Chris Dodd for President

Democratic presidential candidate Chris Dodd on Thursday unveiled a plan to reduce the cost of college loans and provide free community college education to all Americans.

The Connecticut senator told an audience of around 40 at Des Moines Area Community College's Urban Campus that expanded access to higher education would strengthen the middle class, solidify the United States' position in the global economy and protect American democracy.

"The Constitution is a sophisticated document that requires an educated population to support it," he said.

Dodd's community college plan would provide a dollar-for-dollar match for tuition reduction offered by states, up to 50 percent.

Such an approach is essential as more Americans turn to community colleges for higher education needs in a climate of escalating costs, Dodd said. "Every indication is that if we don't do something soon, cost is going to become a barrier," he said. . . .

Democratic presidential candidate Chris Dodd said Tuesday that as president, he would use federal money to make obtaining a community college associate's degree tuition-free.

Dodd, a U.S. senator from Connecticut, said he would use federal money to match up to 50 percent of community college tuition that was paid for in state money.

"If an eighth-grade education was critical in the 19th century, and a high school education was critical for most of the 20th century, then I happen to believe a higher education is essential for this country in the 21st century," he told about 70 people at the Boone County Historical Center.

The proposal would cost the federal government a maximum of $54 billion over eight years, campaign aides said.

The proposal is part of the education plan he is to outline Thursday at Des Moines Area Community College.

Dodd's proposal would raise the money for a potentially free community college associate's degree by requiring banks that administer federal student loans to compete for federal government subsidies. Campaign aides said the strategy would reduce subsidies by $48 billion over eight years.

"I'm a great believer we ought to get rid of the subsidies for banks when it comes to student loans," Dodd said.

Dodd's appearance also brought impromptu entertainment from his daughters.

At one point during his speech, his daughter Christina, 2, leapt from the side of her mother, Jackie Clegg Dodd, to stand by her dad.

At his urging, she did an impromptu Irish step dance. "I didn't know I was going to get a side show here," Dodd said after the applause subsided. . . .

Congress is currently debating a number of bills aimed at making student loans more affordable and fair after a series of investigations found certain companies to have cozy relationships with universities.
Coming on the heels of investigations and a Government Accountability Office study released last week pointing to a lack of government regulation of the private loan industry, the Senate is considering a bill entitled the Private Student Loan Transparencies and Improvement Act.
The bill, authored by Connecticut senator and democratic presidential candidate Christopher Dodd, would clearly define regulations and guidelines aimed at monitoring student lenders.
If passed, it would require lenders to provide clear disclosures about interest rates, terms, fees and deferral options, and would require them to notify students if they qualify for federally guaranteed loans.
In addition, the bill would prohibit lenders from using names, logos or mascots of schools on printed materials.
While UC Berkeley was not investigated for any connections with private lenders, Cheryl Resh, director of the financial aid office on the UC Berkeley campus, said the Dodd bill is a needed step toward regulating the private loan industry.
“Because there has been some abuse I think it’s good that Dodd is trying to reign in control of the alternative loan to make it more like the federal loan,” she said. . . .

WASHINGTON (Reuters) - The chairman of the U.S. Senate Banking Committee said on Friday he will introduce a bill that would impose new disclosure and conduct rules on the fast-growing private student loan market.

"This legislation will help to ensure that students understand the products they are buying to help finance their education, and that unfair and deceptive practices in this market are outlawed," said Sen. Chris Dodd, a Connecticut Democrat and presidential candidate.

Dodd's committee held a hearing on Wednesday to look into questionable practices in the private student loan market, which now accounts for 20 percent of lending to college students. The remaining 80 percent comes from government-guaranteed and direct government loans.

Dodd said his bill would "improve transparency, prevent unfair and deceptive private lending practices and eliminate conflicts of interest.". . .