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title: Martin O’Malley Unveils Debt-Free College Plan
description: Democratic presidential candidate Martin O’Malley unveiled a plan on Wednesday to make an education at public universities debt-free.
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article:published_time: 2015-07-08T21:02:49.000Z
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og:title: Martin O'Malley Unveils Debt-Free College Plan
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og:image:alt: Democratic presidential hopeful and former Maryland Gov. Martin O'Malley arrives for a campaign event at the Sanctuary Pub on June 11, 2015 in Iowa City, Iowa.
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![](https://static.time.com/v3/assets/bltea6093859af6183b/bltd9662b16538d7e2d/69885a2335ba6fa259c0e194/martin-omalley-colleges.jpg?branch=production&width=594&quality=75&auto=webp&crop=16:9)


# Martin O'Malley Unveils Debt-Free College Plan

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<!-- video src="https://cdn.jwplayer.com/manifests/xbV9oLQf.m3u8" -->
## Video: Govt. Erases Some Loan Debt As For-Profit Colleges Decline

[Watch (HLS stream): Govt. Erases Some Loan Debt As For-Profit Colleges Decline](https://cdn.jwplayer.com/manifests/xbV9oLQf.m3u8) (1:51)

![Govt. Erases Some Loan Debt As For-Profit Colleges Decline](https://cdn.jwplayer.com/v2/media/xbV9oLQf/poster.jpg?width=720)

_Published 2015-06-09. The federal government is forgiving the debt of students who attended now-defunct Corinthian Colleges as for-profit universities' popularity drops._


by 

[Sam Frizell](https://time.com/author/sam-frizell/)


## Sam Frizell


Jul 8, 2015 9:02 PM UTC

![Democratic presidential hopeful and former Maryland Gov. Martin O'Malley arrives for a campaign event at the Sanctuary Pub on June 11, 2015 in Iowa City, Iowa.](https://static.time.com/v3/assets/bltea6093859af6183b/bltd9662b16538d7e2d/69885a2335ba6fa259c0e194/martin-omalley-colleges.jpg?branch=production&width=1200&quality=75&auto=webp&crop=3:2)

Democratic presidential hopeful and former Maryland Gov. Martin O'Malley arrives for a campaign event at the Sanctuary Pub on June 11, 2015 in Iowa City, Iowa.

Democratic presidential hopeful and former Maryland Gov. Martin O'Malley arrives for a campaign event at the Sanctuary Pub on June 11, 2015 in Iowa City, Iowa. Scott Olson—Getty Images

by 

[Sam Frizell](https://time.com/author/sam-frizell/)


## Sam Frizell


Jul 8, 2015 9:02 PM UTC

Democratic presidential candidate Martin O’Malley unveiled a plan on Wednesday to make an education at public universities debt-free in the next five years, then used it to attack a rival’s plan to make public college free.

The former Maryland governor’s [plan would involve a series of steps](https://martinomalley.com/policy/make-college-debt-free/), including lowering state university tuition rates, tying loan repayment to graduates’ incomes and increasing federal Pell Grants to low-income students.

“Unless we act now, more and more students will not be able to afford higher education at all, putting the American Dream even further out of reach,” O’Malley said in a statement.

He also on Wednesday criticized a plan set forth by Vermont Sen. Bernie Sanders — though O’Malley avoided saying his name — to make public colleges [tuition-free](http://www.sanders.senate.gov/download/collegeforallsummary/?inline=file).

Introduced in the Senate in May, Sanders’ bill would require the federal government to cover two-thirds of the total $70 billion tuition paid at public colleges and states to cover the rest.

At St. Anselm’s College in Manchester, New Hampshire, where O’Malley rolled out his plan, he said that plan wouldn’t address rising education costs.

“If you simply cut a check for tuition, you’re going to see tuitions go up and up and up, and eventually we all foot that bill. So we have to do two things at the same time,” O’Malley said. “We have to increase degree attainment and bring down costs.”

O’Malley’s multi-part plan calls for immediately freezing state tuition rates, then ultimately tying tuition to no more than 10 percent of state median income at four-year public universities. He would also allow students to refinance their loans at lower interest rates.


O’Malley’s announcement comes at a time when nearly 70% of college students graduate in debt and students collectively owe some $1.3 trillion in loans, a cost many economists say is a significant drain on the economy.

Progressives were quick to endorse O’Malley’s plan. “Martin O’Malley‘s belief that debt-free college must be accessible to all students, and must apply to all public colleges and universities, is spot on — and we look forward to seeing the plans of others,” said Adam Green, co-founder, Progressive Change Campaign Committee.

Meantime, Jeb Bush, a Republican candidate for president, dismissed O’Malley’s plan as “more free stuff.”


## Transcript

The Department of Education handed down a major victory to the students of now defunct Corinthian Colleges. On Monday, Secretary of Education Arne Duncan said the Federal Government will relieve the student load debt of tens of thousands of people who attended any of the school's now shuttered locations. This morning, my office filed suit against Corinthian Colleges. And in what can only be described as a for- profit college predatory scheme. Corinthian Colleges once enrolled more than 70, 000 students across the country in 100 different Different locations. but the for- profit institution had been under scrutiny from federal and state regulators for years.

The final nail in its coffin came when it was fined $ 30 million for exaggerating job placement for graduates, which some say was a form of fraud because it led to students taking on a large amount of debt for an education that wouldn't pay it back. More than 350, 000 students have taken out a loan to attend a [ UNKNOWN ] college since 2010, meaning the government could be biting the bullet on about $ 3. 5 billion in debt. The reputation of [ UNKNOWN ] profit colleges is already hurting, and the troubles at [ UNKNOWN ] colleges haven't helped. The University of Phoenix, the nation's largest [ UNKNOWN ] profit college, Has seen its enrollment cut in half since a 2010 report from the U.

S. Senate. That report outlined a whole host of abuses against students. Including predatory lending, and offering poor academic quality. In fact, consumerist reports all six of the biggest for profit schools listed in that report have seen a decline in numbers over the last five years. On July first the Obama administration will put in place new rules holding for profit universities more accountable for their students' career success. Federal funding could be cut off if those colleges can't show that graduates earn enough to pay off debt.

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