[Congressional Record (Bound Edition), Volume 153 (2007), Part 3]
[Extensions of Remarks]
[Page 3926]
[From the U.S. Government Publishing Office, www.gpo.gov]




           INTRODUCTION OF THE STUDENT AID REWARD ACT OF 2007

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                           HON. GEORGE MILLER

                             of california

                    in the house of representatives

                       Tuesday, February 13, 2007

  Mr. GEORGE MILLER of California. Madam Speaker, I rise today along 
with Representative Thomas Petri to introduce the Student Aid Reward 
Act of 2007, the STAR Act, a bill that is a vital part of strengthening 
America's middle class.
  Since 2001, tuition and fees at public colleges and universities have 
exploded, increasing by 41 percent--after inflation. Students are 
graduating with greater amounts of debt than ever before, and 
unfortunately as many as 200,000 prospective students each year decide 
not to go to college because they can't afford it.
  Already in this Congress we have taken great strides toward making a 
college education affordable for all qualified students through 
increased grant aid and more affordable student loans.
  The Student Aid Reward Act continues the mission of putting students 
and families first by providing additional need-based grant aid to 
students without any cost to the taxpayer.
  This legislation is simple: It encourages colleges to use the less 
expensive of the federal government's two student loan programs, and 
puts the savings back into the hands of students through need-based 
grant aid.
  In order to do this, the Student Aid Reward Act calls on the 
Secretary of Education to determine which of the two Federally backed 
student loan programs is more efficient. Schools that elect to use the 
more efficient program would then be rewarded with additional 
scholarship funds for and graduate fellowship money for low- and 
middle-income students--all paid for by the savings generated by the 
bill.
  According to the President's recently released 2008 education budget, 
student loans made through the more expensive program in 2007 cost $3 
more for every $100 lent than the same loans made with U.S. Treasury 
funds.
  At a time when our Federal Government is facing an extreme deficit, 
this is a win-win bill for students, families, and taxpayers. This bill 
will not only increase efficiency in the loan programs, but will also 
generate increased competition, resulting in increased benefits for 
students and families.
  The Student Aid Reward Act has also been introduced in the Senate by 
Senators Edward Kennedy and Gordon Smith.
  No qualified person should ever be prevented from going to college 
because of the cost. We must ensure that every student in this country 
has the opportunity to pursue their dreams.

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