[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[House]
[Pages 25853-25857]
[From the U.S. Government Publishing Office, www.gpo.gov]




 RECOGNIZING INDEPENDENT 529 PLAN FOR LAUNCHING A PREPAID TUITION PLAN 
THAT WILL BENEFIT OUR NATION'S FAMILIES WHO WANT TO SEND THEIR CHILDREN 
                  TO PRIVATE COLLEGES AND UNIVERSITIES

  Mr. McKEON. Mr. Speaker, I move to suspend the rules and agree to the 
resolution (H. Res. 378) recognizing Independent 529 Plan for launching 
a prepaid tuition plan that will benefit our Nation's families who want 
to send their children to private colleges and universities, as 
amended.
  The Clerk read as follows:

                              H. Res. 378

       Whereas postsecondary education is increasingly important 
     to the economic well-being of the United States, and the 
     demand for individuals with postsecondary education continues 
     to grow;
       Whereas according to the United States Census Bureau, in 
     2001 a person with a bachelor's degree earned nearly 90 
     percent more, on average, than a person with only a high 
     school diploma;
       Whereas tuition at independent colleges and universities 
     continues to grow at alarming rates and families need options 
     for financing the high cost of a child's postsecondary 
     education;
       Whereas tuition and fees for the academic year 2003-2004 at 
     independent colleges and universities in the United States 
     averaged over $18,000, and therefore postsecondary education 
     is one of the most significant investments a family will 
     make; and

[[Page 25854]]

       Whereas prepaid tuition plans can make attendance at 
     independent colleges and universities more affordable for 
     thousands of our Nation's families by allowing them to lock 
     in current tuition rates for future use: Now, therefore, be 
     it
       Resolved, That the House of Representatives recognizes the 
     more than 200 independent colleges and universities that 
     together have addressed the need to help families pay for the 
     increasing cost of attending college by creating the first 
     nationwide prepaid tuition plan.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. McKeon) and the gentleman from New Jersey (Mr. Holt) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. McKeon).


                             General Leave

  Mr. McKEON. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on H. Res. 378.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to rise in support of H. Res. 378 which 
recognizes independent colleges and universities that participate in 
prepaid tuition planning.

                              {time}  1430

  I want to thank the gentlewoman from Texas (Ms. Granger) for 
sponsoring this resolution that highlights the benefits of prepaid 
college tuition plans and the independent colleges and universities 
that participate in such plans.
  Mr. Speaker, everyone in this Chamber clearly understands the 
benefits of a postsecondary education and that it expands career 
opportunities and increases earnings potential. As the resolution 
states, in 2001 a person with a bachelor's degree earned almost 90 
percent more than a person with only a high school diploma. This 
resolution recognizes those that make completion of a postsecondary 
education and its benefits a bit more attainable.
  This Congress, the Subcommittee on 21st Century Competitiveness, 
which I chair, is focused on the reauthorization of the Higher 
Education Act. One of my primary concerns throughout the process is to 
ensure that the dream of a college education is available and indeed 
affordable to all those who strive for it. This is why I am pleased to 
support H. Res. 378, a measure that recognizes those colleges and 
universities that participate in programs that can help put college 
within reach.
  H. Res. 378 draws attention to prepaid tuition plans, which allow 
families to prepare for the cost of a postsecondary education. These 
plans originated in 1996 and were expanded in 2001 to allow for 
independent education institutions to establish their own prepaid 
tuition plans. During this time, both public and private institutions 
have begun participating in these prepaid tuition plans. While the 
specifics of these plans vary, at the heart of the plans is the ability 
of families to pay for academic periods or course units at current 
prices for a child who will attend college in the future.
  I hear so often from constituents that college costs are increasing 
tremendously and parents are concerned that they will not be able to 
afford a postsecondary education for their children. We must work 
together to prevent students and families from being priced out of the 
higher education market and being priced out of their dreams. I believe 
that prepaid tuition plans offer parents important options for dealing 
with the college cost crisis, and we must encourage efforts to make 
college affordable and attainable. I urge my colleagues to support this 
resolution that recognizes the schools that participate in these plans.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HOLT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H. Res. 378 and second many of the 
remarks of my colleague from California. Prepaid tuition plans that 
have been set up by States have not provided options for students 
seeking to go to private universities. These plans typically allow a 
contributing individual to receive a guarantee that their tuition will 
be paid when they attend a public university in their State. This 
resolution before us identifies a plan that now provides students 
seeking to attend a private university with a prepaid tuition option. 
Those involved in the development of this plan should be congratulated 
for pushing to make this a reality.
  Unfortunately, many existing State prepaid tuition plans have not 
fared well in our present economy. While unemployment has risen, the 
Bush administration has forced the reduction of options students and 
families have to pay for college. Twenty States have set up prepaid 
tuition plans but nearly all of them are in trouble. Ohio, West 
Virginia, Kentucky, Texas and Colorado have all suspended their plans. 
States are shutting the doors on these plans because the failed Bush 
economy has driven up college costs and reduced their investment 
options to essentially nothing.
  In discussing the issue of how students and families pay for college, 
we cannot ignore the point raised by the gentleman from California, 
referring to his proposal to institute Federal price controls on 
college tuition. It has some immediate appeal until you think about it. 
This proposal would bar universities who have seen their budgets cut 
due to the sour economy from receiving Federal aid, including work-
study opportunities for needy students. In other words, we would cut 
funds to them until they shape up. Worse yet, Historically Black 
Colleges and Hispanic Serving Institutions would be barred from 
receiving institutional aid or other aid. This loss of aid would hamper 
the mission of those institutions and would remove the opportunities 
for postsecondary education for some of our neediest students.
  This proposal would also have serious unintended consequences. 
Colleges that are forced to cap their tuition increases will simply 
decrease the amount of need-based grant aid. This will result in 
students experiencing perhaps lower tuition levels but higher out-of-
pocket costs. In addition, as labor and health care costs increase, 
institutions will be forced to sacrifice quality. Clearly, that is not 
in the public interest. This will be done through the hiring of adjunct 
professors rather than maintaining, for example, seasoned tenured 
faculty. Is this the cost-control measure we want our universities to 
implement?
  Rather than creating new problems to solve an existing one, Congress 
should be considering what is the appropriate response to rising 
tuition costs. We should provide incentives to colleges and 
universities to hold down costs. The current Federal system of higher 
education financing does not incentivize schools to hold down their 
level of tuition increases. The Higher Education Act should not punish 
students and institutions through heavy-handed Federal price controls. 
Price controls rarely work. Rather, institutions should hold down 
tuition costs while increasing need-based grant aid, and they should be 
rewarded.
  In addition, States should be required to maintain their level of 
effort on higher education spending. In years in which Congress 
increases student aid, those increases should benefit students, not be 
gobbled up by the need to balance State budgets. The cost of higher 
education is a complicated one. It is an important one. It is in the 
national interest to make college affordable and available for all 
qualified students. This resolution before us today points to a good 
way to manage the rising costs of college tuition. However, the other 
proposal advanced by the gentleman from California would be the wrong 
way to go.
  In closing, Mr. Speaker, I want to reiterate my support for the 
resolution we are presently considering.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume.
  We are here today to discuss H. Res. 378, but my good friend on the 
other side of the aisle has brought up some points of a bill that I 
introduced a

[[Page 25855]]

week ago, and I would like to just correct a couple of things on the 
record. HBCs and HSIs are not addressed in the bill. Any funding cuts 
based on colleges continuing to raise their tuition and fees at better 
than twice the rate of inflation would only have an effect on title IV 
funding. Also, he referred to cost controls. I lived through cost 
controls. I was a retailer in the 1970s when President Nixon imposed 
price controls. Let me explain the way price controls work. One day we 
were able to sell jeans at a certain price. When price controls took 
effect, we no longer could sell those jeans at any other price other 
than what the government set. The only way that we could ever increase 
our prices at a retail or wholesale level was if we went before a 
bureaucratic board set up by the government and explained our costs and 
they finally maybe granted us the ability to increase our prices.
  That is not what I propose in my bill. What I propose in the bill is 
encouragement for the schools to keep their tuition and fees down. For 
the last 20 years, they have been raising them at four times the rate 
of people's ability to pay those college costs. We tell the schools, if 
they want to keep charging more, they can; but we do not have to keep 
giving them some of that $65 billion of Federal aid that goes to the 
schools, not to the students.
  Mr. Speaker, I yield such time as she may consume to the gentlewoman 
from Texas (Ms. Granger), the author of the resolution that is before 
us, H. Res. 378.
  Ms. GRANGER. I thank the gentleman from California for yielding me 
this time.
  Mr. Speaker, Mark Twain once said, ``Out of our schools grows the 
greatness of our Nation.'' Today I want to introduce you to the 
greatness of our Nation. I want you to meet Logan Granger. Yes, that is 
right, Granger. Logan is my grandchild. He is one of the loves of my 
life. I actually have two grandchildren, I have Logan and Jack, but 
today we are going to focus on Logan. When I look at Logan's big brown 
eyes, I absolutely melt and I want him to have the very best in the 
world. I want him to have the best education, the best job, the best 
family life. I want him to have everything. And I know the right place 
to start with making sure that Logan has it all is to make sure that 
Logan has the best education available.
  Today, the finest education is marked by a college degree. When I 
taught, a high school certificate was a mark of success. Today, a 
college degree is a must. In the past 5 years, jobs requiring a college 
degree have increased almost nine times more than jobs requiring a high 
school diploma. The fact is that the college degree is a must-have for 
today's students. I believe little Logan should have the opportunity to 
have that college diploma. Logan should be able to attend the public or 
the private school of his dreams. In other words, he should have 
choice. But his family should also have affordability.
  Unfortunately, we all know the cost of a college education can send 
any parent or grandparent into financial hiding. Today at Texas 
Christian University in Fort Worth, a college degree will cost about 
$19,000 a year and students come from all over the world to attend 
there. When Logan is ready to go to TCU, or whatever school he chooses, 
schools like TCU could cost as much as $45,000 a year. Yes, a year. It 
is sticker shock for all of us, but it is something we need to face. 
But before we decide the situation is futile, we need to recognize that 
with proper planning, a college education can be affordable.
  For several years now, public schools have joined together in co-ops 
that work together to set up one prepaid plan for parents to pay into. 
Then when the young one is all grown up and is ready to go to college, 
the family can choose from a list of schools that participate in that 
plan. The result is choice and affordability in public education.
  Today I am here to praise the expansion of the prepaid tuition plans. 
I introduced legislation that was signed into law 2 years ago that 
would allow private schools to join together and offer similar choice 
and affordability in education. Today I am here to congratulate the 
more than 200 private colleges and universities in the recent launch of 
their prepaid tuition plans. Together, the plans are known collectively 
as the independent 529 plan and many of the schools in Texas, including 
Texas Christian University and Southwestern University in Georgetown, 
are participants in this plan. The creation of this plan means that 
Logan's parents can save around $100,000 in total private education. 
That is right. If Logan's parents buy into the independent 529 plan 
today, they can save around $100,000. We are literally talking about 
tomorrow's education at today's price. The 529 plans are all about 
choice and affordability in private schools. Choice for Logan and 
affordability for his parents.
  Mr. Speaker, I am honored to be the sponsor of House Resolution 378, 
which congratulates private colleges and universities for their ongoing 
commitment to make a college education affordable and accessible to 
thousands of families. This will mean more opportunity for more young 
people and more universities. That is a small price to pay for Logan or 
Jack or any other child for something as worthy as a college education.
  Mr. HOLT. Mr. Speaker, I yield myself such time as I may consume. I 
would just reply to my colleague from California that in describing his 
experience with price controls, his personal experience, I think he 
made a very good case against his proposal, and I think made it clear 
that the colleges and universities that are in the tightest financial 
straits, such as Historically Black Colleges and Hispanic Serving 
Institutions, those with a large number of work-study students, would 
be the ones that would be hurt most by that proposal.
  Mr. Speaker, I yield 4 minutes to the distinguished gentleman from 
Illinois (Mr. Davis), my colleague on the Committee on Education and 
the Workforce.

                              {time}  1445

  Mr. DAVIS of Illinois. Mr. Speaker, I thank the gentleman from New 
Jersey for yielding me time.
  Mr. Speaker, I rise today in support of H. Res. 378, recognizing 
Independent 529 plans for launching a prepaid tuition plan. These plans 
allow families to lower the cost of a private college or university 
education by locking in current tuition rates for future use at any of 
the participating private colleges and universities.
  We all believe that every young person who would like to attend 
college should be able to do so. The benefits of receiving a college 
degree are continuous, not only strengthening the self-esteem of a 
person, but also allowing that individual to have a better and more 
secure lifestyle.
  According to the United States Census Bureau, a person with a 
Bachelor's Degree will earn nearly 90 percent more on average than a 
person with only a high school diploma. Not only is the pay 
significantly better, but it is also more likely that occupations held 
by a person with a Bachelor's Degree will have additional benefits, 
such as health care and employer pension plans.
  Most funding that colleges and universities receive has been reduced 
due to the extreme economic state of most States in our Nation and the 
debt of the Federal Government. However, to remain vital in 
competition, colleges and universities must pay for the best 
professors, keep technology current and keep buildings maintained. 
Unfortunately, these costs are now being passed down to the students. 
The Independent 529 plans serve as one way to help with this rising 
cost.
  Currently over 200 private colleges and universities throughout the 
country have agreed to participate in these plans. Of the six 
participating colleges and universities in Illinois, I am proud and 
pleased that the Illinois Institute of Technology, which is in my 
district, is one of the 529 plan participants.

[[Page 25856]]

  I believe that although the Independent 529 plans will not help all 
families achieve the dream of going to college, it will help a good 
number of families who dream of sending their children to private 
colleges and universities, and, for that reason, I support this 
legislation and urge its passage.
  Mr. McKEON. Mr. Speaker, I yield 1 minute to the gentleman from 
Georgia (Mr. Gingrey), an outstanding new member of the Committee on 
Education and the Workforce.
  Mr. GINGREY. Mr. Speaker, I thank the chairman for yielding me time.
  I rise very much in support of H. Res. 378, and I commend the author, 
the gentlewoman from Texas (Ms. Granger), for bringing this bill 
forward. If I did not know anything about the bill, after seeing that 
beautiful grandchild, Logan, in that portrait, I think I would be 
supportive of this effort. It is very, very persuasive, and I commend 
the gentlewoman for that.
  But, seriously, this bill is a great bill. I have a private college 
in my 11th District of Georgia, Berry College, a wonderful private 
college in Rome, Georgia, that is part of these 200 private colleges 
and universities participating in this plan. As has been pointed out by 
the previous speakers, the cost of college has been rising so much, 
since 2001 something like $16,000 a year on average to go to a private 
college or university.
  This opportunity for our families that want to send their children to 
these schools to go ahead and invest and save that money at a tax 
advantage and lock in that tuition so it is not rising at double the 
rate of inflation, I think is a very important thing to do.
  I commend the gentlewoman for this bill and give it my strong 
support. I urge all of my colleagues to support this great resolution.
  Mr. HOLT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, perhaps I could show some pictures of my grandchildren. 
I commend the gentlewoman from Texas and the gentleman from California 
for advancing this legislation. Anything that will improve the 
accessibility and affordability of college for qualified American 
students is to be encouraged.
  Mr. Speaker, I yield back the balance of my time.
  Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, according to the Advisory Committee on Student Financial 
Assistance, cost factors, with the rate of tuition and fee increases 
over the last 20 years, show that 48 percent of our lower-income young 
people that that graduate from high school prepared for college are not 
able to go to a college or university of their choice, and 22 percent 
of them cannot even go to a community college. I think anything we can 
do to make it possible for these young people to attend school is 
vitally important.
  I have 25 grandchildren and one on the way. When I saw that picture 
of the grandson of the gentlewoman from Texas (Ms. Granger), Logan, 
that was a great selling tool, and I really appreciate what she is 
doing to help young people and help their families to put money aside 
to send them to school. I urge all of us to support this bill.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H. Res. 
378--Recognizing the Independent 529 Plan for Launching a Prepaid 
Tuition Plan That Will Benefit Our Nation's Families Who Want to Send 
Their Children to Private Colleges and Universities.
  Higher education today is among the most prominent barometers of 
success in adult life. Compared to high school diploma recipients those 
who earn a college degree have a much higher rate of employment and 
greater earning potential. The economic implications of a student's 
failure to earn a college degree are astounding, especially as our 
economy becomes more dependent on information industries. Nearly 2 out 
of the 3 new jobs that will be created over the next 7 years will 
require some post-high school training.
  Unfortunately, despite all the indicators many low income and middle-
income students and their families are struggling to meet the soaring 
costs of attending college. These students are taking loans and working 
long hours to meet the increasing costs of college.
  Over the past decade student loan debt has nearly doubled to $17,000 
and about one-fifth of full-time students work 35 or more hours a week.
  According to the College Board's annual survey of tuition and student 
aid on college campuses, in 2003 tuition and fees increased at colleges 
and universities nationwide. Tuition increased by 14.1 percent at four-
year public institutions, 13.8 percent at two-year public institutions, 
and 6.0 percent at four-year private institutions.
  While 70 percent of all students pay $8,000 or less in tuition each 
year, low-income students continue to fall far behind in accessing a 
college education. The ratio of a low-income family's earnings used to 
pay for tuition increased to 71 percent, while this ratio held steady 
for middle-income families at 17 percent and 6 percent for those with 
the highest incomes.
  I support the Independent 529 plan because I know that the future of 
this nation depends on the academic preparation of our children. The 
Independent 529 Plan is a prepaid tuition plan that enables families to 
lock in the future tuition costs at less than today's prices. Through 
the Plan, certificates are purchased that can be used to pay future 
tuition costs. When the student is later accepted at a member college, 
the certificate can be used to pay the percentage of tuition pre-
purchased.
  Independent 529 Plan is the first 529 plan sponsored by private 
(``independent'') colleges, and Program certificates can be redeemed 
for tuition at a broad array of independent colleges nationwide. Many 
of these colleges are in the state of Texas: Abilene Christian 
University, Austin College, Baylor University, Dallas Baptist 
University, Hardin-Simmons University, Lubbock Christian University, 
Rice University, St. Edward's University, St. Mary's University, 
Southern Methodist University, Southwestern University, Texas Christian 
University, Trinity University, University of Dallas, and University of 
Mary Hardin-Baylor.
  I am confident that the list of member colleges will grow to include 
Historically Black Colleges across the country.
  Sadly, low income and working class families are struggling to get 
their students a quality education while Republicans have forgotten 
them and instead focused on budget cuts and tax breaks for the wealthy. 
The weakened economy, tax and budget cuts and other federal policies 
that increase national and state debt have led states to increase 
tuition and place the burden of increased costs for college on families 
who cannot afford it.
  As I stand here, the doors to higher education institutions and to 
greater opportunity for our young people are closing at an alarming 
rate. When major federal higher education grant programs are eliminated 
and federal aid to colleges are cut, minority students and 
disadvantaged students are shut out of a college education--a vehicle 
that is critical to a better future. The Independent 529 plan will help 
alleviate the burden of cost placed on families who desperately want to 
secure a quality college education for their children.
  Mr. BOEHNER. Mr. Speaker, I am pleased to offer my support for H. 
Res. 378. This resolution recognizes independent colleges and 
universities that participate in prepaid tuition plans that give 
families options when paying for the cost of postsecondary education. I 
thank Representative Granger for sponsoring this resolution that calls 
our attention to the need to give families and students these payment 
options and to the independent colleges and universities that 
participate in these prepaid tuition plans.
  Our economy is changing. The manufacturing economy of the 20th 
century is being replaced with a knowledge- and information-based 
economy in the 21st century, and our workforce must adapt accordingly. 
The demand for individuals with at least some postsecondary education 
has been growing, and is expected to continue growing more rapidly than 
the demand for individuals with only a high school diploma.
  When coupled with our current college cost crisis, it is clear that 
in order to meet this demand we must make a postsecondary education 
more affordable for more individuals. Our economy is increasingly 
dependent on the availability of skilled, well-educated workers, and 
the need to increase access to higher education is a critical part of 
that equation. This resolution recognizes those that make postsecondary 
education more attainable.
  H. Res. 378 draws attention to prepaid tuition plans. These plans 
allow families to prepare for the cost of a postsecondary education by 
planning ahead, saving wisely, and reducing the tax burden on such 
academic savings that will be used to send students to college in the 
future.
  The Committee on Education and the Workforce, and specifically 
Representatives McKeon's subcommittee, is in the midst of the 
reauthorization of the Higher Education Act.

[[Page 25857]]

Members are carefully examining a range of issues, including dramatic 
tuition increases, the need to expand access--particularly for non-
traditional college students--and what appears to be a troubling lack 
of transparency in higher education.
  Often, I expect, we hear from concerned parents that college costs 
are out of hand and that they will not be able to afford a 
postsecondary education for their children. Keeping college affordable 
is no simple task, and finding solutions will not be easy. However, I 
believe that prepaid tuition plans offer parents some options for 
dealing with the college cost crises. I urge my colleges to support 
this resolution that recognizes the schools that participate in these 
plans.
  Mr. McKEON. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Stearns). The question is on the motion 
offered by the gentleman from California (Mr. McKeon) that the House 
suspend the rules and agree to the resolution, H. Res. 378, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the resolution, as amended, was 
agreed to.
  The title of the resolution was amended so as to read: ``A resolution 
recognizing the more than 200 independent colleges and universities 
that together have addressed the need to help families pay for the 
increasing cost of attending college by creating the first nationwide 
prepaid tuition plan.''.
  A motion to reconsider was laid on the table.

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