[Congressional Record Volume 144, Number 91 (Friday, July 10, 1998)]
[Senate]
[Pages S7961-S7962]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  HIGHER EDUCATION AMENDMENTS OF 1998

 Mr. JOHNSON. Mr. President, I rise to express my strong 
support of legislation passed by the Senate last evening, the Higher 
Education Amendments of 1998.
  The Higher Education Act has been of enormous benefit to millions of 
students over the past three decades in providing more affordable 
access to institutions of post-secondary education. Many of these 
students simply would not have gone to college or vocational school 
without the assistance provided through such programs as Pell Grants, 
student loans, and work study.
  With the increased competition faced by workers in the global 
economy, the importance of these programs is even greater today, not 
only for students but also for our nation's economy. The Higher 
Education Act programs account for 68 percent of all financial aid 
available to students.
  The cost of a college education continues to grow far faster than 
inflation, leaving more and more students with a large debt once they 
finish. Last fall, the College Board released a nationwide survey of 
tuition costs, finding that tuition and fees would rise about 5 percent 
for the fifth year in a row.
  In contrast, inflation in the overall economy has been held under 
control during these years, hovering at an average of just over 2 
percent.
  As costs have increased, student borrowing has expanded to make up 
the difference. Student loans now comprise about 60 percent of all 
financial aid, whereas in the 1980-81 school year, loans were just over 
40 percent of the total. The average graduate of a four-year college 
today will have $14,500 in debt upon entering the working world.
  Given the increased reliance on borrowing, it is notable that this 
reauthorization legislation will provide for a reduction in interest 
rates on new student loans by approximately 1 percent from current 
rates. This provision will save students hundreds, if not thousands, of 
dollars.
  Nearly 84 percent of South Dakota students receive financial aid in 
some form, with an average annual award of $5,400 to students who 
receive aid at the six public universities. Approximately 16,000 
students in South Dakota receive Pell Grants, accounting for $28 
million in federal assistance.
  I am pleased that this bill will provide legislative authority to 
increase the size of the maximum Pell Grant to $5,000. In the 1970s, 
Pell Grants covered three-quarters of the costs of attending a four-
year public school. Today, these grants cover only one-third of the 
cost. I realize that finding the budget resources to fund this maximum 
grant fully will be difficult, but Pell Grants are the most effective 
program we have for helping low-income students afford post-secondary 
education.
  This legislation also continues the essential Federal Family 
Education Loan (FFEL) program. Although direct lending by the federal 
government has consumed a portion of the overall student loan volume, 
all of the colleges and universities in my state of South Dakota 
continue to use the FFEL program and remain satisfied with the services 
they receive. Accordingly, I have been skeptical of efforts that might 
destroy the balance that has existed between direct lending and the 
FFEL program. Federal policy should not be changed in ways to either 
favor direct lending or undermine the financial viability of lending by 
the private sector.
  There are some lesser-noticed provisions of this bill of which I am 
particularly proud. Promoting the availability and affordability of 
child care has been one of my highest priorities in the Senate. That's 
why I am so pleased that legislation I cosponsored earlier this year, 
the CAMPUS Act, has been incorporated into this bill. CAMPUS stands for 
Child Care Access Means Parents in School. This provision will 
establish a grant program to assist colleges with

[[Page S7962]]

the costs of establishing child care centers to provide campus-based 
child care for low-income parents attending college.
  The obvious benefit of easy access to child care is that students 
with young children will have a much greater probability of staying in 
school and completing their degree. More and more students today are 
non-traditional students, and the need for campus-based child care is 
greater than ever before.
  Additionally, this bill establishes an innovative new program to 
offer student loan forgiveness for those who earn a degree in early 
childhood education and become full-time child care workers. Child 
care, unfortunately, is one of the lowest-paying professions that one 
can find, and this low level of pay is completely incommensurate with 
the value of those who are caring for young children. Not surprisingly, 
turnover in this field is very high, as workers find better paying jobs 
elsewhere.
  It is especially tragic when highly-trained graduates, those who have 
earned a degree in early childhood education, are forced to leave the 
child care profession because they can't pay their student loans. We 
still need to do all we can to raise wages for child care workers, but 
helping with student loan repayment is a remarkable step forward. This 
concept was contained in child care legislation I cosponsored last 
year, and I am very pleased that it has been included in this bill.
  Finally, advocates of a more effective welfare system won a 
significant victory with the passage of Senator Wellstone's amendment 
to give states the option of counting two years of post-secondary 
education as a work requirement for purposes of the Temporary 
Assistance to Needy Families program. I was proud to cosponsor this 
amendment.
  I have heard from a number of my constituents that current system has 
had the unfortunate effect of forcing TANF recipients out of college or 
vocational school and into dead-end, entry-level jobs. It seems obvious 
that enabling these individuals, which are usually single mothers, to 
complete a degree would be far more effective in achieving long-term 
benefits. Education leads to higher income levels, helping move these 
families out of poverty for good and making them productive taxpayers. 
Federal requirements should not be so rigid and inflexible that states 
are prevented exercising this option. I will press to ensure that this 
amendment survives the upcoming conference.
  Passage of the Higher Education Amendments of 1998 was absolutely 
essential for the continuation and improvement of a system that helps 
keep post-secondary education within the reach of typical American 
families. I am pleased with the Senate's overwhelming vote in favor of 
this bill, and I look forward to expeditious consideration of the 
conference report and to sending the bill to President Clinton for his 
signature.

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