Thank you very much for the opportunity, Congressman Courtney. And let me begin by commending you for being the sponsor of H.R. 3826. I'm proud to join you in that effort, and over 100 of our Democratic colleagues have joined in this…
Thank you very much for the opportunity, Congressman Courtney. And let me begin by commending you for being the sponsor of H.R. 3826. I'm proud to join you in that effort, and over 100 of our Democratic colleagues have joined in this effort. And I find it both distressing and, frankly, shocking that we don't have a single Member from the other side of the aisle who cares about students and wants to see the student loan rate maintained at 3.4 percent.
Let me start with a statistic that ought to give pause to everyone who cares about the future of our country. We have fallen from first to 15th in the world in the proportion of our population ages 23 through 35 that has a college degree. In an intensely competitive global marketplace, we are going to continue to struggle if we do not have the educated populace that we need to have to compete in that global marketplace. And if we continue to make it more difficult for students to go to college, that's precisely the outcome that we'll have.
And so, at the very moment when we ought to be doing everything that we possibly can to facilitate college enrollment, we are, in fact, in the House of Representatives, being led by people who are taking us in the exact opposite direction.
The student loan issue is crucial. As you say, we have 73 days to act before students take on a significant additional hardship, doubling the interest rate.
But look at what the House Republican budget that has now been passed twice in this Chamber, once before Easter recess and as recently as yesterday, look what it does to higher education. It cuts funding for the Pell Grant program, as Representative Cicilline said, the core program, the core student financial aid program that came about as a result of the leadership of Senator Pell. It cuts it by $104 billion over 10 years, $104 billion over 10 years at a time when we're trying to facilitate college enrollment.
It will render 18,000 students in my home State of New York ineligible for Pell, students who are eligible for it now who won't be eligible for it next year. Across the country, 400,000 students who are eligible for Pell now won't be eligible for it.
And at the very time that the Republican leadership of the House of Representatives is proposing that, they are also proposing to make it more expensive for students to do the only thing they could do to replace the dollars they're going to lose from Pell, and that's borrow. So we're going to hit them both ways. We're going to take away non- repayable assistance, grant assistance, and then we're going to make it more expensive for them to borrow. And it's just simply wrong.
We ought to be about opportunity in this country. And when I hear a Presidential candidate talk about how the desire to send more students to college is elitist, it, frankly, gives me great pause. And if we look at the history of higher education in this country, before World War II and the GI Bill, it was elitist. And then with the advent of the GI Bill and then the community college, higher education became egalitarian. And it's what built the great
middle class in this country. It is what has allowed us to thrive and become the strongest and most prosperous Nation in the world.
We cannot afford to take a step back; and this dual effort to both diminish Pell, significantly diminish Pell, and then make it more expensive for students to borrow, the consequence of that will be to move us backward at a time when we need to be aggressively charging forward.
I want to pick up on a couple of points but certainly on the point, Congressman Courtney, that you made with respect to students who are making decisions right now. I mean, they were notified of their acceptances between April 1 and April 15, and they've got to respond to the colleges that accepted them between May 1 and May 15.
They are making life-altering decisions right now. And we here in the Congress, I believe, have an obligation to give them the information they need to have in order to make informed decisions. If they're going to have a significant additional repayment burden upon graduation, that's going to affect their decisions. If a student has excelled and worked hard and gotten into the college of his or her choice, for them not to be able to accept that offer of admission in part because we haven't given them the information that they need, that's unconscionable.
The other point I would make is that governing is about choosing. What we're talking about here is an increase of $550 a year over the life of a 20-year repayment for 7.5 million students. If anyone walked into this Chamber and proposed a $550 tax increase on an annual basis for 7.5 million people, our friends on the other side of the aisle wouldn't discuss it, wouldn't hear it at all, and yet they are willing to sit silently by while we're going to impose that very kind of payment increase on 7.5 million students.
The last point I would make is that there is this myth that increased availability of student financial aid drives up college costs, and it is one of the arguments that is made. When people argue for reducing access to student aid, they say that if we reduce access to student aid, college costs will at least moderate, if not come down, because that is what is allowing administrators to raise prices. It is a myth that has absolutely no basis in fact. It is insidious, and it is damaging because it drives the kind of decisionmaking or priority- making that we're seeing here in this move to reduce Pell, this move to increase student loan rates.
The principal driver of student costs right now is diminished support from State and local government. We are funding public higher education, per FTE, at the lowest level we have funded it in 25 years. That's what's driving college costs. Seventy percent of the students in this country go to publicly supported colleges. Publicly supported colleges are increasing at a rate of 8\1/2\ to 9 percent a year because the funding for FTE from the State government or from local government, in the case of community colleges, is going down. That's what is driving costs. If our response to that increased need is to say that's not bad enough, we're going to make it even worse, we're going to take away Pell, and we're going to make your student loans much more expensive, we're going to rue the day we did that because 5 years from now, 10 years from now, 15 years from now we're not going to have the educated workforce we need to have to drive this country forward.
Full-time equivalent student.
I would absolutely agree.
I would also observe that when we passed it for 3.4 percent, it was at a time when this Congress was less racked by the partisan antipathy, frankly, that seems to have taken over our Congress. This is an example of that. We have just lived through the last several weeks of perhaps the greatest example of that. We've taken something that historically has sailed through this Congress on a bipartisan basis with little or no objection--the surface transportation bill--and we have been unable to pass the surface transportation bill in this House. It's an embarrassment.
In 2004, I believe it was, or 2005, we passed a surface transportation bill written by Chairman Don Young, Republican of Alaska. It was a very good bill. We passed it with, I think, 30 dissenting votes. And it was written with bipartisan involvement and bipartisan support. That's gone away. I think when we were able to pass the legislation that did the student loan reduction in interest, we had bipartisan support, we had bipartisan involvement. And I hope perhaps this is the issue around which we can coalesce and bring it back, bring back that kind of bipartisan cooperation.
If I may just pick up on that point.
In President Obama's State of the Union address of January 2011, he said that in order for us to win the 21st century, we have to out-build the rest of the world, we have to out-innovate the rest of the world, and we have to out-educate the rest of the world. The innovation piece and the education piece is all about access to higher education.
This is about our future competitiveness. This is about our future economic stability and economic security. It's about filling the jobs that the economy of the 21st century is going to create. The economy of the 21st century is going to create jobs that require postsecondary training. If we make it more difficult for students to access that training, those jobs are going to go unfilled, and our economy is going to continue to struggle.
I couldn't agree more. Again, I want to commend you for your leadership first in filing the bill, generating over 100 cosponsors that the bill has, organizing this Special Order tonight. This is a very, very important effort.
One last thing I will say. I will say to the students of America, what I have found is the most compelling effort of advocacy that individuals can put forward is to put a human face on the consequences of our failure to act. If the students all across this country could make their Members of Congress aware of what this is going to mean for them, both in terms of their repayment and the future students in terms of the choices they are going to have to make, I think the decision we need to make will become a lot easier for many of our colleagues to make.