Statements on Introduced Bills and Joint Resolutions

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - January 26, 2005)

Ms. CANTWELL. Mr. President, I want to take a moment to talk about the advantages of having a college education and the importance of ensuring access to higher education. That is why I am pleased to join as a cosponsor the Corzine-Smith Kennedy Ensuring College Access for All Americans Act of 2005. Due to recent changes made to the formula determining federal Pell grant awards, many students are at risk of losing needed financial aid. This bill would guarantee that no student sees a reduction in his or her Pell grant assistance in the 2005-2006 school year or loses the grant completely.

We are all familiar with the adage: education is the great equalizer--and that a college education is the economic ladder to upward mobility. Not only do individuals reap benefits from having a college degree, society also values higher education--as we have also heard that education is the engine that drives a healthy economy. Basically, in addition to all its other benefits, having a good education pays individuals in the long run.

According to a recent report by the college board, college graduates earn about 73 percent more than high school graduates over their working lives. For those with advanced degrees, earnings are two to three times higher than high school graduates. Moreover, society enjoys the financial returns on the investment in higher education--from generated higher tax payments to decreased dependency on public income-transfer programs. Overall, higher education improves individual and societal quality of life.

While we are convinced that higher levels of educational attainment produces positive outcomes we need to do more to ensure access to higher education.

With the cost of college tuition continuing to rise, financial aid is the decisive factor in determining whether thousands of high school seniors are college bound or not. In particular, Federal Pell grants are especially critical for low-income students financing their way through college. According to the college board, college tuition at 4 year institutions increased on average by over 10 percent in the 2004-2005 school year. At 2-year public colleges, tuition increased by over 8 percent.

However, the Department of Education's recent changes to the formulas for financial aid eligibility will cut $300 million in Pell grant assistance to students nationwide, resulting in drastic reductions of Pell grant awards to more then one million students. The American Council on Education estimates that 89,000 students who are currently eligible for a Pell grant will lose this financial assistance. An additional 1.3 million student will likely see a reduction of $100 to $300 in their Pell Grants.

In my home State, over 4,000 students, just at one college, the University of Washington, will be adversely impacted from the change in financial aid eligibility. Early estimates show that about 3,900 students of the 6,900 eligible for a Pell Grant will lose up to $200 a year. Two hundred more students will probably lose their minimum grants of $400. Many of the students likely to see a decrease in their Pell grant award are low income.

Federal financial aid was critical to my own educational achievements. I went to college on a Pell grant. It was a critical to my being able to finance my way through school. With these new rules, some students may quit school or will have to spend more time working when they should be going to class.

The Ensuring Access for All Americans Act of 2005 would restore this critical financial assistance to thousands of needy students in the 2005-2006 school year. At a time when more and more employers are requiring a college degree for employment and tuition costs are skyrocketing, government should be opening the doors to educational opportunity, not locking students out. I urge prompt Senate action on this measure.

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