Democratic presidential candidate Michael Bloomberg has released a new higher education plan that would make community college free, double Pell Grants for low-income students and end the practice of legacy admissions, among other benefits.
Making college more affordable
If elected, Bloomberg would make community college tuition-free for all students, something widely supported by the 2020 field of Democratic candidates. And students from the lowest income bracket would be able to attend community college “debt-free,” meaning the entire cost of college would be covered, including items like books, food and transportation.
Bloomberg’s plan would also make four-year college debt-free for students from the lowest income bracket and make it “more affordable” for middle-income students.
Although substantial, his plan does not go as far as those proposed by some of the more progressive candidates like Sen. Bernie Sanders (I-Vt.) and Sen. Elizabeth Warren (D-Mass.) who would make two-and four-year college debt-free for all U.S. students.
How will Bloomberg do it?
In part, Bloomberg plans to accomplish his free college goals by doubling the Pell Grant maximum to $12,690. He’ll help more students access Pell Grants by simplifying FAFSA and notifying families of Pell eligibility as part of the income-tax return process.
Additionally, he would expand Pell eligibility to incarcerated students and DREAMers, meaning students who were brought to the country as children.
Bloomberg also intends to create a federal-state funding program, which he claims “will reverse a decade of state disinvestments in higher education.” To qualify for federal support, states and institutions would have to commit to limiting tuition hikes, reversing disinvestments and taking steps to keep the full cost of attendance from increasing faster than inflation.
Changes to student loans
Under Bloomberg’s plan, student loan borrowers with income-driven repayment plans would have their monthly student loan repayments capped at 5 percent of their discretionary income, which is a drop from the current 10 percent.
And if borrowers with income-driven repayment (IDR) plans make reasonable progress paying back their loans over 20 years, they become eligible to have up to $57,000 forgiven. This could be a bit of a backstep, though, as current law enables graduates to have all remaining federal student loans forgiven after 20 years of consistent payments under their IDR plan.
Interestingly, Bloomberg’s plan would also cancel any unpaid balances carried by those who attended a failed or predatory for-profit college.
And Bloomberg would “fix” and expand the Public Service Loan Forgiveness Program, which is currently designed to relieve student loans debt for some qualified public servants working for government or not-for-profit organizations. Students who join professions with targeted labor needs would be offered more generous terms.
Ending legacy admissions
In effort to “make college fair,” Bloomberg would also put an end to all legacy admissions, a system that gives an admissions advantage to the children and relatives of alumni — otherwise known as “legacy students.”
The concept of legacy admissions has been around since the 1920s, but has recently received backlash for disproportionately aiding affluent and white students.
Helping HBCUs & minority serving institutions
Bloomberg also plans to triple federal funding for historically black colleges and universities (HBCUs), Hispanic-Serving Institutions (HSIs) and other minority serving institutions, which he claims “play a vital role in promoting economic mobility.”
Bloomberg’s philanthropic history
In 2018, Bloomberg gave $1.8 billion to his alma mater Johns Hopkins and devoted it exclusively to financial aid. It is the largest-ever contribution to an academic institution in American history.
And by way of his foundation Bloomberg Philanthropies, Bloomberg has helped close to 50,000 low- and middle-income students explore their options and successfully finance their education.
