DesideriScuri -> RE: President Obama's State of the Union Speech (1/27/2015 4:04:34 AM)
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ORIGINAL: cloudboy I'd like to know more about the rationale behind his community college proposal. It's a way to help make community college more affordable. It could be the stepping stone for kids to go on to universities/collegs, or it can help people train for a new career. It will only cover tuition, so other fees, books, etc. won't be covered. The TN plan that Obama said it's based on has come under criticism because it's seen as benefiting the Middle Class or higher, rather than the most needy. The TN plan is a "last dollar" plan, so any grants, aid, etc. that a student is in line for come first, and the TN plan covers the rest of the tuition. The Middle Class or better might not qualify for the same sort of tuition assistance that the poor qualify for, so TN could be paying a larger share of the tuition of the less needy. The Chicago plan that Obama has also pointed to, covers tuition, fees, and books for Chicago HS students who graduate with a 3.0 or better GPA. The Chicago plan covers students after Federal or State monies, too, like the TN plan. While it's all well and good to help people attend college and increase their skills, I can't find anything concrete about how the money for this would be raised. I've heard speculation that he's going to tax 529 plans, which were supposed to be tax-free ways to save for college, but I can't find anything solid to support that assertion. The assertion is that gains/growth in the 529 plan would be taxed when withdrawn, regardless of it's use, while today, it's tax-free if it's withdrawn to pay for education expenses. If that's true, it's taxing those who were responsible and saved for college to pay for those who chose not to save for college and/or those who could not save for college. What I worry about, though, is that this give license to community colleges to jack up their tuition rates because government is paying the tab. That doesn't really lower the cost of an education. It raises it, but shifts it onto someone else's back.
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