Congressman Sander Levin

Making College More Affordable

As our economy becomes increasingly competitive and high tech, the need for a college degree or advanced training becomes increasingly necessary to enter the workforce. Unfortunately, rising tuition costs force the average borrower $17,500 into debt upon graduation. A recent report from the National Center for Public Policy and Higher Education revealed that between 1982 and 2007, college tuition and fees rose three times as fast as median family income, after adjusting for inflation. In the past decade, there has been a 50 percent increase in the number of undergraduate borrowers and a doubling in the inflation-adjusted total of students’ debts.

Building upon important legislative achievements from last year, the 111th Congress has made strengthening higher education access and affordability a top priority. The Recovery Act created a new $2,500 partially-refundable tax credit to help millions of middle class families pay for college. The President’s budget calls for making this credit permanent, and I agree. The Recovery Act also invested $15.8 billion in the Pell Grant program to increase the maximum award to $5,550 for next school year, which will help over 7 million students pay for college, including over 200,000 students in Michigan. Pell Grants also help unemployed workers return to school and further investments were included in the FY2009 budget to address the growing demand of displaced workers for retraining options.

Currently, Congress is working on legislation to reinvest in our community colleges, reform the student lending process The Student Aid and Fiscal Responsibility Act [H.R. 3221], which I co-sponsored, will provide grants to help community colleges expand their facilities and their degree programs. It will create incentives for schools to increase graduation rates and will expand opportunities for online, for-credit learning, as well as dual enrollment with high schools and universities. Significantly, this initiative will be entirely paid for by eliminating wasteful student loan subsidies to private banks and lenders. Instead, by distributing student loans through direct lending, the federal loan program will be more cost-effective and, most importantly, will guarantee students always have access to federal student loans.

I am proud of the work we did last Congress to improve access to higher education, the effects of which we are beginning to see this year. The College Cost Reduction Act of 2007 invested $18 billion over the next five years in higher education, the single largest investment in college financial aid since the GI Bill in 1944. TEACH grants were established to provide $4,000 per year for high-achieving students who commit to teach in high-need schools or high-need fields – like math and science. The interest rates for need-based student loans are being cut in half, and those who pursue careers in certain lower paying and necessary jobs such as firefighters, law enforcement officers, public defenders and librarians are rewarded with loan forgiveness.

The Higher Education Opportunity Act went even further to make college more affordable and accessible. The Free Application for Federal Student Aid has been streamlined, and an easy-to-navigate, two-page FAFSA-EZ form has been created for low-income families. Pell grants are now available year-round for students who take classes during the summer. With increased focus on low-income and minority students, veterans and military families, students with disabilities, the law opens the door for many who otherwise may have struggled to pursue higher education.

While this funding helps, there is much more work to do. I supported the College Opportunity and Affordability Act, which would offer incentives for colleges to rein in tuition costs, streamline the student loan process, and crack down on sweetheart deals between private lenders and schools. While this legislation passed the House last year, a compromise with the Senate was not reached. I am encouraged that President Obama’s budget proposal includes several of these key provisions and look forward to making progress on these and other educational priorities this year.

(Updated October 8, 2009)