[Congressional Record Volume 161, Number 67 (Tuesday, May 5, 2015)]
[Senate]
[Page S2652]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. WYDEN (for himself, Mr. Rubio, and Mr. Warner):
S. 1195. A bill to amend the Higher Education Act of 1965 to update
reporting requirements for institutions of higher education and provide
for more accurate and complete data on student retention, graduation,
and earnings outcomes at all levels of postsecondary enrollment; to the
Committee on Health, Education, Labor, and Pensions.
Mr. WYDEN. Mr. President, when my colleagues and I went to college,
things were a lot different. Our colleagues took out loans, but those
loans were manageable, and there were jobs waiting after graduation.
Today, too often, that is simply not the case. In fact, the majority of
students today will leave school weighed down with an average of more
than $31,000 in debt.
Investment in higher education is an economic imperative. Education
is the great equalizer. It enables upward economic mobility and breaks
down class structures. A highly skilled and educated workforce is the
basis for any healthy economy. It is the foundation of our country's
future.
In nearly every financial decision Americans make, individuals and
families try to evaluate the economic value of that decision. Like
prospective homebuyers who inspect and assess the potential value of
their future home, students should be able to compare colleges and
programs based on what the likely return on their investment will be.
Our capital markets work best when there is transparency so we can
accurately measure the value of what we choose to invest in. We saw
what happens when this is not the case with the burst of the housing
bubble. Parts of our economy have yet to recover from the mortgage
crisis. Misinformed consumers bought a product based on misleading
information and, often times, fell victim to bad loans offered by
predatory lenders.
Consumers must know what they can expect from their investments.
Similarly, students are entitled to know the value of their education
before they borrow tens of thousands of dollars from banks and the
government to finance their future.
Right now, consumers don't have this information. It is unavailable
to students and families who are making critical decisions that will
impact not only their future--both their financial future and career
path--but also the collective future of our country. That is why today,
Senator Rubio, Senator Warner and I are introducing an updated version
of the Student Right to Know Before You Go Act which will help inform
consumers and prevent market failures.
This proposal would ensure future students and their families can
make well-informed decisions by creating a market in which specific
schools and specific programs can be evaluated based on the average
annual earnings and employment outcomes of graduates; rates of remedial
enrollment and success of students that participate in remedial
education; the percent of students that receive Federal, State, and
institutional grant aid or loans by source; the average amount of total
Federal loan debt of students upon graduation; the average amount of
total Federal loan debt for students that do not complete a program;
transfer success rates; and rates at which students continue on to
higher levels of education.
The Department of Education has created a College Scorecard which is
a step in the right direction. The Scorecard, however, does not fully
capture any of the metrics outlined above. The Wyden-Rubio-Warner bill
generates this critical information.
Markets fail when there is too little information and until now, it
has been impossible to collect this data in a cost-effective way while
ensuring student privacy.
This proposal makes it possible to secure a return on investment--for
students, parents, policymakers, and taxpayers--while creating a
workforce that meets the demands of today's businesses and ensures that
American workers can successfully compete in the global economy.
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