout South Carolina face skyrocketing tuition costs. Hillary Clinton's plan will make applying for financial aid simpler and financing an education easier.

A college education is key for economic success

Higher wages and a stronger economy. Over the course of a 40-year career, college graduates can expect to earn, on average, nearly $1 million more than high school graduates. [i]

College isn't affordable to many. An increasing proportion of college students come from families whose median income is higher than the national median income. Parental income for freshmen is outpacing the national income by a two-to-one margin. [ii]

Not for a lack of desire. Students and families recognize the importance of a college education. According to a 2005 study by the National Center for Education Statistics, 72 percent of high school sophomores nationwide expected to complete a bachelor's degree or higher. [iii]

Making a college education more accessible and more affordable

Cost is a major reason why some people do not go to college. Over the last five years, the cost of tuition and fees for four-year public institutions has increased 35 percent; this is the highest increase since 1977.

• Families are being squeezed. The share of family income, even after financial aid, needed to pay for college expenses has increased significantly in South Carolina from 1992 to 2006: 22 percent to 27 percent for community colleges, 28 percent to 36 percent for four-year public institutions, and 48 percent to 60 percent for four-year private institutions. Even at the lowest-priced colleges, the share of income that the poorest families have to pay for tuition in 2006 was 28 percent, up from 15 percent in 1992. [iv]
• Debt is weighing some students down. In order to pay for their education, more students are taking on debt. Graduates from four-year public and private colleges in South Carolina face an average of $19,697, placing the state at No. 19 in terms of debt level. Seventy-one percent of all graduates from four-year public and four-year private colleges in South Carolina had debt. [v] The average loan amount that a South Carolina student borrowed in 2006 was $4,118. [vi]

Under Hillary's plan

If you are one of the more than 36,000 South Carolina high school seniors and considering going to college, or if you are one of the more than 200,000 students already attending college, you can benefit from a new $3,500 tax credit.

• Hillary is proposing to more than double the HOPE tax credit, raising the maximum amount of benefitsthat students and their families can receive from $1,650 to $3,500. This new credit will also be partially refundable in order to increase its value to low-income individuals. It will phase out at about the same levels as the HOPE credit and will be advanceable to allow families to receive the tax credit when their tuition bills are due instead of 16 months later.
• At several colleges in South Carolina, for example, that will cover:
• • About 42 percent of the annual in-state tuition at the University of South Carolina at Columbia, which will cost $8,346 for the 2007-2008 academic year
  • About half of the tuition at the University of South Carolina at Aiken, which will be $6,806 for the 2007-2008 academic year
  • About 45 percent of the tuition at the College of Charleston, which will be $7,778 for the 2007-2008 academic year
  • About 35 percent of the tuition at Winthrop University, which will be $10,210 for the 2007-2008 academic year

If you are among the 79,791 South Carolina residents receiving federal Pell you will likely benefit from Hillary's plan to increase the maximum Pell Grant. [vii] The Pell Grant Program is the most important government effort to make college affordable to low-income students, and Hillary will ensure it keeps pace with the rising costs of college.

If you are one of the more than 80,000 South Carolina students enrolled in two-year programs [viii] or you are thinking of going to a community college, you will benefit from Hillary's plan to strengthen community colleges. Hillary will provide $500 million in incentive grants for partnerships between community colleges and four-year colleges.

• In South Carolina, 43 percent of students are enrolled in community colleges. Those who are among the 40 percent of the population with the lowest income must spend half of their income – 43 percent – to go to community college. [ix]

If you are having trouble graduating from college, Hillary will create incentives for your institution to help you get your diploma by creating a Graduation Fund.

• The percentage of first-time, full-time college students completing a bachelor's degree within six years of enrollment is 64 percent among Iowa students. [x]mprove their graduation rates, especially among low-income and minority students.

If you are a South Carolina student who has demonstrated a dedication to public service by participating in America Hillary will make it easier for you to afford college.

• Hillary will double the Education Award to $10,000 so that it will cover a meaningful portion of the cost of going to college for people who devote a year or two of full-time public service to our country. Since 1994, more than 2,400 South Carolina residents have qualified for AmeriCorps Education Awards, totaling more than $8.3 million. [xi]

As you apply to colleges and determine how you will pay for your education, Hillary will make it easier for you to apply for financial aid.

• Hillary will get rid of the red tape in the student aid process, and allow people to apply for financial aid by checking a box on their tax returns. She will also create a new online Higher Education Cost Calculator that will help you and your family plan for future college-related expenses and a College Graduation and Employment Rate Index so that you can easily find information about an institution's graduation rates and how many students find employment upon graduation.

[i] U.S. Census Bureau, (2002), "The Big Payoff: Educational Attainment and Synthetic Estimates of Work-Life Earnings," http://www.census.gov/prod/2002pubs/p23-210.pdf

[ii] Higher Education Research Institute, "The American Freshman, Forty-Year Trends: 1966-2006," http://www.gseis.ucla.edu/heri/PDFs/pubs/briefs/40yrTrendsResearchBrie f.pdf

[iii] National Center for Education Statistics, (2005), "A Profile of the American High School Sophomore in 2002," http://nces.ed.gov/pubs2005/2005338_1.pdf

[iv] The National Center for Public Policy and Higher Education, "Measuring up 2006: The State Report Card on Higher Education, South Carolina," http://measuringup.highereducation.org/_docs/2006/statereports/SC06.pd f

[v] The Project on Student Debt, (2007), "Student Debt and the Class of 2006," http://projectonstudentdebt.org/files/pub/State_by_State_report_FINAL. pdf

[vi] The National Center for Public Policy and Higher Education, "Measuring up 2006: The State Report Card on Higher Education, South Carolina," http://measuringup.highereducation.org/_docs/2006/statereports/SC06.pd f

[vii] U.S. Department of Education, "2005-2006 Federal Pell Grant Program End-of-Year Report," http://www.ed.gov/finaid/prof/resources/data/pell-2005-06/pell-eoy-200 5-06.html

[viii] The National Center for Public Policy and Higher Education, "Measuring up 2006: The State Report Card on Higher Education, South Carolina," http://measuringup.highereducation.org/_docs/2006/statereports/SC06.pd f

[ix] The National Center for Public Policy and Higher Education, "Measuring up 2006: The State Report Card on Higher Education, South Carolina," http://measuringup.highereducation.org/_docs/2006/statereports/SC06.pd f

[x] The National Center for Public Policy and Higher Education, "Measuring up 2006: The State Report Card on Higher Education, South Carolina," http://measuringup.highereducation.org/_docs/2006/statereports/SC06.pd f

[xi] AmeriCorps, http://www.americorps.org/about/role_impact/state_profiles_detail.asp? tbl_profiles_state=SC