Recognizing the more than 200 independent colleges and universities that together have addressed the need to help families pay for the increasing cost of attending college by creating the first nationwide prepaid tuition plan.

Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 378) recognizing Independent 529 Plan for launching a prepaid tuition plan that will benefit our Nation's families who want to send their children to private colleges and universities, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H. Res. 378.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I am pleased to rise in support of H. Res. 378 which recognizes independent colleges and universities that participate in prepaid tuition planning.

I want to thank the gentlewoman from Texas (Ms. Granger) for sponsoring this resolution that highlights the benefits of prepaid college tuition plans and the independent colleges and universities that participate in such plans.

Mr. Speaker, everyone in this Chamber clearly understands the benefits of a postsecondary education and that it expands career opportunities and increases earnings potential. As the resolution states, in 2001 a person with a bachelor's degree earned almost 90 percent more than a person with only a high school diploma. This resolution recognizes those that make completion of a postsecondary education and its benefits a bit more attainable.

This Congress, the Subcommittee on 21st Century Competitiveness, which I chair, is focused on the reauthorization of the Higher Education Act. One of my primary concerns throughout the process is to ensure that the dream of a college education is available and indeed affordable to all those who strive for it. This is why I am pleased to support H. Res. 378, a measure that recognizes those colleges and universities that participate in programs that can help put college within reach.

H. Res. 378 draws attention to prepaid tuition plans, which allow families to prepare for the cost of a postsecondary education. These plans originated in 1996 and were expanded in 2001 to allow for independent education institutions to establish their own prepaid tuition plans. During this time, both public and private institutions have begun participating in these prepaid tuition plans. While the specifics of these plans vary, at the heart of the plans is the ability of families to pay for academic periods or course units at current prices for a child who will attend college in the future.

I hear so often from constituents that college costs are increasing tremendously and parents are concerned that they will not be able to afford a postsecondary education for their children. We must work together to prevent students and families from being priced out of the higher education market and being priced out of their dreams. I believe that prepaid tuition plans offer parents important options for dealing with the college cost crisis, and we must encourage efforts to make college affordable and attainable. I urge my colleagues to support this resolution that recognizes the schools that participate in these plans.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

We are here today to discuss H. Res. 378, but my good friend on the other side of the aisle has brought up some points of a bill that I introduced a week ago, and I would like to just correct a couple of things on the record. HBCs and HSIs are not addressed in the bill. Any funding cuts based on colleges

continuing to raise their tuition and fees at better than twice the rate of inflation would only have an effect on title IV funding. Also, he referred to cost controls. I lived through cost controls. I was a retailer in the 1970s when President Nixon imposed price controls. Let me explain the way price controls work. One day we were able to sell jeans at a certain price. When price controls took effect, we no longer could sell those jeans at any other price other than what the government set. The only way that we could ever increase our prices at a retail or wholesale level was if we went before a bureaucratic board set up by the government and explained our costs and they finally maybe granted us the ability to increase our prices.

That is not what I propose in my bill. What I propose in the bill is encouragement for the schools to keep their tuition and fees down. For the last 20 years, they have been raising them at four times the rate of people's ability to pay those college costs. We tell the schools, if they want to keep charging more, they can; but we do not have to keep giving them some of that $65 billion of Federal aid that goes to the schools, not to the students.

Mr. Speaker, I yield such time as she may consume to the gentlewoman from Texas (Ms. Granger), the author of the resolution that is before us, H. Res. 378.

Mr. Speaker, I yield 1 minute to the gentleman from Georgia (Mr. Gingrey), an outstanding new member of the Committee on Education and the Workforce.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, according to the Advisory Committee on Student Financial Assistance, cost factors, with the rate of tuition and fee increases over the last 20 years, show that 48 percent of our lower-income young people that that graduate from high school prepared for college are not able to go to a college or university of their choice, and 22 percent of them cannot even go to a community college. I think anything we can do to make it possible for these young people to attend school is vitally important.

I have 25 grandchildren and one on the way. When I saw that picture of the grandson of the gentlewoman from Texas (Ms. Granger), Logan, that was a great selling tool, and I really appreciate what she is doing to help young people and help their families to put money aside to send them to school. I urge all of us to support this bill.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H. Res. 378 and second many of the remarks of my colleague from California. Prepaid tuition plans that have been set up by States have not provided options for students seeking to go to private universities. These plans typically allow a contributing individual to receive a guarantee that their tuition will be paid when they attend a public university in their State. This resolution before us identifies a plan that now provides students seeking to attend a private university with a prepaid tuition option. Those involved in the development of this plan should be congratulated for pushing to make this a reality.

Unfortunately, many existing State prepaid tuition plans have not fared well in our present economy. While unemployment has risen, the Bush administration has forced the reduction of options students and families have to pay for college. Twenty States have set up prepaid tuition plans but nearly all of them are in trouble. Ohio, West Virginia, Kentucky, Texas and Colorado have all suspended their plans. States are shutting the doors on these plans because the failed Bush economy has driven up college costs and reduced their investment options to essentially nothing.

In discussing the issue of how students and families pay for college, we cannot ignore the point raised by the gentleman from California, referring to his proposal to institute Federal price controls on college tuition. It has some immediate appeal until you think about it. This proposal would bar universities who have seen their budgets cut due to the sour economy from receiving Federal aid, including work- study opportunities for needy students. In other words, we would cut funds to them until they shape up. Worse yet, Historically Black Colleges and Hispanic Serving Institutions would be barred from receiving institutional aid or other aid. This loss of aid would hamper the mission of those institutions and would remove the opportunities for postsecondary education for some of our neediest students.

This proposal would also have serious unintended consequences. Colleges that are forced to cap their tuition increases will simply decrease the amount of need-based grant aid. This will result in students experiencing perhaps lower tuition levels but higher out-of- pocket costs. In addition, as labor and health care costs increase, institutions will be forced to sacrifice quality. Clearly, that is not in the public interest. This will be done through the hiring of adjunct professors rather than maintaining, for example, seasoned tenured faculty. Is this the cost-control measure we want our universities to implement?

Rather than creating new problems to solve an existing one, Congress should be considering what is the appropriate response to rising tuition costs. We should provide incentives to colleges and universities to hold down costs. The current Federal system of higher education financing does not incentivize schools to hold down their level of tuition increases. The Higher Education Act should not punish students and institutions through heavy-handed Federal price controls. Price controls rarely work. Rather, institutions should hold down tuition costs while increasing need-based grant aid, and they should be rewarded.

In addition, States should be required to maintain their level of effort on higher education spending. In years in which Congress increases student aid, those increases should benefit students, not be gobbled up by the need to balance State budgets. The cost of higher education is a complicated one. It is an important one. It is in the national interest to make college affordable and available for all qualified students. This resolution before us today points to a good way to manage the rising costs of college tuition. However, the other proposal advanced by the gentleman from California would be the wrong way to go.

In closing, Mr. Speaker, I want to reiterate my support for the resolution we are presently considering.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume. I would just reply to my colleague from California that in describing his experience with price controls, his personal experience, I think he made a very good case against his proposal, and I think made it clear that the colleges and universities that are in the tightest financial straits, such as Historically Black Colleges and Hispanic Serving Institutions, those with a large number of work-study students, would be the ones that would be hurt most by that proposal.

Mr. Speaker, I yield 4 minutes to the distinguished gentleman from Illinois (Mr. Davis), my colleague on the Committee on Education and the Workforce.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, perhaps I could show some pictures of my grandchildren. I commend the gentlewoman from Texas and the gentleman from California for advancing this legislation. Anything that will improve the accessibility and affordability of college for qualified American students is to be encouraged.

Mr. Speaker, I yield back the balance of my time.

I thank the gentleman from California for yielding me this time.

Mr. Speaker, Mark Twain once said, ``Out of our schools grows the greatness of our Nation.'' Today I want to introduce you to the greatness of our Nation. I want you to meet Logan Granger. Yes, that is right, Granger. Logan is my grandchild. He is one of the loves of my life. I actually have two grandchildren, I have Logan and Jack, but today we are going to focus on Logan. When I look at Logan's big brown eyes, I absolutely melt and I want him to have the very best in the world. I want him to have the best education, the best job, the best family life. I want him to have everything. And I know the right place to start with making sure that Logan has it all is to make sure that Logan has the best education available.

Today, the finest education is marked by a college degree. When I taught, a high school certificate was a mark of success. Today, a college degree is a must. In the past 5 years, jobs requiring a college degree have increased almost nine times more than jobs requiring a high school diploma. The fact is that the college degree is a must-have for today's students. I believe little Logan should have the opportunity to have that college diploma. Logan should be able to attend the public or the private school of his dreams. In other words, he should have choice. But his family should also have affordability.

Unfortunately, we all know the cost of a college education can send any parent or grandparent into financial hiding. Today at Texas Christian University in Fort Worth, a college degree will cost about $19,000 a year and students come from all over the world to attend there. When Logan is ready to go to TCU, or whatever school he chooses, schools like TCU could cost as much as $45,000 a year. Yes, a year. It is sticker shock for all of us, but it is something we need to face. But before we decide the situation is futile, we need to recognize that with proper planning, a college education can be affordable.

For several years now, public schools have joined together in co-ops that work together to set up one prepaid plan for parents to pay into. Then when the young one is all grown up and is ready to go to college, the family can choose from a list of schools that participate in that plan. The result is choice and affordability in public education.

Today I am here to praise the expansion of the prepaid tuition plans. I introduced legislation that was signed into law 2 years ago that would allow private schools to join together and offer similar choice and affordability in education. Today I am here to congratulate the more than 200 private colleges and universities in the recent launch of their prepaid tuition plans. Together, the plans are known collectively as the independent 529 plan and many of the schools in Texas, including Texas Christian University and Southwestern University in Georgetown, are participants in this plan. The creation of this plan means that Logan's parents can save around $100,000 in total private education. That is right. If Logan's parents buy into the independent 529 plan today, they can save around $100,000. We are literally talking about tomorrow's education at today's price. The 529 plans are all about choice and affordability in private schools. Choice for Logan and affordability for his parents.

Mr. Speaker, I am honored to be the sponsor of House Resolution 378, which congratulates private colleges and universities for their ongoing commitment to make a college education affordable and accessible to thousands of families. This will mean more opportunity for more young people and more universities. That is a small price to pay for Logan or Jack or any other child for something as worthy as a college education.

Mr. Speaker, I am pleased to offer my support for H. Res. 378. This resolution recognizes independent colleges and universities that participate in prepaid tuition plans that give families options when paying for the cost of postsecondary education. I thank Representative Granger for sponsoring this resolution that calls our attention to the need to give families and students these payment options and to the independent colleges and universities that participate in these prepaid tuition plans.

Our economy is changing. The manufacturing economy of the 20th century is being replaced with a knowledge- and information-based economy in the 21st century, and our workforce must adapt accordingly. The demand for individuals with at least some postsecondary education has been growing, and is expected to continue growing more rapidly than the demand for individuals with only a high school diploma.

When coupled with our current college cost crisis, it is clear that in order to meet this demand we must make a postsecondary education more affordable for more individuals. Our economy is increasingly dependent on the availability of skilled, well-educated workers, and the need to increase access to higher education is a critical part of that equation. This resolution recognizes those that make postsecondary education more attainable.

H. Res. 378 draws attention to prepaid tuition plans. These plans allow families to prepare for the cost of a postsecondary education by planning ahead, saving wisely, and reducing the tax burden on such academic savings that will be used to send students to college in the future.

The Committee on Education and the Workforce, and specifically Representatives McKeon's subcommittee, is in the midst of the reauthorization of the Higher Education Act. Members are carefully examining a range of issues, including dramatic tuition increases, the need to expand access--particularly for non-traditional college students--and what appears to be a troubling lack of transparency in higher education.

Often, I expect, we hear from concerned parents that college costs are out of hand and that they will not be able to afford a postsecondary education for their children. Keeping college affordable is no simple task, and finding solutions will not be easy. However, I believe that prepaid tuition plans offer parents some options for dealing with the college cost crises. I urge my colleges to support this resolution that recognizes the schools that participate in these plans.

Mr. Speaker, I thank the gentleman from New Jersey for yielding me time.

Mr. Speaker, I rise today in support of H. Res. 378, recognizing Independent 529 plans for launching a prepaid tuition plan. These plans allow families to lower the cost of a private college or university education by locking in current tuition rates for future use at any of the participating private colleges and universities.

We all believe that every young person who would like to attend college should be able to do so. The benefits of receiving a college degree are continuous, not only strengthening the self-esteem of a person, but also allowing that individual to have a better and more secure lifestyle.

According to the United States Census Bureau, a person with a Bachelor's Degree will earn nearly 90 percent more on average than a person with only a high school diploma. Not only is the pay significantly better, but it is also more likely that occupations held by a person with a Bachelor's Degree will have additional benefits, such as health care and employer pension plans.

Most funding that colleges and universities receive has been reduced due to the extreme economic state of most States in our Nation and the debt of the Federal Government. However, to remain vital in competition, colleges and universities must pay for the best professors, keep technology current and keep buildings maintained. Unfortunately, these costs are now being passed down to the students. The Independent 529 plans serve as one way to help with this rising cost.

Currently over 200 private colleges and universities throughout the country have agreed to participate in these plans. Of the six participating colleges and universities in Illinois, I am proud and pleased that the Illinois Institute of Technology, which is in my district, is one of the 529 plan participants.

I believe that although the Independent 529 plans will not help all families achieve the dream of going to college, it will help a good number of families who dream of sending their children to private colleges and universities, and, for that reason, I support this legislation and urge its passage.