House Committee on Education and Labor
U.S. House of Representatives

Dear Colleague:

In the latest Myth vs. Fact on the cleverly-titled College Cost Reduction Act (H.R. 2669), we turn to the issue of alleged savings for taxpayers.  Proponents claim the bill will improve student aid programs at no cost to taxpayers, but upon closer inspection, these claims fall completely flat.  In reality, this legislation would create nine new entitlement programs, while placing the interests of graduates, colleges, and universities above the needs of low-income students.  The following exposes yet another common myth propagated by those who aim to mislead students and parents about this misguided legislation.

MYTH:  H.R. 2669 will establish new programs at no new cost to taxpayers.

FACT:  The bill is nothing more than a Trojan Horse for new spending at the long-term expense of American taxpayers.  The measure has been considered under the expedited procedure of budget reconciliation, which protects it from a potential filibuster in the Senate.  Even though reconciliation is intended for deficit reduction, this bill simply exploits the procedure.  It cuts roughly $18.58 billion over five years in payments to student loan providers, but simultaneously spends more than $17.13 billion during that same time period on multiple programs, including nine new entitlement programs – an apparent net savings of less than 9 percent.  will never, ever die.  The long-term costs of these new programs will be substantial.  And other proposals included in the bill, such as the interest rate cut for college graduates, will have exploding long-term costs that could amount to over $30 billion after an initial phase-down over the next five years, according to an analysis by the Department of Education.  If these proposals continue in the future, taxpayers will be forced to pay billions more to cover this new spending, along with billions more in new entitlement spending.  Taken together, this would dwarf any token “savings” proponents of H.R. 2669 may tout on the floor later today.

We urge you to vote NO on the College Cost Reduction Act.  For more information on the bill, please contact the Education and Labor Committee Republican staff at x5-6558.

Sincerely, 

Howard P. “Buck” McKeon (R-CA)
Senior Republican Member                                                
Committee on Education and Labor                                     

Ric Keller (R-FL)
Ranking Republican Member
Higher Education, Lifelong Learning, and Competitiveness Subcommittee