[Congressional Record Volume 160, Number 71 (Monday, May 12, 2014)]
[Senate]
[Pages S2894-S2896]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STUDENT LOAN DEBT
Mr. BLUMENTHAL. Madam President, like many of my colleagues, I have
attended and spoken at a number of college and law school graduations
and commencements.
I had the great privilege of speaking to the graduates of Post
University on Saturday and at the Quinnipiac Law School just
yesterday--both wonderfully exciting and rewarding days full of
celebration and pride, well-justified joy and pride in the great
accomplishments of these graduates, and more than their past
accomplishments, their contributions of the future. These young people
are our future. I spoke to them about the challenges and
responsibilities that come with the great privilege of having an
education from great colleges and universities, undergraduate and law
school, the opportunities for public service, to be a champion of right
and responsibility, to advocate for people who need their voices and
their advocacy, and the responsibilities and opportunities for public
service.
Each of them has a great opportunity to give back to our country and
to use that education to better all of us as well as themselves. Yet
they are leaving college and law school burdened with debt that would
have been unthinkable and even unimaginable a decade or so ago. The
average in Connecticut is $27,000 of debt per graduate from
undergraduate education today.
What I have done over the last 2 days, over the last 2 weeks, over
the past month, is really listen to our students at every level--high
school as recently as Friday at Bassick High School in Bridgeport,
colleges throughout the State of Connecticut--crisscrossing our State
to talk on campuses, at roundtables, with students who are burdened--
indeed, financially crippled with debt that would have been unthinkable
and unimaginable when I was going through the same education. In those
days, working to pay for college was possible. Today, the tuition costs
are so high it is impossible.
Listening to students across the State of Connecticut, I have heard
their stories. I have listened to the amounts they owe and the levels
of interest they have to pay. Each of them,
[[Page S2895]]
by first name--whether it is Buckley at $56,000 or Jerry at $260,000--I
could go through them one by one, story by story, voice and face, each
with great accomplishment and great potential achievement for the
future, for our Nation. Yet they leave college and law school burdened
by these debts. These are only a few.
I have promised to come here to tell their stories. I will tell their
stories--not all of them but as many as I can, not all today but as
many as I can over the next days and weeks--because each of them simply
wants a fair shot at American opportunity, at the American dream, at
the America all of us thought was possible for all of us when we went
to school, a fair shot at the American dream and opportunity in the
workplace, at home, in our society.
I venture to guess that every Senator in this body would agree that
higher education offers a path to success for hard-working students.
There is nothing controversial or partisan about that notion. An
opportunity to move more Americans into the middle class is what
education does for our Nation. It secures our middle class and enlarges
and enhances it.
So investing in higher education really offers a fair shot to
everyone seeking to make something of himself or herself to earn a
higher standard of living, the professional innovators, business
creators, and thinkers whom the system will give us from all kinds of
backgrounds all across the country and certainly in Connecticut. So
what we need is to maintain educational success so we can sustain our
success in the global economy and confront the challenges ahead.
Attending college or graduate school or technical school is a great
opportunity but also a great responsibility. Students understand that
they are taking on a significant trust obligation with the
understanding that they will pay it back. None of them goes into these
debts lightly, thinking that they can just avoid it. They are well
aware that these debts, by and large, are nondischargeable in
bankruptcy, unlike most other debts. They are told and they rightly
expect that these additional qualifications will enable them to find a
good job and go on to a successful life and have a fair shot at the
American dream. They are willing to work for that success. They are
willing to pay back these debts. But too often they are not given or
afforded the opportunity, realistically, to earn at a level that
enables them to reach these goals, which leaves them with a financially
crippling debt that serves no one.
Working people who bear a heavy debt burden have to make tough
choices about getting married, buying homes, and having children.
Entrepreneurs are blocked from starting new businesses. The risk takers
and job creators of America have to go to other lines of work where
their contribution is derivative, dependent on others rather than
inventing and innovating and starting new businesses.
The risk taking that is the foundation and core of the
entrepreneurial spirit in America is inhibited--indeed, impeded and
sometimes crippled by these debts. These consequences are so widely
understood that I hesitate even to take the body's time to recount them
now. Yet the U.S. student debt totals $1.2 trillion--much higher than
it has ever been before.
I have listened in roundtables to its personal impact on our citizens
and their children. I am here to tell their stories--Brittany, for
example, who is the first in her family to attend college. She took out
loans to attend school. She is over $100,000 in debt. Her school does
not offer much in financial aid.
Alese, a mother of three, went back to school when her children were
young because, she said, she ``wanted to make sure they had an example
to follow when they finished high school'' and she wanted them to
``push forward and excel in their lives.'' She wrote to me, ``I knew
that when I finished I would have to pay back those debts . . . what I
didn't anticipate was that I would still be paying those debts when my
children started going to college.'' She is now $46,000 in debt. Her
loans carry a 7-percent interest rate.
Our economy is still recovering from the greatest recession probably
in most of our lifetimes. We need people such as Brittany and Alese to
participate, young woman to invest in the future. We need to invest in
them. They need to feel secure in their ability to support their
children. But the mountains of debt confronting students and graduates
today are overwhelming.
I am proud to be here with my colleagues to support their fair shot--
all of our fair shot in the future because we live through our
children. They are our future. It is a platitude we repeat so often,
but it is true.
These interest rates are, first of all, unconscionably and unfairly
high. Many of them are variable so they can continue in their
unprecedented rise when interest rates begin going up again.
The money that comes from increased payments is nothing but profit
for the Federal Government. The Federal Government is scheduled to make
more than $50 billion in profit on the loans it makes this year. We
should see higher education as an investment, not as a revenue
opportunity. Those students are our future, not a profit center. We
ought to set repayments based on what is in students' and graduates'
best interests. It is our best interest as well.
I am proud to join my colleague Senator Elizabeth Warren in
introducing legislation that would allow borrowers to refinance their
student loans. I am proud to join my colleagues in an effort to enable
refinancing of student loans at more affordable rates, just as they do
car payments and house payments. We cannot forget about current
graduates with existing debt.
As much as we want to make available more aid through Pell grants,
lower interest rates on loans being made now, opportunities to pay down
those loans based on public service, more disclosure, and more accurate
disclosure through the kinds of measures that Senator Franken has
introduced and I have joined him, right now we can take this profoundly
significant step by supporting a measure that enables refinancing of
student loans so that everyone has the benefit of the best, lowest,
most affordable interest rate.
I believe graduates who pursue public service ought to have the
opportunity to pay down those debts in ways that are expanded, made
more flexible and more accessible to more of these graduates. They are
necessary to everyone's health and safety, whether they are teaching or
policing or fire fighting or advocating for people who need legal
assistance or caring for people as doctors in areas where they are
needed. Those public service opportunities, as I told the graduates at
Post University and at the Quinnipiac Law School, ought to be expanded
and enhanced for them and all of our students around the country today,
as well as those who graduated in recent years.
Let's make sure in the meantime for people who have this grinding,
financial, crippling debt that overhangs them and inhibits economic
growth, it is made more affordable. Let's give them a fair shot at
economic opportunity. Let's give all the students who are aspiring now
in high school, at Bassick or elsewhere, the opportunity to have a fair
shot.
I am going to briefly quote some of what some said to me.
``There is no end in sight.''
``I feel like I will never escape this.''
``I don't own a home. I can't. I just work to pay my loan.''
These messages--and I am going to bring them again to the floor--are
from the heart of Connecticut. The Presiding Officer could do the same
from Hawaii. Every Member of this body could come to the floor with
these same messages from the students and graduates of America, the
innovators and creators, the home builders and family men and women who
simply want a fair shot for themselves and their children.
One person said: ``If there is anything that can be done for
struggling families with student loan debt please help.''
Let's help. Let's give them a fair shot.
I yield the floor, and I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. CRUZ. Madam President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
[[Page S2896]]
____________________