Energy Policy Modernization Act of 2015

Floor Speech

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Mr. DURBIN. Mr. President, I rise today to speak to two separate issues. First, I wish to speak to the issue of for-profit colleges and universities.

Yesterday another for-profit college was accused by a Federal agency of misleading and deceiving students. The Federal Trade Commission announced it filed suit against DeVry University for advertisements that deceived consumers about the likelihood that students would find jobs and earn money after they graduated from DeVry.

DeVry's commercials and advertisements date back to at least 2008-- about 9 years that they have been claiming that ``since 1975, 90% of DeVry graduates system-wide in the active job market held positions in their fields of study within 6 months of graduation.'' Starting in 2013, they also claimed that DeVry graduates ``had 15 percent higher incomes one year after graduation on average than graduates of all other colleges and universities.''

The Department of Education started investigating these claims in August of last year. After asking DeVry for proof of their statements in these ads, the Department announced yesterday that the company was ``unable to substantiate the truthfulness of those representations, as is required by federal law.'' As such, the Department of Education ordered DeVry to stop making these false claims and required DeVry's future claims related to employability and income to be verified by an independent monitor. At the same time, it appears the Department will allow DeVry to continue to participate in Federal title IV programs-- receiving taxpayer dollars and enrolling new students. How much Federal funding does DeVry receive? In 2013 and 2014, DeVry Education Group, brought in more than $1 billion in taxpayer funding through title IV.

The company's president, Daniel Hamburger, received $5.7 million in total compensation in 2014--$5.7 million. If we compare the salary this president took from DeVry University--which receives the lion's share of all of its funds from the Federal Government--we will find he is compensated dramatically more than college presidents across the United States. The president of the University of Illinois--a major flagship institution and research university--makes a base salary in the neighborhood of $600,000. By comparison, DeVry's president, Daniel Hamburger, received $5.7 million in total compensation thanks to the taxpayers and students.

Meanwhile, according to a recent study by Brookings, DeVry students cumulatively owe more than $8.3 billion in federal student loan debt. It is no wonder considering the average cost of an associate's degree-- a 2-year degree--at DeVry is about $40,000. In 2009, DeVry's 5-year cohort default rate on student loans was 43 percent. That means that of the students who left DeVry in the year 2009, 43 percent--almost half of them--had defaulted within 5 years of leaving DeVry. I have said it before of Corinthian--a for-profit school that went out of business-- and I will say it now of DeVry: Students shouldn't be left holding the bag for the misdeeds of these private, profit-making corporations that are skimming so much money from the taxpayers.

The Department of Education has found that DeVry's claims could not be substantiated as required by Federal law.

The Federal Trade Commission is also suing DeVry over claims of misleading students and consumers. Students who were harmed should be eligible for expedited Federal student loan relief through defense to repayment. But let me remind those who are following this debate: Follow the money. Taxpayers across America pay their taxes. The money goes into the Federal Treasury, and then the money goes--through the Treasury and through Pell grants and student loans--to students and their families, to these private, for-profit colleges and universities. The private, for-profit colleges and universities, such as DeVry, deceive and mislead the students about the value of their education and whether they will get a job after they graduate. The students end up wasting their time and their money because they end up with a huge student debt when it is all over. And what happens? They default on their debt, which means the taxpayers don't see the money going back to the Treasury, which we hope for, or in some cases the schools--like Corinthian--fail, and as a result the students are relieved of their debt obligations--as they should be, so the taxpayers again are the ultimate losers.

The for-profit colleges and universities of the United States of America are the most heavily subsidized private sector businesses in our country--not a defense contractor or a farm operation; for-profit colleges and universities.

The DeVry news follows a particularly bad year for this industry. In 2015 more misconduct and schemes were exposed when it came to for- profit colleges and universities than ever before. Enrollment across the industry is declining, as students and their parents finally realize that many of these schools are just bad news. State and Federal regulators are shining a light on the illegal tactics of the for-profit college and university industry. Stock prices for these private, for- profit corporations are plummeting because investors realize that exploiting these students, misleading these students, and swindling taxpayers is not a sustainable business model.

Years of bad behavior are catching up with for-profit colleges and universities, and it shows in how for-profit education companies are closing their schools across the country. Even in my home state of Illinois, we have seen dramatic changes over the last year. It started with the collapse of Corinthian. This company was inflating its job- placement rates to lure in new students, defrauding the students, their families, and taxpayers, and lying to the accrediting agencies and Federal Government. When Corinthian collapsed, more than 70,000 students were left in the lurch, many with more debt than they could possibly repay and a Corinthian education that turned out to be virtually worthless.

In Illinois, the campuses Corinthian operated as Everest College in the villages and towns of Bedford Park, Burr Ridge, Melrose Park, Merrionette Park, and Skokie were then sold to ECMC. ECMC was a new creation. This company that created this new not-for-profit, in name at least, college, incidentally, is a major debt collector for the U.S. Department of Education and had no previous experience running an educational enterprise. What qualified them to start a college, I don't know. Unfortunately, ECMC maintained much of the old Corinthian leadership and maintained practices to keep students from suing them for misconduct. After the Illinois Board of Higher Education pushed them on some of these issues, ECMC decided to teach-out its newly acquired campuses in Illinois and leave the State, thank goodness.

Then there is Westwood. Illinois attorney general Lisa Madigan--whom I respect very much--sued Westwood College for engaging in deceptive practices. Attorney General Madigan's suit focused specifically on Westwood's criminal justice program. In order to lure students into the program, this private, for-profit college, Westwood, convinced the students they could get jobs with the Chicago Police Department or the Illinois State Police if they would just hang on and get a degree from Westwood. What happened when the students graduated and took their degrees and diplomas to employers and applied for a job? The employers laughed at them. They didn't recognize a Westwood degree.

In November, Attorney General Madigan reached a settlement with Westwood. It agreed to forgive $15 million in private student loans for Illinois students--private loans, not federal loans. Shortly thereafter, Westwood announced it would stop enrolling students and end operations at its campuses nationwide, including the four it operates in the Chicagoland area. Thank goodness and good riddance to Westwood.

Also in 2015, Career Education Corporation, which is another for- profit college, announced it would close its brands Sanford Brown, Harrington College of Design, and Le Cordon Bleu, all of which had campuses in Illinois. Thank goodness and good riddance. In Chicago, an associate's degree in culinary art at Le Cordon Bleu would have cost $42,000, and students had a one-in-five chance of defaulting on any loans they took out for that associate's degree. If the students walked a few blocks away to Chicago City Colleges' Kennedy King Campus, in comparison, they could have received the same degree not for $42,000 but for $7,000. And the likelihood of defaulting on student loans at City Colleges is not 1 in 5, as it was at Le Cordon Bleu, it is 1 in 20.

Harrington--I have talked about them before. Harrington College of Design exploited Hannah Moore, a young woman from Chicago whom I have come to know. She got her degree at Harrington after transferring from a community college. She couldn't find a job in her field with her Harrington degree. It turned out to be worthless. What did it cost her to get the degree, this for-profit college degree that Harrington heavily marketed? Hannah paid $125,000. She still carries that debt to this day, and it is growing. She can't pay it off fast enough, and it has ballooned to $150,000. This poor young woman. Her life is compromised because of the exploitation of her ambition to do something important in life. She had to live in her parents' basement. Her dad came out of retirement to try to help his daughter pay off her students loans because, you see, the loans that are taken out to go to any institution of higher education are not like money borrowed for a car or a home; these student loans are not dischargeable in bankruptcy. What does that mean? You are going to carry them to the grave.

Many student loan debts that are in default are being collected in the most unusual places. Grandmothers who helped their granddaughters by cosigning their loan for college--when the granddaughter defaults, it is the grandmother and in some cases her Social Security payments that are withheld to pay off these student loans. These loans will haunt these students, many of them for a lifetime, particularly if they have gone to these for-profit schools.

Finally, even though it is not in Illinois, I want to mention Ashford University. On a campus in Clinton, IA, just across the Mississippi River, Ashford has shown itself to be one of the worst actors in the for-profit college industry.

A Bloomberg News story told of James Long, who suffered a brain injury when he was in service to his country in the Army, driving a humvee in Iraq that was attacked. An Ashford recruiter went after James Long and got him to sign up to use his military education benefits to enroll in classes that this individual, sadly, could not even remember because of the traumatic brain injury he had suffered.

In 2014, Iowa attorney general Tom Miller announced a $7.25 million settlement with Ashford University. Miller accused the school of violating Iowa's Consumer Fraud Act after the Iowa attorney general received multiple complaints filed by current and former Ashford students. This included complaints that this for-profit school misled students to believe that an online Ashford education degree would allow students to become classroom teachers with no further certification.

I remember Ashford because our former colleague, Senator Tom Harkin of Iowa, held a hearing and talked about how Ashford bought what was a small Catholic college, took on their accreditation, and started peddling the for-profit education that was worthless. Do you know what the faculty of Ashford University consisted of at that time? One faculty member for every 500 students. Do you know what the people who were running this scam operation were paid? Millions--millions of dollars of taxpayers' money. The investigation found that Ashford recruiters, in addition, misled prospective students, used high- pressure sales tactics, and failed to disclose information about the cost and likelihood of obtaining a degree.

In 2015, Ashford announced it was going to close its Clinton, IA, campus--thank goodness and good riddance. It is for the students who could have been exploited by these companies that I say this: It is time for us to stand up as a Congress and Federal Government and put an end to this insidious scam of students, their families, and the taxpayers.

Thousands of students in Illinois and all across the Nation have been lured into attending these for-profit schools with lies or deception. Don't take this Senator's word for it. Take a look at the litany of schools that are under investigation by State and local authorities for fraud. Many students, such as Hannah, have so much debt that their lives and futures are compromised.

Over the last year, I have joined several of my Senate colleagues to push the Department of Education to provide Federal student loan debt relief to students who have been taken advantage of by the for-profit colleges. We have an obligation here. To think that we are shoveling $25 billion into these for-profit schools every single year without asking the hard questions about whether taxpayers' dollars and student debt is justified by the results. Shame on us--we can do so much better. The numbers tell the story. Ten percent, or 1 out of 10, of college students in this country attend for-profit colleges and universities, and 20 percent of all the Federal aid to education, or $25 billion, goes to these for-profit colleges and universities. In spite of it only accounting for 10 percent of college students, these for-profit colleges and universities account for over 40 percent of student loan defaults. They charge too much, their diplomas are worth too little, and these students suffer as a result.

What is our obligation here? Is this a ``buyer beware'' situation when it comes to the students and their families or is it a situation where ``Congress beware'' if we aren't more sensitive to the fact that we are propping up an industry that is exploiting these students and taxpayers.

With the closure of these campuses in Illinois and several of these companies moving out of the State all together, the educational landscape is a little safer for the thousands of Illinoisans trying to do the right thing--to get an education for themselves and their families. There is a sensible alternative in virtually every city and town in America--community colleges, city colleges. They are affordable, and in most cases the credits are transferrable to major universities and students don't incur the kind of debt that can compromise their lives for years and years to come.

I have spoken on the floor many times about these for-profit colleges and universities. In one respect it is a fairly easy issue and easy topic. They need to be held accountable, as DeVry is being held accountable by the Department of Education and the Federal Trade Commission for their misconduct.

Now the question is this: Will the Congress step up to its responsibility to clean up this situation?

Mr. President, the Senate is currently considering a bipartisan energy bill that will help put our country on a pathway to build a 21st century economy. It contains several important provisions to develop domestic clean energy resources, and I look forward to working with my colleagues through the amendment process to strengthen it.

I wish to congratulate Senator Lisa Murkowski, a Republican from Alaska, and Senator Maria Cantwell, a Democrat from the State of Washington--the chair and ranking member of the Energy and Natural Resources Committee--and applaud them for their effort and thank them for bringing this bipartisan measure to the floor.

The Energy Policy Modernization Act is a result of the committee's multiple hearings on over 100 individual bills. If passed, it will be the first major energy bill approved by Congress in 9 years.

A lot has changed in 9 years. The United States has dramatically increased natural gas and oil production. Renewable energy production has skyrocketed and the cost of this has decreased. More Americans are using it. We are also finding new and better ways to address our most pressing energy and climate change challenges.

The bill before us takes those new developments into account and updates our policies. The act strengthens energy efficiency measures for Federal buildings and multifamily homes and reauthorizes important programs such as weatherization and energy. In Illinois, that means tens of thousands low-income and elderly households will be able to receive critical upgrades that will make their homes more efficient, allowing them to spend less money to keep their homes cool and warm. It will also help maintain Illinois' leadership as the top State for LEED- certified buildings as ranked by the U.S. Green Building Council.

The bill encourages the development of new energy resources such as geothermal and hydropower and better ways to store carbon dioxide, which will help us address the challenge of climate change. Most importantly, the bill makes a substantial commitment to supporting basic science research and innovation at universities and the Department of Energy's laboratories. The Energy Policy Modernization Act authorizes 4-percent annual budget increases for the DOE Office of Science and the Advanced Research Projects Agency.

As cochair of the Senate National Laboratory Caucus, I strongly support these increases at DOE's Office of Science because I know it will lead to new breakthrough scientific discoveries that will keep America competitive.

Since their creation in the 1940s, the national labs have really done some amazing things on energy innovation, scientific discovery, and national security. In Illinois, both Argonne and Fermi serve as a meeting place for the world's best researchers. The work conducted at their labs leads to advances in alternative-fuel vehicles and improvements in energy efficiency. Universities from across the country use the labs to conduct research and train others. That is why earlier this year I introduced a bill, the American Innovation Act, to provide 5-percent real growth to DOE's Office of Science.

I hope to offer an amendment on the floor. A 4-percent annual increase when it comes to the Office of Science in the Department of Energy, for example, is good, but that is not 4 percent over inflation. If inflation is running at 2 percent, it is merely a 2-percent real increase in research. I think we ought to err on the side of investing more into research. I think we should have 5-percent real growth in investment in the National Institutes of Health, the Centers for Disease Control and Prevention, the Department of Defense medical research, and the Veterans Administration medical research. Then when it comes to this side of the ledger, such as innovations, let's include the Office of Science and many other key agencies.

I visited the Department of Energy a few months ago, and I had breakfast with Ernest Moniz, who is the Secretary. I talked to him about biomedical research, and he said: There is something I need to share with you. The Office of Science in the Department of Energy is developing the technology for imaging the brain so we can detect early indications of Alzheimer's. Currently, unfortunately, the only way to really say that a person is suffering from Alzheimer's with any objective assurance is through an autopsy. If we can--through imaging devices, while a person is still alive and before they have really started to decline--detect and work on stopping the progress of Alzheimer's, it would be an amazing achievement.

Once every 67 seconds in America someone is diagnosed with Alzheimer's. I challenged my staff when they told me that, and they were right. Almost every single minute a person is diagnosed with Alzheimer's.

Last year, in Federal funds, we spent in Medicare and Medicaid $200 billion on Alzheimer's patients. Imagine what was spent in the private sector, and imagine the kind of sacrifices and the spending that were made by families trying to maintain the care of a family member stricken with Alzheimer's.

So putting a little extra money into biomedical research, or in this case research at the Office of Science, is money well invested. If we can slow down the progress of Alzheimer's and find a way to delay it-- even months--it will pay back this investment over and over. God willing, if we find a cure, it will justify every penny we put into this research.

I will offer an amendment, and what I am asking is basic. I am asking for authorization for 5-percent real growth that is over inflation. I think that is the least we can do, but I think it will be a significant commitment and substantially more than is currently in the bill.

The work at these labs has led to amazing advances, and I think there is more ahead of us. In addition to supporting basic science research, the act before us directs the Department of Education to build a research program to develop the next generation of computers--1,000 times faster than our current supercomputers. Is it possible? I believe it is. I am not an expert in this field, but you have to step back and say that it is amazing when they tell us that the cellphones we carry around have more computing power than the early computers that Steve Jobs and others brought to market.

Currently, companies around the world use supercomputers to solve problems and answer important questions. Boeing and Cummins have both used DOE supercomputers to design better airplanes and trucks and use less energy so that they burn fuel more efficiently. This has led China, South Korea, and Europe to get into the competition. They are in the race, too, for the next generation of supercomputers. I want America to win that race. The bill before us, with its investment and research, can make a difference. The government should invest in these labs and in research to create jobs and competitive businesses. This bipartisan energy bill can achieve that and lead this country to a brighter future with greater energy resources that have a lighter impact on the environment and build a stronger economy. Because the energy choices we make now will determine the future of our children and grandchildren, we ought to be serious about it. We ought to make the investments for a sustainable planet and a promising, bright future.

I hope my colleagues will work together to improve this bill and help us create a 21st century energy economy.

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Mr. DURBIN. Klobuchar), the Senator from Maryland (Ms. Mikulski), the Senator from Florida (Mr. Nelson), and the Senator from Vermont (Mr. Sanders) are necessarily absent.

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Mr. DURBIN. Mikulski), the Senator from Florida (Mr. Nelson), and the Senator from Vermont (Mr. Sanders) are necessarily absent.

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Mr. DURBIN. Mikulski), and the Senator from Vermont (Mr. Sanders) are necessarily absent.

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