Higher Education

On Thursday, May 21, the House Education and Labor Committee will hold a hearing to examine proposals that will make historic increases in college aid by enacting reforms that will make the nation’s federal student loan programs more reliable, effective and efficient for students, families and taxpayers.

One of the proposals the committee will examine is President Obama’s FY 2010 budget proposal, which would increase the Pell Grant scholarship and other forms of student aid by almost $100 billion over ten years – and at no cost to taxpayers. The President’s plan would be paid for by ending the subsidies the federal government currently pays to lenders in the federally-guaranteed student loan programs and re-directing those savings back into additional aid for low- and middle-income students

On Thursday, May 21, the House Education and Labor Committee will hold a hearing to examine proposals that will make historic increases in college aid by enacting reforms that will make the nation’s federal student loan programs more reliable, effective and efficient for students, families and taxpayers.

One of the proposals the committee will examine is President Obama’s FY 2010 budget proposal, which would increase the Pell Grant scholarship and other forms of student aid by almost $100 billion over ten years – and at no cost to taxpayers. The President’s plan would be paid for by ending the subsidies the federal government currently pays to lenders in the federally-guaranteed student loan programs and re-directing those savings back into additional aid for low- and middle-income students.

WHAT:         
Hearing on “Increasing Student Aid through Loan Reform”

WHO:           
Witnesses TBA

WHEN:         
Thursday, May 21, 2009
10:00 a.m. ET
Please check the Committee schedule for potential updates »

WHERE:      
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

WASHINGTON, D.C. – With this year’s college graduates preparing to enter one of the toughest job markets in years, today Democratic lawmakers announced new benefits that will take effect July 1 that will make college more affordable for students and allow borrows to cap their monthly student loan payments at a reasonable percentage of their income.

The benefits were established under the College Cost Reduction and Access Act, a law Congress enacted in 2007 that provided an additional $20 billion in federal student aid for students at no additional cost to taxpayers.
 

The cost of paying for college is becoming even more burdensome for Americans in this economy. While families are losing income, benefits and jobs, college tuition prices continue to rise. The average student now graduates with over $22,000 in total student debt, including federal and private student loans.

This year’s class of graduating college seniors also enters one of the toughest jobs markets in decades for recent graduates. Of the 1.2 million jobs lost last year, 60 percent were held by workers aged 25 or younger. Their wages may also suffer: Economists have found that workers who graduated during recessions typically earn less over a lifetime than workers who graduate in better economic times. Many borrowers already spend high percentages of their paychecks making student loan payments – and it’s only likely to get worse.

Given these challenges, it’s critical for current college students, new or soon-to-be graduates, and workers to know about new benefits going into effect July 1 that will make student loan payments manageable for millions of Americans. (These benefits were signed into law in 2007 as part of the College Cost Reduction and Access Act.) They include:

WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, today hailed the Obama administration for taking steps to expand access to college and other education and job training programs for workers who have lost their jobs. President Obama announced this effort as today’s April jobs report showed the U.S. economy lost 593,000 jobs last month and the unemployment rate shot to 8.9 percent.

“As we continue working to turn our economy around, we have to do everything we can to help the millions of Americans who have suffered job losses in this recession get the education, training and skills they need to return to the workforce. President Obama’s initiatives are commonsense steps that will make college and training programs more accessible and affordable for laid-off workers by allowing them to enroll in postsecondary education without forfeiting their unemployment benefits. In addition, it’s critical that he reminded financial aid officers that they can adjust financial aid packages based on recent layoffs, so families aren’t paying for college based on incomes they no longer earn.

President Obama has challenged every American to commit to at least one year or more of higher education or career training. And today he made it easier by ensuring that those receiving unemployment benefits won't lose them if they return to school. (from the AP article)

Currently, people who are out of work and want to go back to school have to give up their monthly unemployment check. And if they decide to return to school, they often don't qualify for federal grants because eligibility is based upon the previous year's income.

In addition to making it easier for those out of work to return for additional training, President Obama has been pushing for a transformation of the federal loan program to save taxpayers money and ensure stability for students. This USA Today editorial explains why this reform is important.

The student lending market is far smaller than the housing market. But it raises a similar question: Does it make sense for the government to pump its education dollars through banks — which divert some of the money for their own profits, wine and dine college financial aid officers to get on "preferred lender" lists, and lobby Washington to keep the spigot open?

The administration estimates it can save as much as $94 billion over 10 years by eliminating middlemen and lending directly. Even if that number is exaggerated, it reflects how inefficiently taxpayers' money is being spent. Banks shouldn't need major subsidies to issue guaranteed student loans.

To learn more about President Obama's proposal click here.

 

In today's paper, the New York Times has an article about the difficulty of paying for college. It follows Brennan Jackson, an A-student who ranks near the top of his high school class, as he tries to raise the $25,000 he still needs for his freshman year at the University of California, Berkeley, by stitching together a quilt of merit scholarships.

While Brennan’s situation, and the remedy he is pursuing, may sound extremely ambitious, guidance counselors across the country say they can recall no prior year in which so many applicants’ families have been squeezed by so many financial pressures.

Not only have families’ incomes been falling as their savings have dwindled, but also tuition has been rising — including proposed increases of nearly 10 percent next year throughout the University of California system....

Interest rates on student loans, including on popular federal programs like the unsubsidized Stafford (now nearly 7 percent) and Parent Plus (8.5 percent), are running several percentage points higher than the rates on secured loans, like home equity lines of credit.

“The difference of rates between secured and unsecured loans is higher than I have ever seen,” said Scott White, director of counseling services at Westfield High School in New Jersey. “This is one further impediment to access to post-secondary education for all but the well-to-do.”

President Obama has put forth a solid plan to make federal student loans more reliable, while saving taxpayers billions of dollars. To learn about the President's proposal, click here.

Chairman Miller on making college more affordable.



Will Congress pass Obama's student loan plan?

WASHINGTON, D.C. – In response to a new study showing the number of undergraduate students borrowing private student loans increased by 9 percent over the past five years, from 5 percent in 2003-04 to 14 percent in 2007-08, U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement: 

In today's News of the Day, the San Francisco Chronicle has an editorial about the importance for reform in the student loan industry. They say "one of the most sensible proposals in President Obama's budget would end federal subsidies for private lenders in favor of direct government loans."  And they take on several of the complaints about President Obama's proposal. For instance,

This proposal would not threaten private lenders' ability to make private loans to college students at unregulated (and often highly profitable) interest rates. It would simply allow the federal government to keep the profits from loans it already subsidizes, instead of handing them over to banks. It would improve efficiency and save money, and it should have been passed a long time ago.

And there is more at the San Francisco Chronicle and we encourage you to read the entire editorial.

To learn more about where Chairman Miller stands on this proposal, see his statement on President Obama's budget.

In today's New York Times, the editorial board declared, "The direct-lending proposal is clearly in the country’s best interest."

Private companies that reap undeserved profits from the federal student-loan program are gearing up to kill a White House plan that would get them off the dole and redirect the savings to federal scholarships for the needy. Instead of knuckling under to the powerful lending lobby, as it has so often done in the past, Congress needs to finally put the taxpayers’ interests first. That means embracing President Obama’s plan.

This builds upon Rep. Miller and the Education and Labor Committee's efforts in the 110th Congress.

We encourage you to read the entire editorial. And these from the Syracuse Post-Standard and the Albany Times Union.

Today's university graduates are faced with a tough job market and thousands of dollars in loans to repay. This often makes choosing to work in traditionally low-paying fields such as public service a tough decision. However, under the College Cost Reduction Act, graduates can reduce or eliminate their loans by entering into a career in the military, volunteering, teaching or practicing law or medicine in low-income communities.

CNN Money has an article about how specific provisions in the College Cost Reduction Act of 2007 can help recent graduates.

Under the College Cost Reduction and Access Act of 2007, two federal loan forgiveness programs could provide greater assistance to those who decide to pursue careers that serve the public. Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF) could make student loan forgiveness much more accessible to the masses.

"Both of these programs are much more widely available than anything that's been available in the past," says Irons.

We encourage you to read the entire article to learn more about the two provisions, as well as visit the Department of Labor's website for the IBR and PSLF provisions.

WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement after the House Budget Committee considered and passed the House Budget Resolution for Fiscal Year 2010. Among other things, the resolution includes instructions for the House Education and Labor Committee to enact reforms that produce $1 billion in savings for taxpayers over the next five years. Miller today announced the committee intends to use these instructions to enact student loans reforms that will benefit American families and taxpayers.

WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, today praised the nomination of Gabriella Gomez, a senior education policy advisor for the committee, as Assistant Secretary for Legislation and Congressional Affairs at the Department of Education.

The New York Times published an editorial this morning entitled Helping Students, Not Lenders. They highlight President Obama's efforts to save taxpayers $47.5 billion over ten years and make loans more dependable for students.

The budget rightly calls for phasing out the wasteful and all-too-corruptible portion of the student program that relies on private lenders. And it calls for expanding the less-expensive and more-efficient program that allows students to borrow directly from the federal government. That means doing away with the Federal Family Education Loan Program, under which private lenders receive unnecessary subsidies to make risk-free student loans that are guaranteed by taxpayers.

This builds upon Rep. Miller and the Education and Labor Committee's efforts in the 110th Congress.

We encourage you to read the entire editorial.

WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement praising President Obama’s higher education budget proposals.

WASHINGTON, D.C. – Millions of college students and families will receive significant help paying for college next year under the economic recovery plan President Obama signed into law yesterday. The American Recovery and Reinvestment Act will immediately increase the Pell Grant scholarship by an additional $500 next year. The legislation will also provide students and families with a new, partially refundable college tuition tax credit of $2,500, among other things.

Building a Strong, Competitive 21st Century Economy

A well-trained, college-educated workforce is key to a strong American economy and middle class. The economic crisis, combined with rising tuition prices and declining state support for higher education, threatens to put college out of reach for many students – forcing them to take a semester off or even skip college. Allowing students to be priced out of a college education will only further weaken our workforce and our economy. Economists, the business community, scientists and others agree that making strategic investments in education is a smart move to grow our economy and regain our competitive edge in the 21st century global economy.

The American Recovery and Reinvestment Act will help college students and families pay for college by significantly boosting federal student aid. It builds on the groundwork laid by the 110th Congress to make college more affordable and accessible for all qualified students. The legislation will:

WASHINGTON, D.C. – As part of legislation to jumpstart and rebuild the American economy, the U.S. House of Representatives today passed significant increases in college aid that will benefit millions of students and families. 

WASHINGTON, D.C. – Congressman George Miller (D-CA), Chairman of the Committee on Education and Labor, today released the following statement on the death of former Senator Claiborne Pell. Senator Pell created the Pell Grant scholarship and established the National Endowment for the Arts and the National Endowment for the Humanities.

WASHINGTON D.C. – U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement today after U.S. Treasury Secretary Henry Paulson announced a new plan to bolster consumer lending, including student loans. The plan would allow investors to obtain a loan from the Federal Reserve, using student-loan and other asset-backed securities as collateral, potentially providing more funding to lenders to extend consumer credit.

More students than ever before are receiving Pell Grants to help pay for college and that number is on the rise, according to a new report released today by the College Board. The study also shows that, with college costs rising, students are continuing to access the federal student loans for which they are eligible. Over the past year, the average tuition and fees for in-state students at four-year public colleges and universities increased by 6.4 percent to $6,585 for the 2008-2009 school year.

The House of Representatives yesterday approved bipartisan legislation to further ensure that turmoil in the U.S. credit markets will not prevent students and families from accessing the financial aid they need to pay for college. The legislation extends for one year certain provisions of the Ensuring Continued Access to Student Loans Act of 2008, which were due to expire on July 1, 2009.

The Higher Education Opportunity Act of 2008 was signed into law today.  The law, passed by the House on July 31 by a vote of 380-49, is the first reauthorization of the nation’s primary higher education laws in a decade.

The House passed the Higher Education Opportunity Act of 2008 (H.R. 4137) today, by an overwhelmingly bipartisan vote of 380-49.  This vote gave final approval to an overhaul of our nation's higher education laws, advancing key reforms that would address the soaring price of college and remove other obstacles that make it harder for qualified students to go to college.  The Higher Education Act was last reauthorized in 1998. The current law expired in 2003.  The bill now moves to the Senate for final clearance before being sent to the President for his signature. 

As a result of the College Cost Reduction and Access Act, enacted into law last year, historically black colleges and universities across America will begin to receive record increases in new funding for the coming school year. The U.S. Department of Education will start awarding the grants to schools tomorrow.

The House is expected to vote tomorrow, July 31, on the Higher Education Opportunity Act (H.R. 4137).  This measure is the conference report on the Higher Education Act reauthorization; conferees adopted the conference report last night.

The House Education and Labor Committee held a hearing to examine how business-education partnerships can help drive innovation and strengthen math and science education in America’s schools.

A report released by the National Math Panel in March found that the nation’s system for teaching math is “broken and must be fixed” if the U.S. wants to maintain its competitive edge. In May, the Committee first examined the report’s findings and recommendations; this hearing follows up on that hearing.