Health Care and Education Reconciliation Act of 2010

Floor Speech

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Mr. CARDIN. Mr. President, I rise today in full support of the Health Care and Education Affordability Reconciliation Act of 2010. I assert that the investment we make in education with this bill is an investment in America's economic future.

For too long, we have allowed America to lag behind other nations in education, specifically in the number of college graduates we produce. No more. Now is the time to train our workforce to compete in the global economy. Now is the time to provide affordable, accessible, quality educational opportunities so that America will shine as a beacon of ingenuity and prosperity once again. This bill answers the call by making college more affordable and accessible.

Perhaps most significantly, the bill invests in and protects the Pell grant scholarship. It provides $36 billion over 10 years for this program which allows so many to attend college who would not otherwise have the opportunity. This includes funding to cover a shortfall due to demand. The failing economy has spurred a dramatic increase the number of those students who are eligible for Pell grants. In 2007, there were 5 million Pell grant recipients. In 2009-2010, there were 8.3 million. The bill also provides an increase in the maximum annual award which will ultimately be indexed to the Consumer Price Index and thus linked to increases in the cost of living.

In Maryland, over 85,000 students depend on Pell grants to help them attend college. With the additional funding, that number is expected to rise to 100,000. That is 15,000 additional students who have the opportunity to share in the American dream! Students like Morris Johnson from Baltimore. Morris is a double major in sociology and communications at Goucher College with a 3.5 grade point average. Morris credits those who believed in him and his academic promise for keeping his dream of attending college alive. But without financial aid, including a Pell grant, that dream would have been out of reach.

For those who find it necessary to borrow to finance their education, the bill solidifies a mechanism for obtaining high-quality student loans. The direct loan program is a reliable lender and cost-effective mechanism for taxpayers. Beginning in July of this year, all new student loans will be originated through the direct loan program. This will bring an end to the costly federally-guaranteed student loan program that generated billions of dollars in subsidies for banks--at the expense of additional financial aid for more deserving students. Instead, direct loans will be serviced by contracted private lenders. Further, direct loans can only be serviced in the United States, thereby preserving American jobs.

The bill also makes it easier for new borrowers after 2014 to repay Federal loans by lowering the existing cap on monthly Federal student loan payments from 15 percent to 10 percent of discretionary income. The legislation provides $1.5 billion for this income-based repayment program.

Just paying for college, however, isn't enough. We need to make sure our students succeed in college and graduate. To that end, the bill supports additional key investments:

The bill dramatically increases funding for the College Access Challenge Grant program. This program funds innovative financial literacy and retention projects. This will increase the number of low-income students who are adequately prepared for the financial challenges of paying for college and related expenses.

The bill underscores the role of minority-serving institutions in educating the Nation's low-income and minority students by providing $2.5 billion to support these institutions. This funding represents a significant investment in Maryland where we have four outstanding Historically Black Colleges and Universities. The bill also recognizes the role of community colleges and provides $2 billion for a competitive grant program to develop and improve career training programs.

I said the time for making college more accessible and affordable has come and I believe that. But we also have to be fiscally responsible. This bill is both. It makes historic investments in Federal financial aid and yet comes at no cost to the taxpayers. This is possible by switching all Federal loans to the direct loan program. Doing so saves taxpayers a huge amount in subsidies that were going to the banks. According to the Congressional Budget Office, this savings will amount to $61 billion over 10 years. Even with the improvements, these education provisions in the legislation will reduce the deficit by $10 billion over 10 years, at least.

The education provisions in this legislation make college more affordable and accessible. It's necessary for America's students and for America's future.

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