[Congressional Record Volume 140, Number 21 (Wednesday, March 2, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 2, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              HIGHER EDUCATION ACCUMULATION PROGRAM [HEAP]

                                 ______


                           HON. ANNA G. ESHOO

                             of california

                    in the house of representatives

                        Wednesday, March 2, 1994

  Ms. ESHOO. Mr. Speaker, I am proud to sponsor H.R. 3897, the Higher 
Education Accumulation Program [HEAP] Act of 1994. This legislation 
would allow parents to make tax deductible contributions to special 
IRA-like savings accounts earmarked for their children's college or 
vocational education.
  Higher education has often become a matter of checkbooks as much as 
textbooks. A recent study by the investment management firm T. Rowe 
Price found that in 11 years it will cost over $71,000 for a child to 
earn a 4-year degree from a public college and more than $139,000 for a 
child to attend a private university. That means parents with a child 
now in first grade would have to save $335 every month for the next 11 
years to send their child to a public school and almost $700 every 
month to send their child to a private institution. Although these 
figures are overwhelming, parents frequently do not start saving for 
their children's education early enough, then find themselves strapped 
for money when the bills are due. Families can no longer afford to be 
caught financially unprepared, especially as more and more jobs require 
some form of higher education.
  Foreseeing this crisis in education funding, the Kenyon College 
Alumni Council formed the Funding Education Committee [FEC]. Committee 
members--including representatives from the Alumni Council, the Parents 
Association, the faculty and the administration--spent over a year 
examining cost projections, public policy considerations and financing 
concepts to deal with this issue. What they found was alarming. 
Assuming 2 percent real growth and 4 percent inflation per year, they 
determined that 4 years at Kenyon will cost approximately $250,000 in 
the years 2010 to 2014.
  Mr. Speaker, I commend Kenyon College, its Alumni Council, and the 
Kenyon FEC for having the foresight to address this problem. I would 
particularly like to thank Neal Mayer, vice president at Kenyon's 
Alumni Council, for bringing this issue to my attention and drafting 
the solution embodied in my legislation. Concerned citizens contribute 
greatly to our democratic process by becoming involved with issues 
which will affect generations to come and devising innovative responses 
to them.
  The HEAP Act would allow parents to deposit up to $5,000 per child 
each year in a college savings account with a maximum allowable 
deduction of $15,000 per year. When money is withdrawn from a HEAP 
account for education purposes, one-tenth of that amount would be 
included in the gross income of the beneficiary for tax purposes over a 
10-year period. The legislation also includes a 10-percent penalty for 
money withdrawn from a HEAP account for purposes other than paying for 
higher education.
  Mr. Speaker, this legislation provides a HEAP of relief for middle 
class families who are often not eligible for low-interest student 
loans and other Government aid. By encouraging these families to save 
for their children, we help give future generations access to all the 
advantages of higher education. I urge my colleagues to support the 
HEAP Act and pay tribute to those who shaped this worthy legislation.

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