Mr. Chairman, I would be happy to yield 2 minutes to my colleague on the other side, the gentleman from Wisconsin (Mr. Kind). Mr. Chairman, I yield myself the balance of my time. For years,…
Mr. Chairman, I would be happy to yield 2 minutes to my colleague on the other side, the gentleman from Wisconsin (Mr. Kind).
Mr. Chairman, I yield myself the balance of my time.
For years, Republicans have fought on behalf of students and families to make college more affordable. Now our cause is bipartisan and our vision for reform is the centerpiece of comprehensive Higher Education Act reauthorization.
For students and families grappling with rising college costs, this bill establishes college affordability comparison tools to help put cost increases into perspective. Students will be able to search, sort, and compare key cost indicators for every school in the country. We will identify institutions that are the most costly, the least costly, and those with the fastest rising costs. And for schools engaging in a pattern of extraordinary high cost increases, we demand greater disclosure and concrete steps to identify inefficiencies and fix them. This legislation reflects Republican principles for reform, including financial aid simplification, protection of student privacy, safeguards for taxpayer dollars, emphasis on competitiveness, and many more positive reforms.
We would not have this bill before us today without the hard work of staff on both sides of the aisle. I want to thank Amy Jones in particular for her tireless efforts to ensure this bill includes meaningful college cost reforms. I also want to recognize Brad Thomas and Susan Ross on my staff, along with outgoing staff director Vic Klatt and his successor, Sally Stroup, a higher education policy expert in her own right.
I would also like to recognize Chairman Miller's staff, including Gaby Gomez, Julie Radocchia, and Jeff Appel.
Throughout the day, we will consider a number of amendments. Some would make the bill stronger, while others are unquestionably bad policy that would send us backward. However, it is the give-and-take of a bipartisan legislative process that has produced the strong bill before us, and I am hopeful that at the end of the day we will be able to secure strong, bipartisan passage of this bill, to make our higher education system more accessible and affordable.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I claim the time in opposition, but I am not opposed to the amendment.
Mr. Chairman, from the outset of this process, Chairman Miller has recognized that by working together we can make this bill stronger. Just as he worked with us on the underlying bill, he also invited our input and involvement in the development of this manager's package. I believe the amendment is stronger because of it, and I want to thank him for his bipartisanship.
Anyone who has studied the college cost issue recognizes that there are no easy or obvious solutions. It has taken 5 years of refining to produce the proposal we are voting on here today.
When this process began, we identified three key principles to guide our proposals. First, we saw the need for sunshine and transparency in college costs. Students and families do not have access to accurate, useful, and comparable information about college costs.
Second, we recognized that colleges and universities were not being held accountable to consumers. There were no consequences for schools that engaged in massive unexplained tuition increases year after year.
Third, in our effort to identify solutions, it became abundantly clear that Congress could not do it alone. We realized that all stakeholders must come together. That includes the Federal Government, State government and local communities, institutions of higher education, students, and parents.
States have scaled back their investment in higher education, and the Federal Government has been expected to make up the difference. While some of the details have changed over time, the bill before us adheres to these same three principles.
I want to thank Chairman Miller for allowing me to take the lead on these college cost provisions. After years of listening to stakeholders, seeking the advice of experts, and studying potential unintended consequences, I believe this proposal strikes the right balance on the cost issue.
I also want to thank Chairman Miller for working with me to prevent this bill from limiting access for low-income, first-generation, and nontraditional students. An amendment offered during committee consideration of the bill changed the way cohort default rates are calculated. While the proposal did spur an important conversation about how to get a more accurate understanding of default rates in order to protect students and taxpayers, the consequences of the proposal would have done far more damage than was intended. I am pleased that, in this manager's amendment, we were able to forge a compromise that achieves our goal of a more accurate cohort default rate calculation without putting financial aid in jeopardy for the students who need it most.
On these and other issues, Chairman Miller has worked closely with me to ensure the final bill reflects the priorities of Members on both sides of the aisle. I thank him for his willingness to cooperate, and I urge the majority to continue this spirit of cooperation to address other flaws that remain in the bill, so that when this legislation is signed into law, it is as strong as it can be.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself such time as I may consume.
We are here today addressing the college cost crisis, a problem that has reached epic proportions in this country. There are many who believe, me among them, that we should never have allowed this challenge to reach a crisis point.
I am pleased to be acting today, but this bill serves as a reminder that Congress often fails to recognize challenges in our higher education system and act quickly to solve them. I am afraid we may be making the same mistake by failing to recognize the brewing problems in our Federal student loan programs.
Since 2006, Congress has cut nearly $30 billion from the Federal Family Education Loan Program. While many of these reforms were needed to improve program efficiency, I am afraid we may have gone too far, cutting not just the fat but straight through to the bone.
The impact of these cuts has yet to be fully realized; but already borrower benefits have been curtailed, lenders have left the program, and workers have lost their jobs. The consequences of program cuts are being exacerbated by a crunch in our financial markets that has produced a loss of liquidity, an increase in financing costs, and uncertainty about the future viability of the Federal loan program.
Just a few short months into this time of market turmoil, already 1,200 jobs have been lost and eight lenders have left the Federal student loan program or severely limited participation. This includes the departure of the seventh largest lender in the program. Major lenders have significantly scaled back or ended their borrower benefit programs.
Mr. Chairman, I am afraid this is only the tip of the iceberg. I had hoped to offer an amendment today that would help ensure Congress does not ignore these challenges until they, too, reach a crisis point.
My amendment was nothing more than a sense of Congress, but I believe it would have signaled our commitment to averting a student loan crisis before it happens. Unfortunately, I was blocked by the majority from offering this amendment. It seems we have not yet learned from past mistakes.
Mr. Chairman, I reserve the balance of my time.
May I inquire of the time remaining.
Mr. Chairman, I yield 2 minutes to the ranking member on the subcommittee, Mr. Castle from Delaware.
If the gentleman is prepared to close, I am in strong support of the manager's amendment, and I yield back the balance of my time.
Madam Chairman, I offer an amendment.
Madam Chairman, I yield myself such time as I may consume.
Before this reauthorization even began, I was involved in an innovative, bipartisan effort known as the FED UP project that laid the groundwork by reducing red tape, eliminating outdated rules, and streamlining Federal financial aid programs.
The late Representative Patsy Mink and I joined together to solicit input from the higher education community to increase the effectiveness of our Federal financial aid programs by cutting through the red tape and regulations. We did this because over the years, colleges and universities have become subject to an increasing level of Federal regulation. Unfortunately, when new regulations are layered on top of the old, we often end up with duplication and confusion.
Today, as we contemplate another set of new programs, regulations, and requirements, I believe we need to renew that commitment to less red tape. That's why I am proposing a comprehensive study of the regulations that impact higher education. Under my plan, the National Research Council will undertake a governmentwide review to identify regulations that are duplicative and unnecessary.
Particularly in a bill with so many duplicative and unnecessary new programs, there is a danger that we may be exacerbating the college cost crisis by burdening colleges and universities with excessive new reporting and compliance costs. With this study, I hope we can move in a different direction.
I urge my colleagues to support this amendment.
I reserve the balance of my time.
Madam Chairman, I wish to thank Chairman Miller and Chairman Hinojosa for their support and for the hard work that they have put into this bill, and let them know how much I have appreciated working with them not just on this bill but over the years. And I hope that all of our colleagues will support this amendment.
Madam Chairman, I yield back the balance of my time.
We are discussing all four amendments at this time en bloc?
Madam Chairman, I rise to claim the time in opposition, although I am not opposed to the amendment.
Madam Chairman, I support the amendments, with a couple of caveats. The Inslee amendment, while we are not objecting to this amendment, we do have some concerns about the consequences of the amendment. The requirement that these sustainability grants provide for greenhouse gas emissions reductions will increase operating costs for colleges and universities. If that happens, the result will be still higher tuition and fees for students at a time when we're trying to lower the cost of the higher education.
And some comments on the Susan Davis amendment. I appreciate the amendment. I served with Mrs. Davis on the Armed Services Committee, and I appreciate her efforts. There are some questions that I do have.
First, what her amendment does, it says that an individual that is serving on active duty during a war, performing qualifying National Guard duty during a war, military operation or national emergency and is serving in the area of hostilities in which service qualifies for special pay, I'm hopeful that that includes everyone that we're trying to reach in the service, and I'm not sure that that is totally inclusive for what she's trying to cover.
And then the next concern I have is that the borrower must have obtained their loan through the government-run direct loan program. Currently, the direct loan program only provides about 20 percent of the loans, so that would mean that if one of these military personnel got their loan through one of the other programs, they would be excluded from this. I believe her intention would be to grant this benefit to all serving in the military in wartime. So I'm hopeful that we can clean that up, make changes in that during the conference, because I believe that that's probably her intent on that.
And, finally, I would like to also say to my good friend, Mr. Kildee, the 10 years have gone quickly. But he looks just as young as he did 10 years ago, and I appreciated working with him then, as I do now.
Madam Chairman, I yield back the balance of my time.
Madam Chairman, I claim the time in opposition to the amendment.
Madam Chairman, this amendment essentially requires a feasibility study on market mechanisms that could then be used to determine lender returns when making student loans. Had we not just adopted an auction process for student loans in the recently passed budget cutting bill, this might make sense.
This amendment may be couched in terms of a study; however, it's difficult to see how the Secretary would study something like this without actually implementing a broader pilot, and that is the main concern that we have.
The Department of Education conducted a market mechanism study several years ago with the GAO and others. That extensive study did not find auctions to be a workable mechanism for administering the student loan program. Taking another look several years later may have shed new light on the subject.
We need the Department to focus on the creation and evaluation of this auction before we decide to push for studies or implementations of other auctions.
Madam Chairman, I reserve the balance of my time.
Madam Chairman, it pains me to oppose the amendment of my good friend from Wisconsin. We've served now on the Education Committee together for almost 16 years, and he's always concerned about protecting the taxpayer and the taxpayer dollars.
I think that I'm not so concerned about the study. It's the way the amendment is drafted that looks like it will impose the full program before the study so that the study could be made complete. And I understand that auctions are taking place all the time, but they're not generally done by the Department of Education. They're done by the Department of the Treasury and other branches. I'm not sure the Department of Education has that expertise.
But as we move forward on this, hopefully, maybe in conference, this could be cleared up and the intent of the gentleman could be carried out. That would be my hope.
Madam Chairman, I yield back the balance of my time.
Madam Chairman, I demand a recorded vote.
Madam Chairman, I rise in opposition to the Davis amendment.
I yield myself such time as I may consume.
This amendment changes the Bankruptcy Code in a way that will add uncertainty and additional risk to student lending. And I can't help but think that this will further restrict students' access to loans at a time when they're already finding it harder to obtain loans due to the current instability of the credit market.
Madam Chairman, I yield 2\1/2\ minutes to a member of the Judiciary Committee, the ranking member of Commercial and Administrative Law that has jurisdiction for the Bankruptcy Code, the gentleman from Utah (Mr. Cannon).
Madam Chairman, may I inquire as to the time remaining.
And we have the right to close?
Madam Chairman, I yield the remainder of my time to the subcommittee ranking member of Higher Education, the gentleman from Florida (Mr. Keller).