[Congressional Record Volume 152, Number 86 (Wednesday, June 28, 2006)]
[Extensions of Remarks]
[Page E1309]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF THE STUDENT FINANCIAL READINGS ACT OF 2006

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                          HON. JOE KNOLLENBERG

                              of michigan

                    in the house of representatives

                        Wednesday, June 28, 2006

  Mr. KNOLLENBERG. Mr. Speaker, today I am introducing a very important 
piece of legislation that will provide additional relief for families 
as they plan for the financial cost of their children's education.
  Over the past ten years, tuition at public and private four-year 
institutions of higher learning has increased by 38 percent. 
Furthermore, over the past twenty-two years the cost of a four-year 
degree at a public college has increased by more than 202 percent. The 
expense is staggering, but the financial burden of college should not 
prevent individuals from seeking and receiving an advanced education.
  That is why I am introducing the Student Financial Readiness Act of 
2006, which will increase the amount of the annual tax-free 
contribution a family or individual may contribute to a student's 
elementary, secondary, or college expenses.
  Coverdell Education Savings Accounts allow families to make a yearly 
tax-free contribution of $2,000 per child to assist with educational 
costs. The money can be spent on both K-12 education, and college. By 
allowing families to make tax-free contributions to education savings 
accounts, we promote ownership of education and help ease the financial 
burden of education expenses.
  However, the current $2,000 annual limit currently in place on 
Coverdell accounts needs to be adjusted to keep pace with increasing 
tuition rates. My bill, the Student Financial Readiness Act of 2006, 
would permit a contribution level of $5,000 annually and index the 
contribution amount by the cost-of-living adjustment.
  We must give families the option of providing the very best education 
possible for their children. Our nation's future depends on the next 
generation. They must be given every opportunity to receive the highest 
education and the ability to be competitive in our changing job market.
  Mr. Speaker, thank you for the time to speak on behalf of my bill, 
the Student Financial Readiness Act of 2006. I respectfully request the 
support of my colleagues for this important piece of legislation to 
help ensure the future success of our nation's children and the 
financial stability of American families.

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