The soaring dropout rate is causing the United States to lose ground educationally to rivals abroad and is trapping millions of young Americans at the very margins of the economy.

Many of this country’s large urban high schools are rightly called “dropout factories” because more students leave school than graduate....The dropout crisis presents a clear danger to national prosperity.

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.

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.

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.”

AmeriCorps is experiencing a significant surge of applications. Last month, AmeriCorps received 17,038 online applications, nearly triple the 6,770 received in March 2008. In the past five months, AmeriCorps received 48,520 online applications, up 234 percent over the 14,532 that came in during the same five month period a year ago. Many volunteer centers and nonprofit groups are also reporting a “compassion boom” of increased numbers of volunteers.

Nearly 40 years ago, the Occupational Safety and Health Act was enacted to protect workers against these very abuses. The law has saved hundreds of thousands of lives and helped millions more avoid exposure to preventable illnesses and injuries.

But the law's protections have eroded in recent decades – especially over the past eight years. All too often, the Occupational Safety and Health Administration's leadership failed to adequately protect workers from well-documented workplace threats – from exposure to a chemical that causes popcorn lung disease to combustible dust to dangers on construction sites....

This neglect has left OSHA significantly weakened and put workers in greater jeopardy.

It begins with good leadership that's committed to restoring OSHA's mission. President Obama's Labor Secretary, Hilda Solis, is a passionate advocate for working families and she's determined to reverse the harmful damage wrought during the Bush years. But good leadership only goes so far – we also need to give her additional tools to effectively enforce the law.

Last week, I joined other Democrats in introducing the Protecting America's Workers Act, legislation that would modernize current law by updating its penalties, strengthening whistleblower protections and ensuring that bad employers are held accountable. It will allow OSHA to finally do its job – and it is a critical start toward improving the safety of our workplaces.

This week the Education and Labor Committee will hold hearings to examine how OSHA can toughen penalties and impose effective enforcement. Penalties haven't been updated since 1990 and aren't indexed for inflation. Unscrupulous CEOs often face nothing more than a drop in the bucket for egregious violations.

"There clearly has been a raid on these funds by the people of Wall Street. And it's cost the savers and the future retirees a lot of money that would otherwise be in their account, independent of the financial collapse," Rep. George Miller [D-CA] said.

Congressman Miller is chairman of the House Committee on Education and Labor, and a staunch critic of the 401(k) industry, especially its practice of deducting more than a dozen undisclosed fees from its clients' 401(k) accounts.

"Now you got a bunch of economic wizards jumping in and taking money out of your retirement plan, and they don't wanna tell you how much, you can't decipher it in simple English, and they're not interested in disclosing it, or having any transparency about it," Miller told Kroft.

"And most of the people that look at their 401(k)s have no idea that these fees are being taken out?" Kroft asked.

"No. Where would you find it? Where would you find these fees in this prospectus? You can look on any page you want, and when you're all done reading it, and you will find some of the fees and the commissions here, but you won't find them all, and I'll bet you won't find half of 'em," Miller said.

There are legal fees, trustee fees, transactional fees, stewardship fees, bookkeeping fees, finder's fees. The list goes on and on.

Miller's committee has heard testimony that they can eat up half the income in some 401(k) plans over a 30-year span. But he has not been able to stop it.

"We tried to just put in some disclosure and transparency in these fees. And we felt the full fury of that financial lobby," he said.

David Wray, a lobbyist for the 401(k) industry, says he favors disclosing the fees, but his partners in the financial industry don't.

Asked if he thinks most people know these fees exist, Wray said, "I think they know that there are fees. They don't know exactly how large they are."

"Why do you think the financial services industry is opposed to fee transparency?" Kroft asked.

"I don't know that they're opposed to it. I think the issue is that…," Wray replied.

"You don't think they're opposed to it?" Kroft asked. "You're a lobbyist in Washington, right? You know they're opposed to it. …George Miller hasn't been able to get a bill to the floor."

"I think they want to keep the systems as simple and not make changes. They like the way things are. And whenever you push people out of their comfort zones, you know, it's an issue," Wray replied.

"I mean, they're comfortable with the situation because they're making a ton of money or they have made a ton of money," Kroft said.

"Well, and their systems are set up in certain ways. You know, this is gonna be a big change," Wray replied.

Rep. George Miller (D-Calif.) believes the many fees extracted from 401(k) accounts are adding insult to injury for millions of Americans whose accounts have been decimated by stock losses and whose retirements are now in jeopardy.

Miller talks to 60 Minutes correspondent Steve Kroft for a report on how the recession is affecting 401(k) retirement plans to be broadcast this Sunday, April 17, 2009.

"There clearly has been a raid on these funds by the people of Wall Street and it has cost the savers - and the future retirees - a lot of money that would otherwise be in their accounts, independent of the financial collapse," says Miller, the chairman of the House Committee on Education and Labor. The chairman also dislikes the hidden nature of the more-than-a-dozen fees that most Americans are not fully aware are being skimmed off their 401(k)s. "And I'll bet you won't find half of them here," he tells Kroft, holding out a prospectus from a popular mutual fund found in many 401(k) portfolios.

The various fees can include legal fees, trustee fees, transactional fees, stewardship fees, bookkeeping fees, sales fees, asset management fees, investment management fees, investment advisor fees, finder's fees and many more.

Miller has been trying to curb what he considers excessive fees. "We tried to just put in some disclosure and transparency in these fees and we felt the full fury of the financial lobby," he says. (From CBSNews.com)

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.

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.

Matt Lauer: With 1.4 million associate employees that earn an average wage of $10.83 an hour, Wal-Mart now faces a threat to its corporate model. There's proposed legislation on Capitol Hill that would make it easier for unions to organize employees, the Employee Free Choice Act, doing away with secret ballots. Unions say it will make it easier for American workers to earn a fair salary. Others, like the guy who runs Home Depot, the co-founder, says it's going to cripple American business. What's the truth?
 
Mike Duke: Well, of course, we are opposed to that. We have a unique relationship with our associates. Of all of our managers across America, 3 out of 4 started with the company as an hourly associate. 95% of our associates across America have health care insurance in some fashion. It's really one of those bills that would be damaging to the American economy long-term.

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.

If the story of the janitors and groundskeepers at the Carnegie Science Center weren't true, it would seem as if the advocates of the Employee Free Choice Act were making it up.

Those 10 people work for the same employer as the 50 people who clean the Carnegie Museums of Art and Natural History and the Carnegie Libraries. Yet, because of a quirk of history dating to a time when the individual museums were run as if they were separate organizations, the janitorial staffs at the museums and libraries are unionized. The cleaners at the Science Center are not….

The pay is $7.85 an hour. He is without medical insurance and is not granted days off with pay for sick time or vacation….

The janitors at the Oakland museums and the Carnegie Libraries of Pittsburgh make $10 to $14 an hour and are awarded full benefits, including health insurance, vacation time and sick days, according to Gabe Morgan from the union that represents them.

the legislation establishes a separate program, a $1,000 educational stipend called a Silver Scholarship, for adults over 55 who serve 350 or more hours with a qualified organization, Mr. Gomperts said. That money can be transferred to a child, foster child or grandchild.

In addition, AmeriCorps volunteers age 55 and older who serve full time for a year would be able to transfer their education award, which would be increased to $5,350 from $4,725, to a child, foster child or grandchild.

The bill also creates Encore Fellowships matching those age 55 and older with public or private nonprofit organizations for one-year management or leadership positions. Just as internships help younger adults enter a new field, these modestly paid positions provide a bridge for professionals from the for-profit world to second careers in the nonprofit world.

In many ways, Cedar Rapids, Iowa City, and dozens of other communities still haven't recovered from the record-setting June 2008 floods that ripped apart homes and lives across eastern Iowa.

But with the help of organizations and programs supported by the AmeriCorps volunteer service program, they are seeing significant improvements.

The recession is affecting artists, dancers and musicians everywhere, including the Bay Area, but hope is on the way. A House committee in Washington is examining how communities everywhere are being affected. $50 million has been set aside to give a boost to the arts and entertainment industry. The arts are big business generating 5.7 million jobs and $166 billion in economic activity each year. The House Education and Labor Committee, chaired by Congressman George Miller (D) of Concord, was told artists are unemployed and need their share of the stimulus package.

The nation is close to a major civic breakthrough. By a 321-to-105 vote last week, the House approved an ambitious bipartisan measure to enlarge the opportunities for Americans of all ages and income levels to participate in productive national and community service.

A similar plan is now before the Senate. A favorable vote this week would help speed a worthy initiative to President Obama’s desk.

Essentially, the measure is an expansion of AmeriCorps, the existing domestic service program. It would increase the number of full-time and part-time service volunteers to 250,000 from 75,000 and create new programs focused on special areas like strengthening schools, improving health care for low-income communities, boosting energy efficiency and cleaning up parks.

This is a chance to constructively harness the idealism of thousands of Americans eager to contribute time and energy to solving the nation’s problems — a chance not to be missed.

Thompson Electric is proof that unions are good for workers and good for business. Our positive, long-term partnership with the International Brotherhood of Electrical Workers is one of the main reasons that I, as an entrepreneur and business owner, support passage of the Employee Free Choice Act. More workers across the United States should be given a free and fair chance to form a union, just like our employees.

Our union workers receive the most cutting-edge job training available, and it pays off through lower injury rates, increased productivity and a strengthened ability to serve the people of Ohio. The union difference is not only impressive, but a valuable commodity in our line of work.

In this spirit, Congress is now poised to send me bipartisan legislation — the Serve America and GIVE Acts — that, if passed, will usher in a new era of service in this new century.

This legislation will help connect people at all stages of life with opportunities to serve. It will establish an army of 250,000 Americans a year who are willing to serve part time or full time working to meet our most pressing challenges, from modernizing our schools to building homes for those in need. And this legislation will provide new support for social entrepreneurship, identifying and nurturing promising new service programs around the country.

Members of Congress from across the political spectrum — from Senators Orrin Hatch and Mike Enzi and Representative Howard (Buck) McKeon to Senators Ted Kennedy and Barbara Mikulski and Representative George Miller — have pledged their support for this legislation. I urge Congress to follow their lead and move quickly to pass it so that I can sign it into law. And I pledge that my Administration will also do its part to help more Americans serve their communities. At this time of economic crisis, when so many people are in need of help, this work could not be more urgent.

This week, the House is expected to pass a bill that would increase the number of federally funded service slots to 250,000, and the Senate will soon begin moving similar legislation. The proposals build on the initiatives of our past three presidents -- yes, this is an issue on which George W. Bush deserves credit, too -- and it may even produce that much prized but elusive Washington commodity: a large bipartisan majority. The House proposal won committee approval last week with overwhelming support from both parties.

Rep. George Miller, a Democrat who chairs the House Education and Labor Committee and is leading the House effort for a service bill, is known as one tough legislative strategist. But he is positively tender when he describes visiting Habitat for Humanity projects, meeting with Teach for America volunteers or spending time with church groups that have provided relief in natural disasters. "It's one of the great rewarding things in politics," he told me.

On Monday, Miller will announce that the GIVE Act (don't ask what the acronym means; too clunky) is on its way to passage by the House. Because representatives of the House, Senate and White House have been working together on a bipartisan basis for weeks, the skids are now greased for quick Senate passage of the Kennedy-Hatch Act for national service, the only specific piece of legislation the president mentioned in his address to Congress last month. Differences between the House and Senate versions will be minor.

Anxious readers who had lost their jobs wanted to know how they could apply for the subsidy, which will cover 65 percent of laid-off workers' COBRA health insurance premiums if they choose to continue their health insurance under their former employer's plan. The reason for their concern is no mystery: The federal law known as COBRA that permits them to extend their health insurance also requires them to pay 100 percent of the premium, plus an administrative fee of 2 percent. For people trying to get by on an unemployment insurance check of around $325 a week, shelling out $1,000 or more a month for health insurance is often not feasible. Even a helping hand of 65 percent doesn't make COBRA cheap, but for some the subsidy will at least make coverage affordable.

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.

Included in the stimulus package is up to $33.6 billion toward school modernization. At the Indianapolis Public Schools, school officials have created a "working document" over the past two weeks to identify structural priorities in their 72 school buildings that could be addressed with stimulus money. "Frankly, it's student safety," says spokeswoman Mary Louise Bewley. "Things like ensuring exterior doors are working well."

The economic stimulus package signed into law last month seeks to address the high costs by subsidizing COBRA premiums for unemployed workers. Under the federal Consolidated Omnibus Budget Reconciliation Act, or COBRA, laid-off workers can continue their former employer's health coverage for up to 18 months, but only if they pay the entire premium, plus a 2% administrative fee. Average COBRA premiums exceed $400 a month for individuals, and more than $1,000 a month for families.

The stimulus package will subsidize 65% of COBRA premiums for employees who were laid off between Sept. 1 and the end of this year. If you delayed signing up for COBRA coverage when you lost your job, you have 60 days to re-enroll after you receive a notice from your employer.

The stimulus package, including a $54 billion “stabilization” fund to protect schools against layoffs and budget cuts, is rightly framed to encourage compliance. States will need to create data collection systems that should ideally show how children perform year to year as well as how teachers affect student performance over time. States will also be required to improve academic standards as well as the notoriously weak tests now used to measure achievement — replacing, for instance, the pervasive fill-in-the-bubble tests with advanced assessments that better measure writing and thinking.