Friday, March
19, 2004
Dear Colleague:
Here is what Chairman Boehner of the Education and Workforce
Committee said in a press statement this week:
“WASHINGTON, D.C. -- Witnesses before the U.S.
House Education & the Workforce Committee today testified
on the cost of federal consolidation loans, with some warning
increased federal entitlement subsidies to college graduates
-- an idea proposed by Democratic Party leaders -- would
divert federal funding away from other education programs
and reduce Congress' ability to expand access to higher
education for low and middle income students.”
Credibility Check: “Reduce Congress’
ability to expand access to higher education for low and
middle income students.”
Ø What expansion! Republicans
have failed to do anything meaningful this Congress to make
college more affordable targeted for low and middle income
students. Instead of expanding access, the Republicans
have been slamming the door shut to millions of college
students.
Ø President Bush has
either frozen or cut funding for the maximum Pell grant
for the third straight year in a row, despite the fact
that last year’s maximum grant was (after adjusting
for inflation) worth $500 less than the maximum grant in
1975-76;
Ø President Bush promised
to help Community Colleges, but after months of waiting,
he has yet to introduce a plan.
Ø A recent Washington
Post article summed up the real Republican agenda: "House
Republicans are considering legislation aimed at reducing
government subsidies for a federally supported student loan
program, a step that critics say could lead to sharp
increases in the long-term cost of going to college."
(3/17/04)
Ø At a recent hearing, Republican
witnesses advocated support for a plan drawn up by big bankers
to eliminate the benefit that currently allows students
save thousands of dollars by locking in low interest rates
over the life of their loans.
Ø The plan would force
the typical student borrower, with $17,000 in debt, to pay
more than $6,600 in additional interest over the life of
their loan.
Ø Student and consumer groups
oppose the big banker’s Republican-backed plan because
it would significantly increase, and in some cases DOUBLE,
the cost of loans for millions of student borrowers.
Ø The big banks, which are
federally subsidized, already enjoy government subsidies
and robust profits, because federally guaranteed student
loans carry virtually no financial risk. Bankers need to
be part of the solution in addressing the program's potential
future costs. Republicans are content to continue handing
big banks huge give-aways at the expense of students and
taxpayers.
Credibility Check: Democrats would “divert
federal funding away from other education programs.”
Ø Maintaining current law
does not divert any student aid funds, and the Chairman
knows it. The current fixed rate for consolidation of student
loans—adopted with bipartisan support in the 1998
higher education reauthorization—is in the current
budget baseline. The Chairman must be confusing existing
loan consolidation provisions with President Bush’s
tax giveaway to the wealthy, WHICH HAS DIVERTED BILLIONS
OF DOLLARS from urgent education priorities like Pell Grants,
No Child Left Behind, Early Childhood Education, and job
training programs.
Ø Because President Bush
has squandered trillions on tax cuts for the wealthy, the
Republicans are desperate to boost their sagging polls on
education. They are now resorting to a slight of hand—a
massive shell game that steals higher education benefits
from students in one account to pay for an increase in another
account.
Sincerely,
GEORGE MILLER
Senior Democratic Member
Committee on Education and the Workforce
