[Congressional Record Volume 148, Number 51 (Tuesday, April 30, 2002)]
[Senate]
[Page S3555]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ADDITIONAL STATEMENTS

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                         INVESTING IN STUDENTS

 Mr. BAUCUS. Mr. President, I rise today to respond to a recent 
recommendation by the Administration to end fixed-rate consolidations 
of federal student loans in order to address a $1.3 billion shortfall 
in Pell Grant funds.
  I fully agree with the President that we need to fund the Pell Grant 
program. But, as a constituent of mine in Montana recently said, ``It 
makes no sense to rob Peter to pay Pell.'' Pell Grants are just one of 
the federal government's efforts to help students afford the rising 
costs of a college education. Moreover, Pell Grants are only available 
to low-income students.
  Importantly, the federal government offers a variety of student aid, 
often in the form of subsidized or low-interest loans, to extend help 
to low- and middle-income students and families that don't qualify for 
Pell Grants. In fact, many Pell Grant recipients must also apply for 
loans in order to meet their education costs. These loans offer hope to 
students as they seek the advanced education, exposure to new ideas, 
and acquisition of new skills they require to secure good paying jobs.
  We need to be consistent in sending that message of hope to students. 
In fact, we need to be more vigilant in sending that message in states 
like Montana, where the average cost of attending a public university 
has increased by 228 percent for in-state students and 257 percent for 
non-residents over the past 10 years. Those increases mean larger 
student loans, larger student debt, and greater student sacrifice. And 
I am very concerned about the kind of sacrifices Montana students must 
make to pay back an $18,000 student loan in a state whose average per 
capita income barely surpasses $20,000.
  Simply put, we need to do more to help students invest in themselves, 
not less. Offering a fixed-rate interest on consolidated loans helps 
students; eliminating that option places additional financial stress on 
students. Good common sense tells me that we can not close this door on 
our students.

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