College Student Relief Act of 2007

COLLEGE STUDENT RELIEF ACT OF 2007

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Mr. MCGOVERN. Madam Speaker, I rise in strong support of H.R. 5, the College Student Relief Act of 2007. Currently, Massachusetts has about 99,000 undergraduate students attending 4-year colleges and universities who receive federal need-based college loans--or Stafford Loans.

In my own district, the 3rd Congressional District of Massachusetts, at Worcester State College, a 4-year public college, more than 1,300 students have Stafford Loans; and at Worcester Polytechnic Institute, a 4-year private college, more than 1,700 students have Stafford Loans.

In Massachusetts, the average Stafford Loan Debt is about $14,000 ($13,994).

Even though, under H.R. 5, the full reduction to the interest rate takes five years to achieve--because Democrats believe in making sure their proposals are fully paid for--Massachusetts students starting college in 2007 will benefit immediately from these changes to the interest rates. The savings for the average student in Massachusetts receiving a Stafford Loan who starts school in 2007 will be $2,310. That translates into $1,760 for that student at Worcester State College and $2,750 for the student at WPI.

And for the students who start school in 2011, when the interest rate reduction is fully phased in, their savings will increase to $4,470. Or once again, about $3,420 for the student at Worcester State College, and about $5,330 for the student at WPI.

These figures have real meaning to low- and middle-income students and their families. They are targeted at families whose annual income is less than $70,000. These are the families and individuals who most need our support to achieve the dream of a college education. According to the Congressional Advisory Committee on Student Financial Assistance, financial barriers will prevent at least 4.4 million high school graduates from attending 4-year public colleges over the next decade--and another 2 million high school graduates from attending any college at all.

These reductions won't cost the U.S. taxpayer a single dime.

They will barely cause a ripple in the profitability of banks and lenders currently doing business with the federal government in managing Stafford Loans--no matter how much complaining and moaning we're likely to hear from them.

And let me emphasize one other point--I agree with my friends on the other side of the aisle that there are many reasons why a higher education is increasingly out of reach for many American families: The failure over the past several years to increase the maximum Pell Grant level, the stagnation of funding for campus-based aid programs, and the soaring costs of college tuition, fees, room and board--to name just a few. As my colleagues know, I have been a particular champion of significant increases both to the Pell Grant maximum level and overall funding of the program.

It's my understanding that the gentleman from California, Chairman GEORGE MILLER, will begin hearings on these and other issues related to the affordability of a college education. Working through the Education and the Workforce Committee, legislation will be drafted and marked up through regular Committee process, reported out, and hopefully be scheduled on the House legislative calendar in the 110th Congress. So these profound issues that concern Republicans and Democrats alike will proceed through regular order with the full participation of the Minority.

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