[Congressional Record (Bound Edition), Volume 151 (2005), Part 1]
[Extensions of Remarks]
[Pages 137-138]
[From the U.S. Government Publishing Office, www.gpo.gov]




            HIGHER EDUCATION AFFORDABILITY AND FAIRNESS ACT

                                 ______
                                 

                           HON. RUSH D. HOLT

                             of new jersey

                    in the house of representatives

                        Tuesday, January 4, 2005

  Mr. HOLT. Mr. Speaker, today, education--and higher education in 
particular--is more important than ever to solving the most pressing 
problems of our communities and the country.
  Let me give you some sobering statistics:
  According to Nellie Mae, the average undergraduate student loan debt 
has increased the last 5 years from $11,400 to $18,900.
  Today, 70 percent of federal student aid is made in loans; Grants 
account for only 22 percent of aid. Thirty years ago, student loans 
accounted for about 25 percent and grants about 70 percent of all 
federal student aid.
  Seventy-five percent of full-time students now work to help cover 
their college expenses. Twenty percent of working students work 35 or 
more hours a week while enrolled in school full-time.
  In 1975-76 the maximum Pell Grant award covered eighty-four percent 
of an average tuition at a state school; today it covers forty percent.
  The generation often referred to as the ``baby boom echo'' will soon 
enter American institutions of higher education, resulting in record 
enrollments that will further strain the ability of colleges and 
universities to deliver a quality education to their students.
  That is why I am introducing the Higher Education Affordability and 
Fairness Act.
  It would make college tuition deductible, in conjunction with 
existing tax benefits for higher education. The proposal would further 
allow a family to deduct up to $10,000 in tuition expenses. A family 
would be capped at deducting a total of $15,000 in tuition expenses in 
one year if they have more than one child in college. In addition, if a 
family was ineligible for the Hope Scholarship (due to its income 
limitations), they would be able to deduct $5,000 of tuition costs.
  The bill would raise the income limits for eligibility for Hope 
Scholarships. Currently, the income phase-out on the HOPE tax credit is 
$40,000 to $50,000 for singles and $80,000 to $100,000 for couples. The 
proposal would raise the phase-out ranges to $50,000 to $60,000 for 
singles and $100,000 to $120,000 for couples, allowing more families to 
benefit.
  In order to ensure that savings go to the intended beneficiaries, the 
bill directs the Inspector General of the Department of Education to 
conduct an annual study to examine

[[Page 138]]

whether the federal income tax incentives to provide education 
assistance affect higher education tuition rates.
  Access to an affordable, quality education is inseparable from our 
economic prosperity, national security, and civic health. We must do 
everything possible to support this and that is why I have introduced 
the Higher Education Affordability and Fairness Act.

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