Vice President Joe Biden and Secretary of Education Arne Duncan hosted a national conference call for university student media Thursday to outline the blueprint for more affordable higher education.
The call focused on the topics of paying student loans, maintaining an affordable education and maximizing aid to students.
The administration plans to make it easier to graduate from a college or university with less student loan debt, Biden said.
"We think that to graduate you shouldn't have to graduate buried in debt," Biden said. “That's why we put in place (the policy) that you're never going to have to pay back more than 10 percent of your disposable income."
This means monthly payments on student loans will be reduced considerably under the “Pay As You Earn” plan, which has yet to be implemented. The goal is to make it easier for students to afford other living expenses, he said.
Duncan said the administration is also working to make the American Opportunity Tax Credit permanent.
The American Opportunity Tax Credit can be claimed for any undergraduate education expenses associated with tuition, books and fees.
Interest paid on student loans is speculated to double this summer from 3.4 percent to 6.8 percent, Biden said.
“In a time when we're competing in a world where 62 percent of all the jobs in the next decade are going to require a degree beyond high school, it makes no sense to price kids out of school," he said.
College tuition has increased considerably over the past 20 years, making higher education less affordable, Biden said.
"We also need universities to become more efficient and think more creatively about how to cut costs," Biden said.
The administration is also interested in expanding aid available to students by maximizing Pell Grants and allocating more funds to Federal Perkins Loan and Federal Work-Study programs, Biden said.
“You're part of an absolutely incredible generation and so you deserve all the assistance you can get because you are the most qualified, the most giving and the most consequential generation we've had," Biden said. "This is about excellence, this is the best money we can spend."
These measures will require universities and the government to “share the responsibility” when pushing them through, Duncan said.
“We want to challenge states to continue to invest in education,” he said. “That’s why we’re fighting so hard to increase the maximum Pell Grants, freeze the interest rates and make the AOPC tax credit permanent.”
ASU spokeswoman Sharon Keeler said ASU is supportive of the administration’s desire to keep education affordable and valuable.
“The University supports low tuition, enhanced effectiveness, performance-based state investment and penalties for colleges with high federal loan default rates," Keeler said.
While the administration is focused on college affordability, it also wants to promote higher graduation rates, Duncan said.
“The goal is not just access,” Duncan said. “It's all about completion."
Reach the reporter at dgrobmei@asu.edu Click here to subscribe to the daily State Press newsletter.
