Washington, DC - Congressman John D. Dingell (D-MI15) entered the following remarks into the record on H.R. 2669, the College Cost Reduction Act, which passed the House today, 273-149:

“Madame Speaker, I have always believed students must have the opportunity to earn degrees based on their academic accomplishments rather than on their economic situation. Today’s economy demands a highly educated work force, which is why Congress must ensure we are providing educational access to every qualified student that wants to attend college. H.R. 2669, the College Cost Reduction Act, will do just that by making the single largest investment in college financial aid since the 1944 GI Bill.

“I have heard from many of my constituents that the daunting costs of a college education are preventing them from achieving a college degree. They are not alone. Nearly 200,000 students are holding off on going to college or forgoing college completely because they can’t afford it. In the last five years tuition at four-year public colleges has grown by 35 percent, forcing both students and their families to take on increasing amounts of debt to pay for college. At a time when Michigan’s economy and workforce is struggling, a college education should not be a luxury that is unreachable for any family.

“When the Democrats took the majority this year, we committed to making college more affordable and accessible. H.R. 2669 will do this by cutting the interest rate from 6.8 percent to 3.4 percent over the next five years. Each year 6.8 million students take out need-based loans and accrue thousands of dollars of debt while completing their college degree. This legislation will cut in half the interest rates on their loans, saving the average student – with $13,800 in need-based student loan debt - $4,400 over the life of the loan.

“H.R. 2669 will also increase the maximum value of the Pell Grant scholarship by $500 over the next five years, ultimately reaching a maximum scholarship level of $5,200. As the federal government's single largest source of grant aid for college students, this proposed increase will directly benefit over 5 million low- and moderate-income students.

“More importantly, this legislation will prevent student borrowers from facing unmanageable levels of federal student debt by guaranteeing borrowers will never have to spend more than 15 percent of their yearly discretionary income on loan repayments and by allowing borrowers who enter public service to have their loans forgiven after 10 years. This is critically important because students today are graduating from college with more debt than ever before.

“Many people may be asking how this will help those who are struggling in Michigan. In our great State of Michigan, over 143,000 students take out need-based loans each year. The average student has $13,256 in need-based student loan debt. H.R. 2669 will provide interest rate cuts that will save each Michigan student $4,240 over the life of their student loan. This legislation will also provide $513 million in increased loan and Pell Grant aid to students and families in Michigan over the next five years – benefiting over 200,000 students.

“Madame Speaker, I rise in support of this legislation not only because it will increase college affordability, but because it will help our workforce. Our economy depends on aggressive investment in our workforce if we want to continue to be competitive in a global economy. I urge my colleagues to vote in favor of this legislation, showing American families that Congress is committed to investing in higher education.” 

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