Higher Education Affordability and Fairness Act

HIGHER EDUCATION AFFORDABILITY AND FAIRNESS ACT -- (Extensions of Remarks - January 04, 2005)

SPEECH OF HON. RUSH D. HOLT OF NEW JERSEY
IN THE HOUSE OF REPRESENTATIVES
TUESDAY, JANUARY 4, 2005

* Mr. HOLT. Mr. Speaker, today, education--and higher education in particular--is more important than ever to solving the most pressing problems of our communities and the country.

* Let me give you some sobering statistics:

* According to Nellie Mae, the average undergraduate student loan debt has increased the last 5 years from $11,400 to $18,900.

* Today, 70 percent of federal student aid is made in loans; Grants account for only 22 percent of aid. Thirty years ago, student loans accounted for about 25 percent and grants about 70 percent of all federal student aid.

* Seventy-five percent of full-time students now work to help cover their college expenses. Twenty percent of working students work 35 or more hours a week while enrolled in school full-time.

* In 1975-76 the maximum Pell Grant award covered eighty-four percent of an average tuition at a state school; today it covers forty percent.

* The generation often referred to as the ``baby boom echo'' will soon enter American institutions of higher education, resulting in record enrollments that will further strain the ability of colleges and universities to deliver a quality education to their students.

* That is why I am introducing the Higher Education Affordability and Fairness Act.

* It would make college tuition deductible, in conjunction with existing tax benefits for higher education. The proposal would further allow a family to deduct up to $10,000 in tuition expenses. A family would be capped at deducting a total of $15,000 in tuition expenses in one year if they have more than one child in college. In addition, if a family was ineligible for the Hope Scholarship (due to its income limitations), they would be able to deduct $5,000 of tuition costs.

* The bill would raise the income limits for eligibility for Hope Scholarships. Currently, the income phase-out on the HOPE tax credit is $40,000 to $50,000 for singles and $80,000 to $100,000 for couples. The proposal would raise the phase-out ranges to $50,000 to $60,000 for singles and $100,000 to $120,000 for couples, allowing more families to benefit.

* In order to ensure that savings go to the intended beneficiaries, the bill directs the Inspector General of the Department of Education to conduct an annual study to examine whether the federal income tax incentives to provide education assistance affect higher education tuition rates.

* Access to an affordable, quality education is inseparable from our economic prosperity, national security, and civic health. We must do everything possible to support this and that is why I have introduced the Higher Education Affordability and Fairness Act.

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