Affordable Higher Education
Mr. President, I take this time to talk about a fair shot for American families on quality, affordable higher education. It is very appropriate that the Senator from New Jersey is presiding because he has been one of the great leaders in…
Mr. President, I take this time to talk about a fair shot for American families on quality, affordable higher education. It is very appropriate that the Senator from New Jersey is presiding because he has been one of the great leaders in the Senate on the affordability of higher education, and it has been a pleasure to work with him.
Let me go through some of the numbers because they are somewhat shocking. We have 20 million students who enter college every year, and 60 percent will exit with student debt. The majority of students who now attend college will have to borrow money in order to be able to get a college education. Thirty-seven million Americans today have college loans that are outstanding. Yes, we know some are young professionals and some are older people. I was surprised to learn that almost 8 million Americans over the age of 50 have college loans that are still outstanding. So this is a burden many American families will have for the rest of their lives.
The average debt today is $29,000, and that number is rising dramatically every year. So when a student graduates, the average debt they carry is $29,000. There is $1.2 trillion in outstanding college loans--more than credit card debt.
As the Senator from New Jersey pointed out earlier today, the percentage of a family's disposable income they need in order to pay for a college education--which we need for global competition and for competition in this country--is far higher than any other industrialized country in the world by far, equaling almost 50 percent of disposable income. That is a shocking number. Education is the great equalizer, and for many American families it is out of reach because of the cost and the necessity to borrow money.
Let me get beyond the numbers for a moment and talk a little bit about the people. Last Thursday Senator Mikulski and I were on the campus of Bowie State University and UMBC. Bowie State is one of our historically Black colleges and universities in Maryland, located in Prince George's County. We had a chance to not only meet with Dr. Mickey Burnim, the president of Bowie State University, but with students as well around a table to talk about how they go about trying to arrange for scholarships and loans in order to be able to afford a college education.
Bowie State University is a good buy compared to other colleges; tuition is only around $5,000. One would think those students are in good shape, but let me tell my colleagues about the realities.
Dr. Burnim was explaining to us that on the first day of school, many students who they thought would be enrolled were not enrolled. Why? Because they couldn't put together the total financial package in order to satisfy the tuition costs, so they were not formally enrolled.
I was talking to some students at that roundtable discussion who explained to me that there were students who showed up for the first day of class without the textbook because they couldn't afford the textbook. Now they are going to be behind before they even start because of the high cost of a college education.
Here we are at a State college, and the average debt held by a student graduating from Bowie is $27,800--at a State college. That is a shocking number.
The same number, if we go through the same thing at UMBC--where the president is Dr. Freeman Hrabowski--one of the great universities of our country--they find so many tools to help their students with loans, scholarships, work-study programs, and the debt there is also over $20,000 a year for their graduating seniors. It is affecting their ability to perform in college.
What do I mean by that? There are large amounts of debt they have to take care of. The students do everything they can to reduce their debt, so they work. In some cases they work more than one job and attend college. It affects their ability to perform and successfully complete college.
At Bowie State it takes about 6 years to do a 4-year program because the students are working and are having a hard time meeting the credit requirements.
In some cases I was told there are students who want to take a summer class because it was offered, it was needed for their major, and it would allow them to graduate in a more timely way, but they couldn't afford to take the summer class because the Pell grants aren't available in the summertime.
I thank Senator Harkin, the chairman of the committee of jurisdiction, for offering legislation that would correct that, that would allow for Pell grants to be available on a 12-month basis. That would help.
Yes, the effect of the high cost of education is first and foremost on the individual. Too many children are not going to college, too many children are not going to the college of their choice, and too many students are taking too many years to graduate because of the high cost of college. Too many students aren't going on to those advanced degrees because they have too much debt, they have to work, and they have to pay off their student loans.
Too many students don't have all the training they need in order to do the best for themselves, and it is affecting their ability to succeed economically. They are delayed in their career choices because of extra years of college, and it is affecting their ability to buy homes because they have student debt.
It is affecting our communities. There are less retail consumers than there would otherwise be. Yes, it is affecting our global competition; yes, we have to increase Pell grants; yes, we have to increase public support; and,
yes, we have to increase transparency, but we can, this week and next, do something about it by passing the Bank on Students Emergency Loan Refinancing Act.
I thank Senator Warren and Senator Franken for leading our effort. This will allow us to refinance loans. People can't today, they can't refinance student loans. They can't take advantage of the lower interest rates. People who have student loans are paying thousands of dollars of extra interest costs.
Let's refinance it. The government shouldn't be making money off the backs of student loan holders because the interest rates are lower than what they are charging. Let's refinance. That will save thousands of dollars for families and would help us have more affordable opportunities for education in our community.
Let's give a fair shot to American families. Let's take up and pass the Bank on Student Emergency Loan Refinancing Act to allow those millions of Americans who are currently holding student debt to refinance at lower rates, saving thousands of dollars and helping Americans afford a college education.
I yield the floor.