COLLEGE COST REDUCTION ACT OF 2007 -- (Senate - July 19, 2007)
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Mr. SCHUMER. Madam President, I wish to first recognize my friend, the Senator from Massachusetts, the senior Senator from Massachusetts, on his efforts to produce this fine bill before us today. His efforts to improve higher education affordability and his willingness to make tough reforms in student lending are going to make a major difference to America's students.
One area in which this bill particularly excels is Pell grants. Pell, as we all know, is an important program. I have long supported it. I commend my colleagues for making such a meaningful investment in the Pell grant program.
We all know, whether you are middle class or poor, going to college these days is a necessity almost. Yet it is harder and harder to afford it. This bill takes care of both the poor and the middle class in a variety of ways, and makes it easier to go to college. That makes it better for the students and the prospective students who will be helped. That will make it better for their families. It will also make it better for America.
The Pell grant program is a critical resource for financially needy college students. In the 2005-2006 academic year, 5.3 million of the Nation's undergraduates received Pell grants. It makes an enormous difference to students whose family incomes are very limited. Most have incomes of less than $20,000; over 1 million in New York alone. One of the great things about America is that we provide ladders up. We are not going to give you an escalator. You are going to have to work to climb. But the Pell grant is a ladder. If you work hard and succeed and go to college, it will be easier for you to go despite the high cost of tuition.
This aid and improvements to the loan programs are critical. In fact, the typical student now graduates with $17,000 in Federal student loan debt. That is a mountain of debt for a working adult, which is becoming increasingly difficult to avoid. It is undeniable that sustaining a talented, college-educated workforce is essential to our success in a global economy. College education has become almost a necessity in the world our young people are facing, and yet it is priced as a luxury. Yet, since 2001, tuition and fees at 4-year public colleges and universities have risen 41 percent. That is after inflation.
Families in New York are certainly struggling with education costs. Even after financial aid is taken into account, 33 percent of the median family income in New York is needed to pay for just 1 year of a 4-year public college. The Federal student loan programs are a critical resource for America's students. Parents deserve a pat on their back when kids graduate from college, not bills and repayments that may break them.
Families trying to afford a college education need our help, whether they be poor, working families, or families well into the middle class. That is why I was proud to author a law that allows students to deduct $4,000 from their tuition. That is why I am proud to be a supporter of this legislation, which helps students--poor students--with increased Pell grants, significantly increased Pell grants, but also those who take out Stafford loans. We limit how much they have to pay back to 15 percent of their disposable income. That will dramatically help those kids.
Democrats have said we are going to take America in a new direction. We said we are committed to strengthening America's middle class. This bill does both of those things, and I am happy to support it.
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