[Congressional Record Volume 144, Number 133 (Tuesday, September 29, 1998)]
[Senate]
[Pages S11069-S11080]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HIGHER EDUCATION AMENDMENTS OF 1998--CONFERENCE REPORT
The PRESIDING OFFICER. Under the previous order, the Senate will now
proceed to the consideration of the conference report accompanying H.R.
6, which the clerk will report.
The legislative clerk read as follows:
The committee on conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
6) have agreed to recommend and do recommend to their
respective Houses this report, signed by a majority of the
conferees.
The PRESIDING OFFICER. The Senate will proceed to the consideration
of the conference report.
(The conference report is printed in the House proceedings of the
Record of September 25, 1998.)
The PRESIDING OFFICER. Time for debate on the conference report is
limited to 30 minutes equally divided.
The Senator from Vermont is recognized.
Privilege of the Floor
Mr. JEFFORDS. Mr. President, I ask unanimous consent that Pam Moran,
a fellow with the Committee on Labor and Human Resources, be allowed
the privileges of the floor during consideration of the conference
report accompanying H.R. 6, the Higher Education Amendments of 1998.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. JEFFORDS. Mr. President, I think all you need to do is take a
look at the conference report as it sits on the desk to understand the
amount of work that has gone into this bill. This is an extremely
important bill, and I am extremely pleased that the Senate is on the
verge of sending to the President the Higher Education Amendments of
1998.
Today marks the culmination of 18 months of hard work that, for me,
began with the Labor Committee's hearing in Burlington, Vermont last
February.
[[Page S11070]]
The Higher Education Act is among the most significant statutes under
the jurisdiction of the Committee on Labor and Human Resources. Since
its inception in 1965, the Act has been focused on enhancing the
opportunities of students to pursue postsecondary education. The grant,
loan, and work study assistance made available by this Act has made the
difference for countless millions in pursuing their dreams for a better
life. The legislation we are considering today builds on the proud
legacy of this Act.
In the face of rising college costs, Congress will provide students
with the lowest cost loans in nearly two decades. With increasing
concern about the quality of our nation's teachers, this bill will take
giant steps in improving teacher preparation. And with students,
parents, and--frankly--Senators concerned about the delivery of student
aid, this bill completely overhauls the federal role by placing it in
the hands of a professional and accountable agency within the
Department of Education.
Getting to this point has been a challenging, but rewarding, journey.
The process in both the House and Senate has been characterized by a
spirit of bipartisanship, with members sharing the basic objective of
making higher education programs work better for students and their
families. I commend the work of the chairman of the House Committee on
Education and the Workforce, Representative Bill Goodling, and the
committee's ranking member Representative Bill Clay. The House
subcommittee leadership, Representative Buck McKeon, and ranking member
Representative Dale Kildee have also done a yeoman's job throughout the
process.
I would also like to acknowledge in particular the contributions of
the labor committee's ranking minority member, Senator Kennedy, and the
efforts of Senator Coats and of Senator Dodd. From the beginning, these
three members have been steadfast in their commitment to work through
differences and to craft a solid piece of legislation.
At the start of the reauthorization process, we set out to achieve a
number of important goals designed to strengthen higher education
programs. I am pleased to say that this conference report achieves the
major objectives identified at the beginning of our efforts: to assist
students, to improve the quality of teaching, to maintain two viable
loan programs, and to improve the delivery of student financial aid.
First, the final bill preserves the focus on students--who are the
primary reason we have a Higher Education Act in the first place.
Students now in school will be assured of receiving the lowest interest
rate in nearly two decades on their loans.
Students now in high school who aspire to a college education will
benefit from an expanded early intervention program known as GEAR UP,
as well as continuing to receive services from the time-tested and
highly regarded TRIO programs. The new GEAR UP program combines
features of the existing National Early Intervention Scholarship
Program, which I sponsored in 1992, with recommendations proposed by
the Administration and included in the House bill. The GEAR UP program
preserves the best features of the program now operating successfully
in 9 states, while expanding the pool of participants and approaches
involved in early intervention.
Students who have graduated and are faced with exceptionally high
loan burdens will be able to take advantage of extended repayment
options under the guaranteed loan program. In addition, the measure
provides a four-month window within which students may obtain Direct
consolidation loans at an interest rate set at the 91-day Treasury bill
rate plus 2.3 percent.
Recognizing the toll which ever increasing colleges costs are placing
on students, the bill builds on recommendations of the National
Commission on the Cost of Higher Education so that students and their
families can obtain useful cost information.
Second, perhaps the most exciting and far-reaching innovation in this
legislation is its provisions dealing with teacher preparation.
Numerous small, categorical--and unfunded--teacher training programs
are repealed and replaced with a comprehensive model for change and
improvement. The teacher quality provisions included in Title II of
H.R. 6 are an important first step towards really improving teacher
training. Working at both the state level to promote system-wide
reforms and at the local level to develop partnerships to enhance the
quality of teacher training, the bill offers a comprehensive and
systematic approach to this pressing national need.
At its foundation, these provisions embrace the notion that investing
in the preparation of our nation's teachers is a good one. Well
prepared teachers play a key role in making it possible for our
students to achieve the standards required to assure both their own
well being and the ability of our country to compete internationally.
In fact, the continued health and strength of our nation depends on our
country's ability to improve the education of our young people.
Integral to that is the strength and ability of our nation's teaching
force. Without a strong, competent, well prepared teaching force, other
investments in education will be of little value. I think these
provisions will be viewed as one of the lasting achievements of this
reauthorization.
In addition, the legislation provides loan forgiveness for students
who go into teaching. It is my hope that this new benefit will expand
the number of talented teachers serving school districts with large
numbers of low-income children.
Third, this bill reflects a strong commitment to the maintenance of
two viable loan programs--the guaranteed or Federal Family Education
Loan Program (FFELP) and the Direct Loan Program. To the extent
possible within budgetary constraints, the bill ``levels the playing
field'' to assure the continuation of fair and healthy competition
between the two programs. This bill extends the provisions of the
Emergency Student Loan Consolidation Act of 1997 which permit Direct
loans to be included in FFELP consolidation packages. Following a four-
month period (October 1, 1998, to January 31, 1999) in which Direct
consolidation loans will be set at the 91-day Treasury bill rate plus
2.3 percent, Direct and FFELP consolidation loans will carry the same
interest rate. That rate will be the weighted average of the loans
consolidated, rounded up to the nearly one-eighth of a percent and
capped at 8.25 percent.
Among the most challenging tasks facing the committee was developing
a student loan interest rate which could offer the lowest viable
interest to students while assuring sufficient lender participation to
preserve full access to loans. After extensive consultation with
students, lenders, representatives of the higher education community,
the administration and financial services experts, a compromise
interest rate package was developed. Lender yield is reduced by 30
basis points, while students receive the significant interest rate
reduction they have anticipated. This solution is by no means perfect,
but it promises to preserve the stability of the FFEL program for the
nearly 4 million students and their families who depend upon these
loans each year.
Fourth, the legislation includes a number of initiatives designed to
improve the delivery of student financial aid services. It includes a
new guaranty agency financing model--the goal of which is to achieve
cost savings and efficiencies in the delivery and administration of
student aid while ensuring that students, lenders, the Federal
government, and institutions of higher education receive high quality
service. Additional efforts to improve the delivery of student aid
programs include the development of a Performance Based Organization
(PBO) to strengthen the management of key systems within the Department
of Education. A number of provisions in the legislation also pave the
way toward taking advantage of the efficiencies made possible through
electronic processing and other technological advances.
Looking toward the future, the bill contains several provisions
dealing with the Year 2000 computer problem. The Office of Management
and Budget has raised serious questions about the Department of
Education's ability to meet the timetable outlined by the General
Accounting Office for the testing of software renovation work. Failure
to renovate all mission critical systems could result in disruptions in
the
[[Page S11071]]
management and delivery of student financial aid to more than 8 million
students. This is an area which the committee will be following closely
in the months ahead.
Finally, I would point out that this legislation complies with the
Budget Act. In order to bring the bill into balance, the conferees had
to make a number of difficult decisions. In making these decisions, we
attempted to select options which would maintain the lowest possible
interest rates for students and which would preserve new student
benefits such as extended repayment options under the guaranteed loan
program and teacher loan forgiveness. I recognize that particular
concern has been raised about provisions in the bill which eliminate a
provision of the bankruptcy law that permits individuals filing for
bankruptcy to have their student loans canceled if the loans have been
in repayment for seven years or longer. Individuals who file for
bankruptcy may still have their student loans canceled if the
bankruptcy court determines that repaying the loans would cause undue
hardship. Currently, the undue hardship option accounts for 70 percent
of all student loan discharges. In addition, a number of options are
available to assist borrowers who are having difficulties repaying
their loans, including deferment, forbearance, cancellation and
extended, graduated, income-contingent and income-sensitive repayment
options. In just about every case, these options are preferable to
declaring bankruptcy.
Over the years, the federal effort in higher education has been
substantial, and this legislation will assure that it will continue to
be so. The Higher Education Act currently provides $48.5 billion in
student financial assistance for 8.5 million students and $216 million
for institutional development. In 1995-96, 55 percent of undergraduate
students received financial aid under this Act. Over the next ten
years, the Federal government will guarantee over 88 million student
loans--totaling over $383.5 billion. Over the next five years, the
Federal government will provide more than 25.4 million Pell Grants.
As I said before, Mr. President, this conference report to the Higher
Education Amendments of 1998 is the culmination of almost two years of
good bipartisan work. Not only does it represent a huge victory for
America's students, but it represents a victory for all Americans as it
shows that Democrats and Republicans can work together when it comes to
the needs of our next generation. This legislation gives millions of
students the financial key to unlock the door to higher education. By
lowering the interest rate for student loans to the lowest levels in
nearly 20 years and by increasing the level of Pell grants, we are
allowing higher-learning to mean higher-earnings for more of our
children. Vermont has a proud tradition when it comes to higher
education in the United States Senate, from Bob Stafford to Justin
Smith Morrill. I can only hope that, with the passage of this
legislation, I will have helped continue that tradition.
By increasing the access and quality of higher education, this bill
will help ensure that our nation remains a leader in educational
excellence for all of our citizens. It deserves the support of all
members of the Senate.
The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
Mr. KENNEDY. Mr. President, as I understand it we have 15 minutes; is
that correct?
The PRESIDING OFFICER. That is correct.
Mr. KENNEDY. I yield 4 minutes to the Senator from Connecticut, 4
minutes to the Senator from Rhode Island, and I will yield myself, now,
4 minutes.
Mr. President, I want first of all to express my appreciation to my
friend and colleague from Vermont, Senator Jeffords, for his leadership
in this area. It follows a long tradition of Vermont Senators being
committed to education policy. Senator Stafford, a long-time friend,
was strongly committed to education. At a time when there are
differences that are all too obvious between the two political parties,
Senator Jeffords constancy and commitment in the area of higher
education, I think, have been very, very impressive. All of us have
enjoyed the opportunity to work with him.
I commend my friend and colleague, Senator Dodd, who has been
extremely active and involved in the workings of the higher education
legislation, both in the committee and the conference, and has been a
key player in his involvement and commitment in higher education.
I see, as well, my friend Senator Reed, who has a particular interest
in teacher training programs and has a long tradition, with Senator
Pell of Rhode Island, and also in the House, of commitment to higher
education. We have a number of others who I will describe in greater
detail as time permits, but I am particularly appreciative of my
colleagues' strong support.
The Education Act of 1998 is a strong and bipartisan bill that
deserves the support of all Members. It renews our commitment to make
higher education more affordable and more accessible to qualified
students. The House and Senate passed the original versions of the bill
almost unanimously, and the conference report preserves most of the
best features of both bills. It enhances benefits for students,
particularly for students who want to be teachers. It increases the
maximum authorization for the Pell grants for the neediest students and
expands the formula for calculating their financial need in order to
protect a larger amount of income for working parents and students with
greater opportunity for eligibility for those Pell grants.
The bill also reduces the cost of Pell grants by almost 1 percentage
point. This reduction can make a significant difference for students
who may face a mountain of debt when they graduate. This change will
result in savings of $700 on the average debt of $13,000, and savings
of over $1,000 on a debt of $20,000, which is enormously important to
make these loans--and college--accessible for the sons and daughters of
working families.
I am disappointed, however, we could not extend this benefit to all
recent graduates. Under the bill, the rates for consolidation loans
will be permanently lowered in both programs from their previous
statutory rates. The bill does create a short time window for recent
graduates to consolidate their existing loans under the Direct Lending
Program at the same low rates applicable for new loans. This
opportunity will be available for another 4 months in addition to the
3-month window already in effect, so the students will have a total of
7 months to consolidate their loans. Many of us would have liked to
have had a longer period of time, but budgetary restraints constricted
us. I think it is going to be enormously important that students and
their parents look into the consolidations that can save them a great
deal of money.
One of the key features of the bill is improving the training of
teachers. The legislation supports local partnerships that include
elementary-secondary schools and colleges and provides competitive
grants to States. This assistance is urgently needed to strengthen
teacher training. If we are to find an area of greatest need, probably
in our whole education system, it is putting a well-qualified teacher
in every classroom in this country.
Mr. President, I reserve the remainder of my time and I yield 4
minutes to the Senator from Connecticut.
The PRESIDING OFFICER. The Senator from Connecticut.
Mr. DODD. Mr. President, I thank my colleague from Massachusetts.
Let me quickly join with those who will commend our colleagues from
Vermont and Massachusetts, the chair and the ranking member of the full
committee, for their terrific work. I also want to thank our colleague
from Indiana, Senator Coats, and others, whom the chairman of the
committee put together to work on this bill as sort of a working group
on higher education. Certainly without their efforts we would not be at
the point we are today in proposing what I think is a good bill.
You can ask families all over this country what concerns them the
most. And the answer, time and time again, is education--particularly
higher education. Families know that there is little as important to
their children's lifelong success as achievement in post-secondary
education.
And families today are worried about higher education. They worry
about its cost--which is growing in many instances at outrageous
levels. They worry that too many students give up
[[Page S11072]]
the dream of college long before graduation from high school. And they
worry that colleges are not keeping up and educating their children for
the next century.
These are fundamental concerns and they have been the driving force
behind this strong legislation. For two years, I have been working with
Senator Kennedy, Senator Jeffords, Senator Coats and the other members
of the Labor and Human Resources Committee, and, in the past few months
with the House Education and Workforce Committee, to complete this
important bill. And I think our bipartisan efforts have helped produce
a bill that will help America's students and families.
It is a bill that, frankly, I think could have been better--but I
believe that we have done a good job with the realities that we face.
This bill does four things that I think are commendable. One, it
addresses the issues of college costs head-on--really for the first
time in my memory here that we address this issue. Many of my
colleagues may not be aware that over the past 20 years the cost of
college has gone up 304 percent as compared to every other area of our
economy where inflation has risen about 165 percent. So we are looking
at a tremendous increase in college costs for families all across this
Nation.
For the first time, this bill will ensure that families have access
to comprehensive, comparable information on cost. I am particularly
pleased that these disclosure provisions will be enforced by the
Secretary with the strong fine that I authored in the Senate bill. We
also authorize a follow-up study on why costs are escalating, as
recommended by the Cost of College Commission, and we direct the Bureau
of Labor Statistics to develop a market-basket for higher education so
that we finally have a workable yardstick with which to judge college
costs.
I think that is a critical issue. Every year we see these costs go
up, parents legitimately ask the question why. And while individual
institutions can give some reasons, I think we need to get a better
handle on that. The provisions in this bill are simply a first step and
a warning to colleges: We are serious about this effort and will no
longer sit idly by while costs increase far faster than inflation.
Second, the bill goes right to the heart of the student aid issue. We
provide students with significantly improved loan rates, with a
reduction in interest of nearly one percent. As a result of lowering
the loan rates, students in my State could save as much as $650 a year.
That may not seem like a lot to some, but to middle-income families in
my State that kind of a savings can make a huge, huge difference.
I would also point out this bill, of course, raises the maximum
amount that can be received under a Pell grant to $4,500. That makes a
huge difference, again, for families that fall within the category of
receiving that kind of assistance. So we really reach right out to
those families with this bill and make a difference for them.
We also afford students with the largest loans new repayment options
that will allow them to extend the time of repayment. And we provide
new teachers serving in needy districts with loan forgiveness.
Third, we finally really understand the role here of the
nontraditional student, which is critically important. The
nontraditional student, candidly, is becoming the traditional student.
The traditional student is the one who goes to college for 3 or 4 years
without interruption. Today, more and more students are ones who work,
who take a year off from studies while they work to save money to pay
for the next year of education. People need education throughout their
lives, so they go back to school. This bill really reaches into that
community and provides some wonderful opportunities, including things
like distance learning.
Senator Kennedy of Massachusetts has for years talked about the
importance of providing educational opportunity for people who do not
have the time or the resources to go to a traditional setting but can,
through distance learning, acquire the knowledge and skills necessary
to improve not only the quality of their lives, but the quality of all
of our lives through enhanced educational opportunity.
This bill would also help the non-traditional student through the
high-quality, affordable campus-based child care programs for low-
income students which I offered.
Last, beyond meeting the fundamental concerns of students, this bill
will strengthen our educational institutions themselves. This bill
fundamentally restructures federal support for teacher training and
focuses support on high quality reforms that bring and keep excellent
teachers in our classrooms. Plus, we restructured and improved federal
support for developing institutions, like community colleges and
colleges serving at-risk minority populations.
I am disappointed we did not include the Wellstone amendment on TANF
eligibility for those pursuing post-secondary education. It is clear
that education is the best long term solution to ending welfare
dependency, but we were frankly unable to move the House conferees on
this issue. I want to continue to work to move this initiative forward
and pledge to work with Senator Wellstone to identify other legislative
vehicles for this important reform. I was also disappointed that we
were forced to adopt two provisions--eliminating the bankruptcy
discharge of student loans after seven years of repayment and
increasing the fee on Ginnie Mae loans--outside of our committee's
jurisdiction to ensure that this bill was budget neutral.
Again, I admit that this legislation is not perfect. But on the
whole, I think that this is a very good bill that will help American
students and families, and it is evidence of what we are capable of
doing when we all work together.
I ask unanimous consent the list of staff, key staff people who
worked on this bill, be printed in the Record.
There being no objection, the list was ordered to be printed in the
Record, as follows:
Senator Jeffords' staff: Susan Hattan, Scott Giles, and
Jenny Smulson.
Senator Kennedy's staff: Marianna Pierce and Jane Oates.
Senator Coats' staff: Townsend Lange.
Senator Dodd's staff: Suzanne Day.
Mr. KENNEDY. I yield 4 minutes to the Senator from Rhode Island.
The PRESIDING OFFICER. The Senator from Rhode Island has 4 minutes.
Mr. REED. Mr. President, I first want to thank Senator Kennedy for
yielding me time and I add my commendation along with that of my
colleagues to both Senator Jeffords and Senator Kennedy for the
remarkable work they have done. This has been a long process, but it
has been one that has been very positive, collaborative, and collegial.
Senator Jeffords and Senator Kennedy have been very supportive of
efforts by all the members of the committee and Members of this Senate
to incorporate, to improve, and to bring forth today legislation of
which I think we can all be proud.
This legislation does so much to improve the quality of educational
opportunity in the United States. One of the keys to our country, not
just its economic prowess but its social progress, is the ability of
all of our citizens to go on to higher education. This bill will
advance that goal significantly. I applaud all of those who
participated in this process.
As my colleagues have mentioned, there are many important aspects of
this legislation that should be noted. First of all, there is an
increase in the authorization of the Pell grant, which will allow,
particularly many low-income students, further access to higher
education. There is a reduction in the interest rates which students
will pay on loans, which will help them bear the burden of the ever-
increasing cost of college. There is loan forgiveness for teachers, a
revamping of our early intervention efforts, and a strengthening of the
TRIO Program, which is a very important program that targets low-income
students who will be the first in their family to attend college.
Without TRIO, these students may not have the guidance, the
information, and the support to make it into and stay in college. Also,
there has been some significant effort to begin to address cost issues
with respect to college education.
All of these are commendable, but there are two very important issues
which I would like to stress. First, this Senate last year restored the
State Student Incentive Grant Program, a very important program which
takes limited Federal resources, matches them with State dollars, and
provides
[[Page S11073]]
grants to needy undergraduate and graduate students. The Conference
Report contains legislation I introduced with Senator Collins to reform
this program. It is now the LEAP Program, the Leveraging Educational
Assistance Partnership Program. This revamped program will be a
continuation and a strengthening of our commitment to ensure that all
Americans have access to quality higher education.
Also, there is a very, very strong teacher training title in this
bill. Again, I thank both Senator Jeffords and Senator Kennedy for
their efforts in this regard. We built on legislation I proposed, and
we created a situation in which now there will be incentives for
teacher colleges to have active partnerships with elementary and
secondary schools.
We are trying to move in a direction of more clinical training for
teachers. One of the sad commentaries I have heard--and I am sure my
colleagues have also--is that for so many teachers, on the first day of
school, it is practically their first day in a classroom as a teacher.
This should change. This approach of partnerships between higher
education institutions and elementary and secondary schools,
particularly one partnership model known as professional development
schools, is a positive way to increase the professional development of
our teachers, which could be the single most important factor in
improving and reforming education in the United States today.
This legislation is not perfect, but it is a remarkable achievement
based upon cooperation and a collegial approach to this issue.
I commend and thank my colleagues, particularly the chairman, Senator
Jeffords, and the ranking member, Senator Kennedy, for all of their
work. I look forward to the speedy acceptance of this conference
report.
I yield back my time to the Senator from Massachusetts.
inclusion of the faculty retirement incentive provision
Mr. MOYNIHAN. Mr. President, I would like to bring to the attention
of my colleagues a small, but important, provision included in the
reauthorization of the Higher Education Act. Title IX clarifies
existing law by making it permissible for colleges and universities to
offer voluntary, age-based retirement incentives to tenured faculty in
addition to their regular retirement benefits.
The inclusion of the Faculty Retirement Incentive Act in the
Reauthorization of the Higher Education Act will provide a ``safe
harbor'' for colleges and universities by clarifying that the early
retirement incentives are permitted by the Age Discrimination in
Employment Act. The faculty retirement incentive provision will benefit
colleges and universities, as well as those faculty who choose to
participate. As officials for the American Association of University
Professors have stated, this provision will ``provide greater
flexibility in faculty retirement planning, offer a substantial
retirement benefit to those professors who choose to retire under the
terms of an incentive plan, and leave other professors whole in their
choice to continue their careers.''
At the beginning of the 105th Congress, Senator Ashcroft and I
introduced legislation similar to the age-based retirement incentives
language the House included in its Higher Education reauthorization
bill. I was very pleased to learn of the diligent effort of those on
the House Education and Work Force Committee to add this provision to
their bill.
I thank the members of the Senate Labor and Human Resources Committee
for working with Senator Ashcroft and me on this issue. I especially
thank Chairman Jeffords and Senator Kennedy for their thoughtful
consideration of this measure and for allowing it to remain in the bill
during conference. Lastly, I express my appreciation to Senator
Ashcroft for working closely with me on getting the Faculty Retirement
Incentive bill into law.
Mr. HARKIN. Mr. President, few individual pieces of legislation
embody the spirit of the American dream as does the Higher Education
Act. First passed in 1965, this legislation opened the doors of college
and a more prosperous future to millions of students. Without federal
college grants and loans, most Americans would not be able to get the
postsecondary education that is essential in today's competitive
international economy.
The pending legislation--the Higher Education Amendments of 1998--
strengthens our nation's commitment to a higher education and I am
pleased to support this important piece of legislation. I congratulate
Senators Jeffords, Coats, Kennedy, and Dodd for crafting a genuinely
bipartisan bill. I appreciate their leadership and commitment to
ensuring access to college for millions of Americans.
My colleagues have extolled the many fine features of this
legislation--lower interest rates for students, improved teacher
preparation programs and a modernization of the system for delivering
student aid. I am in full agreement on the positive aspects of this
legislation.
However, as we all know, legislation involves many compromises and I
would feel remiss if I did not also express my disappointment about two
provisions in the legislation.
We are all acutely aware of the soaring debt accumulated by U.S.
students. The reduction in the interest rate by nearly eight tenths of
a point, will provide critical relief to students. As a result, they
will save hundreds of dollars.
The bill also allows individuals to refinance outstanding loans at a
lower interest rate by extending the current interest rate on direct
loans for four more months. Thereafter, the interest rate on
consolidation loans will increase to the weighted average of the
outstanding loans with a cap of 8.25%. The conferees rejected attempts
to provide a longer period for consolidation at the lower interest rate
with means that many students will be unable to refinance their loans
to get more favorable rates.
Modest cuts in the generous subsidies to lenders and guarantee
agencies would have enabled us to provide a longer window for
consolidation. It is my sincere hope that we will continue to work
together to extent this important benefit to make it easier for
individuals to pay off their students loans.
Secondly, to pay for a lender subsidy for students, the legislation
increased the fee that FHA mortgage borrowers will pay to Ginnie Mae in
the future from 6 to 9 basis points. If not overturned at a later
point, this provision will cost hundreds of extra dollars to modest
income homebuyers in order to acquire a mortgage. Clearly, Ginnie Mae
which makes insures the mortgages does not need the funding. This is a
straightforward tax on modest income homebuyers, often making $25,000
to $40,000 per year inserted into this measure. The conferees may talk
about their hope that the 3 basis points will be absorbed by mortgage
bankers. But, given that competitive market, most of that cost will be
passed on. I will work to overturn this inappropriate source of funds.
Even though I have reservations about some provisions in this
legislation, I believe it is a strong bill and worthy of our support.
The bill strengthens Federal student aid programs for the future, and I
urge my colleagues to support the Higher Education Amendments of 1998.
Mr. TORRICELLI. Mr. President, I rise today to offer my appreciation
to my colleagues on the Labor Committee for their hard work on the
Higher Education Reauthorization Act of 1998. I am especially grateful
to the Chairman and Ranking Member, Senator Jeffords and Senator
Kennedy, for their inclusion of two provisions I authored which are
critical to the people of this Nation and of my state of New Jersey.
The first addresses the issue of campus safety. Mr. President, every
year, over 10 million students and their parents agonize over where to
attend college. They spend months researching schools and visiting
campuses in an effort to find the perfect fit. Just as information is
the key to making an informed choice about professors or scholarships,
it is the key to choosing a safe learning environment. Currently,
students and their parents do not have access to all the information.
Current law requires colleges and universities to report statistics
on crimes that occur on their campuses. Reports of hate crimes,
however, is limited to only those that result in murder, rape, or
aggravated assault. This is the law notwithstanding the fact that these
3 categories of crimes only represent 16 percent of the total number of
hate crimes that occur on
[[Page S11074]]
college campuses every year. Over 80% take the form of other crimes,
including simple assault and robbery.
An amendment I offered, which is now part of the Higher Education
Act, will ensure that students and their parents have all the
information necessary to choose a safe school. This amendment will
require colleges and universities to report all hate crimes that
involve either bodily injury or a serious property crime such as
burglary or arson. It also expands the definition of a hate crime to
protect women and the disabled. Current law only protects against
crimes motivated by prejudice based on race, ethnicity, religion, or
sexual orientation.
Our children are our future. Their college years are among the most
exciting and formative of their lives. Expanding the types of hate
crimes colleges and universities must report will empower students and
parents with all of the information necessary to ensure that those
years are as safe as possible.
I would also like to thank Senators Jeffords and Kennedy for their
inclusion of another amendment I authored which will freeze the status
of a student reservist's grace period for paying back their education
loans until they return from active duty service. All students are
permitted a grace period of up to nine months after graduating or
withdrawing from class before they must begin to repay their student
loans. However, the typical length of active duty service for a
reservist is currently 270 days, meaning that a student's grace period
has often expired by the time they return home from military service.
We should not welcome our courageous men and women in uniform home
from active duty by handing them a bill. Students who serve their
country in the armed forces should at least have the peace of mind of
knowing that their student loans are not increasing while they are
abroad. This provision will provide them with that peace of mind.
For these two provisions and for all their hard work on this very
important piece of legislation, I thank Senator Jeffords, Senator
Kennedy and all of my colleagues on the Labor Committee.
Mr. SHELBY. Mr. President, I would like to ask the distinguished
floor manager of the bill a question.
Mr. JEFFORDS. Certainly, I will be happy to answer my colleague's
question.
Mr. SHELBY. Under Title II of the pending legislation, entitled
Improving Teacher quality, the Secretary of Education is authorized to
make teacher training partnership grants. These partnerships may
include non-profit education organizations, businesses and teacher
organizations.
Mr. JEFFORDS. That is correct. The effort is to bring a broad range
of opportunities to teacher preparedness and training.
Mr. SHELBY. I know that the Senator from Vermont is quite familiar
with the work of the State Humanities Councils and he is aware of the
extensive number of teacher institutes which they have supported over
the past few years. In Virginia, for example, the council has sponsored
teacher institutes on local and regional history. The Alabama
Humanities Foundation's SUPER (School and University Partners for
Educational Renewal) reached more than 800 Alabama teachers over a two
year period.
Mr. JEFFORDS. Yes, I am well aware of the efforts of the state
councils with respect to teacher institutes. Many of the Councils have
worked closely with the school systems and local colleges and
universities to present relevant and cost-effective teacher institutes.
They have a long history in this effort and considerable experience.
Mr. SHELBY. I agree. Consequently, I simply wanted to make certain
that state councils, which are non-profit entities, would qualify for
participation in the teacher training partnerships.
Mr. JEFFORDS. I think they would certainly qualify and I would urge
them to participate whenever they can.
Mr. SHELBY. I thank the chairman of the committee and I appreciate
his response.
Mr. KERREY. Mr. President, I rise in support of H.R. 6, the Higher
Education Amendments of 1998. As our economy becomes increasingly
knowledge-based, this legislation represents an important step in
helping individuals achieve the American Dream.
A college degree expands learning horizons and increases professional
opportunities. One of the most satisfying efforts we can make as public
officials and legislators is helping Americans acquire the knowledge
and skills needed to seize these opportunities. This bipartisan
conference agreement makes important strides both in improving the
education students receive within colleges and universities and in
increasing access to higher education.
Nationwide we have about 10 million students enrolled in four-year
and two-year public colleges and universities. About 83,000 of those
students are in school in Nebraska. We have about 2.5 million in
private institutions--19,000 in Nebraska. This legislation helps those
students stay in college and also opens the door for more students to
obtain a college degree.
Approximately $50 billion in this bill is devoted to postsecondary
grants and loans for students. This is a wise investment for all
Americans because this financial assistance to obtain higher education
helps individuals increase their earning power once they graduate. When
we increase the income of Americans, we reduce spending and in turn
reduce the tax burden on our citizens.
According to the US Census, college graduates make an average of
$600,000 more over their lifetime than do individuals without a college
degree. That differential has doubled in the last 15 years.
An individual with a bachelors degree can expect to earn $1.4 million
over the course of a lifetime. With a professional degree, that person
can earn over $3 million in a lifetime.
But currently, only 60% of high school graduates go on to college,
and by the time they are 25 years old, only about 25% have a college
degree. We need to focus more attention on those students who do not
enroll in four-year institutions. For those students we need to create
a more seamless transition from high school to the workplace, and we
need to encourage those students to take advantage of the opportunities
that community colleges offer.
For those students who choose to seek a college degree, this
legislation helps to make college more affordable. For instance, it
cuts the student loan interest rate from 8.25% to 7.46%, which will
save approximately $11 billion for students over the life of their
loans. In addition it increases aid to the neediest of students by
increasing the authorization for maximum Pell Grants to $4,500 for
1999-2000. We still have much work to do as we try to figure out how to
make higher education more affordable, but this bill is a step in the
right direction.
The bill also authorizes $300 million to make significant
improvements in teacher training. It establishes grants to partnerships
between teacher education institutions and school districts to produce
highly skilled teachers who are competent not only in their content
area but also in the use of technology. It also encourages partnerships
that recruit and train teachers to serve in high-need schools. In
addition, it supports state-level efforts to improve teacher quality
through State Teacher Quality Enhancement grants, which strengthen
teacher certification standards and create alternative pathways into
the teaching profession.
I am also pleased to contribute personally to this legislation in a
number of ways. The bill authorizes a Web-Based Education Commission
which will study the issue of quality control in educational software
and determine the need for a Federal role in helping parents, students,
and teachers identify high-quality educational software.
With Senator Wellstone and others, I helped expand student-aid
eligibility for distance learning programs so that more non-traditional
students will be able to obtain a college degree. We also worked
together to achieve a $10 million authorization for Learn Anytime
Anywhere Partnerships, which will provide competitive grants to
partnerships between schools, community organizations, and other public
and private institutions to develop innovative distance education
models.
Mr. President, this is a good piece of legislation, and I am happy to
be a part of it.
Mrs. FEINSTEIN. Mr. President, I am pleased today to support the
conference agreement on H.R. 6, the Higher Education Act bill.
[[Page S11075]]
The bill has a number of provisions that will be helpful to my state:
It authorizes $300 million in new initiatives to strengthen teacher
training for elementary and secondary.
It continues student loans and increases the maximum authorized Pell
grant from $4,500 to $5,800 by 2003 to help low-income students get a
college education.
It continues federal support for colleges and universities, such as
science and engineering programs and graduate fellowships.
The opportunity to pursue an education, particularly a college
education, has long been a hallmark of American society. In California,
shifts in the economy make higher education more important than ever.
Service-related jobs, such as those in high tech industries, have
displaced many traditional manufacturing jobs. These new jobs require a
level of knowledge and skill that can for the most part only be gained
by a college education.
California has long been a leader in providing a strong higher
education system. The University of California (UC) has nine campuses
that serve 132,000 students. Total enrollment at UC is projected to
grow by about 36,500 students by fall 2006.
The California State University System (CSU) consists of 22 regional
campuses with 286,000 students. Enrollment is expected to grow by 31.4
percent or 105,809 students by year 2006.
Another important element of higher education in California is the
California community college system, the largest community college
system in the world. Its 106 campuses provided vocational, academic,
and community service programs to over 1.5 million students of varying
ages, income levels and educational backgrounds in 1997. Roughly three
of four public postsecondary students were in enrolled in community
colleges. The system is expected to increase by 28.9 percent as its
attendance is projected to be over 1.8 million by fall 2006.
California faces huge challenges in higher education in the coming
years:
First, enrollment in California's public schools, the college
generation of the future, is growing at three times the national rate.
Enrollment in the three major segments of higher education will
increase by 28.9 percent, or by 549,144 students, between 1996 and
2006, according to the state's Department of Finance.
California will have this surge in college applicants because (1) the
number of high school graduates has increased by 22 percent since 1993;
(2) many adult workers are changing careers by choice because of
organization restructuring, or to enhance their employment skills; (3)
migration to California from other states and countries is continuing;
and (4) more Californians over 40 are pursuing lifelong learning.
Second, California has 21,000 teachers on emergency credentials and
will need up to 300,000 new teachers in the next decade.
Third, California has many first generation, bilingual and
``nontraditional'' students. California State University, for example,
has a large number of ``nontraditional'' students, students who are
older than the usual college age. This is because many community
college graduates transfer to CSU and many CSU students are working
people seeking to progress professionally or maintain technical
proficiency. Similarly, approximately 41 percent of community college
students are in the 20-29 age group.
I am pleased that the House-Senate conferees accepted several
provisions that I authored to help students and institutions in my
state:
First, the 5th year Pell grant: That authorizes the Secretary of
Education to award on a case-by-case basis Pell grants for
disadvantaged students for the fifth year of teacher education required
in California to get a teaching credential. This could enable 12,000
disadvantaged students to become teachers in California, according to
the Congressional Budget Office, at a time when we are facing a severe
teacher shortage and have 21,000 teachers in the classroom on emergency
credentials.
Second, distance learning: The bill also includes two of my
amendments to the distance learning demonstration (teaching away from
the traditional campus via a computer, teleconferencing or other
technologies). The first, clarifies that university ``systems'' (e.g.,
UC system, CSU system) would be eligible and the bill increases the
number of demonstration sites from five to fifteen.
Third, school districts with high numbers of limited English
proficient students: The bill authorizes state grants for innovative
ways to reduce teacher shortages in high poverty areas. At my
suggestion, the bill includes as eligible or target areas, school
districts with disproportionate numbers of limited English speaking
children. In California, 1.3 million students have limited English
proficiency, a tripling since 1986 and at least 87 languages are
spoken.
Fourth, study of few borrowers: The bill provides that schools whose
student loan default rate exceeds 25% for three years will be
ineligible to participate in the student loan program. For schools like
California's community colleges, that have just a few borrowers, this
method gives the appearance of having a very high default rate. For
example, if the school has only four borrowers but two defaulters, they
would have a 50 percent default rate. The manager's amendment includes
my suggestion of a study of the effectiveness of this measurement
method by September 30, 1999.
Student financial aid is essential to enabling millions of students
to get a higher education. The California Postsecondary Education
Commission estimates that 50-55 percent of students at California's
public and private institutions are receiving some form of state,
federal or institutional financial assistance. Expenses for tuition and
supplies at California's postsecondary institutions, public and
private, averaged $19,500 during the 1997-98 school year. Most families
have a hard time saving that kind of money.
By continuing federal student grant and loan programs, this bill will
continue to open doors to education for many Californians.
The higher education bill is a bipartisan and constructive bill that
will help our nation provide a college education to millions of
Americans. I hope my colleagues and the President to join me in
enacting this important bill.
Mr. DASCHLE. Mr. President, I am pleased to join my colleagues in
support of the conference report on the Higher Education Act. This
bipartisan legislation takes important steps to lower interest rates on
student loans, recruit and train new teachers, and strengthen and
preserve the federal commitment to reducing the cost of obtaining a
college education. I commend Senator Jeffords and Senator Kennedy for
their good work and cooperation on this bill.
The importance of Higher Education Act cannot be understated. In our
increasingly sophisticated economy, access to higher education can be
the key to a brighter future for many young people. Our federal student
aid programs, including Pell grants, student loans, campus-based aid
and other programs have helped millions of students afford a college
education. Through these programs, we provide $38 billion in financial
assistance to more than 19.4 million students in postsecondary
education institutions.
The legislation we are sending to the President improves these
programs in a number of important ways. The maximum Pell Grant is
increased to $4,500 in 1999, stepping up to $5,800 by 2004. Interest
rates on student loans are cut from 8.25 percent to 7.46 percent,
reducing the total cost to students by $11 billion. Borrowers will also
be able to consolidate and refinance their loan balances at the new
rate for four months. In addition, the bill creates a new program to
provide help to disadvantaged students to make sure they know about
higher education opportunities and are in a position to take advantage
of them.
Other key aspects of this bill are provisions to improve teacher
training and recruitment and to expand professional development
opportunities for teachers. Grants will be available to develop
partnerships between teaching colleges and school districts to improve
teaching skills and integrate technology into the classroom. Support
will also be available for partnerships that will recruit and train
teachers willing to serve in high-need schools. We know that putting
students in a classroom with a well-trained, qualified teacher is one
of the most effective ways to help them achieve to the best of their
abilities.
[[Page S11076]]
I am particularly pleased that the new law will expand opportunities
for distance learning. This will help many people --especially those in
rural areas, those with disabilities, and nontraditional students--gain
access to programs in which they otherwise might not be able to
participate.
The conference report retains a proposal, which I cosponsored, to
encourage colleges to establish campus-based child care for low-income
students. I also support provisions to help reduce binge-drinking on
college campuses and reduce campus crime levels.
Finally, I strongly support the provision creating a new grant
program for Tribal Colleges and Universities. These institutions do a
remarkable job of creating educational opportunities for Native
Americans. They need and deserve federal support. I call on the
Appropriations Committee to fund these programs so that Native American
students can have access to a higher education to advance their own
skills and help their communities address the many challenges that
exist today in Indian country.
I also would like to commend the conferees for their efforts to
maintain a balance between the Family Federal Education Loan program
and the Direct Loan program. There is strong evidence that a healthy
competition between these two programs has strengthened both programs
and ultimately been good for students, and I believe it is important
that we work to maintain this balance.
I am disappointed about several aspects of this bill. It is
unfortunate that resources were not available to reduce costs further
for students and to extend the period for loan consolidation beyond
four months.
I am also disappointed that Senator Wellstone's amendment, which
would have enabled those receiving Temporary Assistance for Needy
Families to attend post-secondary programs for 24 months and meet the
work requirement, was not included in the final bill. I believe this
proposal should be revisited because of the positive impact higher
education degrees have been shown to exert on earnings, on access to
health insurance, and on children's achievement levels, and because of
the increased flexibility it offers for states. In South Dakota, access
to higher education is particularly important on the reservations,
where very few low-skill jobs are available. College degrees have
empowered Native Americans to assume leadership and professional
positions in their own tribes, and have enabled many to escape the path
of poverty, lack of education and under-employment that traps too many
living on the reservations. I appreciate the conference committee's
willingness to give Senator Wellstone's proposal careful consideration,
and I am hopeful that the awareness raised during this debate will
eventually lead to expanded educational opportunities for low-income
Americans struggling to become self-sufficient.
Despite these reservations, Mr. President, I believe this is a good
bill that will continue our efforts to lower the cost barriers to
higher education. The Higher Education Act is a vital investment in our
Nation's future. By enacting this legislation, we will help millions of
young people gain skills and develop their talents, and help our Nation
build a strong work force, develop our intellectual capital, and
nurture the leaders of the next generation. I urge my colleagues to
join me in supporting this very important piece of legislation.
Mr. DOMENICI. Mr. President, I rise today in support of the Higher
Education Act Amendments of 1998. By reauthorizing the Higher Education
Act (HEA) the Senate is making a down-payment on our nation's future.
I would begin by saying: it is a simple fact that the future is
prejudicial in favor of those who can read, write, and do math. A good
education is a ticket to the secure economic future of the middle
class. As the earning gap between brains and brawn grows ever larger
almost no one doubts the link between education and an individual's
prospects.
And that is what the Senate is doing today, improving the post-
secondary educational system of our country.
What does the bill do in a nutshell? It improves financial aid
opportunities for students, creates a unified program to promote
excellence in the teachers our schools produce, and streamlines HEA by
consolidating overlapping programs and eliminating unnecessary
regulatory requirements.
Mr. President, before I make some specific comments about provisions
in the bill, I would like to first talk about how important the bill is
for New Mexico.
Approximately 100,000 students are enrolled in New Mexico's public
colleges and universities, with about 53,000 students enrolled in
community colleges and about 47,000 enrolled in universities. However,
the number of high school graduates is expected to increase during the
next decade and members of the current workforce are also expected to
seek additional education during that period.
Consequently, the state must have a high-quality, low-cost college
education available to a growing number of students, regardless of
income level, ethnic background or place of residence.
Students attending New Mexico institutions received more than $200
million in financial aid, counting grants and loans from all sources,
during the 1995-96 academic year. About 78 percent of that assistance
came from federal sources, and during 1995-96, New Mexico students
contracted for about $110 million in federal loans.
Thus, I believe that educational performance is a crucial element in
New Mexico's capacity to prosper in the extremely competitive national
and international economy.
New Mexico's colleges and universities directly and indirectly
contribute to the economic vitality of the state, as they produce
graduates with considerable intellectual depth and breadth, workers
whose skills allow them to meet the demands of their employers, and
first-rate research that helps to expand the boundaries of human
knowledge.
Mr. President, I would now like to turn and make a few comments about
several of the provisions in the bill and especially one that will
benefit New Mexico.
Title V establishes a new part dedicated solely to supporting the
needs of Hispanic Serving Institutions that is authorized at $62.5
million for fiscal year 1999. The funds may be used for construction or
maintenance of instructional facilities, support of faculty exchanges
and faculty development initiatives, the purchase of books and
periodicals, technological and management improvements, and improving
and expanding graduate and professional opportunities for Hispanic
students.
New Mexico has 17 designated Hispanic Serving Institutions that serve
more than 23,500 Hispanic students. These school include Albuquerque
Technical Vocational Institute, College of Santa Fe, College of
the Southwest, Eastern New Mexico University-Roswell, Luna Vocational
Technical Institute, New Mexico Highlands University (NMHU), New Mexico
Junior College, New Mexico State University (NMSU) Las Cruces, NMSU-
Carlsbad, NMSU-Dona Ana, NMSU-Grants, Northern New Mexico Community
College (NNMCC), Santa Fee Community College, University of New Mexico
(UNM)-Los Alamos, UNM-Taos Education Center, UNM-Valencia County
Branch, and Western New Mexico University.
Title II, entitled Teacher Quality, focuses on improving teacher
quality and the recruitment of highly qualified. First, the bill seeks
to improve student achievement, through quality improvement of the
current and future teaching force by improving the preparation of
prospective teachers and enhancing professional development activities.
Second, the bill seeks to increase the number of students who complete
high-quality teacher preparation programs.
Title III or the Institutional Aid Title creates a new grant program
for Tribal Colleges and Universities to strengthen services to Native
American students. I am especially pleased with this new program
because of my longstanding involvement with the issues affecting Native
Americans. Tribally-controlled colleges in New Mexico like the
Crownpoint Institute of Technology, the Institute of American Indian
Arts in Santa Fe, the new Navajo Community College in Shiprock, and the
Southwest Indian Polytechnic Institute (SIPI) in Albuquerque could
potentially benefit.
Student financial aid is given a huge boost through several changes.
First,
[[Page S11077]]
the bill increases the maximum Pell Grant levels to the following
amounts: $4,500 for academic year 1999-2000; $4,800 for academic year
2000-2001; $5,100 for academic year 2001-2002; $5,400 for academic year
2002-2003 and $5,800 for academic year 2003-2004.
The Federal TRIO Programs are given a boost through changes to the
Student Assistance section in Title IV. I have always been a strong
supporter of TRIO and most pleasing is how much the students, schools,
and communities of New Mexico will benefit.
The 1,900 current TRIO programs provide benefits to 700,000 students
nationwide. Two-thirds of participating students come from families
where neither parent attended college and whose incomes are below
$24,000.
The Dissemination/Partnership provision would encourage partnerships
between TRIO programs and other community based organizations offering
programs or activities serving at-risk students.
The Federal Family Education Loan Program (FFEL) is stabilized in the
following way. Student loan rates will be equal to the 91-day-T-bill-
plus-1.7-percent while students are in school, and plus-2.3-percent
during repayment after graduation. The interest amount is capped at
8.25 percent and for PLUS loans, rates will be the 91-day-T-bill-plus-
3.1 percent, capped at 9 percent for borrowers and lenders.
An innovative loan forgiveness program is also included for teachers.
Up to $5,000 of a teacher's loans will be forgiven after five years of
teaching for those choosing to teach in urban or rural school districts
that serve large populations of low-income children.
Mr. President, in closing I believe we are taking an important step
forward today by making an investment in our Nation's future with the
reauthorization of the Higher Education Act.
Mr. AKAKA. Mr. President, I rise in support of the conference report
to H.R. 6, the Higher Education Reauthorization Act. Passage of this
important measure will ensure that access to higher education remains
attainable for all Americans.
The increase in the Pell Grant eligibility included in the bill will
help families and students offset the growing cost of higher education.
This successful program has helped ensure that low-income and
disadvantaged students have the opportunity to pursue a post-secondary
education.
The bill also includes the continuation of the concept of the State
Student Incentive Grants (SSIGs). The new modified program, Leveraging
Educational Assistance Partnership Program, will continue the
worthwhile effort of encouraging additional financial opportunities for
students seeking a higher education.
The decrease in the student loan interest rate is another effort to
ensure that students and their families are able to obtain a quality
higher education. The decrease in the student loan interest rate helps
students reduce the financial burden of higher education. Too often
students are forced to chose between their education and the enormous
financial hardship they must overcome to obtain the education they need
to improve their lives. The agreement included in the bill helps to
reduce the financial burden for students and their families.
Mr. President, the provisions in the bill relating to teacher
development and preparation are important to ensure that we have the
quantity and quality of teachers needed for the next generation of
students. Across the country the shortage of teachers, particularly in
critical subjects such as special education, math and science where
there is serious demand, is having an adverse impact on our students.
However, the problem is not just recruiting students to become
teachers, the problem is making sure that students have the support and
encouragement once they have chosen this honorable profession. Teacher
development and preparation programs are essential if we are to stem
the tide of teachers leaving the profession before retirement. Too many
teachers are leaving to seek employment opportunities outside of the
teaching profession because administrators and communities are failing
to provide the support they need. The teacher development and
preparation programs included in the bill will help to address this
important issue.
Ensuring that our teachers obtain the educational background needed
to achieve academic success must start at higher education
institutions. Colleges and universities should not complain about the
caliber of students pursuing higher education, while denying their
educational degree programs the resources and the support that they
need. The caliber of teachers leaving these institutions has a direct
impact on the quality of students coming through the front door. The
provisions in this bill help to address these concerns.
Mr. President, I would like to thank the Chairman, Senator Jeffords,
and Senator Kennedy, the Ranking Member, for their support on resolving
the eligibility concerns surrounding the students from the Federated
Associated States (FAS). The House, unfortunately, attempted to
terminate the eligibility of college students from FAS for Pell Grants,
Supplemental Education Opportunity Grants, and College Work Study. The
House provision would have upset the unique relationship the United
States has with the FAS and violated the legal and moral obligation we
have with the countries under the U.S. Compact of Free Association with
the Republic of Palau and the U.S. Compact of Free Association with the
Federated States of Micronesia and the Republic of the Marshall
Islands. It would have been an embarrassment if the U.S. failed to live
up to its moral obligations in ensuring that FAS citizens were given
the educational assistance necessary to become self-governing. The
agreement worked out in conference ensures continued federal financial
aid eligibility for FAS students and does not preclude the inclusion of
such eligibility in the renegotiation of the Compact with the FAS.
Mr. President, I appreciate the opportunity to express my support for
this important measure and look forward to its passage. Thank you, Mr.
President, I yield the floor.
The PRESIDING OFFICER. Who yields time?
Mr. KENNEDY addressed the Chair.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. KENNEDY. Mr. President, the Higher Education Act of 1998 is a
strong, bipartisan bill that deserves the support of all Members of the
Senate. It renews our commitment to make higher education more
affordable and more accessible for all qualified students.
The House and Senate passed their original versions of the bill
almost unanimously, and the conference report preserves most of the
best features of both bills. It enhances benefits for students, and
particularly for students who want to be teachers. It increases the
maximum authorization for Pell grants for the neediest students, and
expands the formula for calculating their financial need in order to
protect a larger amount of income of working parents and students.
The bill also reduces the cost of student loans by almost one
percentage point. This reduction can make a significant difference for
students who may face a mountain of debt when they graduate. This
change will result in savings of $700 on the average debt of $13,000,
and savings of over $1,000 on a debt of $20,000.
I am disappointed, however, that we could not extend this benefit to
all recent graduates. Under the bill, the rates for consolidation loans
will be permanently lowered in both programs from their previous
statutory rates. The bill does create a short window for recent
graduates to consolidate their existing loans under the Direct Lending
program at the same low rates applicable for new loans. This
opportunity will be available for another 4 months, in addition to the
3 month-window already in effect, so students will have a total of 7
months to consolidate their loans.
One of the key features of the bill is improving the training of
teachers. The legislation supports local partnerships that include
elementary and secondary schools and colleges, and it also provides
competitive grants to states. This assistance is urgently needed to
strengthen teacher training. The bill also provides assistance for
recruitment of new teachers, a critical need for many school districts.
In addition, it provides loan forgiveness on student loans of up to
$5,000 for those who teach for five years in high-need
[[Page S11078]]
schools. I hope that we can build on this incentive in future years, as
an important way to encourage more students to become teachers.
The bill also includes an early intervention initiative to encourage
more middle-school students to understand that college is not out of
reach. It incorporates ideas from the Administration and from Senator
Jeffords in a new program, ``Gear Up.'' We need to reach out to middle-
school children to help them understand that a college education is
attainable and affordable.
The bill also continues the program of Graduate Assistance in Areas
of National Need, as a critical investment in graduate education. I am
particularly pleased that the conference report preserves the portable
Javits Fellowships for talented students in the arts, humanities, and
social sciences.
The bill contains a new program based on initiatives sponsored by
Congresswoman Meek in the House and by myself in the Senate to
encourage a higher quality of college teaching for students with
disabilities. In recent years, it has become possible for many more
students with disabilities to achieve the dream of a college education,
and we need to do more to ensure that faculty members have the
experience to teach them. This bill reaches out to all colleges and
universities, and can include training for graduate teaching
assistants--the faculty of the future.
The bill also expands federal aid for learning through distance
education. Distance learning can open the doors of higher education to
many students who cannot attend classes on college campuses because
they live in remote areas, or because of their job and family
responsibilities. The Department of Education will monitor the
institutions participating in the distance program, and report to
Congress on the results. Our goal is to ensure that distance education
is of the same high quality as traditional education.
The bill also helps improve the delivery of federal financial aid, by
creating a Performance Based Organization in the Department of
Education. Its goal is to streamline and improve the financial aid
functions of the Department, and give it more flexibility to deal with
many aspects of federal aid. A principal goal of the PBO is to improve
services for students, and the bill creates a new position called the
Student Loan Ombudsman, which student groups have urged.
The bill also encourages improvements by guaranty agencies, by
enabling them to enter into voluntary, flexible agreements with the
Secretary of Education. Under these agreements, the agencies can do
more to prevent defaults, instead of collecting from students after
they have defaulted on loans. These voluntary flexible agreements will
encourage the agencies to be more business-like and responsive to
students.
This bill sets the stage for future reforms in student loans. The
controversy about what level to set interest rates on these loans makes
clear that Congress should stop setting the rates for banks. The best
solution is to accept a market-based system for student loans, and let
competition set the rates for lenders.
Many Members on both sides of the aisle and in both Houses are
interested in this fundamental change, and I am pleased that the bill
calls for a study of competitive mechanisms for the loans. This study
will help Congress make thoughtful changes in a system that is now far
too costly and inefficient.
I am disappointed that the conference report does not contain the
amendment to the welfare reform act proposed by Senator Wellstone and
passed by the Senate. Senator Wellstone's amendment would help welfare
recipients attend college for two years. We have heard from many
students who have been forced to abandon their pursuit of college
education because of the harsh provisions of the welfare reform law.
Senator Wellstone's amendment is well-designed to reduce this serious
problem, and it deserves to be enacted.
Overall, the numerous positive changes in this legislation will
strengthen higher education. I commend the constructive bipartisan
spirit that has brought us to this point. It is fitting to enact this
legislation at the beginning of the academic year, and I look forward
to its adoption and its successful implementation.
Mr. President, on the teacher training provisions of this Act, which
our friend and colleague, Senator Reed, is so very interested in, one
of the new features is a loan forgiveness program--$5,000 for a teacher
who teaches for 5 years. This is a very modest forgiveness, but it
really builds on the old National Health Service Corps which provided
loan forgiveness for doctors to go into underserved areas. The
forgiveness program was an important incentive and was really very,
very important and has been effective. We hope this program will be as
well.
Also, I want to mention the new program that builds on some
initiatives of Senator Jeffords and the TRIO Program, which targets
middle school classes to move the whole class toward continuing
education. This has worked in different parts of the country. Now we
have a program to encourage other schools to do that.
If any one of us goes to any school in this country, in an elementary
and secondary class, and asks children, even in the most underserved
part of our Nation, how many want to go to college, before you even get
the words out of your mouth, every hand goes up. They get discouraged
in later years. If they know they have the opportunity to continue
their education if they apply themselves to their studies, it can have
a dramatic impact in reducing dropouts and also antisocial behavior.
This is a modest program, but it is very important.
I want to also mention, Mr. President, that this bill sets the stage
for future reforms in student loans. The controversy over what level to
set interest rates on these loans makes clear that Congress should stop
setting the rates for banks. The best solution is to accept a market-
based system for student loans and let competition set the rate for the
lenders. We believe in competition. This is a good area in which to try
it. We have many examples in different public policy areas of where
auctions work. There is an excellent initiative in the House of
Representatives by Republican Congressman Petri to try an auction-based
system. I am very hopeful we can find a bipartisan effort in this area
to find the savings and return them to the students. It makes sense.
That is a way we should proceed. We have a study of that program in
this conference report.
Finally, I agree with my other colleagues. I am disappointed the
conference did not accept what I think is the superb amendment of
Senator Wellstone, which was adopted in this body, about continuing
education and how this dovetails with the welfare reform program.
Senator Wellstone will be over here to speak to that issue later on. I
regret he was not successful, and I will certainly support his efforts
later on to try to implement that program.
The PRESIDING OFFICER. All time has expired.
Mr. JEFFORDS. I yield the Senator 1 minute.
Mr. KENNEDY. Mr. President, I commend my colleagues on the Labor
Committee for their skillful work on this bill. Senator Jeffords worked
hard to accommodate all the concerns of all the members of the
Committee, and kept the interests of students firmly in mind. Senator
Coats and Senator Dodd likewise contributed to the bipartisan spirit.
I also thank the following:
On Senator Jefford's staff, Susan Hattan, Jenny Smulson, Scott Giles,
Cory Heyman, and Pam Moran.
From Senator Coats' staff, Townsend Lange.
From Senator Dodd's staff, Suzanne Day and Megan Murray.
From my own office, Marianna Pierce, Jane Oates, and former fellows
Gloria Corral, Jennifer Kron, Maria McGarrity, and Eileen O'Leary.
I also thank Debb Kalcevik from CBO; Margot Schenet, Jim Stedman, and
Barbara Miles from CRS; and Mark Sigurski from the office of
legislative counsel.
They have all done an excellent job, and deserve a large share of the
credit for this achievement.
Mr. President, I want to single out, in particular, Marianna Pierce
who is my chief of staff in the area of education. The members of the
staff performed absolutely superbly and have played an indispensable
role in helping all of us reach this point. I am enormously grateful to
her and the other staff.
[[Page S11079]]
Mr. JEFFORDS addressed the Chair.
The PRESIDING OFFICER. The Senator from Vermont.
Mr. JEFFORDS. Mr. President, I am proud to say again that this bill
preserves the focus on students, who are the primary reason we have a
Higher Education Act in the first place. Students now in school will be
assured of receiving the lowest interest rate on their loans in nearly
two decades.
Students now in high school who aspire to a college education will
benefit from an expanded early intervention program known as Gear Up,
as well as continuing to receive services from the time-tested and
highly regarded TRIO programs. The new Gear Up Program combines
features of the existing National Early Intervention Scholarship
Program, which I sponsored in 1992, with recommendations proposed by
the administration and included in the House bill.
The Gear Up Program preserves the best features of the program now
operating successfully in nine States while expanding the pool of
participants and approaches involved in early intervention.
Students who have graduated and are faced with exceptionally high
loan burdens will be able to take advantage of extended repayment
options under the Guaranteed Loan Program. In addition, the measure
provides a 4-month window within which borrowers now in repayment may
refinance their loans through either the Federal Direct Loan Program or
the Federal Family Education Loan Program.
Mr. President, how much time do I have remaining?
The PRESIDING OFFICER. Seven minutes 54 seconds.
Mr. JEFFORDS. Mr. President, Senator Coats is on his way. Let me, in
the interim, mention that education, as we know now, is a top interest
in poll after poll of Americans. They want to see their educational
system reformed in a way that can lead them into a position where this
Nation has the best educational system in the world. Unfortunately,
that is not the case right now. But we are taking a huge step forward
with the higher education bill, not just in that matter which affects
the students in higher education, but also the second title of the bill
which deals with reforming teacher preparation.
Nothing is going to change in the classroom until the teacher
changes, and the teacher isn't going to change until the teacher knows
what he or she has to do in order to make our system better.
As we move into the Elementary and Secondary Education Act
reauthorization next year, we want to make sure that the universities
are aware that they have a role to play in ensuring that every new
teacher who comes into the system is ready for the changes which are
necessary to make our educational system the best in the world.
I look forward, as we move forward into next year, to continuing the
effort that our committee has taken to make this Nation's educational
system the best in the world. I am confident we can do that.
But right now we do know we have much left to do. But hopefully
working first with those who are teaching the teachers, we can make
sure that we stop the flow in of young people who want to teach but do
not have an adequate education at the universities and colleges that
they should have in this day and age.
Mr. COATS. Mr. President, I am happy to rise today to speak in
support of the conference report for the Higher Education Act
Amendments of 1998. This higher education bill has been two years in
the making and I know I join the rest of my colleagues in the Labor
Committee, and in the Senate, in full support of this very important
legislation.
This bill represents a strong bipartisan consensus in the Congress to
ensure that students maintain access to post-secondary education
through vital student opportunity programs, such as TRIO; healthy,
stable, and streamlined loan programs; and a simplified student aid
process. I am pleased to have had the opportunity to contribute to this
important bill.
This conference report, like the underlying Senate bill, was
developed with several fundamental principles. Our first, and most
important theme, was to maintain the primary focus of the Higher
Education Act since its inception in 1965--to ensure that students have
access and opportunity to purse higher education.
One of the most important elements of this bill aimed at ensuring
student access and opportunity is the new, low interest rate for
student loans. This legislation sets a student loan repayment interest
rate of 7.43 percent which represents a significant reduction in the
interest rate for students. The interest rate that was scheduled to
take effect on July 1, 1998 would have destabilized the successful
Federal Family Loan Program by causing thousands of lenders to stop
making student loans, resulting in high numbers of students without
student loans for this school year. The interest rate included in this
conference report provides a significant reduction to students while
maintaining the long-term viability of the student loan programs and
ensuring that students will continue to have access to private loans at
the lowest interest rate in 17 years. Depending on the size of their
loan, this low interest rate will save students hundreds, even
thousands, of dollars over the course of the loan.
The conference report also offers students a low interest rate for
consolidation loans.
This conference report strengthens the major student opportunity
programs in the act by focusing much needed attention and resources on
these vital programs, with particular attention to the needs of low-
income students. This conference report reauthorizes the Pell Grant
Program at its highest level ever, with maximum grant awards at $4,500
in the 1999-2000 school year and increasing to $5,800 in the 2003-2004
academic year. This bill also makes needed reforms to the TRIO program,
which helps disadvantaged children prepare for college, and increases
its authorization to $700 million.
The vital work-study programs are also continued and expanded in this
conference report. The authorization for the College Work-Study Program
is increased to $1 billion for fiscal year 1999 from the current
funding level of $830 million.
The need analysis formula is also revised to ensure that the growing
percentage of independents students will be able to retain a greater
portion of their income.
Another critical principle for these amendments was the improvement
and modernization of the student aid delivery system. This legislation
creates a Performance-Based Organization (PBO) within the Department of
Education aimed at providing quality service to students and parents.
The utilization of this PBO which will incorporate the best and most
successful practices in the private financial sector, coupled with
other reforms aimed at streamlining the student aid regulatory
requirements will result in a better managed and higher quality federal
student aid system.
In addition to the development of the PBO, this bill includes
significant reforms to the Federal Family Education Loan Program
(FFELP), and specifically to guaranty agencies. This bill restructures
the guaranty agency system to ensure that these important participants
in the private loan program are given the flexibility they need to help
students avoid defaulting on their loans while operating in a more cost
effective and efficient manner which will benefit taxpayers as well as
students and their families.
A third principle which guided these amendments was the need for
much-needed reform of teacher preparation programs. I am very pleased
that this bill includes a new initiative for teacher training and
professional development aimed at addressing the shortage of qualified
teachers in this country which replaces the existing teacher
preparation programs with a single authorization for three separate
grant programs.
This initiative encourages state level reforms intended to produce
well trained and highly competent teachers, local level partnerships
intended to improve under-performing teacher education programs, and
provides a separate grant for States and partnerships to compete for
funds specifically targeted toward teacher recruitment.
States will compete to receive 45 percent of these teacher training
dollars and can use the grants to strengthen their teacher
certification requirements, create or expand alternative
[[Page S11080]]
certification programs to attract highly qualified people from other
occupations to the teaching profession, to decrease the shortage of
highly qualified teachers in high need areas, or to develop programs
which reward excellent teachers and remove unqualified teachers.
Partnerships will compete for 45 percent of the funds as well, while
10 percent of the funds is reserved for recruitment grants.
This reauthorization was also guided by a strong desire to promote
college cost-cutting measures, utilizing some of the recommendations of
the Commission on the Cost of Higher Education which presented its
findings earlier this year. This legislation includes initiatives to
ensure that parents and students are kept apprised of college costs and
provide with comparative data to keep colleges accountable and higher
education affordable; burdensome federal regulations are reduced; and
the national role in encouraging affordable higher education is
strengthened.
This bill also streamlines and consolidates the many programs and
activities which are found in the Higher Education Act. This act has
become increasingly complex over the years and these amendments make
great strides in simplifying the act and better targeting its programs
and activities.
It has been a pleasure to be part of the development of this critical
legislation. I have found the bipartisanship displayed throughout this
process encouraging and I would like to thank the staff who have worked
on this important legislation for the last two years: on Senator
Jefford's staff, Susan Hattan, Jenny Smulson, Scott Giles, Cory Heyman,
and Pam Moran have done excellent work on this bill. In addition,
Marianna Pierce with Senator Kennedy and Suzanne Day with Senator Dodd
have worked diligently to ensure that this bill represents a strong
bipartisan consensus. Thank you all so much for your long hours and
excellent work.
Again, I am pleased to have been a part of crafting this important
legislation.
study of market mechanisms in federal student loan programs
Mr. DOMENICI. I would like to call attention to a study of market
mechanisms in federal student loan programs, Section 801 of the
conference report. I was pleased to see this issue addressed in the
context of the Higher Education Act. As you know, Chairman Jeffords,
our fiscal year 1999 Senate budget resolution raised concerns about the
federal government setting interest rates for student loans and
encouraged your Committee to look for a long term solution to the
difficult problem of Congress setting these rates. I believe this study
is a good first step and hopefully will give a good data on which to
access where we go after the newly adopted student and lender rates
sunset in 2003.
One matter I wish to clarify with the Chairman is the participation
of the Congressional Budget Office (CBO) in this study. CBO is a
critical non-partisan analytical body on which we in Congress rely. By
law they can not recommend specific policies or endorse the policy
recommendations of others. I would assume then that the purpose for
which you seek CBO's participation in the study for their expertise on
student loans, and in general, study design and analysis.
Mr. JEFFORDS. It is my understanding that the Budget Committee has
asked CBO to conduct a broader-based study on student loan interest
rates, subsidies, and the larger student aid program. I expect that
study to be a valuable as well, and it is my view that the knowledge
gained through this work could be of great benefit to the Department of
Education and the Comptroller General as they undertake their own
study. The role of CBO in the study contained in the conference
agreement is to assist the other participants ask the right kinds of
questions, use valid research and analytical tools, analyze the
validity of the study's design or conclusions, where objective analysis
can be brought to bear, and be an overall, non-partisan, resource for
participants in the study.
Mr. DOMENICI. I appreciate the Chairman's clarification. The study
language makes reference to additional or dissenting views. Is it the
intent of the Committee that all members of the study group, including
CBO, shall have the opportunity to express independent concurring or
dissenting views within the context of the preliminary as well as final
report to Congress.
Mr. JEFFORDS. That is correct.
Mr. DOMENICI. I thank the Chairman.
Mr. JEFFORDS. Mr. President, in closing, I am extremely pleased that
the Senate with this vote, will have completed action on the conference
report accompanying H.R. 6, the Higher Education Amendments of 1998.
The scope of the Higher Education Act is so broad that the
reauthorization of all the programs it covers is necessarily a
demanding and time-consuming task. Bringing this process to a
conclusion would not have been possible without the concerted efforts
of members of both parties in both the House and the Senate.
I express my particular gratitude to the members of the Labor and
Human Resources Committee and their staffs, who have pulled together
over the past 18 months to help shape a bill which will help ensure
that our nation remains a leader in educational excellence for all of
our citizens.
Each and every member of the committee made a positive contribution
to the development and refinement of this measure. I very much value
the time, effort, and commitment they have brought to this task.
I also extend my sincerest thanks to the many staff people who
contributed to this product.
I particularly recognize the efforts of Marianna Pierce and Jane
Oates with Senator Kennedy, Townsend Lange with Senator Coats, and
Suzanne Day and Megan Murray with Senator Dodd. These individuals--
along with my own staff members, Scott Giles, Susan Hattan, Cory
Heyman, Pamela Moran, and Jenny Smulson--went ``above and beyond'' in
terms of their diligent work on each and every aspect of this measure.
I would also like to acknowledge the work of Heidi Scheuerman, Carolyn
Dupree, and Leah Booth of my staff--who brought a semblance of control
to the vast quantities of paper produced throughout this process.
I also recognize and thank the staff of other members of the
committee--all of whom have shown great dedication to this cause:
Jackie Cooney with Senator Gregg;
Lori Meyer with Senator Frist;
John Connelly with Senator DeWine;
Chad Calvert with Senator Enzi;
Jenny Saunders and Rhett Butler with Senator Hutchinson;
Julian Haynes with Senator Collins;
Angie Stewart and Chas Phillips with Senator Warner;
Robin Bowen and Holly Hacker with Senator McConnell;
Bev Schroeder with Senator Harkin;
Deborah Connelly with Senator Mikulski;
Alexander Russo and Rena Subotnik with Senator Bingaman;
Roger Wolfson and Robin Burkhe with Senator Wellstone;
Mike Egan with Senator Murray; and
Elyse Wasch with Senator Reed.
I want to acknowledge the extraordinary assistance offered by Debb
Kalcevic, Robin Seiler, Josh O'Hara, and Justin Latus with the
Congressional Budget Office, Mark Sigurski with Senate Legislative
Counsel, and Margot Schenet, Jim Stedman, and Barbara Miles, with the
Congressional Research Service.
This process has been a collaborative and bipartisan one every step
of the way. It has produced a measure of which we can all be proud.
Mr. President, I have no other requests for time. I yield back the
remainder of my time.
____________________