Increasing a tuition tax credit, increasing Pell grants and simplifying the student aid process are a few of the proposals Democratic presidential candidate U.S. Sen. Hillary Clinton campaign officials unveiled Thursday morning as part of her effort to make college more affordable and accessible.

Sen. John Matthews, a state co-chair of the Clinton presidential campaign, presented Clinton's educational plan during a press conference held on the s.jpg of Claflin University's Tingley Memorial Hall.

Speaking to about 20 students gathered behind him, Matthews stressed the impact Clinton's plan would have on them and thousands of other college students.

"If we can reduce your cost to go to college, more of our children will have access and all of us will be better off," Matthews said. "This plan is intended to make sure that lower income students have a chance to compete in this knowledge-based economy by getting a college degree and reducing your burden when you get out of college. We are trying to create access to higher education whether it is four year or two year, whether public or private. This plan will cover all that."

Matthews said while they do not have debt now, it will be coming.

"I can promise you the day you graduate you will begin to get your bills," he 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."

Matthews told the students at the Historically Black College and University the Clinton plan would especially help African Americans who already have the lowest college graduation rate of any racial or ethnic group.

Matthews said one of the reasons for the low graduation rate is the rising cost of pursuing a higher degree.

Citing a 2006 College Board study, Matthews said over the last five years the cost of tuition and fees for four-year public institutions has increased 35 percent. For private institutions, tuition and fees rose 11 percent.

And, the importance of African Americans going to college is paramount because a college education is a key to economic success, Matthews said.

He said African American men with college degrees earn about $16,000 more than those with a high school diploma, and African American females with a college education earn about $21,000 more.

Under Clinton's plan the proposal is to:

* Increase the Hope tax credit from the current $1,650 to $3,500, with the new credit being partially refundable in order to increase its value to low-income individuals. Taxpayers will be able to claim 100 percent of the first $1,000 of college expenses and 50 percent of the next $5,000 under this new credit.

* Increase the maximum Pell Grant through annual adjustments following along the passage of The College Cost Reduction Act. The CCRA increased the Pell Grant $4,800 for the 2008-2009 year.

Clinton said the median income of Pell Grant recipients was $17,692 in 2003-04, compared with $55,287 for all other undergraduates. She said when the Pell Grant was implemented, it covered 99 percent of the full cost of a two-year college, 77 percent at a four-year public college and 36 percent of a private college. Today, she said it has fallen to half that (62 percent, 36 percent, and 15 percent, respectively).

Clinton said increasing Pell grants would particularly benefit African Americans.

Citing statistics from the National Center for Education Statistics, Clinton says for the 2003-2004 academic year, 89 percent of full-time African-American undergraduate students received financial aid and, on average, each received $10,500.

* Reduce the red tape in financial aid. Clinton proposes to allow people to pay for financial aid by checking a box on their income tax return.

Upon checking that box, individuals will receive a letter from the Department of Education with a coupon showing the amount of federal aid - grants and loans - to which they are entitled.

Clinton says the current (Free Application for Federal Student Aid) is longer and more complicated than the typical tax return. The 1040EZ has one-third of the FAFSA's questions and one fifth of its pages.

As proposed, Clinton's plan will cost an estimated $8 billion annually.

She says the plan will be financed without increasing the deficit by eliminating the guaranteed student loan program and allocating a portion of the savings from freezing the estate tax at $7 million per couple. Clinton says freezing the estate tax at $7 million per couple will have no effect on 99.7 percent of estates except for the wealthiest.

Clinton, while not in attendance at the Orangeburg event, did issue a prepared statement for the unveiling of her proposal.

"I believe that college shouldn't just be a privilege for the wealthy - but an opportunity for anyone with the talent, determination and ambition to learn," she said. "And I believe that every American should have access to lifelong learning opportunities - from apprenticeships, to community college, to the most select four-year institutions."

Clinton said the "tax credit is at the heart" of her plan and the "key to unlocking the doors of higher education" and "unleashing the power of the American economy.'

During the question-and-answer session, Lakisha Lockhart, a Claflin University senior philosophy and religion major, asked the only question related to the source of funding of the $250 million Graduation Fund and the $10,000 in the Education Award.

"It would be federal money," Matthews said. "It would be a refundable tax credit so anybody who meets the criteria ... can use (it) towards going to higher education. If you don't have a tax obligation, then the fund will take care of that. So all students will have the same access."

Matthews said the program is nationally based and would cover both in-state and out-of-state students.

Following the conference, Lockhart said while she is still undecided on who she is going to vote for in the 2008 election, she is fully supportive of Clinton's plan.

Lockhart says she attended the press conference because she plans to attend Boston University to obtain her doctorate in pastoral psychology. Tuition costs will directly impact her.

"This affects me," she said. "This affects how much I will be paying back to the school and how much my children are going to pay."

Further, Lockhart said, as a college student, the knowledge of debt can often be an intimidating experience.

"No one wants to leave college in debt," she said. "No one wants to look back and have $81,000 that they have to pay in every 60 months. I know a lot of people coming up that do have debt. That is a burden they will have while going through graduate school, while they are working. That will be the main thing they are thinking about -- 'I will have to pay this off, I will have to pay this off.' This is not what we want. We want to be debt free, and this is a plan that will actually help us."

T&D Staff Writer Gene Zaleski can be reached by e-mail gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com.

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