[Congressional Record (Bound Edition), Volume 150 (2004), Part 7]
[Extensions of Remarks]
[Pages 8541-8542]
[From the U.S. Government Publishing Office, www.gpo.gov]




          INTRODUCTION OF THE COLLEGE ACCESS & OPPORTUNITY ACT

                                 ______
                                 

                          HON. JOHN A. BOEHNER

                                of ohio

                    in the house of representatives

                         Wednesday, May 5, 2004

  Mr. BOEHNER. Mr. Speaker, in 1965, Higher Education Act was 
established to assist low and middle income students striving for a 
higher education. It was as simple as that; the law was put into place 
to ensure college access for those who might not otherwise be able to 
afford it.
  In the last two years, I and other members of the Committee on 
Education & the Workforce have worked tirelessly to craft higher 
education legislation that will live up to that original mission. Our 
number one priority is, and must be, expanding college access for 
current and future students.
  Today's introduction of the College Access & Opportunity Act 
represents the culmination of those efforts. We are pleased to be 
offering a bill that ensures students are priority number one, and are 
proud to have worked closely with the stakeholders of America's higher 
education system to have produced legislation that meets our principles 
of access, affordability, accountability, and quality; abiding by these 
principles has produced a measure that will ultimately ensure fairness 
for low and middle income students.
  The College Access & Opportunity Act includes comprehensive reforms 
that will strengthen Pell Grants, student aid, college access, and 
Minority Serving Institutions. The bill will reduce loan costs and fees 
for students, and eliminate red tape for students and graduates. The 
College Access & Opportunity Act also includes steps to remove barriers 
for non-traditional students, and importantly, will empower consumers 
through increased sunshine and transparency in college costs and 
accreditation.
  The bill will benefit students in numerous ways; in fact, there are 
far too many student benefits for me to list individually today. 
However, I'd like to describe some of the highlights of the bill that 
will show just a few of the many ways the College Access & Opportunity 
Act will expand college access for current and future students aspiring 
for the dream of a college education.
  The College Access & Opportunity Act strengthens college access 
programs, particularly those serving students who may struggle to enter 
higher education. The bill enhances TRIO and GEAR UP programs targeted 
to first-generation, non-traditional and minority students, and ensures 
low-income working adults can also receive the valuable services 
provided through these access programs.
  In Pell Grants, which are the cornerstone of federal need-based 
student aid, the bill includes an initiative we call ``Pell Grants 
Plus'' to provide additional Pell Grant aid to needy students who have 
completed a rigorous high school curriculum through the State Scholars 
program. The proposal, similar to one offered by President Bush in his 
FY 2005 budget request, would not only provide up to $1000 of 
additional Pell Grant assistance to Pell-eligible students, but would 
also serve as an incentive for more states to participate in the State 
Scholars program and prepare more students to excel in higher 
education.
  The bill also repeals the unfair limit on Pell Grants called 
``tuition sensitivity,'' which punishes very low cost schools and the 
students who attend those schools by reducing their Pell Grant aid they 
can receive. In addition, the College Access & Opportunity Act would 
permit year-round Pell Grants to allow students to accelerate their 
studies and graduate sooner.
  Because Minority Serving Institutions play an important role for 
expanding college access, the bill makes a number of reforms designed 
to strengthen these institutions and allow them to better serve their 
students. For instance, the bill would make it easier for these schools 
to use technology to improve education, and would reduce red tape that 
creates unnecessary burdens as they apply for grants.
  Importantly, the bill would make the student aid funding provided 
through the campus-based aid programs more fair and equitable. By 
phasing out unfair advantages given to

[[Page 8542]]

older, more well-established schools, the College Access & Opportunity 
Act would ensure these funds are targeted to the students who need them 
the most.
  Chief among our principles for reforming higher education was the 
need to increase accountability, and the College Access & Opportunity 
Act includes a number of steps that will accomplish that goal. By 
empowering the consumers of higher education--students and parents--
with information, we will ensure they can fully exercise their power in 
the marketplace of higher education. Be it adding transparency to 
college costs or adding sunshine to the accreditation process, the bill 
will give consumers access to significant new information to help them 
make their own best decisions about higher education.
  The College Access & Opportunity Act also includes a number of 
significant reforms to the multi-billion dollar federal student loan 
programs, with major steps to realign resources in order to better 
serve low and middle income students striving for a higher education.
  Federal student loans provide access to low-cost funding that many 
students need to finance their higher education. The College Access & 
Opportunity Act will expand access to this important resource in a 
responsible manner that will not allow students to be burdened by 
unmanageable debt levels.
  The bill will update loan limits for first and second year students, 
ensuring more money is available at the beginning of students' studies 
when loan limits are significantly lower and students may struggle with 
college costs. However, the bill will not increase the aggregate 
borrowing limits, ensuring students are not saddled with higher overall 
debt levels. The bill also reduces origination fees for students, an 
important step that will ensure students have access to more of the 
money they borrow.
  In order to make these positive reforms that provide students with 
greater access to student loan resources, the bill includes significant 
realignment of federal resources within the loan program. The bill 
would limit excess subsidy payments made to lenders, changing 
provisions in current law and requiring lenders to return excess income 
that can be better used to expand student access.
  The bill will eliminate the anti-consumer ``single-holder'' rule, 
which needlessly limits consumers' ability to shop around for the best 
deal on a consolidation loan by requiring borrowers to consolidate with 
their current lender if that lender holds all their loans. The bill 
will also ensure consolidation loans are provided under the current 
variable interest rate structure provided for other federal student 
loans, eliminating unfair treatment of borrowers based simply on the 
date the loans are consolidated. The variable interest rates for 
consolidation loans will ensure all consolidation borrowers have access 
to low rates while being protected from interest rates that rise too 
high through an interest rate cap.
  In addition to ensuring consolidation loans are provided under the 
current successful variable rate structure, the bill will also prevent 
other student loans from moving to a fixed rate as they would in 2006 
unless we take action to prevent that change. Without preserving the 
current variable rate structure for these loans, borrowers would be 
forced to pay 6.8 percent interest rates on all loans. With borrowers 
today paying 2.82 percent in school and 3.42 percent in repayment, it 
would be shameful to impose an arbitrary fixed interest rate that would 
double the rate available to borrowers today.
  While strengthening the loan programs to better serve borrowers, the 
College Access & Opportunity Act will also protect the credit history 
borrowers earn while repaying these loans. The bill will require 
lenders to report federal student loan information to all national 
credit bureaus, ensuring borrowers are given the positive credit 
history they earn by repaying their student loans.
  Recognizing that the face of America's higher education system has 
changed significantly in recent years--both the students and the 
institutions that serve them--the bill will ensure all colleges and 
universities are treated fairly as they seek to better serve students. 
The bill will repeal the unfair 90-10 rule, a requirement imposed only 
on proprietary schools. The 90-10 rule was implemented as a safeguard, 
yet there is no evidence it reduces fraud and abuse and significant 
evidence that it may reduce access for the neediest students by forcing 
schools to raise tuition or move out of inner cities where many 
students are receiving full federal funding.
  The bill also recognizes the importance of distance education at the 
forefront of technological advancements that can give students new 
opportunities to learn. By eliminating the 50 percent rule, which 
restricts the number of students that can be enrolled in distance 
education and the number of courses an institution may offer via 
distance education, the College Access & Opportunity Act will increase 
access to quality higher education through alternate channels. The bill 
would maintain and even enhance safeguards to ensure the integrity of 
these programs, while removing restrictions that prevent innovation and 
expanded use of new technology for student learning.
  Finally the bill will no longer include separate definitions of 
institution of higher education, placing all eligible schools on an 
even playing field as they work to provide higher education to their 
students.
  The College Access & Opportunity Act is important legislation that 
will help fulfill the original mission of the Higher Education Act--
expanding college access. By placing students as our first priority, we 
are bringing forward a bill that I am proud to say will significantly 
improve higher education in America. I am pleased to be offering this 
legislation with my good friend Rep. McKeon, and am eager to move 
forward with these important reforms to ensure access, affordability, 
accountability, and quality.

                          ____________________