Issue Position: Education - Higher Education

Issue Position

As the cost of college outstrips the ability of families to pay, too many students are forced to take on high loan debt burdens. Rep. Eshoo believes every student deserves the opportunity for an affordable education which will allow them to compete in the competitive job market and fulfill their potential.

Student Aid and Fiscal Responsibility Act (SAFRA)

When the healthcare reform package was signed into law on March 30, 2010, it contained the Student Aid and Fiscal Responsibility Act (SAFRA) which represents the largest single increase ever made to student aid funding in our country's history. This landmark legislation renews our commitment to children and their education. It will ease the cost of college for students and their families, lower the debt of graduates, and strengthen our community colleges and early learning programs.

SAFRA dramatically increases the size and availability of Pell need-based grants and the Perkins Loan program. The maximum Pell grant will increase to $5,900 by 2019, and the program will provide an additional 880,000 grants by 2020. All together, the bill provides an additional $48 billion for scholarships and student loans. Most importantly, federally-subsidized student loans will no longer be channeled through private banks. This change lowers the interest rates on federal loans and converts all new federal student loans, beginning July, 2010, to the cost-efficient Direct Loan program which is not affected by changes in the financial markets. The bill also provides $10 billion to encourage expanded educational opportunities for community colleges, workforce programs, online training, and adult education, and $2.55 billion for historically black colleges and universities. Shifting to direct federal lending will save more than $80 billion over 10 years and return $10 billion to the Treasury.

In addition to making a college education more affordable, the legislation provides $8 billion to ensure the next generation of students entering kindergarten will have the skills they need to succeed in school. It creates the Early Learning Challenge Fund which increases high-quality early learning opportunities for low-income children. SAFRA will also help provide every child with world-class learning facilities by investing in school modernization, renovation, and repair projects that will create healthier, safer, and more energy-efficient environments.

Community Colleges

The economic downturn and widespread joblessness have caused more people to learn marketable skills in order to be competitive in the workforce. Much of the training and education for new skills comes from our nation's vast network of community colleges. Unfortunately, just when their resources and availability have become more important than ever, community colleges are struggling financially. Unlike private colleges and universities and larger public schools, community colleges rely almost exclusively on state funding at a time when state tax revenues are falling and budgets are being slashed. Without financial assistance to hire and retain faculty and staff and maintain facilities, community colleges are unable to fulfill their critical educational mission.

The healthcare reform legislation President Obama signed into law on March 23, 2010 included a significant investment in our country's community colleges. Using savings derived from ending subsidies to private lenders to administer federal student loans, the legislation provides $2 billion for job training programs at community colleges. While Rep. Eshoo favored an even larger funding level, this amount is an unprecedented federal investment in the schools and programs that will improve prospects for employment for millions of American workers.

Rep. Eshoo is also a cosponsor of H.R. 4196, the Community College Emergency Stabilization Fund (CCESF) Act. This legislation will create a program to provide one-time emergency funding to community colleges. The funding will create teaching and counseling positions and provide additional resources to retain essential courses and add new ones to the curriculum.

The CCESF will help to ensure American workers have essential training resources at the local level to improve their education and enhance their job skills.

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