[Congressional Record Volume 153, Number 11 (Friday, January 19, 2007)]
[Extensions of Remarks]
[Page E154]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTRODUCTION OF THE STUDENT FINANCIAL READINESS ACT OF 2007

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                          HON. JOE KNOLLENBERG

                              of michigan

                    in the house of representatives

                        Friday, January 19, 2007

  Mr. KNOLLENBERG. Madam 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.
  The cost of college tuition continues to rise in the United States. 
In fact, over the past 5 years, the cost of obtaining a college 
education has increased by 35 percent. The higher cost of college 
should not prevent individuals from receiving an advanced education.
  That is why I am introducing the Student Financial Readiness Act of 
2007, which will increase the annual tax-free contribution a family or 
an individual may contribute to a student's elementary, secondary, or 
college expenses.
  Coverdell Education Savings Accounts allow families to make an annual 
tax-free contribution of $2,000 to assist each of their children with 
their education. 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. Families 
that save for their children's education are empowering their children. 
However, the current $2,000 annual limit needs to be adjusted with the 
increasing tuition rates. The Student Financial Readiness Act of 2007 
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 to provide the very best education 
possible for their children. Our Nation's future depends on educating 
our children and they must be given every chance to receive the highest 
education. Our children deserve a competitive advantage in our Nation's 
job market.
  Madam Speaker, I respectfully request the support of my colleagues 
for this important piece of legislation that will ensure the future 
success of our Nation's children.

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