[Congressional Record (Bound Edition), Volume 160 (2014), Part 10]
[Senate]
[Pages 14716-14726]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          LEGISLATIVE SESSION

                                 ______
                                 

  BANK ON STUDENTS EMERGENCY LOAN REFINANCING ACT--MOTION TO PROCEED--
                               Continued

  The PRESIDING OFFICER. The Senate will resume legislative session.
  Under the previous order, the time until 4 p.m. will be controlled by 
the majority and the time from 4:00 to 5:00 will be controlled by the 
Republicans.
  The majority leader.
  Mr. REID. I ask unanimous consent that the time for the Democrats be 
until 4:05 p.m. and the same with Republicans, 5:05 p.m.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The PRESIDING OFFICER (Mr. Manchin). The Senator from Michigan.
  Ms. STABENOW. Thank you, Mr. President.
  I am very pleased to join with a number of colleagues today 
representing all of those in our conference who are deeply concerned 
about the mound of debt that students incur when they are doing the 
right thing.
  We say: Go to college, work hard, get skills for this new economy, 
come out so you can be successful. Having done that, too many of them 
are coming out with mounds of debt--crushing debt--that is stopping 
them from buying a house, starting a business, and moving forward with 
their future. There is something that can be done about that, and that 
is what we are here to talk about and invite our Republican colleagues 
to join us.
  There was a filibuster a number of weeks ago against our student loan 
debt bill, the bank on students bill. We have an opportunity today to 
come together, rather than seeing a Republican filibuster, to join in a 
bipartisan way to provide incredibly important relief to millions of 
not only young people but older people across the country who are still 
struggling with student loan debt.
  In every generation there are young Americans from middle-class 
families who have the grades to go to college but not the financial 
resources. They take out student loans because they know that before 
they can get the job they want to be able to get a fair shot at the 
American dream, they have got to have a degree, and that is what they 
are taught. That is what we all tell our children. That is what I was 
told as well. What they are looking for is a degree, not debt. 
Unfortunately, by the time students graduate, they are in fact saddled 
in today's world with mounds of debt.
  To address this problem, Senator Warren, Senator Franken, and I and 
many Democratic colleagues have joined to introduce the bank on 
students emergency loan bill. It would allow responsible borrowers to 
refinance their loans at lower rates, the rates from last year, the 
lowest possible rates in place. These are rates that are currently only 
available to new borrowers. We think everyone ought to have an 
opportunity to do that. In fact, with lower interest rates, we have 
seen so many people, including many of us, refinancing their homes, 
taking advantage of lower interest rates, being able to use lower 
interest rates in other ways. But students have been prohibited--anyone 
with a student loan has been prohibited from refinancing. That is plain 
wrong, and our bill addresses that.
  Passing this bill would help more than 25 million Americans. I cannot 
think of any one single thing we could do that would immediately help 
25 million people, including 1 million hard-working people in the State 
of Michigan.
  A mother named Frances from Macomb County outside of Detroit wrote to 
me on September 6, and she talked about her children. She has two 
children. Both of them chose jobs that serve the public. One is a 
teacher and one is a nurse. Because of the loans they took out when 
they were working hard to get their way through college, their student 
loan debt now is nearly $100,000--$100,000.
  In Michigan, 62 percent of college students have debt when they 
graduate. The average is about $29,000, although I have talked to 
people with not only the $100,000 debt I just mentioned but young 
professionals with $185,000 or $200,000 debt if they have gone to 
graduate school or medical school or law school, and it can be even 
higher.
  On the other end of the spectrum, there are some Americans who worked 
all their adult lives and are now retired, and in fact they are on 
Medicare and they are still paying student loan debt. This is wrong. We 
need to act to change this.
  The total student loan debt in this country right now is $1.2 
trillion. That is more than credit card debt--more than credit card 
debt, $1.2 trillion. If you put it another way, after every one of the 
7.2 billion people--men, women, and children in the world--if everybody 
in the world donated $165 to pay off America's student loan debt, it 
still wouldn't be quite enough.
  This is something with a great sense of urgency to it. This bill 
needs to pass. We need to pass it now. If this passes, it means parents 
can save for their children's education, for a home, can start a 
business, can afford their car, can begin saving for their own 
retirement instead of just paying off student loan debt. These aren't 
luxuries, these are basics, basics of the American dream.
  Everyone in this Chamber can agree that America isn't strong without 
a vibrant middle class, and, frankly, it is outrageous that we have 
allowed this situation to go on where the only way to do the right 
thing, to get the skills needed to get ahead, is to put yourself in 
such jeopardy with student loan debt. We can do better than that.
  I strongly urge my colleagues to join us in helping millions of 
American workers to manage their student loan debt more effectively, 
saving thousands--tens of thousands--of dollars in interest payments. 
We can help right now.
  This is something where we could jump-start the economy, as the 
Federal

[[Page 14717]]

Reserve Chairman said--jump-start the economy right now by passing this 
bill and being able to lower the cost of student loans.
  It is now my great pleasure to turn to a champion not only on this 
issue but on the broader question of making sure that every American 
has a fair shot to make it so that we have a strong middle class in 
this country.
  I yield 5 minutes to the distinguished Senator from Wisconsin, Ms. 
Baldwin.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from Wisconsin.
  Ms. BALDWIN. It is a delight to join Senator Stabenow on the floor to 
talk about this critical issue that is a growing crisis here at home in 
America and threatens Americans' economic strength and competitiveness.
  As you have heard, today there is a debt crisis in America. Student 
loan debt is more than $1.2 trillion, and that is holding back an 
entire generation and creating a drag on our economy. It is a crisis 
that demands action from Washington.
  Once again, Congress is failing the American people by refusing to 
work together to confront it. In June the Senate took a vote on the 
Bank on Students Emergency Loan Refinancing Act, which I am proud to 
cosponsor. While it received majority support in this body, a minority 
of Republicans obstructed the bill and prevented it from moving 
forward.
  The choice was clear, and opponents addressing the student debt 
crisis chose to protect tax loopholes for millionaires and billionaires 
instead of helping give students a fair shot at getting ahead and 
providing relief to middle-class families struggling with student loan 
debt.
  I believe every student in America deserves a fair shot at an 
affordable education, and I believe college education should be a path 
to the middle class and not a path to indebtedness.
  Nearly 40 million students and graduates in America have outstanding 
student loans. The total amount of student debt in the United States 
has tripled in the past decade. According to new data from the Federal 
Reserve, student loan debt grew by $31 billion from January to March of 
this year. In my home State of Wisconsin, almost 70 percent of the 
students graduating from 4-year institutions will have student loan 
debt and the average debt amount will be $28,000. That is real money. 
That is real money that isn't going toward buying a car or a first 
home. It is real money that isn't going into growing our economy at a 
time when we so desperately need economic growth.
  To help give Americans a fair shot at getting out from under that 
burden of student loan debt, we should let borrowers refinance at 
today's lower rates. That is why we are pushing for a vote on the Bank 
on Students Emergency Loan Refinancing Act. This legislation will allow 
those with outstanding student loan debt to refinance. It is pretty 
simple: It is paid for through the Buffett rule by making millionaires 
and billionaires pay their fair share of taxes to give our students a 
fair shot at a bright future, and it will help strengthen the economic 
security of the American families who are struggling with this debt.
  The Department of Education estimates that 25 million borrowers in 
the United States could benefit from refinancing under this 
legislation, including just over half a million Wisconsinites.
  I have traveled the State of Wisconsin and listened to students and 
graduates who are struggling with student loan debt. They shared their 
concerns and the burdens that the cost of a higher education puts on 
them and their families. They asked me to bring their stories and their 
messages to Washington, DC.
  One graduate student said she lives with her fiance's parents to save 
money. Another said her husband borrowed against his 401(k) so that the 
couple could afford daycare for their children while she attends 
school. Another woman said she owes about $27,000 in loans. When she 
tried to buy a $6,500 car, she needed her grandfather to cosign because 
she would not have been able to get the loan on her own. I heard from a 
woman in Green Bay, WI, who is strapped with $600-a-month payments for 
her student loans.
  The failure of Washington to hear these voices and take action is 
holding them back, and it is holding back our economy. This money isn't 
going to support small local businesses that are working so hard to 
move our economy forward. That is why we should seize this opportunity 
today to pass the Bank on Students Emergency Loan Refinancing Act. By 
allowing student loan borrowers to transfer their loans into the 
Federal program and by closing costly tax loopholes for billionaires 
and millionaires, we are solving a major economic crisis in a 
meaningful and effective way. It is the least we can do to address the 
student loan debt crisis, but it is not all we can do.
  Last week I had the opportunity to introduce two bills to help 
address the larger issue of student debt and college affordability. My 
legislation targets working students and students enrolled in career 
and technology education programs. My Working Student Act will allow 
students who must work while in college to complete their degrees more 
quickly and with less debt. The new legislation increases the amount 
working students can earn without that income counting against them in 
accessing need-based Federal financial aid, including Pell grants.
  In addition, some career and technical education students cannot 
access Federal student aid to help them advance their careers, and that 
is why I have introduced the Career and Technical Education Opportunity 
Act. This legislation simply allows CTE students enrolled in short-term 
programs that lead to industry-recognized credentials to also qualify 
for Federal student aid. CTE is one of the most effective vehicles to 
respond quickly to labor market changes and workforce readiness needs 
of business and industry.
  My legislation will help ensure that Federal investments are 
supporting ``ready-to-work'' education.
  One thing is clear: There is a lot more we can do in Washington to 
give a much needed break to people struggling to build a stronger 
future for themselves, their families, and for America. I am pleased 
that in a short while Senator Warren will call for a vote on this 
important matter. We have a chance today to make a powerful difference 
in the lives of millions of students and graduates. Let's do so.
  I yield back my time.
  Ms. STABENOW. Mr. President, it is now my great pleasure to yield to 
the distinguished Senator from New Hampshire. I have to say that 
Senator Shaheen's voice has been strong and clear. She has been one of 
our strongest advocates as far as what we need to do on student loan 
debt and also making sure middle-class families have a shot to get 
ahead. We are very pleased to have the Senator from New Hampshire, and 
I yield 5 minutes.
  Mrs. SHAHEEN. I thank Senator Stabenow and Senator Baldwin.
  I am pleased to be on the floor today joining the distinguished 
Senator from Michigan, Ms. Warren, Senator Franken, and all the other 
Senators who will be here to speak on the Bank on Students Emergency 
Loan Refinancing Act. This is a critical piece of legislation, and it 
will allow eligible borrowers who took out student loans prior to 
January 1, 2013, to refinance those loans at a lower interest rate. You 
can refinance a car and you can refinance a mortgage, but you cannot 
refinance a student loan.
  We have heard from literally hundreds of students and residents in 
New Hampshire who are no longer students but who are trying to pay back 
loans after years of having to try to pay back the loans and start 
their lives. Supporting this bill is a commonsense way we can come 
together to help the millions across this country who are struggling to 
pay back their student loans. This is especially important to New 
Hampshire because we rank second in the country in average debt per 
graduate--almost $33,000 per graduate for student loans. According to 
recent estimates, almost 130,000 New Hampshire residents could benefit 
from this bill. These folks need some relief from their student debt 
burden because it often comes at interest rates that are

[[Page 14718]]

higher than they pay for a home or a car. It is unacceptable to leave 
these borrowers struggling with crippling debt when we have an 
opportunity to address this growing problem.
  It is not just for those people who are affected because of their own 
student loans; this has a ripple effect through our economy. I met with 
a group of realtors over the summer, and one of the things they talked 
about was how they are seeing first-time home buyers delay buying a 
home because of the cost of student loans.
  To put this issue into perspective, I wish to talk about some of the 
people I have met who have been burdened by their student loans.
  I first met Calvin, a young soldier from New Hampshire, at Walter 
Reed Medical Center. He was recovering from losing his leg after 
stepping on an IED in Afghanistan. He was married and had a young 
child. We were talking about the challenges he was facing after he 
recovered from his injuries. What impressed me the most about our 
conversation--in addition to his commitment to this country--was that 
the issue he was most concerned about was not losing his leg or where 
he was going to get a job after he got out of the military, it was how 
he and his wife were going to pay back their student loans.
  Another college graduate--a woman from Durham, NH--wrote to me 
recently. She has a master's degree and is employed in the public 
service field. She has been working for 12 years but has not been able 
to buy a home for her family because she still has $90,000 in student 
loan debt.
  I also heard from a woman in Stratham, NH, who has a $150,000 student 
loan debt. She consolidated her loan but has a 7-percent interest rate, 
which accrues nearly $900 per month in interest alone. A lower interest 
rate would make a critical difference to this woman and her young 
family.
  Those three young people represent thousands--almost 130,000 people 
across New Hampshire--who would benefit from refinancing their student 
loans. This bill is important for New Hampshire, and it is important 
for the country.
  We should take action today for the benefit of all Americans with 
student loan debt who deserve a fair shot at the American dream and 
opportunities for themselves and their families. I urge my colleagues 
to join me. As Senator Baldwin and Senator Stabenow said, we have an 
opportunity this afternoon to make a huge step forward in addressing 
the student loan debt faced by too many Americans. I hope our 
colleagues will support the Bank on Students Emergency Loan Refinancing 
Act.
  I thank the Presiding Officer and yield the floor.
  Ms. STABENOW. Mr. President, I will yield 5 minutes to the 
distinguished Senator from Minnesota, and as one of the lead sponsors 
of this bill, I thank Senator Franken for his passion and fight not 
only for people in Minnesota but for the 25 million people across the 
country who will benefit from the opportunity to be able to afford to 
go to college.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. FRANKEN. Mr. President, I thank the generous Senator from 
Michigan, and I thank the Senator from New Hampshire for her remarks 
about the Bank on Students Emergency Loan Refinancing Act.
  I have held college affordability roundtables around my State of 
Minnesota ever since I got to the Senate. It is astounding how hard 
students work while they are also in college. I remember speaking to 
the student governing body from MnSCU--the Minnesota colleges and 
universities student body--and I asked: How many of you work 20 hours a 
week? They all raised their hands. They were in the governing body. I 
said: How many of you work 30 hours a week? A few raised their hands. I 
said: How many of you work 40 hours a week? A couple raised their 
hands. These students work while going to college.
  In Minnesota students graduate with more than $30,000 in student loan 
debt. We are about fourth in the Nation. I heard Senator Shaheen say 
they are second in the Nation. This bill would help over 550,000 
Minnesotans and 25 million Americans cut down their debt and keep more 
of their hard-earned checks.
  A few months ago I had a roundtable at the University of Minnesota, 
and I met Joelle Stangler. She happened to be the student body 
president at the University of Minnesota. She was the valedictorian of 
Rogers High School in Minnesota with a 4.12 GPA. She doesn't lack 
motivation. Both of Joelle's parents were teachers. In fact, she comes 
from a long line of educators going back six generations.
  You will see why I am telling this story.
  A couple of years ago Joelle's mother Cassie Stangler made the tough 
decision to quit her job as a fifth grade teacher to go to work in the 
private sector because she could make more money in the private sector. 
She needed to do this because she had four kids in college. Among the 
fifth grade classes in Mrs. Stangler's school district, her students 
showed some of the highest rates of improvement in test scores. This is 
what I am talking about--we lost a great teacher because of the expense 
of postsecondary education.
  Even with her mom's sacrifice, she has $12,000 in student loans, and 
she estimates that her total debt will be around $30,000 by the time 
she graduates.
  There are so many students such as Joelle who are drowning in debt in 
Minnesota and across the country. Student debt totals are over $1.2 
trillion, and it is a threat to our economy. We are seeing young people 
delay decisions to start a business, to start a family, to buy a home, 
or make other types of purchases that make an economy grow. But there 
are commonsense solutions, and they are contained in our Bank on 
Students Emergency Loan Refinancing Act.
  Our bill simply allows students and graduates to take advantage of 
lower interest rates and refinance their loans. That is what people 
with mortgages, car loans, and business loans can do. They can take 
advantage of lower interest rates and refinance their loans, but the 
government will not refinance student loans, and that is just not 
right.
  In the summer of 2013 we came together in Congress to prevent the 
interest rate on new student loans from doubling. Thanks to that 
effort, undergraduate students taking out new loans now pay a lower 
rate. Our bill would enable students and graduates who are saddled with 
higher interest rates on their undergraduate loans to refinance at the 
same lower interest rate. The bill would similarly enable Americans 
with graduate student loans or PLUS loans to refinance at lower rates.
  Student debt is holding Americans back, it is holding back our 
economy, and that is why we need to pass this bill.
  I thank the Presiding Officer and yield to the Senator from Michigan.
  Ms. STABENOW. Mr. President, I yield to the distinguished Senator 
from New York, who not only is a leader on this issue and so many other 
issues but is the author of a major tax credit in our Tax Code that 
allows middle-class families to be able to get help for college. There 
is not a bigger champion for middle-class families than the senior 
Senator from New York.
  Mr. SCHUMER. Mr. President, I thank my colleague and dear friend from 
Michigan for the great work she has done as chair and vice chair of the 
DPCC. We have worked very hard on this ``fair shot'' agenda. We believe 
it is resonating with the American people.
  When our colleagues on the other side of the aisle oppose simple 
measures such as a fair shot at getting out of poverty if a person 
works 40 hours a week, a fair shot for a woman to get equal pay to a 
man, and a fair shot to prevent jobs from being sent overseas to get a 
tax break, they know what we are talking about. Perhaps no issue 
resonates more than a fair shot for people to be able to afford college 
and then repay their loans with a reasonable amount of money.
  Probably the greatest problem America faces is the decline of middle-
class incomes. They have been declining since 2001. If they continue to 
decline

[[Page 14719]]

for another decade, whoa is America, whoa is America.
  America has been expanded--has grown to the greatest country in the 
world on the notion of opportunity. In my harbor sits a lady with a 
torch. That torch symbolizes the American dream to just about every 
American and most citizens in the world. What is the American dream? 
What does that torch symbolize? If we ask the average American, they 
wouldn't put it in fancy words or highfalutin language. They would say: 
It means if I work hard, I will be doing better 10 years from now than 
I am doing today, and my kids will be doing better than I.
  Nothing keeps that American dream burning more brightly than the 
ability to afford a college education.
  The bottom line is simple. The statistics show that in our new and 
technological world, those who have a college education, whether it is 
an A.A. degree or a B.A. degree or higher, do a lot better economically 
than everybody else. Amazingly enough, they do better in other ways in 
terms of how good their health is, in terms of their longevity, in 
terms of their happiness.
  So college, which used to be a rare commodity 100 years ago, is now 
almost a necessity to millions of Americans. Yet it is so expensive. It 
is expensive in two ways. First, it is hard to get there. We have been 
working very hard on the American opportunity tax break, which my 
friend from Michigan mentioned, reducing the rate of student loans for 
those who are already in college, and many other ideas we have pursued 
to try to make college affordable for families who have someone in 
college or will enter college in future years.
  There is another huge problem as well. Those who have been to college 
have huge amounts of debt and they are paying this government far more 
interest than would be paid on the market. We can refinance almost 
everything--mortgages, cars, loans on jewelry--but we cannot refinance 
college loans the government has given us. So people are paying 6, 7, 8 
percent; whereas, if they went to a bank on their own, they would pay 
less.
  How dare the Federal Government make money on the backs of young 
people who are struggling to pay back their debt. Boy, does it hurt 
those families. It prevents them from starting businesses, buying 
homes, going on vacation, and many delay their marriages. So there 
could be nothing that would make millions and millions of Americans 
happier economically. There could be nothing that would help people get 
a fair shot and a decent education, the ability to repay, than this 
simple bill put together largely by the Senator from Massachusetts, 
Elizabeth Warren, who has done a great job.
  It is hard to figure why our colleagues oppose this. They have some 
distrust in the Federal Government. In this area we do too. We think 
the Federal Government is demanding too much money to repay loans. Why 
don't they join us?
  The cost of tuition goes up and up, the cost to repay goes up and up, 
and the burden on the backs of so many goes up and up.
  So all we want is a fair shot for everyone to be able to afford 
college and to be able to repay. This should have been a bipartisan 
bill; it is not right now, but maybe there will be a change of heart. I 
will tell my colleagues this: This will become law, maybe not today but 
in the next months and next year. It has become an issue in campaigns 
throughout the country. This is an issue that resonates with voters--
Democratic, Independent, Republican, liberal, conservative, North, 
South, East, and West, and we will keep fighting until every American 
has a fair shot at affording college and repaying their loans.
  With that, I yield back to the Senator from Michigan, who has been 
kind enough to put together this hour of debate.
  Ms. STABENOW. Mr. President, I thank my friend from New York, who has 
been so passionate on the broad question of how do we have a fair shot 
as Americans to get ahead and particularly as it relates to 
affordability and college loan debt.
  We are so pleased to have another champion with us from the great 
State of Maryland. I yield now to Senator Cardin from Maryland.
  Mr. CARDIN. Mr. President, let me thank Senator Stabenow for 
organizing this time to underscore the importance of a fair shot for 
everyone to afford a college education.
  Earlier this month Senator Mikulski and I met with students. We met 
with students from the University of Maryland Baltimore County. We met 
with students from Bowie State College. We sat around a table and 
listened to their stories. Bowie State College is one of our 
historically Black colleges and universities in America with fairly 
reasonable tuition costs--much lower than most State colleges and 
certainly a lot lower than private schools. So Senator Mikulski and I 
were shocked to find that the average amount of debt today at a State 
college such as Bowie is over $27,000 for a graduating senior. That 
affects their decisions.
  We were there during the first week of school and we talked to the 
president, and the president said he still doesn't know the enrollment 
this year because there are a lot of students who have preenrolled, but 
until they have paid their costs, they are not fully enrolled, and a 
lot aren't fully enrolled because they didn't know how to pay for their 
costs. We also heard from students who said they showed up for class 
and several of the students didn't even have textbooks because they 
couldn't afford to buy their textbooks. Then we heard from students who 
said: Look, it is difficult enough to afford a 4-year college 
education, but the average length of time to get a degree was 6 years. 
Why? Because they have to work in order to pay for part of their 
schooling to keep their debt down. They couldn't graduate earlier. The 
courses are only offered certain times of the year, and it took them 6 
years to get the required amount.
  We have heard the numbers. The amount of student debt outstanding is 
$1.3 trillion--more than credit card debt. In the United States, of a 
family's income, it takes maybe half the income to afford a college 
education. For the rest of the industrialized world, it is between 5 
and 10 percent. We can't be competitive with that rate. Education is a 
great equalizer in this country and we have outpriced ourselves.
  We have a chance to do something about it today. I will give one more 
example, if I might. I was at a 4-year college this year and I was 
speaking to a student who was a second-year student going into her 
third year, and she said she was going to drop out. I asked her: Why 
are you going to drop out? Are you not doing well in school? She said: 
I get straight A's. I am dropping out because I can't justify to my 
family taking out more debt, knowing what the interest costs are going 
to be to my family.
  It broke my heart. That is the situation.
  We need to have greater budget support for public colleges and 
universities. We need to increase Pell grants. We need to make Pell 
grants 12 months a year because some of these courses are only offered 
in the summertime and that is when students can make it up. Senator 
Harkin has a bill in to do that, and we need to do that. There are a 
lot of steps we need to take, but today we could take a giant step 
forward with interest costs.
  My colleague Senator Elizabeth Warren will be making a request. We 
have a chance to pass this bill today in the Senate that would say it 
is wrong for the Federal Government to make $66 billion on the interest 
flow. From 2007 to 2012 the Federal Government made $66 billion on the 
difference between what they charge in interest and what the cost is to 
the government. To me, that is the worst tax on the most vulnerable in 
our community, and we should eliminate that. That is what the Warren 
bill does.
  The bill says let our students refinance their loans. By the way, it 
is not just young people. There are several million Americans over the 
age of 50 who have student debt. This is a lifetime burden. Let them 
refinance so they can take advantage of the lower

[[Page 14720]]

interest rates and save several thousand dollars doing that. We have a 
chance to do that today.
  I urge my colleagues to allow us to take up this legislation and 
let's pass it. Let's show the people of this Nation that we want a fair 
shot for everyone to afford a college education. I am proud to be a 
part of the Senators who are on the floor urging this to happen. Again, 
I thank my colleague Senator Stabenow for her leadership on this issue.
  Mr. REED. Mr. President, I join with my colleagues to urge the Senate 
to take up and pass the Bank on Students Emergency Loan Refinancing Act 
led by my colleague from Massachusetts, Senator Elizabeth Warren.
  This is about fairness, it is about values, and it is about what is 
best for our students and our shared economic future.
  Earlier this month Senator Whitehouse and I held a roundtable with 
Rhode Islanders about student loan debt. Rhode Island ranks in the top 
five for the amount of debt students incur to earn an undergraduate 
degree. We heard from a teacher who works a second job to help make his 
loan payments and a parent who worries how she will be able to help her 
son pay for college while she is still making loan payments. We heard 
from Rhode Island realtors about the impact student loan debt is having 
on the housing market.
  This is an issue that strikes home for all of us. Even our Nation's 
seniors are impacted. GAO recently reported that from 2002 through 
2013, the number of individuals whose Social Security benefits were 
offset to pay student loan debt increased fivefold. Think about it. 
These are senior citizens who are paying off student loans. Their 
actual Social Security benefit checks are being affected by student 
loan debt. That is something I find disturbing and completely 
unpredictable.
  If you would have asked me 2 or 3 or 4 years ago--certainly if you 
asked me 30 years ago when I was in my thirties or so, I would have 
said, no, that wouldn't happen. That would have been impossible back 
then because we had a country that supported students through college. 
The Pell grant and Stafford loans were such that people had a chance to 
pay them off rather quickly and then go on to buy a home, establish a 
family, and then use their resources for their retirement or to help 
their grandchildren a little bit with their student loans.
  When it comes to student loans, we are in this incredible situation. 
Since 2003, student loan debt has quadrupled to an estimated $1.2 
trillion, and the interest rate on undergraduate student loans was 3.86 
percent for the last year. Yet many borrowers are locked into loans at 
6.8 percent or higher with no way to refinance.
  Just last year the GAO estimated that the Federal Government would 
earn an estimated $66 billion from student loans originated between 
2007 and 2012. Again, in the 1950s and certainly in the 1960s--but 
particularly after the Pell Grants in the 1970s--we were investing in 
students. They were our future, not profit centers. We are now 
generating--over a 5-year period--$66 billion. Student loans are 
supposed to be an investment to help individuals reach their potential 
and strengthen communities, not just a revenue generator. Approximately 
25 million Americans could benefit from refinancing, including 88,000 
in Rhode Island. They could lower their monthly payments if they could 
just refinance their student loans.
  One of the ways we have been trying to help is by allowing borrowers 
with high fixed rates on their student loans to refinance at a lower 
rate. That is the simple premise behind the Bank on Students Emergency 
Loan Refinancing Act that I am proud to cosponsor with Senator Warren 
and many of my colleagues.
  In June the Senate fell just shy of the number of votes needed to 
move forward on this legislation. Today, once again, the Republicans 
will block us from taking up this legislation.
  I hope my colleagues on the other side of the aisle will reconsider 
their opposition because student loans should help people get ahead, 
not weigh them down with debt, thereby holding them and our economy 
back.
  Looking forward we also need to work together to tackle the drivers 
of the student loan debt--rapidly rising college costs and a rollback 
of the State investment in higher education.
  We need to get back to the idea that educating Americans is 
fundamentally in our national interest and that we have a shared 
responsibility--at the Federal, State, local, institutional, and 
individual levels--for investing in our future. We need to ensure that 
this generation and future generations have opportunities to develop 
their talents and pursue their dreams in order to secure a brighter 
future for them and our country.
  I urge my colleagues to join us in providing student loan debt relief 
to millions of Americans. Help us pass the Bank on Students Emergency 
Loan Refinancing Act. Help us relieve this burden of debt on so many 
young, middle-aged, and remarkably so--based on recent studies--some 
senior citizens.
  Ms. STABENOW. Mr. President, I thank the Senator.
  Let me stress what I think Senator Cardin said so eloquently. We have 
the opportunity to vote today on a fair shot for everybody to go to 
college, so we will ask our colleagues to join us. The rules of the 
Senate are such that even though we have a majority--because our caucus 
is all supporting this effort we have a majority to get this done--if 
there is an objection, we go into filibuster mode, which takes a 
supermajority. It is the way the rules are. We know we have a majority 
to pass this bill. If our colleagues don't want to vote for it, that is 
fine, but what we ought to be doing is having the vote.
  If somebody wants to stand and say this is not important, it is not a 
priority to make sure everyone has a fair shot to be able to go to 
college and not be buried in student loan debt, if they want to say 
they would rather protect those we are asking to help chip in to pay 
for this, which are millionaires and billionaires who aren't paying 
their fair share in taxes right now as middle-class families are asked 
to do--we are paying for this refinancing by closing a loophole that, 
as Warren Buffett said, shouldn't be there when he as a billionaire has 
a lower tax rate than his secretary. So we are saying join us to close 
that loophole. Take those dollars and help 25 million people--25 
million people--be able to cut thousands of dollars off of their 
payments. For me, I am laser focused on the 1 million people in 
Michigan this would help.
  Let me share a few of those stories. Nathan Collison and his wife 
live in Saginaw. They are young professionals. They have a combined 
student loan debt of $185,000. They have a 3-year-old little girl. I 
will never forget Nathan saying to me: When she is ready to go to 
college, I am still going to be paying off our student loan debt, and I 
can't afford to put money aside for my little girl to be able to go to 
college. That is not right. He and his wife both work and right now 
they are talking about $600 a month on student loan debts. As Nathan 
pointed out to me, that is a house payment. That is a good house in 
Saginaw at $600 a month. Yet it is only a fraction of the interest on 
Nathan's loans, which means his debt is going to keep growing and 
growing and growing. Just to make his debt stop growing, he would have 
to be paying $2,200 a month. So if he was going to be paying the full 
amount and not deferring part of it, it would be $2,200 a month, which 
is a very nice house in Michigan. He would like the ability to do more 
than just have a nice house. Nathan and his wife would like to put 
money aside for their little girl to be able to go to college and to be 
able to invest in their future.
  So this legislation wouldn't automatically make Nathan's debt go 
away, but it would make it a whole lot easier. If we look at $185,000 
over a 20-year period, we are talking about tens of thousands--$100,000 
in savings.
  So this is very much about having a vote today, the opportunity to 
vote. Our colleagues don't have to vote yes. They don't have to vote 
yes. We are confident we have enough votes to pass this. We just need 
to get through the procedural hurdle, the objections that trigger a 
filibuster. That is all we are

[[Page 14721]]

asking for. I think the 1 million families and the 1 million people in 
Michigan and their families, the 25 million people across the country 
who are buried in student loan debt deserve a vote. They deserve a vote 
today.
  We also talk about a young woman from Lambertville, MI. She went to 
my alma mater, Michigan State University. She graduated in 2008 and was 
on the Dean's list.
  Of course, 2008 was a disastrous year for the economy, nationally and 
certainly in Michigan, as we saw what happened to auto manufacturing. 
It was especially brutal for young people looking for work.
  Even though she graduated among the top in her class, it ended up 
taking her 4 years to find a job in her field. Today she is only making 
slightly more than minimum wage and trying to figure out how in the 
world she is going to pay off her student loan debt, let alone proceed 
with her dreams for the future.
  Last week I heard from a young man who was originally from Union 
City, MI. He was working in North Carolina when his father was 
diagnosed with a terminal illness--brain cancer. He came home--as I'm 
sure his family appreciated--to help care for his father. He was 
showing the right kind of family values to come home and help care for 
his dad.
  During the recession he lost his job in Michigan and was out of work 
for 2 years, which is why he ended up in North Carolina and ended up in 
a low-wage job with no benefits. Now he is back trying to figure out 
how he can help take care of his dad, figure out a job, and not be 
totally buried in the debt that he already has.
  His debt has been turned over to a collection agency and, counting 
the fees, he now owes $90,000 and counting. He tried to do the right 
thing not only by going to college but for his family.
  I think about how things have changed over the years--the kind of 
support we used to give. One of the great American strengths has been 
creating opportunity for people to be successful. A lot of that 
opportunity has been in relation to going to college and getting an 
education.
  I remember growing up in Clare. When I was going to high school my 
dad was very ill. We didn't have any money for me to go to school. I 
worked very hard. I was at the top of my small class of 93 people, and 
I was in a position to get a tuition and fee scholarship that allowed 
me to go to college.
  Somebody somewhere thought at that time it was important for some 
redheaded freckle-faced kid they did not know had a shot to make it. 
That has been what is best about America. Now we have tried. We have 
increased Pell grants, but certainly they need to be increased much 
more.
  We have focused on other areas, and we certainly need to do more. 
What we have seen over time is that more of what students have had to 
do is take student loans. There have been less opportunities for 
scholarships and less opportunities for grants.
  I am very sorry to say my home State has cut K-12 and higher 
education. On higher education--and more than in most States--it is in 
the top ten in student-loan debt and certainly not something I am proud 
to see happen in my home State of Michigan because of what I think have 
been upside-down values.
  What we have seen over time is that as the economy is changing, we 
are telling people who are going back to school who lost their job: You 
need to go back and get the education, the tools, and the skills for 
the jobs that are available in today's economy.
  We have new opportunities and a new economy, but it means we have to 
have new skills. We have to have an education, so students are doing 
that. They are doing the right thing. They are doing what they have 
been told to do. Then they turn around and their only option is loans.
  They take a look at the fact that somehow student loans are treated 
differently than student loan debt. You cannot get the lowest interest 
rates and refinance if you are in the unfortunate situation of going 
into bankruptcy and can't discharge those loans in bankruptcy such as 
you can other kinds of debt.
  I don't understand how we got into a place where somehow student loan 
debt is with you forever and ever. We don't have the same ability to 
allow people to manage that debt as they do other kinds of debt. But 
that is where we are in this country. There are cuts at the State level 
and tuition goes up.
  We then see a situation where more and more people have to turn to 
student loans.
  We can do something about that today. There is a lot we can do. I 
support doing all that will allow us to get us back to right-size the 
situation in terms of our values and supporting opportunity for 
education in our country.
  One thing we can do right now is to have a vote on this bill. We 
could immediately see change happen. Put more money back into the 
pockets of folks across our great country who have been doing the right 
thing and want a fair shot to make it and the opportunity to have some 
kind of help as they are paying off their student loans.
  I am so pleased to see our leader and the main author of this 
legislation join us on the floor. She understands, as we all do, and is 
someone that has been dedicated to education and higher education her 
whole life, advocating for an opportunity for people to be successful 
and have a fair shot.
  It is my pleasure at this point to turn to the distinguished Senator, 
the senior Senator from Massachusetts, and support her request as she 
moves forward this afternoon.
  I yield for the Senator.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Ms. WARREN. Mr. President, I wish to commend all of the incredible 
work that the Senator from Michigan has done on the ``fair shot'' 
agenda, how she really has been out there working hard for families 
across this country. For middle-class families, for working families, 
for people who are just trying to get a fair shot, and on education she 
has been a tremendous leader. It has been a real privilege to have this 
opportunity to work with the Senator from Michigan. I know the Senator 
from Michigan and I are going to keep working on this set of issues.
  I rise today to urge my colleagues to allow a debate and vote on the 
Bank on Students Emergency Loan Refinancing Act. Some 40 million 
Americans are dealing with student loan debt, and many of them are 
drowning in it.
  A quarter of all Federal student loan borrowers are behind on their 
payments. Student loan debt is dragging down our young people, and it 
is dragging down the economy. It is keeping borrowers from buying 
homes, moving out on their own, buying cars and opening small 
businesses.
  In June the Senate voted on a proposal to allow borrowers to 
refinance their existing student loans down to the interest rates 
offered to new borrowers. These are the same rates that nearly every 
Republican in the House and the Senate voted just last summer to offer 
to new borrowers. This refinancing bill would not add a single dime to 
the deficit. It is fully paid for by closing the tax loophole that 
right now lets millionaires and billionaires pay less in taxes than 
middle-class families. The vote on our student loan refinancing 
proposal asks Senators to make a simple choice: protect billionaires 
from paying their fair share of taxes or protect student loan borrowers 
who work hard to get an education and are struggling to stay afloat; 
protect the billionaires who have already made it big or help young 
people who are still trying to build a future.
  A majority of the Senate, including every Democrat, every 
Independent, and three Republicans sided with students in support of 
moving forward on this bill, but the rest of the Republicans blocked 
it. We heard a lot of excuses from those that oppose the bill.
  Some Republicans suggested that the benefit for our young people on 
this bill is small. I disagree. Putting billions of dollars in Federal 
student loan profits back into the pockets of Americans who worked hard 
to get an education is not small. Saving millions of Americans hundreds 
or thousands of dollars a year in excessive student-loan interest 
payments is not small. If the Republicans think the benefit is too

[[Page 14722]]

small, then work with us to offer amendments to this bill and give 
students a bigger break but don't refuse to even debate the bill.
  Some Republicans suggested that the $1.2 trillion in outstanding debt 
just isn't a big deal, that we should focus on rising college costs 
instead. Yes, the rising cost of college is a terrible problem but so 
are the outstanding loans at 6 percent, 8 percent, 10 percent, 12 
percent, and even higher. We need to fix both problems and not play 
rope-a-dope politics and say we can't fix this because we haven't fixed 
that yet.
  Millions of young people are just stuck. They can't buy homes, they 
can't buy cars, they can't save for retirement, they can't do the 
things that would help this economy grow--all because they are 
struggling under the weight of student loan debt.
  If Senators think we should do more than just refinancing, more to 
improve college accountability and to reduce the future costs for 
students, then work with us to offer amendments, but don't refuse to 
even debate the bill.
  Some Republicans don't like that this proposal is paid for by closing 
tax loopholes. If Senators don't like that, if they have other ideas, 
then they should offer amendments. But don't refuse to even debate this 
bill.
  Some Republicans even suggested that Democrats don't want this bill 
to pass. That is just plain ridiculous. Only in Washington can you vote 
against something, and then when it doesn't pass, you blame the people 
who voted for it.
  These excuses don't fool anyone. They don't fool the hundreds of 
thousands of people who have signed petitions, attended rallies, and 
called their Senators asking for a vote on this bill.
  This is not complicated. Senators can make a choice. It is a choice 
that raises a fundamental question of who this place works for. Does it 
work for those who can hire armies of lawyers and lobbyists who want to 
protect loopholes in the Tax Code to get more advantages for 
millionaires and billionaires? Does it work for the big banks with 
their armies of lobbyists who just want to maximize student loan 
profits? Does it work for young people who worked hard, who played by 
the rules, who got an education, and who are trying to build a future 
for themselves and their families?
  We are just a few votes away from breaking the Republican filibuster 
and moving forward to debate this bill. I urge my Republican colleagues 
to allow a vote and to let us debate and pass this bill.


                   Unanimous Consent Request--S. 2432

  I ask unanimous consent the Senate proceed to the immediate 
consideration of Calendar No. 409, S. 2432, the Bank on Students 
Emergency Loan Refinancing Act, and the Senate immediately proceed to 
vote on passage of the bill, with no intervening action or debate.
  The PRESIDING OFFICER. Is there objection?
  Mr. CORNYN. Mr. President, reserving the right to object, I want to 
say to my colleague from Massachusetts I appreciate her highlighting 
the importance of student debt in the lives of a lot of our young 
people who are struggling in this stagnant economy. The best thing we 
can do is to try to get the economy growing again. But the majority 
leader has chosen not to use the Senate floor for the purpose of 
legislating. This is the killing field for good bipartisan ideas that 
have come from the House of Representatives--now more than 380 bills. 
Unfortunately, the majority leader refuses to take up any of those. We 
stand ready to work with our colleagues across the aisle on serious 
legislation through an open and deliberative process that our 
constituents are demanding. There is a reason why the approval rating 
of the Congress is 14 percent. People look at Washington, DC, these 
days and realize it is completely broken and nowhere else is it more 
broken than in the Senate, where Senator Reid has decided to grind what 
used to be known as the world's greatest deliberative body to a halt.
  We will now pass a continuing resolution and adjourn with 47 days 
left--by the time we do it--until the election.
  It is really beyond dismay.
  I ask unanimous consent that the Senator modify her request, and that 
it be in order for the minority leader or his designee to offer an 
amendment, and then for the majority leader or his designee to offer an 
amendment, and it be in order for the leaders or their designees to 
continue to offer amendments in an alternating fashion. In other words, 
we would ask for an open amendment process on the legislation that the 
Senator is proposing.
  The PRESIDING OFFICER. Will the Senator from Massachusetts so modify 
her request?
  Ms. WARREN. Mr. President, reserving the right to object, I thank the 
Senator from Texas for his remarks. As I stated previously, there are 
58 Senators who have supported moving forward to debate this bill. But 
it has not passed the Senate because of a Republican filibuster. I 
welcome Republican ideas to address the exploding student debt crisis. 
For months Senator Stabenow, others, and I have reached out to our 
colleagues to put ideas forward so that we could have a real debate. 
But allowing an unlimited number of amendments on any topic forever is 
not a reasonable way forward on a student loan debt refinancing bill.
  We face a student debt crisis now. We need to act on it now. If my 
colleague from Texas is not willing to provide a reasonable path 
forward to debate, improve, and vote on this bill, then I object to his 
request and ask that he agree to my original request that we take up 
and pass this piece of legislation.
  The PRESIDING OFFICER. Objection is heard to modify the request. Is 
there objection to the original request?
  Mr. CORNYN. Mr. President, I would say that the best way to get this 
piece of legislation resolved on the Senate floor is what used to be 
called the old-fashioned way. That is where both sides of the aisle get 
to offer amendments and vote on them. But this is what has happened to 
the Senate. It has become completely dysfunctional. Frankly, the 
American people are disgusted with all of us because they see us 
unable, even when Republicans and Democrats would like to debate 
legislation and offer solutions, to be able to do so.
  This is solely within the control of the majority leader, Senator 
Reid. He has decided it is better to shut things down than to pass 
legislation which both sides of the aisle would like to see pass. So I 
would object.
  The PRESIDING OFFICER. Objection is heard.
  Ms. WARREN. Mr. President, what is dysfunctional is a Republican 
filibuster of a bill on which 58 Senators want to move forward and 
debate. Allowing an unlimited number of amendments on any topic, going 
on forever, is not a reasonable way forward. We want to be able to 
debate the student loan refinancing bill. We want to be able to do it 
now. Young people are struggling and are counting on us.
  The PRESIDING OFFICER. The Republican whip.
  Mr. CORNYN. Mr. President, I appreciate the great talents and 
credentials that the Senator from Massachusetts brings to the Senate. 
Unfortunately, whether one is in the majority or in the minority, the 
Senate has not been able to function for the last 4 years. I have been 
fortunate to be in the Senate at a time when any Senator who wanted to 
could come to the floor and offer an amendment and get a vote on that 
amendment.
  What to me is completely ironic is even if you are in the majority, 
you cannot get a vote on an amendment--if you are in the majority. How 
do you explain that to your constituents back home--that you were 
rendered completely ineffective because of the way the Senate is being 
operated under the current majority leader. I want to turn to another 
topic briefly, and that is the matter of the President's proposed 
strategy on the floor.
  Ms. STABENOW. Out of respect to my colleague, I realize we are going 
into the next hour that is controlled by the Republicans. But I did 
want to take 1 minute to wrap up, if that is acceptable to my 
colleague.
  The PRESIDING OFFICER. Without objection, it is so ordered.

[[Page 14723]]


  Ms. STABENOW. I just wanted to go on record to say there are 
thousands of excuses always on everything for reasons not to do things. 
We are talking about a very specific bill, a very specific vote that 
would put money in the pockets of 25 million Americans. We could do 
that right now. People can have lots of reasons. It reminds me a lot of 
hearing that my kids have hundreds of excuses about why they cannot do 
something, whether it is because of somebody else or this, that, and 
the other.
  I think the American people just want us to get stuff done. We want 
to get things done. The motion that Senator Warren put forward is about 
getting things done. A vast majority--58 Senators--has already said 
yes, they want to move forward. Yes, they will vote yes. We need to get 
this piece done to help 25 million people and then move on and work 
with each other across the aisle to do other work.
  I greatly regret the objection and indicate that we will be back and 
back and back until we get the American people the relief they need.
  I yield the floor.
  The PRESIDING OFFICER. The minority whip.
  Mr. CORNYN. Mr. President, I appreciate the frustration of the 
Senator from Michigan at the Senate not functioning the way it should. 
But really her complaint ought to be with the majority leader. 
Republicans are happy to have an open amendment process. I say to the 
Senator from Massachusetts that we are not talking about amendments ad 
infinitum. We are talking about a reasonable amount of amendments. We 
have been down this lane before. We know that the majority leader rules 
this body with an iron grip. In the waning days now of this session, 
there is going to be veritably nothing done, because, of course, that 
is the way the majority leader has chosen to use his authority. It 
would make sense if we had an opportunity to offer House legislation. 
As I said, there are 44 different jobs bills and more than 385 
bipartisan pieces of legislation that have passed the House which would 
be great for us to take up and to work our way through in an orderly 
and deliberative sort of way.
  I agree the American people want to see us get things done. But they 
cannot. We cannot get things done when the majority leader essentially 
says: You know what. It is my way or the highway. Those of you who are 
elected from red States, where you are elected by Republicans, you 
cannot participate in this process. So what is the use of being elected 
to the Senate? What is the use of States such as Texas having two 
Senators and not being able to participate or shape the legislative 
process? That is an unreasonable demand by the majority leader.
  I know our colleagues on the Democratic side, many of them, are 
frustrated by that too. I will tell them that if this election in 49 
days turns out the way I hope it does, we will have a new Senate where 
Republicans and Democrats can come to the floor, offer amendments, and 
get votes as long as they want to get votes on amendments. That used to 
be the way the Senate operated. That is not the way it operates now. It 
is really a disservice to the American people. I am saddened by the 
majority leader's choice to create such a situation in the Senate.


                                  ISIL

  We will be voting, along with the continuing resolution--I am told 
the House will add an authorization that has been requested by the 
President to train and arm some Syrian rebels, which we hope will be an 
effective force in defeating ISIS or ISIL, the Islamic State in the 
Levant. This is a group that Al Qaeda kicked out because they were so 
barbaric that they wanted nothing to do with them. They are now one of 
the best financed terrorist organizations in the world, now occupying 
vast swaths of Iraq and Syria, and virtually erasing the border between 
those two countries. This is a threat not only to the region and to the 
people of Iraq and Syria, but it is a threat to other countries in that 
region.
  If you believe the King of Saudi Arabia, he said in a month they will 
export their terror to Europe, and they will then, a month later, 
export their terror to the United States. The biggest threat to the 
United States is there are--people who have gone from the United States 
and from the United Kingdom to the region and trained as fighters for 
ISIL.
  The problem is that because of the Visa Waiver Program, many of 
them--if you are a passport holder from the United States or the United 
Kingdom, you can come back to the United States with just a passport 
and you do not even need a visa. So this is an opportunity for this 
terrorist organization to infiltrate the United States and threaten our 
national security and safety.
  But in particular in Syria, it is ironic--indeed, it is tragic to 
note--that after refusing for 3\1/2\ years to provide even moderate 
assistance to opposition groups in Syria, President Obama is now asking 
Congress to give him the necessary authorization. Now, this is not an 
authorization to take the fight to degrade and destroy ISIL. The 
President said that is his military goal. That is an important goal. I 
agree with that. I think he would find a lot of support on a bipartisan 
basis for that kind of authorization. What the President has done is 
basically to ask for money for a very much more limited task; that is, 
to recruit and train so-called moderate Syrian opposition to fight ISIL 
in Syria.
  But he has chosen to go it alone once again on this broader effort to 
degrade and destroy ISIL. I know the President is famous for saying 
what he will not do. Of course, they always add: No American boots on 
the ground. But this morning the chief of the U.S. military, General 
Dempsey has said if the air campaign is unsuccessful in degrading or 
destroying ISIL, then we should not take the prospect of some limited 
number of American boots on the ground off the table. Military expert 
after military expert has said: Air strikes alone will not turn the 
tide on ISIL in Iraq and Syria.
  But I am glad the President has at least made this limited request. 
We ought to have a broader debate about his authority to take the fight 
to ISIL in Syria and Iraq. I note with interest that our colleague 
Senator Kaine of Virginia wrote what I thought was a compelling piece, 
arguing that the President should come to the Congress for that 
authority. That was published in the New York Times today. I thought he 
made a very important case.
  If the President is concerned that he will come to Congress and he 
will not get the authority, I think circumstances have changed to where 
he would get that sort of bipartisan vote to give him authority. There 
are prudential or practical reasons why he should do so. First of all, 
there is the Constitution which the President seems not to care most 
about. But assuming the President has the authority, I think if he came 
to Congress, it would provide a broader basis of support both in 
Congress and across the country.
  Of course, you do not want to go to war without the support of the 
American people. If you believe the public opinion polls, I think they 
are pretty persuasive that the American people do support air strikes 
against ISIL, particularly in the wake of these barbaric beheadings of 
both British and American citizens. But as we know, the tide of war can 
turn very quickly. It is important that the President have broader 
support here in Congress and broad support from the American people in 
doing what we know we have to do regardless of how popular or unpopular 
it may be.
  But I do have questions about how the different rebel groups will be 
vetted and how the U.S. military aid will advance our larger policy of 
destroying ISIL. While I still have those questions, I will support the 
authority and the money to train and equip the moderate groups as part 
of our broader strategy.
  I remain deeply concerned, though, about President Obama's 
understanding--or lack of understanding--of just what has gone so wrong 
with his policies in the Middle East. After all, the first step in 
fixing a mistake is to admit you have made one--not for the purpose of 
embarrassing the President

[[Page 14724]]

but learning from those mistakes and then going on to correct them.
  Last week he discussed his foreign policy record with a number of 
outside analysts at two separate meetings. According to one story in 
the New York Times by Peter Baker, the President ``admitted no errors 
along the way.'' It is pretty breathtaking. I do not know any human 
being, any mere mortal--certainly me--who has not made a mistake. These 
are enormously complex judgments, and I understand that, and we ought 
to cut the President some slack in trying to execute this war and this 
fight to degrade and dismantle ISIS. But to say ``I have not made any 
mistakes. My judgments have been perfect'' is not helpful. He said 
there are no errors. He has made no errors. There is nothing that needs 
correcting, no change of conditions because of misjudgments.
  But we know that despite the creation of a massive terrorist enclave 
spanning Iraq and Syria, despite the explosion of a huge refugee crisis 
in Syria, Jordan, Lebanon, and Turkey--millions of Syrians have been 
displaced by the civil war there alone, along with about 200,000 
Syrians who have lost their lives. As a result of the President's 
policies, we have also seen the emergence of a failed state in Libya, 
where in September 2012 four Americans were killed by Al Qaeda-related 
affiliates. We have seen the emergence of yet another failed state in 
Yemen, and we have seen the embarrassing decline of U.S. influence in 
countries such as Egypt and other gulf nations. Despite all that, the 
President says he had not made any mistakes and it is somebody else's 
fault and not his.
  I would contrast that with the conduct of President George W. Bush 
when he announced the troop surge in Iraq and the counterinsurgency 
strategy in 2007. He was admirably forthright about the fact that his 
Iraq policy was not working--and, indeed, it was not. President Bush 
said at the time, ``We need to change our strategy in Iraq.''
  Boy, it would be a breath of fresh air if President Obama would say, 
``We need to change our strategy'' rather than saying, ``I have not 
made any mistakes. There have been no misjudgments. We don't need to 
reconsider any of our activities abroad.'' I think people understand we 
do.
  When we look at America's Middle East policy failures under President 
Obama, it is painfully clear that once again we need to change our 
strategy, but by refusing to acknowledge his mistakes, the President 
raises troubling questions about the credibility of his new policies.
  Despite announcing that the military aid to the more moderate rebels 
will now be the centerpiece of U.S. policy in Syria, the President 
still publicly rejects the idea that arming those rebels a few years 
ago would have been a good idea. And, oh, by the way, arming the rebels 
a few years ago was the recommendation of all of his most significant 
national security advisers, but the President rejected it.
  If it is a good idea to arm the more moderate rebels today in hopes 
of countering ISIL, then surely it would have been a good idea to arm 
those rebels before ISIL took over large portions of eastern Syria and 
200,000 Syrians lost their lives in that civil war. Likewise, if we are 
now sending U.S. military forces back to Iraq to conduct bombing raids 
against ISIL terrorists based there, then surely it was a mistake to 
withdraw all U.S. forces from Iraq back in 2011 without leaving a 
transitional force there to help be the glue in that famously 
sectarian-driven part of the world. But the President will admit no 
mistakes and no lessons learned in either Iraq or Syria.
  Of course, the thing about acknowledging your mistakes, as I said 
earlier, is that you can learn from them, and President Obama's recent 
foreign policy failures are no different. The lessons we have learned 
can and should inform our strategy against ISIL. But first the 
President needs to accept, internalize, and then allow himself to be 
guided by those lessons. If he does that, America's military campaign 
against the Islamic State will have a much better chance of succeeding.
  I would say again that we want the President's plan to be successful. 
I think it is virtually universal here in the Senate that we want our 
military, in conjunction with our coalition partners, to degrade and 
destroy ISIL because we believe it is a serious threat not just to the 
region but to the United States and our allies and our interests. But 
if the President will not learn from the lessons of the past, if he 
will not work with Congress to come up with an effective strategy, and 
if he will not listen to his own military leaders and experts, I am 
very concerned that strategy will end up being a failure, and that need 
not be.
  Mr. President, I see my colleague from North Dakota on the floor.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from North Dakota.
  Mr. HOEVEN. Mr. President, I ask unanimous consent for 10 minutes or 
as much time as I might need to discuss an important energy issue.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. HOEVEN. Mr. President, I appreciate the comments of my esteemed 
colleague from Texas, and I want to share my agreement with the 
important points he made so well.
  (The remarks of Mr. Hoeven pertaining to the introduction of S. 2823 
are printed in today's Record under ``Statements on Introduced Bills 
and Joint Resolutions.'')
  Mr. HOEVEN. Mr. President, I yield the floor and I suggest the 
absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.


            Unanimous Consent Agreement--Executive Calendar

  Mr. REID. Mr. President, I ask unanimous consent that at 12 noon 
tomorrow, Wednesday, September 17, the Senate proceed to executive 
session to consider the following nominations: Calendar Nos. 956, 536, 
548, 964, 965, 871, 924, and 912; that there be 2 minutes of debate 
equally divided between the two leaders or their designees prior to 
each vote; that upon the use or yielding back of time the Senate 
proceed to vote, without intervening action or debate, on the 
nominations in the order listed; that any rollcall votes, following the 
first in the series, be 10 minutes in length; that if any nomination is 
confirmed, the motion to reconsider be considered made and laid upon 
the table, with no intervening action or debate; that no further 
motions be in order to the nomination; that any statements related to 
the nomination be printed in the Record; and that the President be 
immediately notified of the Senate's action and the Senate then resume 
legislative session.
  The ACTING PRESIDENT pro tempore. Is there objection?
  Without objection, it is so ordered.
  Mr. REID. For the information of all Senators, we expect one rollcall 
vote on the Bass nomination and the other nominations listed in this 
agreement to be confirmed by voice vote.
  The ACTING PRESIDENT pro tempore. The Senator from Kansas.
  Mr. MORAN. Mr. President, I ask to speak as in morning business.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.


                  Tribal General Welfare Exclusion Act

  Mr. MORAN. Mr. President, I thank the Chair for the opportunity to 
speak this afternoon. I am also pleased to see on the floor my 
colleague from North Dakota, Senator Heitkamp. She and I have a 
legislative interest in a matter now pending before the House of 
Representatives, and it is at least my desire to see the Senate utilize 
this opportunity of a bill passing the House to also be considered by 
the Senate and hopefully be approved. While it has been a challenge 
throughout this year and throughout this session to get legislation to 
the floor and voted on, I would not want us to pass up the chance for 
this legislation to be approved and sent to the President for 
signature.

[[Page 14725]]

  The legislation we are speaking about is the Tribal General Welfare 
Exclusion Act. The House of Representatives, as I said, is considering 
H.R. 3043 this week. This is legislation I am absolutely certain will 
enhance the economic opportunities and the quality of life for our 
Native Americans in this country.
  The Constitution states that a core responsibility of the Federal 
Government is to promote the general welfare of the people. The Federal 
Government has a trust responsibility to protect tribal interests. 
These two objectives come together in this legislation. It certainly 
would be an understatement to say that the Federal Government over the 
years has fulfilled its trust responsibility. We know that to not be 
the case.
  In an effort to fill that void, tribal governments have taken actions 
to meet their tribal members' needs with initiatives such as cultural 
programs and education and social services and health care.
  Unfortunately, over a period of time, those benefits have been 
treated as income and those benefits have been subject to the Internal 
Revenue Service Code.
  We need to make certain we don't add to the burden that tribes too 
often have encountered from the Federal Government and that these 
benefits would not be subject to income taxes and these benefits and 
the tribes will not be subject to IRS audits because of them.
  The Tribal General Welfare Exclusion Act extends to Native Americans 
the same tax privileges that are provided by our States; namely, that 
the value of government services provided by the tribes to their 
members, just like the services provided by a State to its citizens, 
would be excluded for tax purposes. Federal and State governments have 
enjoyed the privilege of having such services as education, social 
welfare, health care programs, housing, as well as cultural programs 
exempt from that taxation. Native Americans have not been as fortunate.
  The House is close to correcting this problem, and it is my plea and 
hope that the Senate will follow suit this week. The IRS recently 
issued a notice that establishes the tribal gender welfare exclusion. 
It is a matter of treasury policy, and this is appreciated. It is a 
step in the right direction, but we want to make certain that this 
policy is extended and codified.
  The general welfare issue should be put into law to protect against 
future policy changes, and among other provisions this legislation 
establishes a tribal advisory committee within the Department of the 
Treasury to advise the Secretary on Indian tax policy and also declares 
that any ambiguities of the act will be resolved in favor of tribal 
governments. It directs the IRS field agents to be educated and trained 
in matters of Federal Indian law and government trust responsibilities.
  This is a reasonable commonsense, constitutional piece of 
legislation. It fosters fairness within our Tax Code and promotes 
better understanding of the Federal Government's trust relationships.
  Four years ago similar exclusion rules for Native Americans' health 
benefits were passed. We have before us now the opportunity to clarify 
the exclusion as it should be. This legislation makes a lot of sense. 
It adheres to the Constitution which recognizes tribes as sovereign 
nations with the authority to provide for their peoples. This has been 
affirmed many times by Congress in the past. It is clearly part of our 
U.S. Constitution.
  The economic benefits are obvious. Our tribal territories, 
reservations, our Native Americans need not be worrying about the 
onerous IRS audits and should not be paying taxes when no one else is 
required to pay taxes on similar benefits.
  This legislation is revenue neutral, something that is very pleasing. 
The Joint Committee on Taxation has deemed any impact on the revenue of 
our Federal Government to be negligible.
  As a person who cares a lot about the fiscal condition of our 
country, we ought to be reducing our deficit and boosting our economy. 
This piece of legislation does not increase the deficit, and it does 
boost the economy, particularly of tribes across the Nation. Here in 
the Senate, Senator Heitkamp and I introduced S. 1507. It is a 
companion bill to the one the House is considering. This piece of 
legislation has broad bipartisan support, and more than 20 Senators 
from Alaska to Georgia have joined us in this effort.
  I am grateful for the members of the Finance Committee and the Indian 
Affairs Committee who lent their support to this legislation. I am not 
a member of either one of those committees, but there are four tribes 
in Kansas and I have an interest in their well-being as well as that of 
all Native Americans.
  Native Americans are not seeking to play here by different rules. In 
fact, it is quite the opposite. They simply want to enjoy the same 
benefits accorded any other government in our country. They emphasize 
to me the principle of tribal sovereignty and self-government. This 
legislation reinforces those principles.
  More than 40 tribes in 24 states, nearly a dozen Indian organizations 
and a number of regional tribal organizations representing tens of 
thousands of Native Americans supported this legislation. It is not 
just Native Americans. In fact, the U.S. Chamber of Commerce has 
recognized this legislation as one that will foster economic 
development and supports its passage.
  As we are preparing to depart Washington, DC, and take time away from 
the Nation's Capital, it would be a terrible mistake on our part and a 
missed opportunity if we don't take advantage of House action this week 
while the Senate is here in session this week to see that this 
legislation is approved.
  My hope is that this could be accomplished by unanimous consent, and 
I know Senator Heitkamp and others and I have been talking to members 
of the committees as well as the leadership of the Senate to see that 
we accomplish this.
  It is a wrong that can be righted. It is a wrong that should be 
righted quickly and not at a later date. This certainly is one of those 
pieces of legislation that is a win-win for all.
  If we see the House pass the Tribal General Welfare Exclusion Act, I 
urge my colleagues to join with me, Senator Heitkamp, and Republican 
and Democrat Senators who are supportive of this legislation, to see 
that this legislation arrives on the President's desk in the most 
expedient manner possible.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from North Dakota.
  Ms. HEITKAMP. Mr. President, I ask to speak as if in morning 
business.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Ms. HEITKAMP. Mr. President, it is truly a great honor to stand with 
my colleague from Kansas as we are on the cusp of actually passing 
legislation that has consequences for a lot of our American citizens 
and especially our Native American citizens. I will tell you as someone 
who represents Indian Country in my State, this is the number one 
priority for our tribes.
  It is interesting because a lot of people would look at this and say: 
Why this issue? I think it goes to the heart of Native American 
sovereignty. What has been happening, as it relates to 1099s and the 
potential of taxing services provided by tribal governments, basically 
begs the question: Do we really understand or do we really appreciate 
that these are sovereign governments--the same way the States are 
sovereign and the same way the counties and cities would be sovereign?
  I think in many ways it has very real economic consequences, but a 
great value in this legislation is in the symbolic consequences of 
having this body recognize the importance of recognizing these treaty 
rights, recognizing the value of treaties and trust responsibilities. 
As a former attorney general and as a lawyer, I view treaty rights and 
trust responsibilities like a contract between the United States and 
our Native American tribes. As a U.S. citizen, I view these treaties as 
sacred obligations.
  We have not done a good enough job living up to our commitments to 
tribal

[[Page 14726]]

nations. As a consequence tribal governments have been forced to 
supplement services that the Federal Government promised to provide. 
Yet for years the IRS has audited Indian tribes for providing health 
care, education or housing assistance for those in need.
  Here are just some of the stories I have heard from Native Americans 
in North Dakota and across the country. I have heard about the IRS 
wanting the tribes to issue 1099s--basically saying you have something 
of taxable value--to tribal elders who received blankets as honoraria 
for performing traditional ceremonies.
  I heard about the IRS questioning a tribal government's provision 
providing backpacks and school supplies to elementary school children 
as a taxable benefit to the families of the children.
  I have heard about the IRS imposing a tax on the value of a handicap 
ramp--a value of $2,000--erected by the tribal government to help a 
tribal elder access her home.
  The stories go on. The status quo isn't fair and it isn't right. This 
practice certainly does not fully respect that tribes are governments. 
That is why I joined with Senator Moran to introduce the bipartisan 
Tribal General Welfare Exclusion Act last year.
  The bill would fully recognize that Indian tribes, as sovereign 
nations, are responsible for making certain government programs and 
services best fit the needs of their citizens. Just as State and local 
governments are determined to decide what is in the best interest of 
their citizens, such as scholarships, elder or child care or housing 
assistance, we have to recognize that tribal governments have the right 
to make those decisions without tax consequences.
  With this bill, we are supporting tribal self-determination and 
taking a step towards living up to our trust and treaty obligations. 
Indian tribes and their members should not be subject to heightened IRS 
scrutiny.
  I think Senator Moran outlined that issue so well because some people 
may see that what we are doing here is carving out an exception, 
creating an extra benefit for tribal members that is not enjoyed by the 
entire citizenry of this country.
  Nothing could be further than the truth. In fact, we are leveling the 
playing field. The Tribal General Welfare Exclusion Act will bring 
parity in the tax treatment of Indian governments. It will recognize 
the unique relationship with tribal governments that they have with 
their citizens and allow them the opportunity to craft programs which 
best fit their community need.
  I want to take a moment and suggest to all of you that if you spent 
time in Indian Country and if you have looked at the benefits that 
tribal governments provide and you think about the resources of the IRS 
and where you might go to actually collect dollars that would enhance 
revenue, the last place you should look in this country is in Indian 
Country.
  I would like to address a few other really important reasons why this 
bill is so critical. The IRS recently issued helpful guidance, and we 
are very appreciative of that work. With that being said, we also must 
make sure that parity provided by that guidance is in statutory 
language. That way, we weighed in. There is certainty that no one can 
do a look-back and no one can change it without that change coming to 
this body and coming to the House of Representatives and being enacted 
into law.
  In addition, the Tribal General Welfare Exclusion Act includes two 
items that are critical to the advancement of a better relationship 
between tribal governments and the Federal Government.
  First as a training requirement, we must make sure that IRS field 
agents are well versed in Federal Indian law and unique treaty and 
trust relationships that the Federal Government has with their tribes.
  Second, as the training is taking place, our bill also suspends all 
audits of examination of tribal governments for one year to allow this 
education to take place.
  It isn't rare for Congress to pass legislation that supports guidance 
issued by the Federal agencies to give more weight to the issues and 
make sure that there is no potential misinterpretation.
  That is what we are doing this week with the help of a lot of our 
colleagues who believe in this legislation as well. We want to 
supplement the IRS guidance to expand rather than restrict the safe 
harbor provisions.
  When I joined the Senate, I promised to be a partner--to honor and 
respect the sovereign rights of Native Americans just as I always have. 
This bill is a step in the right direction. I fully anticipate that as 
we move forward this week, we will, in fact, enact this legislation. I 
fully anticipate that we will send the right message to tribal 
governments that we see you the way you are.
  You are a sovereign government entitled to make the decisions that 
you need to make to the benefit of your citizens without undue and 
irrational interference from the IRS.
  I think the bipartisan nature of this bill is a tribute to my friend 
from Kansas who understands completely what we are attempting to do. It 
is one of those rare moments that I have had since I have been in the 
Senate, where you see a good bill being debated--a good bill being 
discussed--and then having an opportunity to actually do the right 
thing. I thank my friend from Kansas for the opportunity to join with 
him as a cosponsor of this legislation.
  It is critically important that this message get sent and that we 
have an opportunity in the future to continue to work with tribal 
governments to act in the best interests of tribal citizens and provide 
the services that are essential for a growing population of Native 
American citizens but also of a population that lives in a great deal 
of poverty.
  I thank my friend from Kansas. I look forward to seeing this bill 
signed into law--which I think will happen. I think that the stars are 
aligning. It will be a great day and a very important step in securing 
a better relationship of all governments with the Native American 
people.
  I yield the floor. I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Ms. HEITKAMP. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

                          ____________________