The issues
Obama and Romney: Paying for college
President Barack Obama and Mitt Romney differ sharply on how to deal with the high cost of a college education. Obama wants to expand Pell grants; Romney’s plan focuses on cutting tuition costs.
Student loan debt in the United States hit $914 billion in early September and the average student borrower owes more than $24,000, according to a report by the Associated Press.
During Obama's term as President, he has won approval from Congress for increases in Pell grants and a $10,000 tax credit over four years for college expenses.
Romney strongly disagrees with this approach. He has said that increasing Pell grants and other federal student aid would simply make tuition at higher-education institutions increase.
At a rally on the Iowa State campus in August, Obama attacked Romney’s views on paying for college. "You can decide whether the best way to make college affordable is to — as my opponent put it — hope your parents can just lend you the money," Obama said.
Obama was referring to a speech Romney made in August at Otterbein University in Ohio, where he said, "We’ve always encouraged young people: take a shot, go for it, take a risk, get the education, borrow money if you have to from your parents, start a business."
Romney had been talking about a friend who started Jimmy John’s Gourmet Sandwiches with money borrowed from his parents.
Since then, the "have-your-parents-pay-for-it" theme has been widely used in Obama advertisements.
At a speech at St. Anselm College in Manchester, N.H. in August, Romney countered. "I’m not going to go out and promise all sorts of free stuff that I know you’re going to end up paying for," Romney said. "What I want to do is give you a great job so you will be able to pay back yourself."
The two have seen eye-to-eye on one aspect of federal aid for students; they agreed on a measure that Obama signed to prevent the doubling of interest rates on new federal Stafford loans. Had the bill not been signed, interest rates on the loans would have doubled from 3.4 percent to 6.8 percent this fall.
A Gallup poll in July and August found that voters age 18 to 24, who are most affected by student loans, sided with Obama over Romney 56 percent to 36 percent. That number is down from the 66 percent to 32 percent margin Obama had over Republican John McCain with the same age group in the 2008 l election.
Obama, as part of his plan, would increase the $5,500-per-year Pell grant maximum to $5,635 per year. Pell grants, unlike loans, don’t have to be paid back. The grants are need-based and are given to low-income students.
Romney says that Obama "seeks only to borrow and spend more and more of the next generation’s money." He adds that Obama's approach will only drive up tuition costs.
Under his plan, Romney would freeze Pell grants at $5,500 and would seek to direct the grants to students who most need them. He would also allow private lenders to be a part of the student loan, in addition to the federal government, to create more competition.
--Alex Halsted
Student loan debt in the United States hit $914 billion in early September and the average student borrower owes more than $24,000, according to a report by the Associated Press.
During Obama's term as President, he has won approval from Congress for increases in Pell grants and a $10,000 tax credit over four years for college expenses.
Romney strongly disagrees with this approach. He has said that increasing Pell grants and other federal student aid would simply make tuition at higher-education institutions increase.
At a rally on the Iowa State campus in August, Obama attacked Romney’s views on paying for college. "You can decide whether the best way to make college affordable is to — as my opponent put it — hope your parents can just lend you the money," Obama said.
Obama was referring to a speech Romney made in August at Otterbein University in Ohio, where he said, "We’ve always encouraged young people: take a shot, go for it, take a risk, get the education, borrow money if you have to from your parents, start a business."
Romney had been talking about a friend who started Jimmy John’s Gourmet Sandwiches with money borrowed from his parents.
Since then, the "have-your-parents-pay-for-it" theme has been widely used in Obama advertisements.
At a speech at St. Anselm College in Manchester, N.H. in August, Romney countered. "I’m not going to go out and promise all sorts of free stuff that I know you’re going to end up paying for," Romney said. "What I want to do is give you a great job so you will be able to pay back yourself."
The two have seen eye-to-eye on one aspect of federal aid for students; they agreed on a measure that Obama signed to prevent the doubling of interest rates on new federal Stafford loans. Had the bill not been signed, interest rates on the loans would have doubled from 3.4 percent to 6.8 percent this fall.
A Gallup poll in July and August found that voters age 18 to 24, who are most affected by student loans, sided with Obama over Romney 56 percent to 36 percent. That number is down from the 66 percent to 32 percent margin Obama had over Republican John McCain with the same age group in the 2008 l election.
Obama, as part of his plan, would increase the $5,500-per-year Pell grant maximum to $5,635 per year. Pell grants, unlike loans, don’t have to be paid back. The grants are need-based and are given to low-income students.
Romney says that Obama "seeks only to borrow and spend more and more of the next generation’s money." He adds that Obama's approach will only drive up tuition costs.
Under his plan, Romney would freeze Pell grants at $5,500 and would seek to direct the grants to students who most need them. He would also allow private lenders to be a part of the student loan, in addition to the federal government, to create more competition.
--Alex Halsted