Washington, DC - Congressman John D. Dingell (D- MI15) made the following statement today on H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009. The House passed H.R. 3221 by a vote of 253-171.

"I rise today in strong support of H.R. 3221, the Student Aid and Fiscal Responsibility Act.  For far too long private lenders have saddled our students with thousands of dollars of debt, all so they could make a profit.  Today Congress puts an end to this ensuring that all students who desire a higher education can do so in an affordable manner.

"When I was growing up I was told that in order to have a good job you must graduate from grade school, and then it was high school and now it is college.  Unfortunately the reality is that all too often, many of our brightest and best are not pursuing college because they cannot afford to do so.  I hear time and time again from my young constituents who are working two or three part-time jobs all so they can take a class or two a semester.  We cannot allow our brightest minds to burn-out before they can complete their degree.  Higher education should be an opportunity and not a burden.

"H.R. 3221 will change this by ensuring that the students are the focus of our higher education system once again.  This legislation will change the way the student loan system functions by ensuring all new loans are operated through the Direct Loan program, saving the taxpayers $87 billion and guaranteeing our students have access to low-cost, reliable federal loans.

"The savings from this change will be directed towards increasing government grant loan assistance for tuition payments.  Pell Grants, which serve nearly seven million students, will be increased to $5,550 in 2010 and to $6,900 by 2019.  To ensure that these grants continue to keep  up with the rising costs of tuition, beginning in 2011 the grants will be linked to the Consumer Price Index.

"In my district more than 13,000 students rely on the Pell Grant to help pay for their schooling.  This increase of funding would be critical for each one of these students and would increase the total amount of Pell grant awards in the 15^th District who submitted nearly 38,000 applications last year and are anticipated to submit 56,000 in the 2012 school year. 

"H.R. 3221 also lowers the interest rates on government-subsidized loans helping to lower college debt after graduation, which will be critical to the nearly 334,000 students in Michigan who rely on these loans.

"Increased funding will also be directed to our community colleges, many of whom in Michigan are overwhelmed with trying to serve the thousands of dislocated workers who are looking to start their second career.  I have always believed that our community colleges and universities deserve equal treatment; however, this recession has made demonstrated the many different types of students our community colleges serve.  This legislation will help these colleges to work more closely with our business community, the state and job training programs and adult education programs to ensure our adult learners have access to the support they need to complete their degree or certificate.

"And for the over 177,000 students currently enrolled in Michigan community colleges, we must ensure that they have safe, quality facilities in which to learn.  Under H.R. 3221 Michigan will receive nearly $88 million to help finance projects to repair or construct new community college facilities.

"Overall this legislation makes unprecedented and much-needed reforms to our student aid system, however, we must also ensure that our colleges and universities have the resources and the support they need to implement this bill.  I know for the colleges and universities in my district, they are already struggling with reduced financial assistance from the state, therefore, we must ensure that the consideration of any financial match is weighed against the current situation in our economy, and what our schools are already committed to doing to assist needy students.

"Madam Speaker I am pleased to rise in support of this legislation and I urge strongly that my colleagues do the same.  We have all watched the tuition at public and private colleges double, then triple as time has passed, creating a burdensome gap for our students to overcome.  The students of this country are our greatest hope – they are our future doctors, our future lawyers, our future teachers and our future public servants.  To not ensure that they have an affordable, quality education would be to shortchange their success and the success of our country.  Thank you."

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