A r c h i v e d  I n f o r m a t i o n

"This age of possibility means that more Americans than ever before will be able to live out their dreams. . .America knows that higher education is the key to the growth we need to lift our country. . . It's America's most basic bargain: We'll help create opportunity if you'll take responsibility."

-- President Clinton, Princeton Commencement,
June 4, 1996

To realize this age of possibility, President Clinton is committed to a real growth strategy:

1. Putting our economic house in order, through both deficit reduction and a balanced budget. President Clinton has cut the deficit nearly in half since taking office, and this year he submitted to Congress the first genuine balanced budget in 17 years.

2. Opening new markets to create jobs for American workers. More than 1 million new export-related jobs have been created under the Clinton Administration.

3. Investing in our workers so they can seize the opportunity of today's economy. To unlock the age of possibility for all Americans, we must give every single child, and every adult who needs it, the chance to get the best possible education.

President Clinton Announces the HOPE Scholarship Plan to Make 14 Years of Education -- At Least Two Years of College -- The Standard for All Americans. President Clinton's HOPE Scholarship Tax Cut makes clear that 2 years of college should be as universal as high school and builds on his comprehensive program to guarantee that a college education is both accessible and affordable to all Americans at any time in their life. To further this guarantee, the President announced the following proposals:

• New America's HOPE Scholarship Tax Cut -- Guarantees 2 Years of Tuition at the Average Community College for Any Student Who Earns a B Average. Modeled on the successful Georgia HOPE Scholarship program, this new proposal provides all students with a $1,500 refundable tax credit for full-time tuition in their first year ($750 for half-time), and another $1,500 in their second year if they work hard, stay off drugs, and earn at least a B average in their first year. This $1,500 tax credit will pay for more than the full cost of tuition at the national average-priced community colleges.

• $10,000 Tax Deduction for All Education and Training. The President maintains his $10,000 tax deduction for tuition for college, graduate school, community college, certified training and technical programs. This encourages lifetime investment in higher education.

• Scholarship Increases (Pell Grants) for Lower-Income Students: The President's balanced budget plan will increase Pell Grants each year. Indeed, the maximum Pell Grant award will increase by 33% from fiscal 1995 to fiscal 2002.

Builds On President's Plan for Guaranteed Access to College. The above initiatives build on the President's plan to guarantee that college is accessible and affordable for everyone:

• With the increased Pell Grant program support, students have access to up to $5,100 in Pell Grants and student loans for their first year in college, and much more in future years.

• The new Direct Student Loan program enacted as part of the President's 1993 Economic Plan is allowing millions of students to borrow in a simpler, less bureaucratic way, and to pay back their loans as a share of their income.

• New Direct Loans With Pay-As-You-Can Option: Will account for 50% of loans

• National Service -- AmeriCorps: 30,000 students earning up to $4,725 for service

• Work Study Expansion: Proposes expansion to 1 million participants by FY2002

• Honors Scholarships: Proposes $1,000 scholarship for top 5% of every high school class

• IRAs for Education: Proposal allows penalty-free withdrawals for education

• Skill Grants: Proposed $2,600 Skill Grants to enable dislocated workers to get needed skills