I thank you, Mr. Pocan. Mr. Speaker, talking about the middle class is something that isn't done enough of here in this Chamber. The middle class is something that makes America what it is. The middle class is something that speaks to…
I thank you, Mr. Pocan.
Mr. Speaker, talking about the middle class is something that isn't done enough of here in this Chamber. The middle class is something that makes America what it is.
The middle class is something that speaks to Americans and says: Come join us. We represent opportunity in this country. We represent the ability to achieve more, to realize the American Dream.
It's the middle class that makes America different from so many other nations in this world, and it's the middle class for which we must work overtime to make sure we preserve it, because if we lose the middle class in this country, we lose the sense of opportunity, the sense of hope, the sense of upward mobility. We lose an essential element of what it is to be Americans. We have to do everything we can to preserve the middle class, and one of the biggest, stoutest pillars of the middle class is our education system in this country, including the higher education system.
I rise, Mr. Speaker, in opposition to H.R. 1911, on the floor tomorrow. Nominally, it is called the Smarter Solutions for Students Act. I call it--and many of my colleagues call it--the ``Make College More Expensive Act,'' which is a much more accurate title for this bill.
According to the Congressional Research Service, under H.R. 1911, students who borrow the maximum amount of $27,000 of unsubsidized and subsidized Stafford loans over 5 years would pay $12,374 in interest; or $10,867 in interest under current law if rates are allowed to double to 6.8 percent; or $7,033 if rates stay at 3.4 percent. Keeping the interest rates where they are will save our students nearly $5,000.
For that reason, I cosponsored Representative Joseph Courtney's bill, H.R. 1433, which will extend these low rates for at least 2 more years, and that's the fair thing to do. That's the decent thing to do. It's the American thing to do to protect the middle class. This is the approach that we need now with costs of college rising and student debt expanding at historically high rates. Let's examine the facts:
The total outstanding student loan debt in the United States has surpassed the $1 trillion mark. This is a figure that has outpaced credit card debt, auto debt, and it's second only to mortgage debt in this entire Nation. A recent study shows that student loan debt is the only type of consumer debt in the United States of America that has actually increased during this Great Recession, and the problem only continues to grow worse.
As a result of these debts, millions of Americans cannot buy cars, purchase new homes, start businesses or do the other things that mean realizing the American Dream. It's a terrible time for young people. It's a horrific time for young people.
Let's talk about the unemployment rate for young people. The unemployment rate in April for people between the ages of 16 and 24 was 16.2 percent, more than double the national average that we read about in the newspapers. According to a recent study commissioned by Demos, nearly 45 percent of unemployed Americans are between those ages of 16 and 34. The study also stated that 4.7 million young Americans are underemployed, working part-time, when what they really want to do is get full-time, family-sustaining, good-paying jobs. They don't have them.
As a result, young Americans are either unemployed or are underemployed and will likely lose a combined $20 billion in earnings over the next decade. That's from the Center for American Progress. Raising their college interest rates is going to further impact their ability to purchase homes, cars, to pay for their children to go to school, further dragging down our dragging economy.
This is all on top of the cost of college. The average published tuition and fees for in-State students at public 4-year colleges in this country increased by 66 percent beyond the rate of inflation between the 2002-2003 and the 2012-2013 academic years. For private colleges, the tuition and fees increased by
27 percent beyond the rate of inflation in that comparable time period. Since 1982, the cost of college tuition and fees has gone up 582 percent--twice the rate of medical care, which is also exploding as we all know.
To help provide students and parents greater transparency as to the true cost of what a college education in total will cost, I introduced last week H.R. 2020, the Truth in Tuition Act, which will require schools to either present each incoming class of students with a multiyear tuition and fee schedule or to give each student a nonbinding estimate of what their education will cost them individually.
H.R. 2020, the Truth in Tuition Act, would require schools either to present each incoming class of students with a multiyear tuition and fee schedule or give each student a nonbinding estimate of what their education is going to cost them individually, taking into account tuition fees and that particular student's financial aid package.
In this bill, there are no price caps, and it does not freeze the price of tuition. Schools are free to set tuition rates as they see fit. This legislation will help students and families plan by laying it out in front of them, what they can expect the entire cost of the college education to be, and make sure colleges and universities give every student a clear picture of what their degree will cost.
Responsible colleges and universities are already doing this, and this is already the law in the State of Illinois. This is already happening. But it's the noncompliant, it's the colleges that maybe aren't going the extra mile to inform the students of what kind of fees and costs and tuition that they're facing during the whole course of their university or college career, it's the colleges and universities who are not revealing this that this bill is addressing.
This legislation will help students and families plan for higher education by making sure that they get a clear picture of what the degree is going to cost. It's also going to cut down on excessive tuition and fee fluctuations. It's going to help rein in skyrocketing college costs, and it will encourage colleges to maintain some kind of level, nonfluctuating tuition schedule so that surprises don't happen to the students.
It will also slow college dropout rates in this Nation. Colleges all across the country are experiencing dropouts for the very reason that the students didn't expect the tuition and fees to be raised the way they have been.
The cost of a higher education and the debt carried by our recent graduates have skyrocketed across the last decade. It's the cost of the tuition and it's the interest attached to the debt that are the crippling features of this. Without having a full picture of college costs, students and their families are forced to take on more student loan debt than they originally anticipated. This bill, H.R. 2020, the Truth in Tuition Act, helps stop the uncertainty.
A further advantage of it is in the pricing, colleges will think ahead about costs and have incentives to develop more restrained budget growth plans. Ultimately, advertised long-term pricing may encourage some colleges to limit their tuition growth voluntarily. In the event of severe economic hardship on the part of the college or the university, a dramatic reduction in State aid for higher education or other exceptional circumstances, this bill provides a waiver for the Secretary of Education to be able to issue to make sure that the schools are not detrimentally impacted.
Mr. Speaker, I oppose H.R. 1911 because it allows the costs of college and university education to get out of hand because of interest rates, and I'm introducing H.R. 2020, the Truth in Tuition Act, in order to restrain costs to begin with. Doing both of these things is something we need to be doing in this Chamber because it is buttressing one of the foundations of the American middle class, allowing young people to complete the educations that they hope to complete, to become the people they want to be, to train themselves, to equip them to compete on a global scale and to achieve the American Dream ultimately, a dream that everyone needs to be able to achieve in this country. Once we start letting go of that, we start letting go of what this country is, the United States of America.