[Congressional Record Volume 146, Number 126 (Wednesday, October 11, 2000)]
[House]
[Page H9806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   REPUBLICAN CONGRESS HAS MADE HIGHER EDUCATION MORE AFFORDABLE FOR 
                             AVERAGE FAMILY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from California (Mr. Horn) is recognized for 5 minutes.
  Mr. HORN. Mr. Speaker, I thank my colleagues for the tremendous 
progress we have made in funding students who want a higher education.
  As a former university president, I understand the importance of the 
grants, loans and work study programs which are funded by the Federal 
Government. I also understand the financial difficulties that are faced 
by most families in America. That is why I am so pleased that the 
Republican Congress has taken significant steps in removing the 
financial barriers to higher education.
  One accomplishment that this Congress can be particularly proud of is 
the increased funding for the Pell Grant program to provide access to 
college for students from low-income homes. Since the Republicans took 
control of Congress, we have increased the maximum award by an average 
annual rate of over 7 percent. During the 40 years our friends across 
the aisle were in the majority, the maximum Pell Grant award was only 
increased by the average of 1.4 percent. Think of it. Think how many 
students were denied access.
  This academic year, students can gain up to a $3,300 Pell Grant for 
higher education expenses. This award can make the difference in 
whether a student stays in school or has to drop out because he or she 
cannot afford it. More than 84 percent of the students receiving this 
award come from families who make less than $30,000 a year. Without 
this program, college would be just a dream for most of them. I am 
delighted that my colleagues have been able to increase funding for 
Pell Grants and make college available to many more low-income students 
who are in need.
  We also have taken steps to have more students able to afford 
college. When I was president at California State University in Long 
Beach, during those 1970s and 1980s, there were 35,000 students; but 
5,000 who were eligible for Pell Grants were not able to have the 
Federal funds. Even with financial aid, many students were forced to 
take out student loans to meet the rising tuition costs of higher 
education.
  In fact, the demand for loans has increased by 35 percent over the 
past 5 years. Until recently, many of these loans came with high 
interest rates. When one has to borrow thousands of dollars, the 
interest can be fairly substantial. It is bad enough that graduating 
students start out in life thousands of dollars in debt; they should 
not be saddled with high interest in addition.
  The Higher Education Act amendments, which we passed in 1998, changed 
the formula for determining the interest rates on variable rate student 
loans. Once this bill was enacted, interest rates dropped 1.3 percent 
to under 7 percent. This is only the third time that this has ever 
happened in the history of the student loan program. Lower interest 
rates mean less expensive loans that more students and families can 
take out. It also means that students can pay off their loans in less 
time and put the money toward other expenses.
  Mr. Speaker, a college education is no longer a luxury; it is a 
necessity. In today's high-tech, highly competitive economy, a college-
educated workforce is crucial to our Nation's success. But there is 
more than that at stake here. For many people, a college education is 
part of the American Dream. Republicans are working hard to make this 
dream a reality. These accomplishments bring us closer to the goal of 
ensuring that every qualified American who wants a college education 
will be able to afford one.
  I want to congratulate my colleagues who have worked so hard on these 
issues, and I am very proud that the Republican Congress has made it 
such a priority to open the doors of higher education even further.

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