[Congressional Record Volume 141, Number 21 (Thursday, February 2, 1995)]
[Extensions of Remarks]
[Pages E256-E257]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


            THE HIGHER EDUCATION ACCUMULATION PROGRAM [HEAP]

                                 ______


                           HON. ANNA G. ESHOO

                             of california

                    in the house of representatives

                       Thursday, February 2, 1995
  Ms. ESHOO. Mr. Speaker, I am proud to sponsor the Higher Education 
Accumulation Program [HEAP] Act of 1995. This legislation would allow 
parents to make tax deductible contributions to 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. When I first introduced HEAP last year, it was one of the 
few serious efforts attempting to help middle class families with 
climbing costs of higher education. I am pleased that my efforts put 
the issue on the radar screens of the Clinton administration and 
congressional Republicans. Last December, the President offered a tax 
deduction for college education and the GOP has reintroduced the 
American dream savings accounts. My bill will become part of the larger 
move in Congress to assist the middle class, promote higher education, 
and encourage greater savings by the American people. In short, this 
legislation makes a heap of good sense.
  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. HEAP will help middle class families whose 
kids do not qualify for low-interest student loans or other Government-
subsidized education aid to meet these costs. Parents need an 
alternative. They should not be asked to liquidate their retirement 
savings or mortgage their homes to pay for higher education, and HEAP 
provides that alternative.
  Parents and colleges are already well aware of this financing problem 
and are taking steps to address it. For example, a funding education 
committee was formed by the Kenyon College Alumni Council to explore 
cost projections for attending their school in the years ahead. Alumni, 
parents, faculty, and administration personnel spent over a year 
looking at costs, public policy issues, and financing ideas. They were 
shocked to discover that, assuming a moderate annual inflation rate, it 
will cost approximately $250,000 for students to obtain a 4-year degree 
if they enter Kenyon College in 2010.
  Mr. Speaker, Kenyon College, its alumni council, and its funding 
education committee deserve a great deal of credit for addressing this 
problem. In particular, I would like to commend Neal Mayer, immediate 
past president of Kenyon's Alumni Council, for bringing this matter to 
my attention and developing the concept incorporated in my legislation. 
Not only has the Kenyon Alumni Council helped draft this bill, but it 
is also spearheading a grassroots drive to generate support for HEAP 
among various college parents, alumni, and officials across the 
country. I hope that many of my colleagues will soon hear from these 
HEAP supporters and cosponsor this important legislation.
  [[Page E257]] 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.


                          ____________________