I move to proceed to Calendar No. 124, S. 1238, Senator Reed's student loan bill. Madam President, following my remarks and those of my Republican counterpart, the time until 11 a.m. will be equally divided and controlled, with the…
I move to proceed to Calendar No. 124, S. 1238, Senator Reed's student loan bill.
Madam President, following my remarks and those of my Republican counterpart, the time until 11 a.m. will be equally divided and controlled, with the majority controlling the first half and the Republicans controlling the final half.
At 11 a.m. the Senate will proceed to executive session to consider the nomination of Jennifer Dorsey to be U.S. district judge for the District of Nevada. At noon there will be a rollcall vote on confirmation of the Dorsey nomination. I would add that the chairman of the Judiciary Committee has asked that we hold that vote open until 12:30 p.m. today because they are having a confirmation hearing on the new Director of the FBI, Mr. Comey. We will do that, and the vote will end at 12:30 p.m. rather than 12:15 p.m. or 12:20 p.m.
Following that vote, the Senate will recess from 12:30 p.m. to 2:15 p.m. for our weekly caucus meetings.
In America, this great country of ours, a quality education is the surest path to the American dream. When I was a boy, we always looked at that American dream as getting a college education, which, from where I came from, wasn't going to happen very often. Now the American dream is more than just getting an associate's degree or a bachelor's degree. It involves many other occupations, all of the things available in health care now, such as nursing, nursing assistants, all of the technicians, the people who do physical therapy--not physical therapists but people who help doctors do what they need to do. We have programs to become a physician's assistant. There are many programs that are important to be able to fulfill that American dream. There are all different kinds of programs for computer training separate and apart from getting a bachelor's degree. Those programs are extremely important. The reason they are important is we as Americans have decided that with the cost of education skyrocketing as it is, students should get some help, whether they are seeking a degree in engineering or getting into a program to begin some computer training to have jobs they want for the rest of their lives.
College has never been more expensive and further out of reach for American families. That is why it is critical that we keep interest rates low on Federal student loans so more promising students can realize their dream of an education.
Last month Republicans rejected the Democrats' plan to freeze student loan interest rates at current levels for 2 years without adding a penny to the deficit. Because of this obstruction, loan rates doubled on July 1, piling thousands of dollars more on debt that more than 7 million students owe. Republicans are instead pushing a plan to balance the budget on the backs of struggling students. But if either the legislation passed by House Republicans or the plan proposed by Senate Republicans becomes law, student loan rates will more than double over the
next few years as interest rates increase.
Speaker Boehner says that the House has acted and now the ball is in the Senate's court. We talked about that yesterday. What is he talking about--they have acted and now we should act? I guess we could talk about what they didn't do last year on the farm bill. I guess we could talk about what they didn't do last year on post offices. I guess we could talk about what they haven't done this year on the farm bill. We could talk about what they haven't done that is so devastating to small businesses around America, and that is having people who are online and don't build a single building, rent a single building--they get a different rate of return than do those in brick-and-mortar buildings. They do that because they don't have to pay sales tax. We could talk about why the Speaker is refusing to take up something that is meaningful.
As I say about this student loan issue--and I just had a meeting that ended a few minutes ago--if you can explain to me why these proposals the Republicans have are better than just having the rates double, please do that. But they go into all these gyrations about whether it is a T-bill, overnight T-bill, or 30 days or 6 months or--all this complicated stuff, and it is factual. I met with someone from the White House. I said, OK, tell me what happens in 3 years. The response was, oh, well, the rates will be above 6.8 percent. That is appalling. If someone can show me how all these programs they are coming up with are better than just letting things double, tell me.
We have a better proposal. Instead of pushing a plan to balance the budget on the backs of struggling students, I think we should support a plan that would be better for students, not worse for students. I repeat, we can't support a plan that would be worse for students than doing nothing at all.
They have to take action. The rising price of higher education means too many young people are deferring higher education. I hear all the stories. College education used to be cheaper. Well, because of what has happened here in Washington with the obstruction, we have to help people. There has been less support of higher education from the States. Tuition costs have risen significantly because of this. Students need help. We have to take action. The rising price of higher education means too many young people are deferring higher education, and it has saddled many who do get a degree with unsustainable debt-- debt that causes them to delay buying their first home, having children, or starting a business. Americans have more than $1 trillion in student loan debt. The average graduate owes more than $25,000. In fact, Americans have more student loan debt than credit card debt. They simply can't afford to pile on even more.
We are going to continue to fight to keep the student loan rates low and hold back the rising price of education. Tomorrow the Senate will vote on whether to even begin debate on our plan to keep loan rates low for an additional year.
I very much admire the work done by Senator Stabenow, the chairman of the Agriculture Committee. She is someone who is very effective in conveying a message. She has led the message for Democrats as to why we shouldn't let these rates double, and she will continue to do that.
As I indicated earlier, we made a proposal to keep rates where they are for 2 years. We have made changes to our proposal in an effort to meet Republicans in the middle while protecting students. Our plan shortens the extension from 2 years to 1 year, and it doesn't add a penny to the debt.
I spoke with the chairman of the Finance Committee today. I said: Max, explain how we are paying for this. It is so simple. It is inherited IRAs, that people would pay after 5 years--they wouldn't get the tax deduction after 5 years. What our program does is it closes this obscure tax loophole that allows a few very wealthy individuals to avoid paying taxes on inherited retirement accounts. This is why Senator Baucus came up with this as a pay-for.
So I hope Senate Republicans won't block a second commonsense plan in investing in our economy by keeping college affordable. We have reduced it to 1 year from 2 years. It would be great if we had a long-term solution to this, but we can't do something that hurts students very quickly. Some have said: Well, it is going to be for a year or two, and there will be lower interest rates. Yes, but after that it will be ``Katy, bar the door.'' We all know interest rates are going to go up.
Dorsey Nomination
Before the lunch, as I have indicated, we will consider the nomination of Jennifer Dorsey to be U.S. district judge for the District of Nevada. She will be a valuable addition to the Federal court system. She is a Las Vegas native. Her father was stationed at Nellis Air Force Base and after Vietnam decided that was where he wanted to make his home. He started his family there.
Ms. Dorsey graduated from Chaparral High School and graduated cum laude from the University of Nevada, Las Vegas. She was also the first member of her family to graduate from college. She served as a congressional intern for my friend and former colleague Senator Richard Bryan. She attended Pepperdine University School of Law, where she was a member of the Pepperdine Law Review.
After graduation she returned to Las Vegas and excelled, first as an associate and now as a partner, at the firm Kemp, Jones & Coulthard, a longtime brave, proud Nevada law firm. She is the first and only female partner in that firm. She specialized in civil litigation, complex commercial disputes, appeals, and class actions.
I am very impressed with her dedication to the State of Nevada, her community, and the legal profession. She will make an outstanding Federal judge for Nevada. I look forward to her confirmation.
Recognition of the Minority Leader