This is the Cato Daily Podcast for Friday, July 8th, 2016.

I'm Caleb Brown.

Hillary Clinton's free college plan has expanded a bit to become more generous.

Neil McCluskey, director of the Cato Institute's Center for Educational

Freedom, explains why the plan to make college more affordable will exacerbate many problems

associated with higher education, including providing assistance to people likely to earn high

incomes after college.

Yeah, I wouldn't say that she necessarily unveiled her plan as added an amendment to it which makes it more generous than the old plan.

So it used to be that the goal would be that you'd not have to take out debt to go to a public college or university. Now it's you would get absolutely tuition free,

ultimately if you make up to $125,000 a year or if your family does.

So that's sort of an increase in the generosity,

courtesy of the taxpayer, of course,

in her plan.

It's no longer just, you don't have to take debt. It's you get that get that for free.

And the estimate is that'll cover eight out of ten students so that you know

ultimately eight out of ten are going to be coming from families that make $125,000 or less.

Now, there's also a three-year moratorium on collection of student debt.

This time will supposedly be used to help people

consolidate their loans, move it to lower interest loans.

And there's also, she talks about reducing the interest rate on student

loans going forward which is sort of interesting because the new rates on most of

the undergraduate loans is sit at I think 3.75% right now.

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