[Congressional Record Volume 158, Number 64 (Tuesday, May 8, 2012)]
[Senate]
[Pages S2944-S2959]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STOP THE STUDENT LOAN INTEREST RATE HIKE ACT OF 2012--MOTION TO
PROCEED--Continued
The PRESIDING OFFICER. The Senator from Vermont.
Mr. SANDERS. Mr. President, I rise to express deep disappointment in
the
[[Page S2945]]
vote that just took place a few hours ago where our Republican
colleagues voted to filibuster our efforts to make sure student loans
in this country do not double from 3.4 percent to 6.8 percent in July.
I think everybody understands that young people in our country today,
in the midst of this terrible recession, are facing extraordinary
challenges. They are paying three to four times as much as their
parents paid for a college education regardless of whether they attend
a private or public college. When they receive their diplomas, they
have no guarantee, given the state of the economy today, that they are
going to be able to get a job and earn the income to pay off those
debts.
Given the challenges college students are facing today, the least we
can do is to keep student loan interest rates at a low rate for another
year. The interest rate on subsidized Stafford loans has been steadily
reduced since Congress passed the College Cost Reduction and Access Act
of 2007. But if Congress does nothing, interest rates on subsidized
Stafford loans are set to double from 3.4 percent to 6.8 percent on
July 1, 2012.
When we talk about Stafford loans, we are talking about loans for
students from low- and moderate-income backgrounds. Subsidized Stafford
loans are need based and targeted to students who otherwise might not
be able to attend college. Nearly one-third of undergraduates have
benefited from these low-interest Federal loans. If the interest rate
doubles this year, the rate hike will impact up to 9 million students,
and we must not allow that to happen.
Among the students who will be impacted are 19,000 young people from
the State of Vermont. In my State nearly 70 percent of college
graduates are carrying student loan debt--70 percent. On average that
debt is $30,000, which puts Vermont at the sixth highest student loan
debt load in the country.
Everybody understands that in order to get ahead in the economy
today, it is very important that one has a college degree. The cost of
college education is soaring. In the State of Vermont--and I have
talked to many of these young people in my State and throughout this
country--students are leaving college deeply in debt. Nineteen thousand
students in the State of Vermont are on Stafford loans. If interest
rates double from 3.4 to 6.8 percent, it will make their current
situations, which are very difficult, much worse.
So I hope our Republican colleagues will end their filibuster. I hope
we can get back to work as soon as possible in passing a bill which
will maintain Stafford loan rates at 3.4 percent.
With that, I yield the floor and note the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
The PRESIDING OFFICER. The Senator from California.
Mrs. BOXER. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mrs. BOXER. I ask unanimous consent that the time from 2:15 until
5:15 be equally divided and controlled between the two leaders or their
designees and that all quorum calls during that period also be equally
divided.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mrs. BOXER. Mr. President, before I speak about the details of the
impact of not helping students in this difficult economic climate with
student loans that they can afford, I wish to say that I was stunned
that my Republican friends refused to give us a vote to proceed to the
issue.
I think every student in America should turn their focus on this
Chamber because the Republican Party made it impossible for us to lower
the student loan rates today. They made it impossible. This is going to
mean thousands of dollars over the life of a student's loans. So while
the Republicans are calling for major tax cuts for billionaires and
millionaires of $100,000, $200,000 a year in cuts, they don't have the
heart to help middle-class students get a break on their interest rates
for higher education. I find it appalling.
If anyone wants to know the difference between the parties, start
with this. Whom do we fight for when we are here? We all say we are for
the next generation. We all have the speeches--oh, they are terrific;
they are beautiful--each party. But when push comes to shove, who is
voting to help our students get an interest rate they can afford so
they are not shackled to a high interest rate at a time of historic low
interest rates? Democrats are on their side. All we have to do is look
at the vote today if nothing else. One does not have to understand any
more than the Republicans blocked us from debating the importance of
lowering interest on student loans.
So I will be back to put in the record individual stories from my
constituents. But let's wake up, America. Parents, wake up. Students,
wake up. The Democrats proved today that we are on your side. The
Republicans proved they are not. Period. That vote says it all. It is
not complicated. They will make it complicated. They will talk about
procedure and this and that. The bottom line is the bottom line. The
Republicans voted not to allow us to vote on ways and methods to lower
interest rates for our students. So don't be fooled. We will hear
speeches on why they voted no, and they will come up with things. The
bottom line is they wouldn't even let us debate this issue. I am
stunned. I assumed we would be on this bill.
So when Americans look at the Senate floor and don't see much
activity except for a few of us coming to speak, and they thought today
was the day we were going to vote to lower interest rates on student
loans, wake up to reality. It is called a filibuster. We were stopped
by the Republicans once again, just as they have stopped us time and
time again. They come to the floor with every reason one can imagine.
We have news. We have two independent scholars who wrote a very
important paper. They are nonpartisan. What they said in this paper is
that they used to think it was both sides that were stopping progress.
Now we know it is one side. It is the Republican side. Today is yet
another example. I hope everyone within the sound of my voice--and we
will hear stories about what is happening, and I hope people will write
us all and e-mail us with their stories and tell us what it means to
them to have to spend thousands more unnecessarily on student loans.
Give us the stories. Let us tell the stories.
I hope Americans will send us those stories, and I hope we will send
a message to those who voted to filibuster this very important
legislation today that they are not on the side of the American people.
They are not on the side of working families. They are not on the side
of the middle class. They are not on the side of economic progress.
They are not on the side of economic growth.
I thank the President for the time, and I yield the time.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. BROWN of Massachusetts. Wow. That was interesting. I remember
when the Senator who just spoke before me, before we left for our
district work period, was praising the Republicans for working with
her--one Republican specifically--and about how appreciative she was
for working together and taking the time in a bipartisan manner to move
forward on a very important piece of legislation that she was
spearheading. We didn't filibuster that. We didn't filibuster the
postal bill or the Violence Against Women Act or the crowdfunding bill
or the insider trading bill. But all of a sudden we are filibustering
now.
The bottom line is we want to have the opportunity to have an
alternative proposal and to have a full and fair debate. I think the
American people are smart. I know the American people are smarter than
that.
I stand before my colleagues today to reference that most students
and parents know in July the fixed interest rates on subsidized
government student loans are set to double. That was very eloquently
pointed out just now. But let's be clear. The vast majority of the
Members of this body want to prevent that from happening. I think that
is a no-brainer.
Unfortunately, today we voted on a bill that is not bipartisan. It is
very clear it is not bipartisan to raise taxes on subchapter S
corporations, which are the people who are doing some of the very
serious job creation in this country. It is not going to pass the
[[Page S2946]]
House, and it is not going to pass muster with the American people. It
was not negotiated in good faith, and it has no chance of passing in
the House of Representatives, as I said.
Once again, we are preparing for an unnecessary political battle.
That is kind of what happens. We have a rough spot with a political
battle, then we do two or three things that are good. Then we get stuck
again, and then we do two or three things that are really good. It is
unnecessary. We need to work in good faith and negotiate a compromise
instead.
A 100-percent Democratic bill isn't going to pass, I say to my
colleagues. A 100-percent Republican bill isn't going to pass. It needs
to be a bipartisan, bicameral bill that the President will sign. That
is how we passed some of the most important pieces of legislation
dealing with ethics on the insider trading bill that I was proud to
sponsor with Senator Gillibrand in a bipartisan manner. We got it
through and out of this Chamber and passed and signed by the President
in record time.
We just passed the postal bill, the Violence Against Women Act, the
crowdfunding, the jobs package. We need to work in the same manner on
this matter.
With so many recent graduates unemployed or underemployed, Members of
Congress need to work together to keep the interest rates where they
are currently. Rather than wasting time trying to blame the other side,
let's try to build some bridges as we did before we left--or I thought
we had done. I was looking forward to coming back after the week off
and getting right back at it and working on important things such as
cybersecurity and the student loan issue.
So let's allow people of good faith to figure out how to solve these
very real problems. That is why today, as I have referenced to many of
my colleagues in our weekly caucuses and through e-mail, I am offering
a bill that would extend the 3.4-percent rate for another year, without
raising taxes, as is being proposed, or cutting sacred programs, which
is also being proposed.
My bill, the Subsidized Stafford Loan Reduced Interest Rate Extension
Act, would extend the subsidized rate for a year. To pay for it, I
suggest using a noncontroversial option: reducing Federal improper
payments.
We have all heard about the amazing amount of waste that goes on just
by paying people who are dead who should not be getting their payments
and also paying other entities that have either already been paid or
are being improperly paid. It is millions and--sorry, billions and
billions of dollars.
The bill establishes a governmentwide ``Do Not Pay List,'' and
requires new audit pilot programs across Federal agencies to provide
more tools to battle back and make sure we can recapture those moneys.
Let me give a few examples of the improper payments so the folks up
there in the gallery listening and those who are watching on TV can
kind of reference it. These are payments I hear about working as the
ranking member of the Subcommittee on Federal Financial Management--a
committee where Senator Carper and I have been diligently working in a
bipartisan manner, once again, to try to solve problems.
Medicaid, which is the primary source of health coverage for over 50
million Americans, made an estimated $21.9 billion of our tax dollars
in improper payments in 2011. The Federal-State Unemployment Insurance
programs made an estimated $13.7 billion in improper payments in 2011.
SSI made an estimated $4.6 billion in improper payments in 2011.
I think, if I am not mistaken, we are looking for $6 billion to pay
for this student loan extension. I just referenced almost $38 billion,
$39 billion. We need $6 billion. That is it.
We spend over $1 billion in payments that are sent to dead people, as
I said. Mr. President, $1 billion we pay. Can you believe that? We pay
$1 billion to people who are dead. There are billions in payments that
are sent to the wrong recipient, billions in incorrect amounts sent to
the right recipients, and billions in payments where documentation is
missing and where the recipient is not using the funds for the intended
purpose.
All we have to do is be marginally successful--just marginally
successful--to recover the $6 billion we need to pay for this very
important student loan program. When government is so wasteful, raising
taxes should not always be the first thing we look at.
How about reestablishing the trust with the American taxpayers--the
people who are listening in the gallery and on TV. Why is it every
single time we are going to raise taxes on one particular group or
another? This time we are going after the small business owners, the
subchapter S corporation owners.
I am not saying my bill is the only answer. But it does provide a
neutral starting point for both sides to come together in a truly
bipartisan manner, as we have done before, to find a solution with
which we can all live. I am willing to work with my colleagues, and I
am willing to consider all options that will allow us to move forward.
If we fail to act, we will burden our students who are going to college
with an extra $1,000 in student loan interest--just because we could
not find a compromise. Pretty simple.
The student loan situation, as we are all discussing and has been
discussed throughout this country through various media outlets and the
like--and they are focusing more and more and more on this issue, which
I think is critical--we need to start a national conversation about
addressing the primary issue affecting families with kids in college:
the cost of annual tuition, room and board.
Between 2000 and 2010, the cost of tuition, room and board rose 36
percent, and that is after adjusting for inflation. That means students
are now paying one-third more for the same education they would have
gotten 10 years ago. Looking at previous decades shows a similar trend:
From 1990 to 2000, the increase was 26 percent; from 1980 to 1990, it
was 37 percent.
Why are students paying so much more for the same education? As we
know, it is a huge problem for families.
While tuition is skyrocketing, there is still a total lack of
transparency when it comes to schools' financial decisions. If the
recent reports of outrageous administrator and faculty compensation
packages are any indication, it would seem students and parents--
students and parents--are funding administrators' and faculty members'
million-dollar salaries.
Instead of being surprised by every new expose of outrageous pay
packages, I propose increasing transparency by requiring schools to
post their financial disclosures online, right in front, right on their
Web sites, so everyone can see them. This would not be hard to do. In
fact, the IRS already requires nonprofit institutions of higher
education to file the IRS Form 990 yearly, which includes disclosure of
the compensation packages for the highest paid employees. It also
provides a financial snapshot of schools' finances and also how schools
choose to spend tuition dollars.
Making the information available so easily online will increase
transparency and allow students and parents and the general public to
check the schools' spending decisions--way before they make headline
news. On the outrageous pay issues, sunlight may help begin to solve
the spending problem associated with the high cost of education.
No one disputes the importance of a college education, but we are
setting our students up for failure by giving them above-market student
loans and not requiring our schools to be transparent about their
financial operations.
So my suggestion is, let's work together. Let's not fail our
students. It is time we finally focused the Federal Government on how
we can set our students up for success instead of failure.
Thank you. I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. HARKIN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. HARKIN. Mr. President, here we are with an empty Senate Chamber,
while families across the country are wondering whether they are going
to have to come up with more money to pay higher interest rates on
student loans beginning July 1. It is going to happen unless we take
action.
[[Page S2947]]
We have tried to take action, but, frankly, my friends on the other
side, the Republicans, won't even let us go to the bill. We had our
vote almost 3 hours ago. We recessed for our party conferences, as we
do every Tuesday. Here we sit, without being able to even proceed to
the bill because the Republicans voted against closing down debate and
moving to the bill and offering amendments and having an up-or-down
vote.
The pattern is all too familiar, as we know, over the last few years:
more and more filibusters, more and more cloture motions to end the
debate. It is unfair to families and students all over America.
Here I address my comments to students. They are the ones who are
trying to get a higher education, because they know that is the
pathway, the gateway to middle-class America. Young people today know
that the jobs of the future will require a higher education. They
understand that. So many are scrambling to put together resources to
pay for college. We had a young woman this morning, Clarise McCants,
who spoke with us. She is the first in her family to go to college. She
is from Philadelphia, and she goes to Howard University. She comes from
a very poor background and a poor family. She relies on Pell grants, a
work-study program, and summer work jobs, plus her subsidized loans. If
I am not mistaken, she has somewhere in the neighborhood of $13,000 or
$15,000 right now in debt. The last thing Clarise McCants needs is to
have an additional $1,000 a year put on her student loan interest. That
is what will happen on July 1, unless we act here. It is unfair to her
and to millions of students all over the country that we sit here and
do nothing, while they wonder whether they are going to have to pay
more in interest charges on July 1. It is unfair.
We have on our side a solid proposal to keep the interest rates down
for the next year at 3.4 percent, where they are now, rather than
having them double to 6.8 percent. To do that, to pay for it, we have
proposed that we close a glaring loophole in the Tax Code that applies
only to subchapter S corporations. A lot of people say, what does that
gobbledygook mean? A subchapter S corporation is for very small
corporations. Compared to the giant corporations you normally think of,
they are very small. Within that small universe of subchapter S
corporations, as they are called, there is even a smaller universe.
That small universe is comprised of professionals such as lawyers and
accountants, people who give advice and do their own work, and they
form a small corporation.
Because of the fog that surrounds whether someone is paid a salary or
is paid from dividends, many people who form these subchapter S
corporations are not paying their fair share of Social Security and
Medicare taxes. We have proposed that we draw a bright line so that
people know whether they are getting paid a salary or wages, or whether
it is coming out of dividends. The Joint Tax Committee says this will
raise for us $9 billion over the next several years. That is enough to
help us pay for keeping the interest rates low. Our proposal is three
things: closing the tax loophole, it puts more money into the Medicare
and Social Security trust funds, and third, it helps us keep interest
rates low for students in this country.
You would think that would be a no-brainer. I think most people would
say that is kind of a no-brainer. But our friends on the Republican
side refuse to let us even bring the bill up for debate and a vote. My
Republican friends have suggested a different way of paying for this.
They want to protect those few people in the subchapter S
corporations--very wealthy people--from paying those taxes. They have
suggested--the Republicans--that instead we take all the money to pay
for keeping interest rates low out of the Prevention and Public Health
Trust Fund--it is known as the prevention fund--which is in the
Affordable Care Act. Again, that would drain all the money out. It
would completely eliminate the program.
I suggest that people look at today's headline in USA Today this
morning. It says that 42 percent of the adult population by 2030 is
expected to be obese. Out of that, one out of four will be severely
obese. The same report was also in the Washington Post this morning.
The study predicts that 42 percent of Americans will be obese by 2030,
which will shorten life, and they will incur large medical expenses. In
fact, if obesity stays at its current level and doesn't increase, the
savings and projected health care costs will be considerable--about
$550 billion, $\1/2\ trillion. That is what the prevention fund is
doing. It is out there working every day--it has only been in existence
a couple years now--putting things in place to prevent people from
being obese, to prevent kids from getting the adult onset of diabetes
at 10, 11, and 12 years of age. In 1980, only 15 percent of Americans
were obese. Today, it is about 34 percent.
What if we had in place in the 1980s, 1990s, and in the last decade
the prevention fund that we have, which does all of the things
necessary to help people make healthy choices and lead healthy lives
and not become obese? Think of the savings we would have in our health
care system today if we had a prevention fund like that in 1980, and
rather than having 34 percent obese people in America today, we had 15
or 16 percent. Well, projecting that forward to 2030, if we don't act
now, 42 percent will be obese. Again, it will cost us $550 billion in
the next 20 years.
Preventing this, which we know we can do--we have evidence-based
proof that certain interventions and programs work. Not only does it
keep obesity down, but diabetes and heart disease, and related
illnesses will be lessened, thus saving us even more money. The
prevention fund is what the Republicans want to kill, eliminate. I
think that is disappointing and disturbing, after all that we know and
have seen in the past on prevention and public health and what we can
do to prevent illness, obesity, and diabetes in children, to say we are
not going to put the resources forward to prevent that.
We know that for every dollar we invest in prevention, we are reaping
anywhere from $3 to $10, or more, in the first couple years. Here we
are at an impasse again. Once again, the Senate is at an impasse
because we cannot move to a bill. We can't amend it, vote on it, or
debate it--other than talking about it right now as I am doing. The
Republicans refuse to let us even get to the bill.
We will continue to tell the American people what is at stake here
and what the differences are. These are policy differences. The
American people should know what those policy differences are. The
Republicans say they want to keep the student interest rate at 3.4
percent. We say we do, too. Well, OK, what is the difference? The
policy difference is in how we pay for it, how we pay to make sure we
keep the interest rates low.
I think the logical thing would be to have the bill come to the
Senate floor and offer amendments. If the Republicans want to offer an
amendment to take the money out of the prevention fund and kill and
eliminate the fund, let them do it, and we will vote on it; we will see
if we have the votes to do that. They can debate it if they want, and
we will be glad to debate and discuss closing this tax loophole on
subchapter S corporations. I think that would be a healthy debate and a
policy difference that the American people should see, and they can
decide between the two sources of how we are going to pay for this.
We are going to continue to talk about this because I think the
American people should know what is at stake here in this filibuster
that we have in front of us right now. I know my friends on the other
side say that President Obama wanted to take some money out of the
prevention fund. Well, that did happen, in order to extend for 1 year
the unemployment insurance provisions and also the payroll tax cut this
year. They seem to think that since we have already taken some money
out of the prevention fund, we can kill the whole thing.
My analogy this morning was that it is one thing to take a couple
pints of blood, but it is another to take all your blood. So they took
some nicks out of the prevention fund, which I didn't support, but the
fund is still healthy, alive, and doing its job. It could do more if it
had more money. Nonetheless, it is still there doing its job.
The Republicans are saying drain all the blood out and kill the whole
thing. I don't think the American people want to go there. It seems to
me that it doesn't make common sense that we
[[Page S2948]]
would pit the health of the American people--and women's health
especially, children's health, and the elderly, who are benefitting
right now from this prevention fund. There are immunizations, childhood
checkups, and provisions that go out into communities for healthier
living in our communities. There is better nutrition for our kids in
schools, fresh fruits and vegetables, and more physical activity. That
is all in the prevention fund. That is what they want to do away with.
It is too bad that they are trying to pit the health of women and
children and the future against students. That is not right.
As I have said many times--and keep saying--I have heard from the
other side that we are going after job creators. If we raise the taxes,
you see, on subchapter S corporations--if we close that loophole, we
are hurting job creators. First of all, the provisions in our bill on
subchapter S only affect a corporation with three or fewer
stockholders--hardly job creators. I mean, if somebody wants to start a
corporation with 5, 10, 15, 20, that is different. This doesn't touch
them. It only touches someone who has less than three shareholders, if
their income is over $250,000 a year as a joint filer, and if they are
a subchapter S corporation.
Some say: Well, you know, they can get audited. I had an example I
used the other day of a person who was claiming he didn't have to pay
Social Security and Medicare taxes because he wasn't a subchapter S
corporation. The individual was pretty ingenious. He had set up a
subchapter S corporation, and he contributed--donated--his time.
In exchange he got dividend payments--profits--from this subchapter
S, as did his wife and his child. There were three--he, his wife, and
child, and he did not pay Social Security taxes. Well, he happened to
get audited, and the Justice Department took him to court, to Tax
Court, and the Tax Court found out he really was being paid. He was
making a salary, an income, and he had to pay Social Security taxes on
that.
Well, when I used that example, my friends on the Republican side
said: Well, that is just it. All we have to do is just audit them, and
we don't have to close this loophole. I had to point out that only \1/
2\ of 1 percent of all filings of subchapter S corporations are ever
audited. So if someone is out there and there is not a bright line as
to whether they are salaried or are getting dividends--it is kind of a
fog out there--why wouldn't they err on the side of saying: I don't
have to pay those taxes because the odds are 99.5 to 1 they will never
get audited. Those are pretty good odds--99.5 percent of the time no
one is ever audited. If they are audited, they get a slap on the wrist,
pay a little fine, and move on.
So what our bill does is to provide certainty. It provides certainty
to subchapter S corporations that if they fall on this side of the
line, they are salaried, if they have less than three shareholders. If
they fall on the other side, they can get dividends, and that way they
don't have to pay Social Security and Medicare taxes. Quite frankly, I
think that would be in the best interest of everyone, including the
subchapter S corporations.
Mr. President, I ask unanimous consent to have printed in the Record
the article that appeared in the Washington Post this morning by David
Brown--the study that predicts 42 percent of Americans will be obese in
2030.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From The Washington Post, May 7, 2012]
Study Predicts 42 Percent of Americans Will Be Obese in 2030
(By David Brown)
In 2030, 42 percent of American adults will be obese, and
about one-quarter of that group will be severely obese, a
condition that shortens life and incurs large medical
expenses, a new study predicts.
This view into the future is less ominous than one
published four years ago that predicted that 51 percent of
the population would be obese in 2030. Nevertheless, the
trend fortells a huge drag on the health and economic welfare
of the United States.
``If we don't do anything, this is going to really hinder
any efforts to contain future health-care costs,'' Justin G.
Trogdon, an economist and one of the authors of the
projection, told experts Monday at the start of the two-day
``Weight of the Nation'' conference in Washington.
However, if obesity stays at its current prevalence--34
percent of adults--and does not increase, the savings in
projected health-care costs will be considerable, about $550
billion, the authors said. The most recent evidence, in fact,
suggests that obesity rates are plateauing.
``Regardless which is correct, we still have a very serious
problem,'' William H. Dietz, head of the Centers for Disease
Control and Prevention's obesity program, said of the
scenarios.
Obesity related ailments--diabetes, heart disease, kidney
failure--consume at least 9 percent of health-care spending
in the United States. Some researchers believe the cost may
be twice that estimate. Total health spending is about $2.6
trillion a year.
The new study, published in the American Journal of
Preventive Medicine, used obesity prevalence data from 1990
through 2008 to extrapolate future trends. The information
came from the Behavioral Risk Factor Surveillance System, a
federally funded telephone survey. People underestimate their
weight when asked on the phone; that fact was compensated for
in the mathematical model.
The researchers also incorporated variables, measured in
each state, that affect obesity rates. These included the
price of gasoline, which discourages walking when it is low;
access to the Internet (and other technologies), which
encourages sedentary behavior as it increases; and
restaurants per 10,000 people, which increases eating out and
weight gain when the number goes up.
In 2030, 42 percent of people are projected to be obese,
and 11 percent severely obese. Obesity is a body mass index
(BMI) of 30 or more, which is 186 pounds for someone 5 feet,
6 inches tall. Severe obesity is a BMI of 40 or more--248
pounds for someone that height.
Cynthia L. Ogden, an epidemiologist at the CDC, told the
conference that, in general, obesity rates changed little in
the 1960s and 1970s, rose steeply in the 1980s and 1990s, and
have been leveling off in the past decade.
For men, obesity prevalence doubled but has changed little
in the past eight years, with no difference between blacks,
whites and Mexican Americans (which are the three groups for
which there are good data). For white women, the obesity
prevalence has not changed in 12 years. It has risen slightly
in black women and Mexican American women, although that
increase mostly occurred early in that 12-year period.
There are some exceptions to this general picture of
stability.
Obesity is rising in higher-income men. Severe obesity is
increasing in both sexes. It was 6.2 percent in women in 1999
and 8.1 percent in 2010. For men, it was 3.1 percent in 1999
and 4.4 percent in 2010.
Eric A. Finkelstein, a researcher at Duke University who
led the new study, said that just in the past 50 years has it
been possible for millions of people to be both sufficiently
inactive and to have access to enough food to become severely
obese.
``The world has changed in ways that allow people to be
that overweight,'' he said.
The reason for the plateauing of the obesity prevalence is
uncertain. It almost certainly reflects many factors,
including an approach to a natural limit of the epidemic and
the success of efforts to fight it by encouraging exercise
and educating people about better eating habits.
Mr. HARKIN. Mr. President, I hope the Republicans will talk among
themselves. I hope they will listen to the students and their families
who don't want to be hung out there this week and next week and on and
on and on not knowing whether they are going to have to pay higher
interest rates on their student loans. Let's have cloture. Let's bring
up the bill, and then let's vote on it. If they have amendments, fine,
we will vote on them. But at least let's move the bill.
Mr. President, with that, I yield the floor, and I suggest the
absence of a quorum.
The PRESIDING OFFICER (Mr. Franken). The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BARRASSO. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
EPA Rules and Regulations
Mr. BARRASSO. Mr. President, I would like to spend a little time
today talking about what has become known across the country as the
Obama economy. This administration, after nearly 4 years, has failed to
get this country and to get our economy moving again. Even worse, as I
look at it, this administration seems to be taking steps that appear to
be methodically and deliberately sabotaging certain parts of our
Nation's economy. They are doing this in sectors of the economy that,
apparently, to me, they just don't like. And they are doing it by
issuing thousands and thousands of pages of redtape on the very people
in this country who have successfully created jobs for Americans in the
past.
[[Page S2949]]
This administration has finalized 1,330 rules that have been deemed
economically significant. They have proposed over 1,300 additional
economically significant rules. So what does this mean, the words
``economically significant''? Well, those are rules that have an annual
impact on the economy of $100 million or more.
Fifty-seven coal-fired powerplants have already announced their
closure because of the cumulative effect of these rules on just this
one industry. The EPA is proposing regulations on whole sectors of the
economy, whether it is issuing new storm water regulations for existing
buildings to requiring costly Clean Water Act permits. They are doing
this for ditches on family farms.
Thousands of American jobs have already been lost, and others are on
the chopping block due to these rules. These are not new laws that have
been passed but are rules coming from this administration. Each time
the EPA claims the benefits of the rules vastly outweigh the costs. The
costs are real in terms of real dollars to the economy, but the
benefits are unknown. The administration claims the benefits are in so-
called ``saved future health care costs.'' That is how they define it,
``saved future health care costs.''
The EPA and this administration have a history of understating the
costs and of overstating, in my opinion, the benefits. The EPA's math
on the benefits and the costs of their rules is not even close to being
accurate. This has been verified in testimony before the Senate
Environment and Public Works Committee, on which I serve as a member.
The EPA rules that set new burdensome limits on emission of
pollutants, such as carbon dioxide, mercury, and sulfur dioxide, can
have serious costs to plants and factories that then have to update
their facilities with costly equipment or simply close to be under the
new standard, and these are new standards--not the old standards but
new standards.
Those reductions yield few quantifiable benefits to the economy. That
is not me saying that, it is the EPA's own models. They admit the
reductions yield very few quantifiable benefits to the economy. The
costs are usually significant to the businesses in terms of actual
expenses, as well as to the public in terms of people looking for jobs
and in terms of jobs that are lost.
The EPA knows no one would buy into their rules with such high
pricetags. So in order to inflate the so-called ``benefits'' of their
rules, the EPA says: As a result of having less emissions from plants
and factories, there must also be reductions in particulate matter, or
dust, at the same time. They then make the inaccurate conclusion that
reductions in dust will somehow yield billions of dollars in health
benefits because folks will have healthier lungs and visit the doctor
fewer times.
These reductions in dust are often in areas where the dust level
today is already well within public health safety standards that are
set by the EPA. So the folks aren't actually getting sick in those
areas anyway. So if people aren't already getting sick in the areas
where the EPA is trying to regulate the air, then how is it they can
claim they are going to save billions of dollars in fewer visits to the
hospital by reducing dust levels even further than today's safe levels?
What we know now is the EPA is cooking the books. At the same time,
they are missing the real public health threat they, themselves, the
EPA, is making worse; that is, the public health threat from high
unemployment. I recently released a report entitled ``Red Tape Making
Americans Sick--A New Report on the Health Impacts of High
Unemployment.'' Let me repeat that: ``Red Tape Making Americans Sick--A
New Report on the Health Impacts of High Unemployment. Studies Show EPA
Rules Cost Americans Their Jobs and Their Health.''
This is a report submitted by the Subcommittee on Clean Air and
Nuclear Safety by the minority subcommittee staff.
I ask unanimous consent to have printed in the Record the Key
Findings and Recommendations and the Executive Summary of this report.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Red Tape Making Americans Sick--A New Report on the Health Impacts of
High Unemployment
Studies Show EPA Rules Cost Americans Their Jobs and Their Health
Minority Subcommittee Staff Report; Subcommittee on Clean
Air and Nuclear Safety--Senator John Barrasso, M.D., Ranking
Member, March 2012.
EPA Red Tape Increases Unemployment While Worsening Public Health
Key Findings and Recommendations
Congressional testimony and scientific research reveals
that unemployment from Environmental Protection Agency (EPA)
regulations: increases the likelihood of hospital visits,
illnesses, and premature deaths in communities due to
joblessness; raises healthcare costs, raising questions about
the claimed health savings of EPA's regulations; hurts
children's health and family well-being.
EPA claims of health benefits from current and future Clean
Air Act regulations are misleading and incomplete. The agency
must adequately examine the negative health implications of
unemployment into their cost-benefit analysis before making
health benefit claims to the public and Congress.
The Full Senate Environment and Public Works Committee and
the Subcommittee on Clean Air and Nuclear Safety should
conduct additional hearings to responsibly investigate the
health implications of higher unemployment as a result of
federal regulations.
Executive Summary
President Obama's Administration continues to claim that
new EPA Clean Air Act regulations for ozone, greenhouse
gases, electric utilities, domestic oil and gas producers,
and manufacturers deliver significant economic benefits.
Specifically, the agency says that these regulations will
yield billions of dollars in benefits for the U.S. economy in
the form of fewer premature deaths, sick days, hospital
visits, cases of bronchitis, and heart attacks.
Mr. BARRASSO. Mr. President, this is a comprehensive report, and it
contains expert testimony before the Senate Environment and Public
Works Committee from the best scientific medical research, from
institutions such as Johns Hopkins, Yale University, and others. This
key medical research and testimony on the impact of unemployment on
public health is irrefutable.
The report concludes that high unemployment increases the likelihood
of hospital visits, illnesses, and of premature death in communities.
That is high unemployment; high unemployment raises health care costs,
raising further questions about the claimed health savings of the EPA's
regulations. High unemployment also hurts children's health and family
well-being.
On June 15, 2011, Dr. Harvey Brenner of Johns Hopkins University
testified before the Senate Environment and Public Works Committee.
Here is what he said:
The unemployment rate is well established as a risk factor
for elevated illness and mortality rates in epidemiological
studies performed since the early 1980s.
So this has been a well-known fact now for over 30 years. Continuing
the quote:
In addition to influences on mental disorder, suicide and
alcohol abuse and alcoholism, unemployment is also an
important risk factor in cardiovascular disease and overall
decreases in life expectancy.
I speak as a physician, someone who has practiced medicine in
Wyoming, taking care of Wyoming families for a quarter of a century,
and I can assure you this is perfectly in keeping with my experience in
my years of practicing medicine.
Yale researcher Dr. William T. Gallo's paper on the impact of late-
career job loss reports:
Results suggest that the true costs of late career
unemployment exceed financial deprivation, and include
substantial health consequences.
``Substantial health consequences.'' He goes on to say:
Physicians who treat individuals who lose jobs as they near
retirement should consider the loss of employment a potential
risk factor for adverse vascular health changes.
What does that mean? Well, it means a stroke, high blood pressure, or
heart disease. These are all major killers, major things that result in
disability and long-term health problems, increasing the cost of care.
Let's look now at the impact of joblessness on children. The National
Center for Health Statistics concluded:
Children in poor families were four times as likely to be
in fair or poor health as children in families that were not
poor.
[[Page S2950]]
I have seen firsthand how economic challenges affect Americans'
health and their quality of life. In my medical opinion, this country
faces a worsening health threat from unemployment, with well over 30
months of unemployment rates over 8 percent.
I have urged the EPA to seriously consider the impacts of these rules
and the new rules they continue to come out with and how they have a
bad impact on families--on pregnant women, on children, on the elderly.
The EPA has not looked at the serious health impacts their rules result
in. The EPA continues to hide behind computer models--not real people--
that churn out inflated, fictitious so-called ``benefits of health.''
The time to get serious about public health is now. In fact, there
was a USA Today article published Monday of last week, and I brought a
copy along because it was very disturbing. On the front page of USA
Today, Monday, April 30, 2012, the police are tying domestic violence
to the economy. The headline reads: ``Domestic violence rises in
sluggish economy, police report.'' The article states:
Police are encountering more domestic violence related to
the sluggish economy, a national survey of law enforcement
agencies finds.
These are law enforcement agencies across the country, their national
survey. The article quotes Camden, NJ, police chief Scott Thompson, who
stated it is ``impossible'' to separate the economy from the domestic
turmoil in the city where unemployment is 19 percent. Camden police
chief Scott Thompson went on to say:
When stresses in the home increase because of unemployment
and other hardships, domestic violence increases. We see it
on the street.
So these types of reports of increased domestic violence due to
unemployment are not just being reported in Camden, NJ.
The article cites Chuck Wexler, executive director of the Washington-
based law enforcement think tank, who expressed serious concerns with
the rising violence. He said:
You are dealing with households in which people have lost
jobs or are in fear of losing their jobs. This is an added
stress that can push people to the breaking point.
I agree. It is certainly what I saw as well in my days of medical
training and medical practice.
The health crisis from unemployment under this administration is
getting worse.
On May 4, 2012, the Christian Science Monitor, in their article on
the unemployment rate, said:
While the economy added 115,000 net jobs in April, some
350,000 Americans gave up looking for work.
So for every one new job that was added, three people gave up looking
for work. That has the effect of reducing the unemployment rate
because, by the Federal Government's way of calculating it, those
people no longer count as part of the labor force. As a result, the
share of Americans who are part of the labor force--either working or
actively looking for work--has reached a 30-year low. You can add those
numbers and look at those and say ``350,000 people'' and put that to
the list of folks who are now at risk for serious health impacts due to
the Obama economy.
If we want to make Americans healthy, we need to get Americans back
to work. We need to get the EPA out of the business of making folks
unemployed across this country. Each new job is a job that will put
food on the table for struggling families and help keep medical costs
under control. New jobs will keep thousands of Americans out of the
doctor's office and on the playground. Creating jobs will keep those
nearing retirement from paying for more prescription drugs so they can
spend more time and money on their grandchildren. Creating jobs will
ensure that the next generation will be healthier than the last.
Let's work together to improve public health by reducing this
administration's redtape that is putting so many Americans out of work.
The health and happiness of the American people depends upon it.
Mr. President, I yield the floor, and I suggest the absence of a
quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. DeMINT. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Export-Import Bank
Mr. DeMINT. Mr. President, I wish to make a few comments about free
markets, free enterprise, and the role of government, particularly as
it relates to the Export-Import Bank.
When people ask me if I am pro-business or pro-labor, I say I am
neither. I am pro-freedom. Freedom is the only political principle that
cannot be bent to serve special interests. Remember how 7-Up used to
call itself the un-cola? Well, freedom is the un-special interest.
Freedom, protected by the Constitution and the rule of law, works for
everyone. It allows everyone--left or right, young or old, rich or
poor--to make their own choices according to their own values.
Government's job shouldn't be to tilt the field for one team or
another but to guarantee a level playing field for everyone. That is
why I am against forcing workers to join unions. I am against
congressional earmarks for favored groups, government bailouts for Wall
Street, and energy subsidies, both for oil companies and for green
energy companies.
Let's look at recent events surrounding the Boeing Company, one of
South Carolina's most important employers. As a South Carolinian, as an
American, and as a guy who likes cool airplanes, I love Boeing. When
Boeing's home State labor union ganged up with President Barack Obama's
National Labor Relations Board to try to sue Boeing for building a new
factory in north Charleston, I strongly supported Boeing's freedom to
build factories wherever they please. More recently, dust has been
kicked up over the extension of the Export-Import Bank, a Federal
program that subsidizes American businesses' exports. Because Boeing
receives export-import subsidies and because I favor winding down the
Ex-Im Bank instead of increasing its budget, some asked if I went from
being pro-Boeing to anti-Boeing. Neither. I am just being pro-freedom.
In both cases, my guiding principle is the same: liberty. Freedom
isn't perfect, but it is fair. And any time government hands out
favors, they are being unfair to someone. When Washington picks winners
and losers, in the end taxpayers always lose, and the Ex-Im Bank is no
exception. The Ex-Im Bank started out decades ago with a lending cap of
$5 million to help American companies sell into a global economy that
barely existed. Today, the cap has ballooned to $100 billion in a
booming global economy. And what have the American people gotten for
their money? They have gotten $10 million in loans benefiting the now
bankrupt Solyndra, millions of dollars in loans to another solar
company to sell solar panels to itself in another country, and $600
million in loans to Enron projects before Ken Lay went to prison--all
this after Ex-Im has already sought its own $3 billion taxpayer
bailout.
This isn't a criticism of an agency or an administration but of
government subsidies in the first place. When government stays out of
markets, businesses focus on their customers; quality improves, prices
fall, and everyone wins. When government steps in, businesses turn
their attention from their customers to their Congressmen and hire
influence peddlers instead of innovators. Competition sags, the pace of
innovation slows, prices rise, and product quality suffers.
Defenders say the Ex-Im Bank is needed because Europe subsidizes
their exports, but Europe says the same about our Export-Import Bank.
We are in a bidding war with other countries for the biggest subsidies.
Still, exporters say the cost of doing business in America is too high
to compete. I agree. We have the highest corporate tax rate in the
world, so let's cut taxes. Let's reform our insane $1.75 trillion per
year regulatory state. Let's reform education and liberate our children
from failing schools and create a better prepared workforce for the
future. Let's repeal the government takeover of health care and put an
end to predatory lawsuits filed against innocent businesses. In short,
let's fix the rules of our game to make all of our exports competitive
rather than rigging them for one company or product at a time.
[[Page S2951]]
Our policies should make the United States the best place in the
world to buy, sell, farm, manufacture, patent, invent, invest,
innovate, and educate--for everyone in every industry.
Look at what today's ad hoc economic policymaking has done to
America--where a collection of narrow special interests vies for the
favoritism of discredited politicians while we mount unsustainable debt
onto the backs of our children and grandchildren. That is what I am
against. What I am for is a level playing field, a set of clear rules
that guarantee the freedom of entrepreneurs to make and sell what they
want, and the freedom of customers to buy what they want.
I am not for big business or big labor. I am for big freedom for
everyone.
Thank you, Mr. President. I yield the floor and note the absence of a
quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. MERKLEY. Madam President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER (Mrs. Shaheen). Without objection, it is so
ordered.
Mr. MERKLEY. Madam President, I rise to address the motion to proceed
we are currently debating. Essentially, this is a motion to proceed to
a bill that would sustain the 3.4-percent interest rate on Stafford
student loans.
Earlier, we had a vote to attempt to conclude the debate over whether
we should get to the bill. That has to have a supermajority of 60 under
the rules of the Senate and we didn't have that supermajority. My
colleagues across the aisle voted against debating whether to sustain
the 3.4 percent on student loans or, to put it differently, they voted
to block this effort and preserve the 6.8 percent as the rate we will
go to shortly if we don't address this legislation.
I certainly think students at every institution in Oregon would be
appalled the Senate isn't willing to hold a debate over the doubling of
the cost of student loans. This has a tremendously powerful impact on
the affordability of education across America. We are at a point in the
history of the world where our nations are interconnected. We have a
global knowledge economy. The nations that prepare their children well
not only will have the best future for those individual children, but
they will have the best economy down the road.
What is the impact of doubling the cost of student loans? Certainly,
for many students it means they will not complete their education. They
are facing diminished job prospects, they are facing expensive tuition,
and there are only so many part-time jobs they can take while still
attempting to complete their coursework. At some point they will say
the burden is too heavy--the debt burden is too heavy--the hurdles are
too high. Then we all lose. Our children will lose the opportunity to
fulfill their potential to pursue their dreams and our economy loses
because we are not the best prepared around the world.
Indeed, today, across America we are becoming the first generation of
parents whose children are getting less education than we got. I would
like to see that debated on the floor of the Senate. I would like to
hear a Senator stand and say they are proud of the fact that America is
failing its children. I would like to hear that defended because I
certainly have a different view. I have a view that in terms of the
opportunity for our children and the success of our economy, we have to
address the issue of the affordability of college tuition.
The folks who can capture this issue the best are students
themselves, so I have come to the floor to read a letter from one of
the students in my home State who is making the case that we should
debate this issue, that we should address affordable college. Here is
what he has to say:
Senator Jeff Merkley, my name is Mario Parker-Milligan. I'm
the student body president at Lane Community College in
Eugene, Oregon. My job as president gives me many
opportunities to discuss issues that students find important
to them and often I find myself lobbying or advocating for
issues that don't directly affect me. Today that is
different.
Today, I find myself seeing a federal and statewide
disinvestment in higher education institutions across the
nation and dramatically here in Oregon. At the same time,
more and more students are needing need-based aid while it
too is being diminished. Students are graduating from college
but our debt loads are increasing and we are finding fewer
jobs upon graduation. With all of these other barriers--low
federal and state investment pricing students out of tuition,
low financial aid leads to high student debt, and few jobs
upon graduation--the prospect of having Stafford Loans'
interest rates doubling is a haunting thought. Students are
continuing to pay more and get less for our education.
Today, the average student is graduating with twenty-five
thousand dollars of loan debt. I have over eighteen thousand
dollars of loan debt today. An interest rate of six point
eight percent on top of thousands of dollars we owe in this
economy doesn't seem smart either. I am not close to being
done with my education and am fearful to continue to take out
loans when I think of how long it will take to pay it back.
Students rely heavily on student loans in order to complete
college in a timely manner, otherwise many of us are forced
to work 2 3 jobs while attempting to go to college full time,
which usually results in prolonged stays and more debt.
As a member of the board of directors for both the Oregon
Student Association (OSA) and the United States Student
Association (USSA), both associations working to break down
barriers to higher education, I hear stories of students that
are having to choose whether or not they put food on the
table or keep lights on at home. Affordability is a leading
barrier to a quality education and raising interest rates
will only continue to price students out of an education.
Please vote to maintain the Stafford Loan interest rates at
3.4%. Don't Double Our Debt. Sincerely, Mario Parker-
Milligan--of Eugene, OR.
I think Mario does voice the concerns of hundreds of thousands of
students across America who are working hard to complete their
coursework to pursue their dream--to gain the skills to provide both a
purpose in life, a life mission, if you will, and a stable financial
foundation. The prospect of coming out of college with debts that come
close to a mortgage on a home is indeed daunting.
I must say, I view this through the lens of my own experience as a
child of a working family. My father was a millwright and then a
mechanic, and no one in my family had ever gone to college. I was the
first, and the prospect of debt was a consideration that worried my
family with this unfamiliar course that I was undertaking. I feel very
fortunate that in the end the combination of work-study, affordable
loans, and scholarship meant that I graduated from my undergraduate
education without the heavy debt burden--a very modest burden--not the
very heavy burden students are bearing today. That indeed gave me the
range of options to pursue in life that I might not have had if I had
to immediately find a job that would help me pay back those very high
loans that students are facing. And those are the students who complete
their education. So many more will find that they only make it partway
through because the debt becomes too high. So I am disturbed--very
disturbed--that the Senate body, once known as the world's greatest
deliberative body, voted today not to debate this issue, not to take it
up.
My colleagues may be voicing their concern about the specific aspects
of the bill. I would say to them that they should come to the floor and
offer amendments and we should debate those amendments. But let's not
fail the students of America. I believe the majority leader has
reserved the right for reconsideration, and that in a matter of a few
days we might well have another vote on this topic. I would ask my
colleagues to reconsider, to end their filibuster aimed at preventing
us from keeping the 3.4-percent interest on Stafford loans--that they
would reconsider and say, yes, there is a responsibility to debate this
issue.
It shouldn't just be on Stafford loans in that we also certainly have
a big challenge maintaining Pell grants and keeping those grants
competitive with the rising tuition. We should debate other strategies
about how to make our investment in higher education more efficient.
Maybe all those debates don't have to happen on this bill; maybe this
bill should be restricted to Stafford loans. But for this body to
reject the notion of debating an issue central to the success of our
university students, the success of our children, and the success of
our economy is just wrong. Let's change that vote. Let's get on to this
bill in due course in a short amount of time.
Madam President, I suggest the absence of a quorum.
[[Page S2952]]
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. SCHUMER. Madam President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. SCHUMER. Madam President, I am speaking today on the need to Stop
the Student Loan Interest Rate Hike Act of 2012.
It is obvious how hard it is to pay for college these days. It is not
just hard for poor people--and we have some programs that help poor
people out at the Federal level, Pell grants in particular, and that is
a good thing. But you can be making well above the Pell grant allowance
level, well above the income that you need for a Pell grant, and have a
difficult time paying for college.
College is extremely expensive. The average private college cost a
year is over $30,000, and the average public cost has gone way up. With
all the cutbacks at all the Federal, State, and local levels, it is
about $17,000. If you figure that if you are an average family anywhere
in America making $65,000 or $70,000, $17,000 a year after you pay your
taxes and pay your mortgage and pay for the necessities of life is a
heck of a lot of money. Wisely, the Federal Government has provided
some loans. A few years ago, under the leadership of Senator Kennedy,
we decided to have the Federal Government pay for those loans because
when the banks did it, it ended up being far more expensive than it had
to be. Those loans were originally 6.8 percent around when the banks
did it. They went down and down, and they settled to a nice level of
3.4 percent.
Now 3.4 percent is still interest. Particularly these days it is not
such a low rate of interest given that the cost of money is quite low,
but it is a lot better than 6.8 percent. But, unfortunately, the law
that Senator Kennedy shepherded and many of us voted for and President
Bush signed--I believe it was in 2007--expires come July 1.
What will that mean? That will mean millions of students throughout
America will pay a lot more interest on the loans that are a necessity
for going to college.
We all know how important college is. We all know these days the
statistics show that the unemployment rate among college grads is one-
third that of high school grads. We know that at your income level, you
make thousands of dollars more each year if you have a college degree.
There was a recent study that even showed you live longer if you got to
college. I don't know what the correlation was, but it was a broad-
based study. It was trumpeted in many of our leading newspapers. So a
college degree is very important, and one of the ways we measure
America versus other countries in terms of our future is what is the
percentage of our kids who get a college degree. Unfortunately, that
has been declining. We used to be first. Now I don't think we are even
tenth, and it is declining because of the cost of college. So a high
interest rate on top of the basic cost--$17,000, $36,000, whatever--is
bad for students, bad for their families, and, frankly, bad for
America.
In New York, my State, 423,000 college students would pay $341
million more in loan payments if we didn't pass this legislation.
I would say one other thing, and that is that this affects almost all
college students. You say, Well, I started college last year and I am
at 3.4. You are at 3.4 for your freshman year if you are a freshman in
college. But when you go to your sophomore year and renew your loans
July 1, you are going right up to 6.8 percent. So it affects everybody
in college except--luckily for them--the senior class that is
graduating this year.
It will also affect the new class of freshmen who are coming in, and
I would bet many of them are watching this debate and deciding whether
they can go to college or they can go to the college of their choice--
one that they deserve to go to because of their grades and record and
accomplishments--based on this bill. And so, wisely, Senator Jack Reed
and Senator Tom Harkin and Senator Sherrod Brown have put in
legislation that would keep the rate at 3.4 percent.
When they first did this--and President Obama has been fully
supportive and he has talked about this at length on campuses
throughout America and in other places throughout America. When they
put it in, amazingly enough most of our Republican colleagues, in
places such as the Club for Growth and American Enterprise Institute,
said: We are against it. Let the students pay 6.8 percent. That was
sort of the 21st century analog of Marie Antoinette saying, Let them
eat cake, because in these days college is much more of a necessity
than it ever used to be, even for jobs like machine welder or auto
mechanic. These days, our cars are filled with computers and you often
need some college education, at least a 2-year college education, to be
proficient in skills that maybe 40 years ago you just needed a wrench
for. So it was amazing to me that so many of our colleagues on the
other side of the aisle said they were against keeping the rate at 3.4
percent.
They began to get a lot of flak, I am sure, from families across the
country. So they decided they couldn't be against it, per se, and so in
the House they actually--and the President was making a lot of hay with
this and scoring a lot of points. So over in the House they then
decided, Okay, we can't say we are against this. Of course, we all want
to pay for it, and so we will propose a bill that pays for it by
cutting preventive services in health care.
There are two points about that. One, our preventive services in
health care are needed, whether it is child immunization, whether it is
diabetes prevention--the fastest growing disease around--whether it is
mammograms which wouldn't start this year but would start next year as
a result of the prevention money--prevention is vital to keeping health
care costs down and keeping America healthy. To say the only way we
will give you student loans is to take away preventive health care is
akin to telling a family: Your little grandson cannot get immunizations
if you want your children to be able to pay for their college. It does
not make sense and everyone knew it.
The second point is everyone knew it at the time. I don't think there
was a person in this town who thought that paying for it by cutting
prevention would have a chance in this body. But, frankly, I think that
is what some of my colleagues in the other body wanted. Their MO for
the last year and a half has been obstruct without fingerprints. In
other words, they want to obstruct everything. They want the government
to be a mess. They want people to be unhappy so they will change things
in the election.
But they know, if they are caught obstructing, it is not going to
work out too well for them. In the first half of this year, I have to
give them credit, they carried out this strategy of obstruction without
fingerprints quite well. Part of it is because the media likes to say
``on the one hand, on the other hand.'' There is a very good article,
tangential to this, by Norm Ornstein at the American Enterprise
Institute and Thomas Mann, a senior fellow at the Brookings
Institution, one from a conservative group and one a more liberal
group, which basically laid this out.
In the second half of the last year and now this year their little
strategy of obstructing without fingerprints is not working. It didn't
work on the debt ceiling. It didn't work on the payroll tax cut. It
didn't work on the highway bill. It didn't work on the postal bill,
and, ``gloriosky,'' we are passing legislation because they can no
longer obstruct without fingerprints. Faced with the choice of being
caught obstructing or not obstructing, they stopped obstructing. Good
for America. Good for bipartisanship. If it was good for them on the
other side, fine.
On this one, they are back to their old ways because they put in this
pay-for they know cannot pass. What was the pay-for we put in? We
thought it would pass. We thought it had bipartisan support. It was one
of the things considered in various groups in committees, bipartisan,
on how to pay for the deficit. I think this was considered in the
August group of last year.
What we say is simply this. If you are a partnership--a big law firm,
accounting firm--there are some of them, a small number, not most, most
did it the right way, but they want to avoid the payroll tax. How do
they do it? They say we are giving our partners
[[Page S2953]]
dividends as opposed to salaries, and they do not pay a payroll tax,
the payroll tax we all pay up to the first hundred-and-some-odd
thousand dollars of salary.
That seems reasonable and fair. It was a loophole. It was called a
loophole when John Edwards was caught doing it in his law firm, by Rush
Limbaugh, by others as well--many conservatives. They called it a
loophole that ought to be closed. I wish I had the language.
I will ask unanimous consent to add to the Record the language of
several leading conservative commentators and gurus about what a
loophole this was.
Anyway, we put this in and we thought they would accept it. Of
course, to our surprise last night not a single Republican voted to
move forward and debate this bill. We will let them put their pay-for
on the floor to substitute for ours. They are not even willing to do
that. Leader Reid said this over and over. I just heard him say it at
2:15 when we had a little gathering by the Ohio Clock.
We are here on the floor tonight, and I see the Senator from Ohio and
the Senator from Maryland--we are here on the floor tonight to ask
families and students throughout America to let their Senators know
they want this legislation passed and they want the games to stop.
On my Facebook page, and on the Facebook page of many of my
colleagues, is a description of the bill, of what people need to do. We
ask people to send us, on our Facebook pages, their stories--why they
need it, why it is so important to them. Senator Jeff Merkley already
read a letter from a student from Oregon. Senator Stabenow got over 70
responses already of students from Michigan. We also hope they let our
colleagues on the other side of the aisle know how important it is they
vote for this bill.
The bottom line is simple. This should be a no-brainer. If there were
ever an example of Washington tying itself in a knot, this is the
issue. If our colleagues on the other side of the aisle have other pay-
fors, we will take a look at them--but make them real. Make them truly
subject to bipartisan compromise as opposed to something they know we
cannot accept.
I heard the Senator from Massachusetts, Mr. Brown, introduced
something, but the CBO scored it as not bringing in any money. We have
all agreed we should not increase the deficit to do this and we should
find a way to pay for it. Our preferred way is closing a loophole that
everyone admits is abusive and a way to get around the payroll tax. But
we are willing to sit and listen to other suggestions from the other
side of the aisle so we can help our college students.
The bottom line is we have to pass this bill. It is an extremely
important bill for the future of our country because every time a young
man or a young woman deserves to go to a college of their choice and
doesn't go, goes to a different one that less suits their needs because
they cannot afford it, they lose, their family loses, and America
loses. Let's stop the games. Let's come together. Let's pass this bill,
and let's make sure students of this and future generations are able to
afford the college education that is so important to a better future
for their lives.
I yield the floor.
The PRESIDING OFFICER (Mr. Casey). The Senator from Ohio.
Mr. BROWN of Ohio. I ask unanimous consent the time from 5:15 to 7
p.m. be equally divided and controlled between the two leaders or their
designees and that all quorum calls during that period also be equally
divided.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BROWN of Ohio. Mr. President, I wish to follow up on Senator
Schumer's call to action, if you will, because it appears that things
that used to be bipartisan, whether it was the debt ceiling or the
Transportation bill or a whole host of other things, has become far too
partisan. Back in 2007, the Republican President and Democrats in the
House and Senate and Republicans in the House and Senate--but
Democratic majorities--froze interest rates for college loans,
subsidized Stafford student loans at 3.4 percent for 5 years. All we
want to do is we want to continue this. We want to continue it by
closing a tax loophole. One political party that does not seem very
enthusiastic about freezing these rates anyway seems to be standing in
the way. I think the only way this is going to change is if students
all over the country come and tell their stories.
They can come to my Web site, tell their stories about school
financing and how difficult it has been for them. They can come to
brown.senate.gov/collegeloanstories and tell us their stories.
This past week, I have been to a community college in Cleveland and I
have been to Ohio State University in Columbus, Wright State University
near Dayton, and the University of Cincinnati and heard many of these
stories. I invite students around Ohio--we are asking for them to tell
their personal stories. I think, in the end, personal stories will
convince my colleagues they should not make this partisan. They should
not stand in the way. They should work with us so we can freeze this
student loan interest rate at 3.4 percent because I think it will
matter.
In my State--and I know the Commonwealth of Pennsylvania, the State
of the Presiding Officer, is not much different than that--the average
4-year student in Ohio who graduates has a $27,000 accumulated debt for
their 4 years of college. That means those students will have more
difficulty--probably will not be able to buy a home or probably will
have to delay it, delay getting married or starting a business. I think
it is very immoral for us to pile more debt on top of what they already
have. If we want to build a prosperous society the way we did with the
GI bill--the GI bill provided individual opportunity for millions of
students in the 1940s and 1950s, young men and women returning from the
war, and it not only helped those millions of students but lifted the
country as a whole and created a more vibrant society because we helped
so many individuals with the GI bill in those days. This is comparable
to that--men and women who want to go to St. Clair Community College or
want to go to the Mansfield Campus at Ohio State or want to go to Hiram
College or Ohio University in Athens. They want to go to school. We
cannot load this much debt onto them.
As we put this on our Web site, we expect students to write in and
tell their stories. I know they will. We have five stories. I will
share a couple of these for today and save a couple more.
Bonnie of Elyria, a mother and teacher, writes:
I would really like to be able to send my three boys to
college. As a public school teacher, I have worked hard to
instill in my students the idea of continuing education.
However, my own children will most likely have to take out
student loans to pursue a college education.
Our teachers are not so well paid that they can afford to pay these
tuition bills themselves, obviously.
With soaring tuition rates, my children will graduate
college with more debt than me or my husband had after
graduating from college more than 35 years ago.
This is not a good way to start a career or a life on their
own.
This woman gets it. She was a teacher in Ohio. She knew there was
sort of an assault on her profession from the Governor and the
legislature last year when they tried to take away collective
bargaining rights. We know teachers do not make a lot of money, and if
their children are to go to school, even less-expensive schools, they
so often need to take out student loans. We don't want to raise their
interest rates.
Katie, from Marion, writes--Marion is a community just north and west
of Columbus.
I urge you to vote against raising Stafford loan rates. I
live with my fiance, who is also attending college full time,
and our household brings in less than $35,000 a year. I am
working part time in order to attend college full time. With
college tuition and expenses being so expensive, adding in
the normal cost of living, it is a struggle to make ends meet
every month.
I understand and respect the legislative process and,
unlike many people I know, I still have faith it can be
effective. I know that compromises have to be made for change
to occur.
However, I am worried that by the time everyone is on the
same page, the Government will have either taken so long to
come up with a solution or cut funding so much, that the
average American can no longer afford to pursue a college
degree.
. . . I hope that if nothing else, you take away from this
that there are Ohioans in this for the long run. We will not
accept anything less than what we deserve, and education is
not negotiable.
[[Page S2954]]
The last one I will read is by RaShya, of Toledo.
I am a second year law student at the University of
Minnesota law school. I am a native of Toledo, OH and
received my BA in political science with honors and an MBA in
finance from the University of Toledo.''
I am the product of a single-parent home and a first-
generation college graduate. My mother is a cancer survivor
and my father was shot and killed when I was ten. I am the
eldest of three children.
My education has been a miracle of sorts and allowed me to
change the circumstances of my environment.
It was only possible through scholarship money and federal
loans. I am deeply saddened by the rate hikes that loom in
July of this year.
Making education less accessible hurts others that grew up
in circumstances similar to mine. This economy requires a
good college education but the promise of employment is still
uncertain.
Raising loan rates hurts students. Please vote to extend
the rate cuts that threaten to expire this July.
Those three letters so speak for themselves where students just want
an opportunity. They are not asking for welfare or a handout, they just
want to keep interest rates low so they can go to college without such
a huge, onerous, burdensome debt they will never get out from under it.
Why would we do this to this generation? My wife was the first in her
family to go to college. Her dad carried a union card, worked at the
illuminating company. Her mother was a home care worker who went back
to work when Connie started college to try to help them pay--and she
graduated.
She had very little help from her family financially because she was
the eldest of four children. She got low-interest loans, and she
graduated with only a couple thousand dollars of debt from Kent State
University.
Those days seem to be behind us. We should at least aim for that kind
of situation today where young people get a better chance, more of a
fighting chance when they come out of school.
I urge my colleagues to listen to these stories and to read some of
them and to vote accordingly when we bring this bill back to the floor.
Today there was a vote, and more than 40 of our colleagues said: We are
not even going to allow this bill on the floor to debate. That is
pretty unconscionable to me when we hear the stories of these young
people.
Mr. President, I yield the floor and note the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. DURBIN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. DURBIN. Mr. President, what is the pending order of business?
The PRESIDING OFFICER. The Senate is in divided time until 7 p.m.
Mr. DURBIN. Is it in morning business or are we on an issue?
The PRESIDING OFFICER. We are on the motion to proceed.
Mr. DURBIN. I thank the Chair.
Mr. President, we voted at noon today on whether we were going to
start the debate on the student loan interest rate bill.
For those who are following it, the largest Federal loan to college
students, the Stafford loan, has a current interest rate of 3.4
percent. That interest rate expires on July 1 and doubles to 6.8
percent, meaning any students taking out a loan after that date will
pay twice as much in interest.
The practical impact of that is fairly clear: If you were to borrow
$20,000 to go to college through a Federal Stafford loan and paid 3.4
percent on that $20,000, you would find that you were paying $4,000
less than you would pay if you were at 6.8 percent. So it adds roughly
20 percent to the cost of that student's loan over the life of
repayment. That is a significant expense.
Most of us are aware, or should be, that students across America are
going more deeply and deeply into debt to go to college. Average
college indebtedness: $24,000. But an average does not tell the story
because if you have one hand over a flame and one hand in a freezer, on
average you have to feel just fine. But in this case, students are
going much more deeply into debt than $24,000, and the interest rate on
the loan is significant.
So it would seem this is a pushover. Who disagrees with this idea
that lessening the burden on students in college is good for our
country--because more students will seek higher education--good for the
student--less of a burden when they graduate--good for their families--
because many of them cosigned on these loans?
In fact, this is one of those rare issues where both President Obama
and Governor Romney agree: Don't let the interest rate go up from 3.4
percent to 6.8 percent. So today we resumed the motion to proceed,
which literally means, if adopted, we would begin debate on the student
loan interest rate bill to keep it at 3.4 percent and not let it double
July 1.
We heard from both sides of the aisle that everyone agreed we had to
do this. It sounded pretty easy. Then the vote was called. At the end
of the vote, not one single Republican Senator had voted to proceed to
the debate on the bill--not one. One Senator, Ms. Snowe, voted present.
Every other Republican Senator who was present voted no.
How did this become a partisan issue? We have President Obama and
Governor Romney agreeing, most Americans agreeing we do not want the
cost of student loans to go up, and it fell flat on its face on the
Senate floor at noon today. Not a single Republican would vote for it.
I don't understand it. They say, well, we don't like the way you pay
for it. It costs $6 billion to lower the interest rate that we would
otherwise collect. We pay for it by changing the Tax Code, closing a
tax loophole primarily used by accountants and attorneys under
subchapter S corporations to avoid paying their regular income tax on
their income. They get through this S corporation what are called
income dividends and they don't pay the regular income tax rate or the
withholding tax that ordinary income is subject to. I think closing
that loophole is reasonable. It produces $6 billion and pays for the
student loan interest rate to stay down. I can accept that.
Some on the Republican side say, no, that is a tax increase. They--
many of them--have categorically said we will never, ever, never vote
for a tax increase, no matter what it is. So they walked away from the
student loan bill. They say they have a better way to do it. Senator
Reid came to the floor and said, fine, we will call the bill and you
can offer your way to do it. Pay for it a different way. Let's bring it
up for debate. Let both sides debate it and let's vote on it, and then
let's move forward. No, they would not accept that. They all voted
against proceeding to the bill.
For anybody who is following what is going on here, this is what is
known as a filibuster. The Senate is infamous for them now. We
filibuster everything, even bills that are bipartisan, which everybody
agrees on. No, we are going to drag this out hour after weary hour,
eating up the time of the Senate, and people will be asking for a cable
refund because nothing is happening on the C SPAN channel because they
are watching a filibuster. Not much happens. Yes, Members such as I
will come from time to time to give a speech and explain what is going
on, but nothing substantive is going on. We are not considering the
bill.
Sadly, what we are failing to do is going to affect a lot of innocent
people; 7.4 million students will be affected if we don't change this
interest rate--365,000 in my State of Illinois. These Stafford loans,
Federal Government loans, are mainly directed toward families in lower
income situations, so that students can borrow money to get through
school.
Let me confess my conflict here. I would not be standing here today
without government loans. I borrowed money from the Federal Government
to go to college and to law school under the National Education Act and
then paid it back; otherwise, I could not have gone to school; I
couldn't have afforded it. These loans are needed across the board. We
know it from personal experience.
In 2007 and 2008, 30 percent of all undergraduates took out federally
subsidized Stafford loans--about 1 out of 3. The average was about
$3,400 a loan 4 or 5 years ago. This year, it is up to 8 million
students. As I mentioned, 365,000-plus borrowers in my State, and, as I
mentioned, failure to reduce that interest rate will add to the cost of
the loan they have to pay back. These borrowers, 7.4 million students,
including
[[Page S2955]]
1.5 million African-American borrowers and over 986,000 Hispanic
borrowers, will face this new penalty, this loan increase. It is clear
to me that we should be spending time here dealing with this.
I learned it firsthand when I went home last week and visited
campuses. In Chicago, I went to DePaul. Downstate, I went to Bradley
University in Peoria. In Decatur, I went to Millikin University. In
each place, students came forward to explain what they were facing in
terms of student loans. I will enter into the Record the experiences
they shared with me.
One of them was Amy. Amy goes to DePaul University in Chicago and is
an art major. Her sister Michelle came to join us at the press
conference. Here is Amy's situation. Amy comes from a working family
who cannot help her pay, so she works and borrows to try to get through
school. She is an art major. Her student loan indebtedness at the end
of June will be, for 4 years, $80,000. But she says that a bachelor's
in art is not good enough and thinks she needs a master's. She thinks
it will be another $60,000 she needs to borrow. I said: That is
$140,000, young lady, and you are 25 or 26 years old. She will be
borrowing not only the government loan but way beyond that into private
loans. The government loan is 3.4 percent. The private loans for
students in school range from 8 to 18 percent--much like credit card
debt, they are so expensive.
This young lady thinks she is doing the right thing. She was told go
to school, get an education, and follow her dream. Her dream is at the
end of a very long, expensive road and $140,000 in debt. Michelle, her
sister, decided she wanted to be a teacher and teach grade school. She
looked at the indebtedness she would have to incur and decided to move
back home to Indiana and go to the local public college and try to get
as many credits as she could at a low price, and perhaps finish at
DePaul when it is time. She thought: If my debt is too much, I would
not be able to teach or make enough money to pay my loan back. That is
a real-life story of two sisters who are doing the right thing and are
facing student loan debt.
How could we explain that we are going to raise the interest rate on
either one of them? At this point paying back their student loans will
make it virtually impossible for Amy, who could be $80,000 to $140,000
in debt, and how is Michelle going to be the teacher we want her to be?
At Bradley University in Peoria, a student named Rose told me that if
the interest rate on her loans doubled, which will happen if the
filibuster continues by the Republicans, she might have to move in with
her parents after graduation or make sacrifices in order to make her
loan payments. Rose estimates that increasing interest rates will cost
about $4,000, because she plans on graduating with about $20,000 in
debt.
I also met Deshawn from Alton, IL, a freshman majoring in economics
and political science at Bradley. He wants to be an international
lawyer some day. He is a first-generation college student, and he
realizes that without student loans he doesn't have a chance to realize
his dream.
What is the difference of opinion here about how to pay for these
decreases in the interest rate from 6.8 to 3.4? As I mentioned, we
would close the tax loophole on subchapter S corporations, which are
used by accountants and attorneys to avoid paying the ordinary income
tax and withholding.
There is another proposal out of the House that I think is really
bad. They say we should pay for keeping student loans affordable by
reducing preventive health care programs. We have a fund that we have
created that pays for, among other things, preventive care,
childhood immunizations. So if the money is taken out of that fund,
fewer American children will be receiving the vaccines and the
inoculations which we want for all of our kids to keep them safe. Is it
important that kids receive these vaccinations? I think it is very
important.
Senator Reid said at a press conference here that the incidence of a
return of whooping cough--most people thought that was long gone--in
the United States is at the highest level in 50 years, and the
incidence of the return of measles in this country is at the highest
level in 15 years. Childhood immunizations are important to keep our
kids healthy and safe.
There is also money in this prevention fund, which the House
Republicans want to cut out, calling it a slush fund, to be used for
diabetes prevention. You cannot pick up a newspaper or a magazine
without reading about the incidence of obesity, the growing number of
overweight children, and the increasing incidence of diabetes among our
children. In fact, forms of diabetes that used to be confined to adults
in America are now being found in children in America. They have to be
treated with pretty powerful drugs to overcome this disease of
diabetes.
The House Republicans say let us reduce the amount of money we are
using for public education and treatment to reduce the incidence of
diabetes and instead spend it on student loans. What a Faustian bargain
that is. It is a bargain with the devil. We are going to put at risk
children when it comes to immunizations and diabetes, in order to help
grown children, young adults, pay their student loans.
Is that what it has come to? We are so determined to not touch the
Tax Code and the loopholes in it that we are going to risk the health
of our children or the cost of a college education for our kids as
well?
I think the approach in the House is not defensible. I hope that at
the end of the day we can make sure we do this in a responsible way.
For-Profit Schools
Mr. President, I want to mention 2 other things quickly. One of the
real problems with debt in this country relates to for-profit schools.
Go to Yahoo or Google, put in ``college and university'' and step back.
What is about to hit you is an avalanche of ads for for-profit schools.
I don't need to recount the names on the floor. Everybody knows them.
These are the schools that are advertising constantly: Come to our
school. They run ads on television. One, I think, tells the story and
shows a lovely young lady in a robe and pajamas, who has her laptop on
her bed and says: You know, you can go to college in your pajamas now.
I am going to XYZ for-profit school getting my college degree.
Here is what is happening: These for-profit schools are inundating
the Internet and recruiting young people who otherwise might not go to
college, many of them, and 10 percent--here are three numbers--of kids
graduating from high school end up in these for-profit schools. So what
the for-profit schools are looking for is young people who are in lower
income family categories because they qualify for the most Federal
assistance--Pell grants and Federal student loans. Ten percent of the
students at the for-profit schools and 25 percent of all Federal aid
for education goes to these schools--more than 2\1/2\ times, based on
the number of students, the amount you might imagine.
Hang on, it gets more challenging. Almost half of the student loan
defaults in America come from for-profit schools. Why? The kids get too
deeply in debt and end up dropping out because the debt is overwhelming
or they finish and get a worthless diploma and cannot find a job. That
is the story. So the student debt in traditional schools, public
universities, private, not-for-profit universities, is one thing; on
the for-profit side that debt is mounting, particularly through private
student loans.
Here is the kicker, and you know this, Mr. President, because you
studied this issue too. Student loans are the only private loans in
America not dischargeable in bankruptcy. What it means is that you are
carrying it for a lifetime. You will carry it until you pay. That young
lady $140,000 in debt could not have a clue what she has done to the
rest of her life by getting that deeply in debt. I have students
contacting me with over $100,000 in debt for a 4-year education, and
they find out the diploma is worthless. There is one school, Westwood
College, which operates out of Denver, CO, and has a campus in Chicago.
They are under investigation now by our State attorney general. Too
many young people have been watching too many crime shows, and Westwood
College knows it. They call them and say how would you like a
bachelor's degree in law enforcement. Maybe they are watching ``Hawaii
5 0'' and ``CSI'' and they like that stuff. Good, come on out.
[[Page S2956]]
I will tell you a story of one student. She went to Westwood College
and it took 5 years to get a bachelor's degree in law enforcement. She
took that diploma to the police departments and sheriffs' departments
around the Cook County area, and they said: That is not a real college.
We don't recognize that as a real diploma.
There she was with a worthless diploma and in debt $80,000 for a
student loan. Now she is living in her parents' basement. She can't
borrow another nickel to go to a real college, and she owes, obviously,
$80,000 and is struggling with two jobs to try to pay it off.
There is another part of the story that we should not ignore. Many of
these schools, particularly the for-profit schools, realize that
hooking the kids into this loan is not enough, so they have the parents
cosign. Sometimes the grandparents cosign. Six weeks ago, the New York
Times ran a story of a woman who had her Social Security check
garnished because she owed on a student loan. It wasn't hers, it was
her granddaughter's loan. She cosigned, and her granddaughter
defaulted, and now the grandmother has her Social Security check being
docked because she owes on the loan. This is a horrible situation. It
will be a worse situation if the interest rate on July 1 doubles.
So we have this Republican filibuster against bringing down the
interest rate on student loans, and yet we now have an empty floor.
Whoever thought it was a good idea for us not to debate and not to vote
on this interest rate increase is long gone. They are not even here. I
think that is the real unfairness of the filibuster. If a Senator or
Senators stop the business of the Senate and say we can't even take up
the bill or consider an amendment, then I think they owe it to the
Senate to be here and explain their point of view.
I hope that tomorrow, when the dawn of a new day breaks and the
Senate opens, some Republicans will come to the floor and explain this
filibuster on college student loans. It is unfair to the students and
to the families of our country. People definitely need a college
education--many of them do--in order to succeed in life. Some need
training. Even those who need skilled training may end up at a
community college or taking a course that requires a loan to get
through.
I hope the Republicans who started this filibuster, who said we
cannot even take up, consider, or debate the student loan interest rate
issue, will be here tomorrow to explain why, to explain why they think
this is not worth the time of the Senate to debate. Until then, we will
just languish in this filibuster.
The DREAM Act
Mr. DURBIN. Mr. President, it was 11 years ago that I introduced a
bill called the DREAM Act. Just this last week, I was back in Chicago
to attend a fundraising dinner for a group I really respect. It is
called the Merit music program. About 20 years ago, when a lady passed
away, she left a legacy to the Merit music program, and the legacy said
that the money she was leaving and any money that was raised should go
into the public schools of the city of Chicago to offer young people a
free musical instrument and music lessons if they were interested.
This program has been an amazing success. It turns out it has created
an avenue and opportunity many young people never dreamed of having,
and some of them have talents that are incredible. I was there at their
dinner last week when the violinists came in--kids from all over the
public schools of Chicago--and they did a magnificent job. They feel so
good about themselves. They develop a talent, and they have a 100-
percent college placement rate from the Merit music program. There is a
linkage there. I know the Senator from Colorado, who has taken over as
our Presiding Officer, knows this, as he was an educator in the city of
Denver. Many of these kids for the first time realize that they are
worth something, that they can do something and do it well. And it is
that confidence and pride that not only takes them through the
experience of playing music but the experience of life and the
experience of the classroom. It makes a big difference in their lives.
Eleven years ago I got a call from the director of the program, Duffy
Adelson. Duffy was there last week. Duffy is a wonderful woman who has
committed her life to the Merit music program. She said: I have an
issue. One of the students at the Merit music program is an amazing
young girl who plays concert piano. She has been accepted at major
music schools, including the Manhattan school of Music in New York. She
is Korean. Her mother, when she was filling out the application for the
Manhattan school of Music, came to the box that said ``citizenship,
nationality.''
The girl turned to her mother--her name is Teresa Lee--and said: USA,
right?
Her mom said: No. You see, I brought you here when you were 2 years
old on a visitor's visa and I never filed any papers. Your dad is a
citizen, I am a citizen, and your brother and sister, who were born
here, are citizens, but we don't know what your status is.
The daughter said: What are we going to do?
She said: We will call Durbin.
Well, first they called the Merit music program, and then Merit
called me, and my staff found out that the law was clear. This young
girl, who has spent 16 years in the United States, has to leave the
United States for 10 years and then reapply to come back. She must
leave for 10 years. That is the law. I thought to myself, the mom
didn't file the papers. Mom did something wrong. Why would we not let
this young woman do something right?
So when I was drafting the DREAM Act, I said: If you graduate high
school and you have no serious problems when it comes to convictions or
moral issues and you either complete service in the military or 2 years
in college, we will put you on a path--a long path--toward becoming
legal and becoming a citizen. That is the DREAM Act.
The DREAM Act has been here for 11 years. I have tried to pass it on
the floor repeatedly. I can get 50-plus votes--I did the last time I
called it--but the Senate has this magic number of 60, a supermajority.
It has even passed the House of Representatives. But I have never been
able to put 60 votes together here.
Over the years, the support from the other side of the aisle has been
decreasing. As it decreases, it gets more difficult. Over the years, as
well, a lot of people have stepped up and spoken on behalf of this
DREAM Act. Colin Powell said: We would love to have these young people
in our military. Secretaries of Defense, such as Secretary Gates, said
the same thing. President Obama was a cosponsor of the bill. These are
young talented people who can make a difference. But before I tell you
the story of one of them here, I want to tell you the end of the story
of Teresa Lee.
Teresa Lee attended the Manhattan school of Music and majored in
concert piano. She met and married a young man who was an American
citizen, and that made her legal in America. And she played at Carnegie
Hall. How about that? Eleven years ago our government's law said she
had to leave the country for 10 years. Instead, she came to the
Manhattan School of Music, made it through, and has made a success of
her life. There were a couple of people who stepped up and made sure
that success was a reality in Chicago, and they were with the Merit
music program. They had literally underwritten her college education
because she couldn't qualify for any help--no Federal loans or grants,
nothing--because she wasn't a citizen of the United States. This is a
perfect example of a talent that would have been lost or wasted if she
hadn't had good circumstances and if we don't have the DREAM Act for
others who face the same thing.
Let me tell another story about Ayded Reyes. This is a photo of Ayded
Reyes. She is a runner. I learned about her from an article on
ESPN.com. Ayded was brought to the United States from Mexico when she
was 2 years old. She grew up in San Diego, CA. In high school, she was
an honors student who played three sports and was an active volunteer
in her community. Among other activities, Ayded volunteered at the
Children's Hospital and Sherman Heights Community Center, where she
tutored students and worked with the elderly. She was also a member of
the National Honor Society and graduated from high school with a 3.98
grade point average. This Senator wishes he could have had an average
like that.
[[Page S2957]]
Ayded was accepted at the University of California at San Diego, but
she was unable to attend for financial reasons. Because she does not
have legal status in the United States, Ayded is ineligible for Federal
student loans or any other Federal aid. Instead, she attends
Southwestern Community College, where she has flourished as a student
athlete. She maintains a 3.50 grade point average, and her dream is to
become an obstetrician. She has also become the top-ranked women's
junior college cross-country runner in the State of California. Among
other awards, she has been given Athlete of the Year at Southwestern
College and Pacific Coast Athletic Conference Track and Field Athlete
of the Year. Ayded has been offered athletic scholarships by more than
a dozen top 4-year colleges, but she can't accept them because she is
subject to deportation. She is not here legally.
I have spoken to other students who have similar challenges, whose
dreams can't be fulfilled unless we give them a chance. Just recently,
I heard about a student who didn't know which way to turn, didn't know
if the DREAM Act would ever pass, and applied for a visa to take his
college education and go to work in Canada. The Canadians welcomed him.
We need talent like that in Canada, they said. So they took him and we
deported him. Are we a better nation for that? Who got the best of that
bargain? A person who was educated in the United States, succeeded in
the United States, and dreamed of being an American citizen is now
living in Canada. To me, that is not the kind of thing we need to see
in our country.
As I said, just because the parents made the mistake, got something
wrong, these young people should be given a chance to do something
right.
I am going to continue to work on passing the DREAM Act, and I hope I
can appeal across the aisle to Republicans as well. Why is this a
partisan issue? Don't we all believe we shouldn't punish a young person
for the crimes or sins of their adult parent? That is what is at work
here. It is a basic question of justice. These young people, such as
Ayded, grew up in America pledging allegiance to the flag, believing
this was their home. All they want is a chance to make their home--the
home of their dreams--a better place.
I hope my colleagues will take the time to meet some of the DREAMers.
That is what they call themselves now. They have Web sites. They have
stepped out into the light of day to introduce themselves to America.
That is our only hope for this passing, where people come to meet these
young people and realize what amazing people they are. I think they
will understand that giving them a chance is only fair, it is totally
American, and it is something we should do as soon as possible.
Mr. President, at this point I yield the floor and I suggest the
absence of a quorum.
The PRESIDING OFFICER (Mr. Bennet). The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Ms. STABENOW. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Ms. STABENOW. Mr. President, I rise to express deep concern on behalf
of families and students all across Michigan who are very upset at the
vote earlier today where we did not get enough votes--the supermajority
needed to be able to get beyond the filibuster that is going on on the
floor by colleagues on the other side of the aisle, and therefore we
can't actually get to the vote on the bill that would lower or maintain
the lower student loan interest rates for students all across America
and certainly in Michigan.
We know what will happen July 1 if we can't get beyond this. We
actually have a majority of Members, 53 Members. I am very proud that
all of our Members on this side of the aisle voted, in fact, to support
the effort to maintain the low student loan interest rate. We didn't
have the supermajority because it takes bipartisan votes to be able to
get there and overcome the filibuster on the other side of the aisle.
But we have enough votes, and we just want to vote. We have enough
votes to be able to pass this bill, the Stop the Student Loan Interest
Rate Hike Act. We have enough votes, and we just need to have the
opportunity to be able to vote.
What does this mean for middle-class families and students in
Michigan and all across the country? We are at a time when middle-class
families are struggling to make ends meet and no more so than in
Michigan, where we have gone through the deepest recession for the last
decade of anyplace in the country. We need to be making college more
affordable for Michigan students and students across America and their
parents, not less affordable. We ought to be doing what will actually
add to what we have done to support lower interest rates, more access
to student loans, not taking that away, which is what is happening
right now on the floor of the Senate because of the filibuster.
Higher education costs are already rising. Michigan students are
graduating with mountains of student debt while high school graduates
are being priced out of the opportunity to be able to go to college. In
fact, the average Michigan student is graduating with over $25,000 in
student debt. That is a heck of a place to start when you come out of
college and you are looking for a job and trying to get started in a
professional life or trying to continue your professional life and at
the same time support your family. That is a lot of money. And we
should not be adding to that, because we are talking about additional
debt on top of that $25,000 average if, in fact, we can't pass this
bill.
We have right now more than 300,000 Michigan students--those who have
borrowed money because they believe in themselves, they believe in the
future, and they want to get the skills and the degrees they need to be
able to go into the workplace, to be successful for themselves and
their families--300,000 students who are going to see their Stafford
student loan interest rate double if we don't pass this bill.
We need a sense of urgency, like every single family feels right now
that finds themselves burdened by loans. They made the decision, and we
have been supportive of that, making loans available and lowering the
interest rate over the last several years so more people can go to
college and be able to get the skills they need and be able to be
successful in the workplace. We should be continuing to support that
and doing even more to help them lower the cost, not allowing the
student loan interest rate to double come July 1.
Folks in Michigan are scratching their heads right now. Let me share
stories I have received. I have received a lot of input, a lot of
stories from people not only throughout today but before today, but
certainly folks who watched the vote this afternoon are horrified at
what this means personally to them, for their children or for their
families. We have received a number of e-mails to our office, and I am
very thankful to people who are sharing their stories. I would like to
share just a few of them on the floor of the Senate.
Liz from Traverse City wrote:
PLEASE, please don't let them raise the interest rates on
student loans. I have two sons at MSU and I'm a single mom. I
work a full time and 2 part-time jobs and they work, and
without the Federal loans they wouldn't be able to go to
college--even with the full MET I worked on all their lives.
So she put money into a Michigan program to be able to save money and
put money aside. But this is somebody who is working one job and two
part-time jobs on top of her full-time job, and her sons are working,
and they still have student loans to be able to piece it together to be
able to go to college.
She said:
Please help--our 3 person family is working very hard to
get through school.
And I would suggest that they are. And, Liz, thank you for caring
about your sons and working as hard as you are working.
We need to make sure we don't add costs to Liz and her two sons in
July. On top of everything they are doing to be able to create an
opportunity for those two sons to be able to go to college, to be able
to have a better life and a future for themselves, we shouldn't be
adding costs to them.
Lars from Ann Arbor wrote:
As a student at the University of Michigan, I find it hard
to keep up with current events, but I try in earnest, and
this is an issue that affects me more than most others
[[Page S2958]]
at this time. I'm footing the bill for my college education
largely myself, as my mother and father--a high school art
teacher and GM retiree, respectively--do what they can to
help in the short term. I'd like you to work on behalf of
keeping the interest rates lower.
So Lars is going to the University of Michigan--a great university--
and he is footing most of his college bill himself. His mom, a teacher,
and his dad, a GM retiree, are doing what they can to help, but he has
to have student loans. Why on Earth would we be adding to his costs
come July when he is working very hard, with the support of his family,
to be able to create a great life with a great education from a great
university?
Kasondra from Grand Blanc wrote:
I am not what they consider a `typical' student. I am a
single mom of two obtaining my bachelor's degree in Social
Work. As a student and as a mother, I am attempting to lift
myself and my family out of poverty by doing the right thing,
getting a college education. While it has been tough and
there are days I wished I could give up, I am pursuing my
dream, and I will be graduating with honors in one year. If
the rate increase happens, I cannot afford paying back my
student loans while raising two children. Please, do not
let the interest rate expire on July 1.
Kasondra, congratulations for all you are doing as a single mom of
two, as you said, lifting your family out of poverty. We in Michigan
are a tough bunch. We don't give up. But I know how hard it can be
trying to hold it all together during these times, and I want to thank
you for doing that. And you are absolutely right, it would really be
outrageous to see the interest rate on your loans when you are
graduating next year with honors--congratulations for that. But to be
able to know that you are going to at least have the interest rate on
your loans continue as they have been I know would be a relief and a
help to you.
Angelica from Ypsilanti wrote:
My name is Angelica, I am a 40 year old mother of three who
has returned to school to finally get my degree. I have
recently been accepted at Eastern Michigan University and am
starting classes in June. Without affordable student loans I
would not be able to attend school. I want to make a positive
difference. Getting my degree will give me and my family a
better standard of living and get out of the terrible cycle
of poverty. This bill is critical to making the dream of
higher education a reality for Americans and ensuring our
workforce is prepared to compete in a 21st century global
economy.
Angelica, again, congratulations. As a mom of three, 40 years old,
making the decision to go back to school, getting accepted, creating a
plan for how you are going to be able to use student loans and be able
to hold it all together financially as you are moving forward, it is
really outrageous to think that there is a filibuster going on right
now to stop us from voting on something that would help you.
We have the votes. This is not about whether we have the votes to
maintain the low interest rate. We have the votes. We are being blocked
procedurally from getting to the vote, and that is something that is
very hard for me to understand.
Michael in Mount Pleasant wrote:
I am a student at Central Michigan University studying
Information Technology and I am also putting myself through
school by whatever means possible. The amount of student loan
debt I will have to pay after a 4-year degree casts a looming
shadow. We are always taught to look toward the future and to
jump at any opportunity that presents itself as an
opportunity to better oneself. We as students are now looking
at a future filled with uncertainty. Please do whatever it
takes to do what you know is right, and save our future from
an impending financial defeat.
Well, Michael, again working very hard, has a path, knows what he
wants to do, puts a plan in place, like most students and most
families, to figure out how he is going to be able to pay it both now
in terms of the costs and paying back the student loans. And if we
can't get a vote on this bill, we are pulling the rug out from under
Michael.
Jennifer in Michigan wrote:
For me, it means I'll be very unlikely to finish grad
school. We say the US (especially Michigan) needs to invest
in technology, yet they want to do things like this that will
result in an uneducated society.
Jennifer, I am with you. This makes absolutely no sense whatsoever,
at a time when we know we have to outeducate and outinnovate to be able
to outcompete in a global economy. Doing things that add costs for
middle-class families, working families, to add costs for loans? You
are bearing the brunt. You are getting a loan. You are believing in
yourself and your future. We ought to be doing everything we can to
support that, not adding more costs.
That is unfortunately what will happen if we cannot get beyond this
filibuster on the floor of the Senate, to have a real vote, a final
vote. We have the votes. We are just being blocked from getting to the
vote by the procedures of the Senate.
Kathryn in Michigan:
When I heard the interest for student loans is going to
double, my heart sank. How is this even possible? My daughter
is 21 years old, a psychology major at Western Michigan
University.
That is another great university in Michigan.
I am so very proud of her as any parent would be. With
interest rates set to double, how can these students possibly
even begin to think of paying these loans back? All this does
is discourage kids from going to college at all and once
again only the privileged will be allowed to succeed. Please
once again we need your help. There has to be a light at the
end of this dark tunnel for these kids and for our nation.
``There has to be a light at the end of this dark tunnel for these
kids and for our nation.'' I could not agree more. We have to make sure
the light they see is not from an oncoming train. We have to make sure
the light they see is actually their way through the tunnel of debt
that comes with college loans, and out into a future that is brighter
for themselves, for their families. That is the hope, that is the
promise of college education.
We have a responsibility to make sure we are doing everything
possible to support the hopes and dreams, the hard work, the sacrifice
that is going on in college after college, in home after home, where
people are making tough decisions in order to give their kids a
brighter future.
I was proud to help author the legislation in 2007 that cut the
interest rate to where it is now, 3.4 percent. I was pleased to help
lead the effort as well to reform the student loan program and expand
college access. Those were good things to do--not bad things, good
things. People have benefited. Three hundred thousand people in
Michigan right now have benefited from that opportunity, the commitment
we made to support young people, people going back to college, to have
a brighter future through a college education.
Now is not the time to turn that around. The Stop The Student Loan
Interest Rate Hike Act is commonsense legislation. It does not add a
dime to the deficit. It is fully paid for. It is something that needs
to get done now so that there is certainty for families across Michigan
and across the country. Education really is the road to opportunity in
this great country and Michigan is home to world-class universities and
community colleges. They are conducting cutting-edge high-tech research
to help transform the economy. Our schools serve to open doors and
create opportunities for thousands and thousands of graduates every
year.
I am always honored when I have the opportunity to speak at a
graduation, as I have done this year, and to see the pride and relief
on the faces of students who have worked so hard--and their parents,
their pride and the commitment they make to their children. I know how
that feels as a parent sitting in the audience as your kids graduate
and walk across that stage with their diploma.
This is ingrained in us as Americans. It is the foundation of who we
are, to create an opportunity for people to go to school K 12 and then
be able to have a chance to go on to college so they can have the best
shot at success. That is what we have had as a foundation in terms of
our values as a country. This is not the time to turn it back. We need
to be making it easier, not harder, for students to achieve a college
education which greatly improves their chances of getting a good-paying
job and being successful in life.
We are at a moment where we had a vote today where it was very clear
we have enough votes to pass this bill, to make sure that student loan
rates do not double. We have enough votes to pass it. We just do not
have support from across the aisle, we do not have the bipartisan votes
we need to get to a supermajority to stop the filibuster. That is what
is going on right now. We
[[Page S2959]]
need to vote. Folks do not have to agree with it. They can vote no on
the final bill. Let us vote. On behalf of the people we represent, let
us vote on the bill. On behalf of 300,000 students and their families
in Michigan, on behalf of hundreds of thousands of others who are
looking for the opportunity to go to college, to be able to work hard
and take all the risks that come with that to be able to have a better
life, I ask we simply allow a vote. Let us vote on this bill.
It is time to get on and let people know we get it, we understand
what families are going through, we understand the squeeze middle-class
families are going through on every front right now, and we will make
sure that access to college, a higher education, is not just there for
the wealthy and connected but that it is available to everybody because
we are a stronger country because of that.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Ms. STABENOW. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________