Making College Affordable
Mr. Speaker, ensuring students can afford college is vital to ensuring our Nation's competitiveness in a global economy. A majority of new jobs in the next decade will require a college degree, which makes higher education an economic…
Mr. Speaker, ensuring students can afford college is vital to ensuring our Nation's competitiveness in a global economy. A majority of new jobs in the next decade will require a college degree, which makes higher education an economic necessity for most Americans. Ensuring all students have the opportunity to go to college will strengthen our economy, grow our middle class, and invest in our future.
Yet, education costs continue to rise year after year, pricing some people out of an education. College costs have dramatically increased. Over the last decade, the cost of attending a 4-year institution has increased 66 percent over the rate of inflation. For 2-year institutions, tuition and fees for students have increased 47 percent beyond the rate of inflation. According to the College Board, the annual cost of attending an in-State public college is now well over $22,000 a year. These rapidly rising costs are pricing hardworking families and students out of an education.
Congress can--and must--act to ensure college remains affordable for hardworking families, and there are things that we can do to do just that.
First, Congress must act immediately to prevent student loan interest rates from doubling on July 1. I've supported the Student Loan Relief Act, which would extend the current student loan interest rate, 3.4 percent, until 2015. Unfortunately, the Republican plan passed last week, the Making College More Expensive Act, would put college out of reach for many of my constituents and students across this country. I opposed the Republican plan, which would create a variable
loan interest rate system, letting student loan rates spike, forcing students to pay higher interest rates.
I continue to believe that students deserve the certainty of a fixed student loan interest rate. An ever-changing rate, as the Republican plan would provide, would create more anxiety and uncertainty for millions of families, and that's just the wrong approach. Hardworking students and parents have already been saddled with $1 trillion of student loan debt. Congress should be working to ease that burden.
It's time that Congress return to regular order and prevent student loan interest rates from doubling at the end of the month. That means doing what we were sent here to do: going to conference to work out the differences between the House-passed version and the expected Senate version of this bill. The clock is ticking, and rates for millions of students will double on July 1 if we don't act.
Congress shouldn't let rigid partisanship get in the way of preventing what equates to a massive tax hike on students and their families. Instead, let's do our job and legislate. Disagreement on parts of a bill is not an excuse for delay.
Second, we should enact legislation to allow families to save more for college. Recently, I introduced a bill with my Republican colleague, Congressman Tim Walberg, giving greater flexibility to families to save money for tuition, books, and other educational expenses. This bill, the Helping Families Save for Education Act, would increase existing caps on Coverdell savings accounts and allow families to contribute more over longer periods of time.
These types of accounts offer families a tax-advantaged choice to save for a child's educational expenses.
Currently, families or beneficiaries can contribute a maximum of $2,000 a year. Our legislation would increase the maximum contribution annually for most working families. Families and students, under our legislation, would also be able to save for college for an additional 4 years, until the student turns 22 years old.
Third, we must continue to provide and fully support Pell Grants, which provide needs-based grants to low-income students. No one who wants to go to college should be priced out of doing so. So I, along with my Democratic colleagues, stand ready and eager to ensure a college degree remains in reach for every student, no matter what their means.
Finally, we must keep the cost of attending college low by continuing direct State and Federal support to universities. In my home State of Michigan, we are blessed with great public institutions that provide a world-class education to our citizens.
Unfortunately though, in recent years we've seen direct financial support to these universities slashed. Such cuts are then passed on to students and families. If investing in education remains a priority for this Nation, we must invest in college for our students.
I ask a simple question: What's more important than the education of our children?