College Cost Reduction Act Of 2007
Let me thank my distinguished colleague and the chairman of the committee from Massachusetts for his kind words. Above all, I wish to commend him for his incredible leadership, for standing up for the Nation's students, and for putting…
Let me thank my distinguished colleague and the chairman of the committee from Massachusetts for his kind words. Above all, I wish to commend him for his incredible leadership, for standing up for the Nation's students, and for putting forth a bill that will make a tremendous difference for students across the Nation who are struggling to afford college.
I know in an era in which we lament the lack of bipartisanship, I also wish to commend the ranking Republican on the committee, Senator Enzi. I was privileged to be sitting in the chair when he was talking about this bill. I appreciate very much the same spirit he brings to this legislation, the leadership he has also shown working with Senator Kennedy to make the legislation that has come to the floor that I think should receive the very broad support of the Senate.
Certainly, I wish to rise in strong support of the Higher Education Access Act, which takes some critical steps to making higher education more accessible and more affordable for our Nation's young people. In a world that has been transformed by technology, in which the boundaries of mankind have largely been erased in the pursuit of human capital, for the creation of a product and the delivery of a service, so that an engineer's report that is created in India and transmitted back to the United States for a fraction of the cost or a radiologist's report may have been done in Pakistan and read by your doctor in your local hospital or if you have a problem with your credit card, as I recently did, you end up with a call center in South Africa.
Well, in the pursuit of human capital, we are globally challenged. So for America to continue to be the global economic leader, it needs to be at the apex of the curve of intellect. That means the most highly educated generation of Americans the Nation has ever known. Of course, to achieve that, there must be both access and affordability for this next generation of Americans to be able to be the scientists, the engineers, the mathematicians who can fuel our competitiveness in the world.
This bill, in my mind, in addition to providing educational opportunities, is about meeting the Nation's challenge in this global competitive marketplace we are in.
The bill begins to right the imbalance that has plagued student financial aid. For far too long, students struggling to afford college have seen their grants shrink, their loan rates go up, their debt explode--their debt explode.
This bill turns that trend around, by increasing grant aid for the neediest students and making a $17 billion investment in student aid, the largest since the passage of the GI bill.
We all know that education is the key--the key--that unlocks social mobility and economic empowerment and opportunity in this country. I know that, as Senator Kennedy suggested, from my own personal experience. I have said before, that as someone who is the first in his family to go to college, the reality is, but for the power of the Federal Government's financial assistance, without Pell grants, one of the programs we are talking about today, I certainly would not have been able to afford college or go to law school, nor would I have had access to opportunities that my college education afforded me, and I certainly would not be here today as the junior Senator from New Jersey, without that educational foundation and opportunity.
I am not alone. Millions of young people across this Nation have dreams of earning a college degree, of having access to that key that unlocks their own economic empowerment of fulfilling their God-given potential.
Some dream of building a successful career or going on to graduate education or, as in my case, to be first in their family to graduate from college. The power of those dreams is why our students and their families are making sacrifices to meet the high cost of college, why they are scraping together what they can to finance education that will let them fulfill their dreams.
That reality is becoming harder and harder in terms of achieving that goal. Every year, nearly half of all college students, college-ready students, and families with incomes under $50,000 cannot go to a 4-year college, not because they do not have the ability, not because they did not gain admission but because the cost is too much of a barrier.
Despite current aid, grants and money that students earn working, many students face a growing gap between the aid they receive and the cost of college. As a matter of fact, lowest income students at a 4- year college face almost a $6,000 gap in unmet needs.
I worked when I was going through college. I understand those challenges. You are getting financial aid, you are working, and still you have an unmet gap. That means debt. That means debt. The lowest income students at 4-year colleges face roughly $5,800 in unmet needs after a standard financial aid package, after their loans, and after the amount their families contribute. The fact is that for the neediest students, current aid is simply not enough. The fact is students have been squeezed on two ends, one by declining Federal aid that has sent students the message they are on their own; and, two, by having to rely increasingly on student loans, which in essence, is debt.
We are supposed to provide a needed boost to students but instead have left them with deals that are not in their best interests. I am proud of this bill because it will put money where it is needed most, Pell grants and other critical financial assistance that benefits our Nation's students with the most need.
Instead of another empty promise to increase Pell grants--we have heard
plenty of those--this bill will increase the maximum Pell grant to $5,100 next year, and beyond that, climbing to $5,400. There simply is no excuse for the fact that Pell grants have not increased by even $1 over the last 5 years.
Tell any family that is trying to have their child fulfill their dream. We have seen tuition rates go up. We are seeing costs again go up. But we have seen the Pell rate stagnant. That means, in terms of buying power, that has even meant far less.
With this bill, we are ending the neglect of our Nation's neediest students. We also will expand who is automatically eligible for a Pell grant. Currently, a student is eligible for Pell grants if their family makes $20,000 per year. This bill increases the annual income limit to $30,000, so more students can be eligible to benefit from Pell grants.
That is the reality of having so many of our families be able to at least get some assistance in this respect. This bill works to protect students working hard to stay in college by doubling the amount a student can earn but remain eligible for aid from $3,000 to $6,000. This bill ensures a student will not lose their financial aid from simply working to make extra money.
Let me tell you, when I went to college back in New Jersey at St. Peters College, for the first month I did not have the money to get to St. Peters College, which was in a neighboring community from where I lived but a good several miles away.
For that first month, until I entered the work study program and started to earn money for transportation, I walked. Now, I was a lot leaner as a result of it, a lot thinner as a result of it. But the bottom line is that as a result of working, I was able to get the transportation funds I needed.
But when we, in fact, say to a student: We want to reward work and we want them also to have the sense that when they work there is a benefit, not a punishment, in fact, that has worked to the contrary. So Senator Kennedy and the committee have done something that is exceptional. As someone who had to work in order to get to school, this actually incentivizes the opportunity to do so but does not penalize them.
This bill also helps students who are struggling to pay back their Federal loans by capping the amount they will pay at 15 percent of their income. This helps ensure they are not paying back more than they can afford. One of our challenges is that our students graduate under a mountain of debt. Then, as they try to fulfill their hopes and dreams, they are squeezed even more in terms of the repayment process. This is a critical step toward ensuring that loan repayments are affordable and not overly burdensome for some recent graduates.
I also am extremely pleased this bill builds on a proposal I have supported for a long time from my days in the House of Representatives, expanding loan forgiveness for those who are working in jobs that serve the public.
By providing some of the our most needed public servants, our teachers, police officers, early educators, social workers, school librarians the chance to have their loans forgiven after they have been working hard to pay off those loans, we are sending a powerful message.
We have a whole new generation of teachers we are going to need in this country. We have an explosion, a bubble that is about to burst of those who are, in fact, going to be in the retirement age and will be retiring.
As I said earlier, in this global challenge, education is the key to being the continuing global leader in competitiveness; having the most highly educated generation of Americans ever. That means having the firm foundation to ultimately be able to achieve higher education. That means having a cadre of educators who are among the most highly skilled and educated professionals we have ever had.
This incentivizes people to head in that direction. We are sending a powerful message. We are saying: If you are willing to serve the public, we will give back. If you make sacrifices in your daily job, we appreciate that sacrifice, and we want to lessen the financial burden. We will help ensure that today's students do not shy away from a career in public service simply because they think they cannot afford it.
I am proud of the direction this legislation takes. This bill is sensible. It is reasonable. It is fair. It makes our priorities clear. Instead of subsidizing lenders, we should be putting every last dollar possible into the pockets of students.
In addition, we are providing $17 billion in new aid to students without charging taxpayers a dime. In this bill, we are actually also putting nearly $1 billion toward deficit reduction. As a member of the Senate Budget Committee, I am pleased to see this bill recognizes the responsibilities we have, not just to our students but to future generations who do not deserve to be saddled with the Nation's rising debt.
I look forward to, as a member of the Senate Banking Committee, working with our chairman, Senator Dodd, to deal with these issues in this bill. In my mind, this is integral to making higher education more accessible, more affordable for this next generation. It is a step forward to ensuring the student loan system works for students and their families; that is who it is supposed to work for, for students and their families.
It is a key to preserving the integrity of our Nation's higher education system. It is a key to having a continuing ability to be the global economic leader. It is the key to fulfilling the American dream.
I yield the floor.