College Cost Reduction Act Of 2007
Madam President, Benjamin Franklin once said: ``Genius without education is like silver in the mine.'' It is unquestioned that a college education is the single greatest weight on the scales of success. Yet today, more and more…
Madam President, Benjamin Franklin once said: ``Genius without education is like silver in the mine.''
It is unquestioned that a college education is the single greatest weight on the scales of success.
Yet today, more and more working-class Americans are shut out from the promise and opportunity of a college education because the price is out of reach.
The Higher Education Access Act is a bill that will restore that promise to hundreds of thousands of American students.
Over the past 20 years, the cost of a college education has tripled. Yet the average family's median income has been virtually flat, and Federal student aid has not kept pace to make up the difference.
As a result, the goal of higher education has never been further out of reach for many working class students and their families.
Nearly 400,000 students who would otherwise have the credentials to go to college are shut out because they cannot afford it.
Imagine the doors to opportunity that a college degree would have offered these students, the benefits to our society and the benefits to our economy.
Over the course of their lifetime, a college graduate will earn $1 million more than a high school graduate. And the Department of Labor projects that almost 90 percent of the fastest-growing and best-paying jobs require at least some postsecondary education.
Too many students are losing out on all that opportunity. And too many students who do make it to college are shouldering the burden of more debt than ever before.
In Nevada, we are fortunate that the cost to attend one of our fine State universities is still relatively low. But even in Nevada, the average graduate has almost $17,000 in student loan debt.
There is nothing wrong with borrowing money to help pay for college. But when that debt reaches an average of tens of thousands of dollars, students are buried in debt before they even enter the workforce.
The Higher Education Access Act, the bipartisan reconciliation bill that we are today debating will help solve this critical problem.
It will do so in a comprehensive way by increasing grant aid, expanding the number of students eligible for Federal aid, making loan debt more manageable, and expanding loan forgiveness
options for those professions that we all recognize are important to society--teaching, social work, law enforcement, and health care.
The Higher Education Act includes three crucial components.
First, the bill includes a significant increase to the Pell grant, which has long been the foundation for Federal student aid.
Twenty years ago, the Pell grant covered half the cost of attendance of a 4-year public college. Today, it covers less than a third.
In 2000, President Bush campaigned on a promise to increase the Pell grant, but for 5 years, it remained at $4,050. After years of stagnation, one of the first acts of the Democratic Congress this year was to raise the Pell to $4,310.
This bill takes the next step, increasing the Pell grant to $5,100 next year and to $5,400 in 2012, and makes an additional 250,000 students eligible.
Second, the Higher Education Access Act caps monthly Federal student loan payments at 15 percent of a borrower's discretionary income. This will translate to real benefits for graduates.
Under this new income-based repayment plan, a teacher in Clark County, NV who earns about $45,000 a year, would have his or her monthly payments reduced from $192 to $149, or 23 percent.
This bill also increases the amount of student income that can be sheltered from the financial aid process. The current levels amount to an unfair ``work penalty'' on working, part-time, and community college students, including the nearly 58,000 students in my own State who attend a community college.
Third, the Higher Education Access Act expands loan forgiveness options to encourage college graduates to pursue public service and careers in such high need areas as nursing, teaching, or law enforcement.
We have a tremendous teaching shortage in Nevada, particularly in Clark County. Clark County is one of the fastest growing school districts in Nation. They are building, on average, one new school every month. Each year, the district needs to hire as many as 1,000 new teachers to fill these buildings.
This loan forgiveness program would erase remaining student debt for new teachers after 10 years of teaching.
The large banks and lenders tell us that the provisions in this bill will impact the benefits that they provide to students. But they never tell us what these so-called benefits really mean for the average student.
This legislation, on the other hand, has clear and tangible benefits for students. The savings generated in this bipartisan bill, through modest cuts to lender subsidies, are sent right back to students in the form of $17 billion in new benefits. This would be the largest increase in college aid and student benefits since the GI bill.
Let me address the issue of lender subsidies. The Federal student loan program was established in 1965, before a student loan market even existed.
Back then, the Federal Government had to offer incentives and subsidies to encourage private financial institutions to provide education loans.
But times have changed. Today, there is no doubt that the student loan market is highly lucrative, and one need look no further than $225 million in compensation that the CEO of Sallie Mae received over a 5- year period to prove this point.
Yet the Federal Government continues to provide excessive subsidies and guarantees to lenders under the FFEL, Federal Family Loan Program. I support the FFEL program Our State's oldest university, the University of Nevada Reno, participates in the FFEL Program.
But without a doubt, the private student loan industry is heavily subsidized by the American taxpayer. And, in my view, it is past time for the Congress to take a second look at these subsidies. This bill does that in a bipartisan, responsible, and reasonable way.
I thank Senators Kennedy and Enzi and the rest of the HELP Committee, as well as the chairman of the Budget Committee, Senator Conrad, for their work in crafting an important piece of legislation that meets the reconciliation instructions in the budget resolution.
Mr. President, passing the Higher Education Access Act is one of the most important steps this Congress could take. I can think of few things more important to our country's future than opening the door to a college education for millions of students and unlocking all the opportunity it affords.
I also want to amplify what I said this morning about the way this bill has been managed. The two managers of this bill, Senators Enzi and Kennedy, have done an exemplary job. There are some difficult issues to deal with, and they have done it in a graceful manner. They have allowed people to offer amendments and debate whatever they feel is appropriate. I would hope that in this little vote-athon we have, which is one of the quirks in the Senate rules--people may offer amendments when we are finished--people will keep in mind what we are trying to accomplish with this bill. Once this passes, they will be no longer trying. It will really help lots of students to go to school. Things are different than when I was a college student. I could work, as I did and many others did, and put myself through school with a little scholarship here and there. You can't do that anymore. You need, with rare exception, student aid. This bill will allow students more money to be educated.
As has been said here in the last several days on many occasions, a person getting a college education will earn over a lifetime $1 million more than a person with no college education. That really says it all. That is what this is about, to allow more people to be educated.
I appreciate very much the manner in which this bill has been managed. I think it is exemplary. It is how a bill should be managed in the Senate.
Will the Senator yield for a brief statement?
We are going to have a number of votes that could start in the next half hour or so, whenever the managers decide we should start. But my goal is to finish the voting tonight. We have this bill started. I would hope we could finish it tonight. We are going to give it the college try. All the amendments that will be offered, we are going to vote on them tonight. Many of them will be points of order, a 60-vote margin. I would hope people understand these are procedural votes. I hope we can dispose of them as quickly as possible, one way or the other. We have a lot to do. We have a cloture vote tomorrow on a very important appropriations bill. So we are going to move to that. I hope the distinguished Republican leader and I can work out arrangements so that we may not even need a vote tomorrow. If we can proceed to it on Monday, we would do that, whenever we finish education issues in this next cycle.
It is my understanding that there may even be something more we could do on education Monday. That is not quite worked out yet, but if it is, I would be happy to work out the schedule so that we can continue on education and perhaps go to the appropriations bill either Monday night or Tuesday sometime.
Again, we are going to do everything within our power to finish this bill tonight. I hope it is not going to be a night like we had Tuesday. I am confident it won't be, but it could go into the late evening tonight.
Madam President, we are now waiting for the distinguished Republican leader to come. As further evidence of your good work, we have a unanimous consent request here that will allow us to move Monday to the higher education extension which is so important. I, frankly, am elated that this is going to happen. This is a gift for the American people. I certainly hope the Senate understands how important it is that the two of you have worked this out. This is really remarkably good.
Again, we are waiting for the distinguished Republican leader.
I suggest the absence of a quorum.
I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I ask unanimous consent that at 2 p.m. Monday, July 23, the Senate proceed to consideration of Calendar No. 264, S. 1642, the higher education extension, and that when the bill is considered, it be considered under the following limitations: that there be a total time of 8 hours of debate on the bill and amendments, with the time equally divided and controlled between Senators Kennedy and Enzi or their designees; that the only amendments in order, other than the committee-reported substitute, be a total of 12 relevant first-degree amendments relative to the matter of S. 1642 and/or the committee-reported substitute; there would be six for each manager, and an additional managers' amendment which has been cleared by the managers and the leaders, with no other amendments in order; that upon disposition of all amendments, the substitute amendment, as amended, if amended, be agreed to, the bill, as amended, be read a third time, and the Senate proceed to passage of the bill.
Prior to asking approval of this consent, I want the record to reflect, I love people who write left-handed. I have a son who is left- handed, and there was nothing meant to disparage left-handers when I said that.