U.S. Senator Daniel K. Akaka (D-Hawaii) voiced concern about the debt incurred by young people who are increasingly reliant on student loans to attend college and the rising costs of college tuition during the first day of two-day investigative hearing before the Senate Committee on Governmental Affairs on the Rising Costs of College Tuition.

In response to rapidly escalating college tuition costs in the 1980s and early 1990s--far greater than the rate of inflation and rise in family incomes--Congress appointed a National Commission on the Cost of Higher Education. The 11 member group reported in January 1998. Five members testified before the Governmental Affairs Committee today.

According to many studies, the percentage of high school graduates attending college, across all strata of income levels, is at an all time high. Statistical data provided today indicate that increased tuition costs roughly approximate increased earnings (with minor state-by-state and income level variances). Yet, according to the American Council on Education, 71 percent of the American public believe that "a four-year college education is not affordable for most Americans." A study released by the American Council on Education in November, 1999, states that regardless of race, economic status, or gender, most college students attend school part time and work long hours while enrolled. This compromises their chances to complete a degree. The trend of rising costs for tuition, books and other associated expenses heightens students' anxiety. Many feel that they must work even more to cover the growing tab for their college degree, which further jeopardizes their attainment of that degree.

Despite rising college costs, there is no question that a college degree makes a difference in an individual's earning potential. According to the U.S. Census Bureau, the average earnings of college graduates have risen over the last two decades, while wages for those with only a high school diploma or less have dropped. "The importance of a postsecondary degree cannot be understated," Akaka said. "I am concerned about the adverse effect higher education costs have on the ability of low-income students to attend college. In 1998, the average federal loan debt for a graduating college student has risen to $9,700, a new high. We must continue to help individuals finance their college education and overcome rising costs through student loans and grants."

Many students in Hawaii rely heavily on Federal student financial aid programs, and will probably need them even more in the coming years. The University of Hawaii is currently considering a five-year tuition increase proposal for many reasons, including budget cuts in recent years, low tuition compared with other schools, decreasing enrollments, and Hawaii's fragile economy. Unfortunately, this could reduce enrollments even further, particularly of those who may be considering moving from community college to the university level.

Senator Akaka also expressed concern about the needs of minority students that are currently not being met--particularly among certain Asian American and Pacific Islander populations. "Many colleges and universities have worked diligently to ensure that the unique needs of minority students have been met," Akaka noted. "However, educational opportunities are lacking in minority communities, particularly in areas of high poverty in inner cities, rural areas, and certain island areas over which the U.S. maintains jurisdiction. Furthermore, tremendous variation in need exists within minority communities. In order to assess true need by race, we must strive to look at the data relevant to these diverse communities."

For instance, among Asian Americans and Pacific Islanders, the aggregated group does well in terms of financial access to college. However, when East Asian Americans such as Chinese and Japanese are isolated, and compared to Southeast Asian Americans such as Vietnamese and Laotians, and Pacific Islander Americans, such as Chamorros and Samoans, East Asian Americans do better and have greater access than the other groups. Akaka urged further research and discussion of this subject by educational organizations and institutions to compile more useful data.