December 2003 Column
Washington,
Dec 30, 2003 -
Smarter government translates to increased financial aid for those who need it most and increased taxpayer privacy
Cong. Sam Johnson
December 2003
A well-read Dallas magazine recently announced that 14 high schools serving the students of the Third Congressional District ranked among the 50 best in the region. No doubt about it --our area is home to smart students, great teachers, involved parents, and top schools – a wonderful recipe for success.
Many of these top-notch schools boast a sky-high percentage of students who pursue higher education. However, for some young people, serious financial strains put anything above a high school diploma out of reach.
Sadly, while there IS more financial aid money to go around, numerous hurdles, fraud, and bureaucracy have kept that money from deserving students.
In fact, a recent study of applications filed during fiscal years 2001 and 2002 found that the Department of Education M-I-S-S-P-E-N-T $602 million in Pell Grants to people who were either ineligible or eligible for smaller awards.
The General Accounting Office has confirmed that this substantial misallocation of resources could be corrected if Congress would redesign the law that governs sharing of information between the Department of Education and the Internal Revenue Service.
That’s why I proposed the Student Aid Streamlined Disclosure Act, H.R. 3613. The Act ensures that financial aid goes to those who need it most, all the while protecting taxpayer privacy during the student loan process.
The current process used to verify income information for student loans is unnecessarily invasive, ineffective, and inefficient. My bill would strengthen Pell Grants while cracking down on fraud.
The proposal would provide for income verification for every student loan application, but it would require disclosure of personal information on file with the Internal Revenue Service only in cases where the discrepancy is large enough to impact the student grant or loan.
Sensitive tax information from the IRS could not be disclosed directly to schools or contractors, but ONLY could be disclosed to Department of Education officials or to the taxpayer who filed the return.
This year, the Department of Education anticipates that more than 13 million people will apply for federal student aid. To verify income information, approximately 4 million of these applicants will be selected and required to hand over detailed tax information to school administrators with few controls in place to guard against re-disclosure or misuse of this highly personal information. In addition, nearly 100,000 people will be required to waive their right to taxpayer privacy as a condition of applying for an income-contingent student loan.
Numerous studies by the Department of Education and the Education Inspector General concluded that income information supplied by some students does not match information on file with the IRS.
Fortunately, I have the unique opportunity as the highest-ranking Texan on both of the Committees responsible for this legislation to make a real difference. Serving on the Ways and Mean Committee and the Education and the Workforce Committee will help me move this bill through Congress.
But I can’t do it alone. I need your help. This legislation is just a starting-off point. I ask any stakeholders – students, parents, schools, lenders and loan processors – to review this legislation to be sure that there are no unintended consequences of the bill. I welcome constructive criticism of this proposal and look forward to seeing it enacted next year.
To view a copy of this legislation, visit Thomas.loc.gov and type in the bill number H.R. 3613.
I hope you find this bill represents a keen balance of educational opportunity, smarter government and taxpayer privacy.
These are values we want to pass on to today’s students for brighter tomorrows.
|
