Higher Education’s Affordable Future

In November, the American people called for a change in direction, a change in priorities and a change in government. Your collective voice was heard throughout the country, demanding change and the end of status quo politics in Washington, D.C.

As Democrats, we took control of Congress with a clear sense of our responsibility to make comprehensive reforms and to restore public trust in our government. We accepted that challenge and, under the leadership of

House Speaker Nancy Pelosi, we crafted an aggressive legislative plan to address some of the most pressing issues facing working Americans, issues that were ignored under Republican control.

Young people went to the polls in record numbers in November and spoke very clearly that they were ready for a change. So, now that Democrats are in control of Congress, now that we have our first female Speaker of the House, now that the House has passed our ambitious 100 Hour Agenda, it is fair to ask, what does it mean to you?

Our commitment to leveling the playing field starts with creating more opportunity for young people. That's why one of our first acts in the 110th Congress was to make college more affordable by passing the College Student Relief Act of 2007 and cutting student loan interest rates in half.

Tuition has increased astronomically in the past few years. The cost of going to a public university has increased by an incredible 41 percent since 2001.

We know how hard it is for students to fund their education and we understand how intimidating looming loan repayments can be. Many graduates find themselves barred from their first choice in jobs, like being a teacher or a social worker, because the starting salaries would be too low to for them to pay back their student loans.

Many young people from lower- and middle-income families rely heavily on federal need-based loans and scholarships to help them cover the costs of their education. Last year, 5.5 million students borrowed subsidized Stafford loans and $19 billion was made available in subsidized aid. UC Berkeley alone estimated awarding almost $28 million in Stafford loans in the 2005-2006 academic year. That amounts to in-state tuition for more than 3,500 students.

The College Student Relief Act of 2007 is designed to help make getting a college degree easier for many students. It will cut interest rates on subsidized Stafford Loans in half, from 6.8 percent to 3.4 percent, over the next five years. This reduction will save students thousands of dollars in interest over the life of their loans. For example, an undergraduate student that starts school in California in 2007, who funds their education through subsidized Stafford Loans, would save $2,490 over the life of their loan. By 2011, it will be $4,420.

These changes don't just affect young people, they affect the future of America. The American Youth Policy Forum has projected that the U.S. would face a shortage of up to 12 million college-educated workers if changes aren’t made to make college more affordable. This lack of college-educated workforce would put America's economic health in jeopardy.

A recent Newsweek poll found that 88 percent of the American public supported reducing interest rates, but despite its popularity, cutting student loan interest rates is the type of common sense solution favored by the American public that never saw the light of day under the Republican Congress.

Democrats are changing that. It is a testament to both the near-universal popularity of the proposal and the Democrats commitment to moving common sense solutions that when it came to a vote, the bill passed overwhelmingly, with only 71 Republicans voting against it.

Obviously, cutting student loan interest rates is not a silver bullet, but it is an important step in the right direction. I look forward to working with my friend and Bay Area colleague, Representative George Miller, the Chair of the Education and Labor Committee, to take further steps to make it easier for anyone who wants to to go to college, steps like increasing the maximum amount for Pell grants and expanding eligibility for grants and loans to part-time and other non-traditional students.

As Malcolm X once said, “Education is the passport to the future, for tomorrow belongs to those who prepare for it today.”

Making education more accessible will open the door of opportunity to a new, more diverse generation of future leaders, but only if we are committed to eliminating the barriers and obstacles that prevent that door from being open to all.

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