[Congressional Record Volume 142, Number 103 (Friday, July 12, 1996)]
[Senate]
[Pages S7814-S7815]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 REPUBLICAN BUDGET SUPPORTS STUDENT AID

  Mr. PRESSLER. Mr. President, today I would like to express my 
continued support for Federal student financial aid programs. I relied 
on student loans to fund my college education at the University of 
South Dakota, so I understand the importance of these loans for 
students and families. Low income levels should not deny young people 
the opportunity to achieve their dream of a college education. Programs 
such as Stafford loans, Pell Grants, and work study programs enable 
young people to fulfill that dream and pursue their ultimate dreams of 
personal and professional success.
  One of the great challenges for American families is the rising cost 
of a college education. For the past two decades, tuition costs have 
risen twice as fast as inflation. Financial aid has not kept pace with 
these soaring price increases. The result? More and more students and 
their families are struggling to pay for college today. In my home 
State of South Dakota, 83 percent of students attending public colleges 
receive some type of Federal financial aid. As the number of students 
receiving loans continues to grow, the overall student aid debt 
accumulates along with it. Even more of a concern, the rising cost of 
tuition increases the size of the debt students pay off after college. 
South Dakota students now graduate with an average debt of more than 
$10,000. This means that college graduates are forced to divert a 
higher share of their earnings in order to pay off their student debts.
  Students struggle to find ways to pay off these huge debts. 
Increasingly, they work while attending school. This trend tends to 
deflate the student's educational experience.
  I am pleased the Republican budget that passed Congress earlier this 
year would respond to these trends. The budget includes responsible, 
cost-efficient reforms to student financial aid programs. These 
programs can be improved without harming the actual aid levels that 
students depend on. Reform can be achieved by eliminating small, 
specialized scholarship programs and Federal bureaucracy.
  Unfortunately, liberal interests have tried to use the issue of 
student financial aid to their benefit. They have used false propaganda 
to scare young people and their parents. I urge Americans to look at 
the facts, not the falsehoods. The Republican plan for student aid 
would increase the amount of aid available to students, while 
downsizing inefficient Federal bureaucracy.

[[Page S7815]]

  The Republican budget for student financial aid would do three 
things. First, it would increase the maximum Pell Grant level to 
$2,470--the highest level ever. Second, it would maintain current 
funding levels for the Federal Work-Study Program and the supplemental 
education opportunity grants. Lastly, it would maintain the in-school 
interest subsidy and postgraduation grace period for all students. I am 
proud we were able to maintain this funding during these tough budget 
times. Student aid is a priority in this Congress.
  We could provide more for student aid if we abolished the Clinton 
administration's wasteful, expensive direct lending program. The 
Congressional Budget Office estimates that taxpayers would save more 
than $1.5 billion over 7 years if the direct lending program were 
abolished.

  Faceless bureaucrats in Washington are not able to provide students 
and families in South Dakota with the same personal service offered by 
hometown banks and credit unions. This is just common sense. The people 
of South Dakota greatly prefer one-on-one consultation with a small 
bank or credit union in their hometown, not the endless maze of redtape 
that accompanies the direct-lending program. This is another example of 
how the Clinton administration believes big government is the answer 
and should be involved in our daily lives.
  Frankly the single best way to show our support for student financial 
aid programs and most importantly, for our children, is to balance the 
budget and reduce the massive national debt. These issues are entwined. 
Young people today stand to inherit the responsibility of the national 
debt, which now totals $5 trillion. Interest payments on the debt alone 
are a considerable burden--more than $200 billion each year and rising. 
As the interest grows, it diverts Federal resources from programs like 
student financial aid. A balanced budget would protect worthwhile 
Government programs, reduce the debt and the size of interest payments. 
Just as important, it would lower overall interest rates, and increase 
more jobs. This means college graduates would have an easier time to 
find that first job, buy that first home, pay off their student loans, 
and provide for their children.
  I believe the continuation of student financial aid programs is 
vital. These programs not only give students the opportunity to receive 
an education that is essential in today's society, but they also allow 
America to keep a competitive edge in competition in our increasingly 
global economy. It is essential that the U.S. work force be an educated 
one that is ready to compete with other countries of the world. 
Providing adequate financial support for students will achieve this 
essential goal. Young people should have the opportunity to fulfill 
their potential and achieve their dreams.
  I will continue fighting for affordable, accessible student financial 
aid programs and to secure a better future for the young people of 
South Dakota.

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