[Congressional Record Volume 141, Number 64 (Thursday, April 6, 1995)]
[Extensions of Remarks]
[Pages E808-E809]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


        PROPOSED STUDENT LOAN CUTS HARMFUL TO AMERICA'S STUDENTS

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                          HON. STENY H. HOYER

                              of maryland

                    in the house of representatives

                        Wednesday, April 5, 1995
  Mr. HOYER. Mr. Speaker, today I joined hundreds of college and 
university students from around the Washington metropolitan area in a 
rally against proposed cuts in student aid and loan programs. The 
average American family today simply cannot afford to send a child--
much less two or three--to college without some form of student aid. 
That is why I believe that cutting student aid is penny-wise and pound 
foolish. The Republican tax cut bill wants to provide families with a 
$500 per child tax cut, while at the same time proposing that each 
student who receives student loans will pay, on the average, about 
$4,000 more in additional interest costs over the 10-year life of a 
loan.
  At today's rally was a young graduate student from the University of 
Maryland. Mr. Dominic Perri spoke on behalf of the National Association 
of Graduate and Professional Students and spoke of the additional costs 
that he and thousands of graduate students across this country would be 
forced to pay under this Republican plan. Mr. Speaker, I am pleased to 
share with my colleagues the remarks of Mr. Perri and urge my 
colleagues to read his remarks and understand the severity of these 
potential student aid cuts.
   Remarks of Dominic J Perri, National Association of Graduate and 
                         Professional Students

       Good Afternoon, my name is Dominic Perri. I am a graduate 
     student at the University of Maryland at College Park, and I 
     want 
     [[Page E809]] to speak to you on behalf of the National 
     Association of Graduate and Professional Students.
       I want to talk to you about the effect the loss of the 
     interest exemption and other proposed cuts would have on 
     graduate and professional students. Lately opponents to 
     student aid have made statements that trivialize the effect 
     of these cuts.
       One opponent of student aid here at the Capital claims that 
     the loss of the interest exemption would cost students just 
     $21 a month. ``So they won't be able to buy 2 CD's'' he told 
     USA Today.
       Now, in addition to knowing where he buys his CD's, I'd 
     like to know where he got his numbers. You see, for the 
     graduate student who takes out loans to get an M.A., the loss 
     of the interest exemption means that the loan payments could 
     increase as much as $110 a month. Or to put in terms our 
     friend can understand, that's 11 CD's.
       And just yesterday, another opponent of student aid claimed 
     that the loss of the interest exemption would cost just . . . 
     pennies a month.
       Tell that to the graduate student who completes a Ph.D. and 
     winds up with over $68,000 in loans. The loss of the interest 
     exemption could cost this student an additional $33,000. 
     That's an increase of over $400 in the monthly payments, . . 
     . or 40,000 pennies.
       So you see, while eliminating the interest exemption is a 
     disaster for undergrads, its even worse for graduate 
     students. Of course, the opponents of student aid have simply 
     chosen to ignore the effects these cuts would have on more 
     than a million graduate and professional students.
       These cuts could drive many of these students right out of 
     school. That's a loss that this country cannot afford.
       This is because graduate programs prepare the nation's most 
     highly skilled
      workforce, including faculty, business and industry leaders, 
     social workers, physicians, ministers, researchers, and 
     professionals.
       Research conducted by graduate students contributes 
     directly to economic growth. The University of California 
     says that graduate student research drove the development of 
     the biotechnology industry that today employs 80,000 
     Californians!!
       In fact, studies show that U.S. economic production is 
     directly related to government spending in higher education.
       In the last week Governor Carlson of MN and Governor George 
     Bush of Texas have both issued statements that ``quality 
     graduate education is crucial to the global competitiveness 
     of the United States.''
       Graduate students are a valuable resource that the 
     opponents of student aid seemed to have ignored. They have 
     not taken calculated the devastating effect of their cuts on 
     this nation's graduate and professional students. (Pause) But 
     we have.
       The National Association of Graduate and Professional 
     Students warns you not to be deceived by those who would 
     trivialize the effect of these cuts. These cuts are real, 
     unwise, and undermine the very foundation of higher 
     education.
     

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