EdLabor Journal

White House statement on Chairman Miller's education reform bill

Wed, 15 Jul 2009 18:30:00 -0500

THE WHITE HOUSE

Office of the Press Secretary

______________________________________________________________________________

FOR IMMEDIATE RELEASE July 15, 2009

Statement from the President on Chairman Miller�s education reform bill

I applaud Chairman Miller for introducing an education reform bill that will cut giveaways to special interests, invest in our children�s future, and save taxpayer�s money.

Chairman Miller and I are working to end the wasteful subsidies that are given to banks and private lenders for student loans. Instead, his legislation will make college more affordable by paying for annual increases in Pell Grants that keep pace with inflation. He�s also working with us to simplify financial aid forms and increase graduation rates.

This legislation will also help us reach the goal I set out in Michigan this week to graduate five million more Americans from community colleges by 2020. These institutions can act as job training centers for the 21st century, and this legislation makes the largest investment in community colleges in fifty years, challenging them to increase completion rates, strengthen ties with businesses, modernize facilities, and offer new online learning opportunities. Chairman Miller�s legislation will also invest in high-quality early education that can save taxpayers several dollars for every one we spend. It includes $10 billion for early learning challenge grants that will ask states to ensure that the number of children who start school ready to learn is growing each year.

Finally, I am proud that this legislation not only pays for itself, but also saves taxpayers money and reduces the deficit. I look forward to working with the Chairman and Congress to make this bill even stronger and pass it before the end of the year.

Health Care Checkup: GOP Pushing Hidden Health Care Tax on All Americans, Not Reform

Wed, 15 Jul 2009 17:30:00 -0500

Republicans and right wing commentators who oppose health care reform hope to turn our effort at lowering costs and expanding access into a debate about whether or not to tax small businesses. In opposing our reform they would instead continue the hidden health care tax on all Americans that exceeds the surcharge on the highest income taxpayers that is included in the House bill.

Before you adopt their rhetoric, remember that nearly half of the cost of the House Democrats� health plan would be paid by tight cost controls and forcing down the expense of the health care system. That�s a top priority. And as for who will pay higher taxes and who won�t under our plan, here are the cold facts.

Only the highest earning 1.2 percent of American households will pay a surcharge for health care reform. That leaves 98.8 percent of American households who will not pay any surcharge at all.

As for small businesses, according to the non-partisan Joint Committee on Taxation, only 4.1 percent of all small business owners will be affected by the health care surcharge. The remaining 95.9 percent of small business owners will be completely unaffected by the surcharge.

Under our bill, a family making up to $350,000 in adjusted gross income (AGI) will not owe any surcharge at all, as President Obama has promised. A family making $500,000 in AGI will contribute $1,500 to help reduce costs and provide access to affordable health care for all Americans � 0.3 percent of their annual income. And a family making $1 million in AGI will contribute $9,000, or 0.9 percent of their annual income.

Who are the highest earning 1.2 percent of all households? They are the same households who over the past 20 years have seen a massive shift in wealth in their favor and who over the last 8 years received the lion�s share of President Bush�s tax cuts.

Between 2001 and 2010, the richest one percent of taxpayers alone will have received approximately $700 billion from the Bush tax cuts, according to Citizens for Tax Justice. Those tax cuts for the wealthy one percent have been the biggest contributor to the record deficits wrung up during the Bush Administration � deficits that were passed along to President Obama in January.

The Washington Post put it another way. They pointed out that over the past 20 years, the highest earning Americans have seen their tax burden go down and their share of national wealth rise. The share of adjusted gross income claimed by the highest earning Americans doubled, from 11 percent to 22 percent.
Meanwhile, average American working families have seen their wages stagnate, their health care costs spiral out of control, and their share of national wealth reduced.

Many Republicans and right wing commentators would do nothing to reform health care and would instead leave in place the hidden $1,800 a year tax on all Americans in the form of rapidly rising health insurance premiums caused by uncontrolled health care spending and the shared cost of covering the uninsured.

Congress faces a clear choice. Our plan cuts more than $500 billion in health care spending and asks the richest 1.2 percent of all households to make a modest contribution of their income toward the remaining cost of our health care reform effort to reduce costs and strengthen our economy. The main Republican plan --Just Do Nothing -- maintains the hidden tax on every business, large and small, and every American suffering under today�s broken health care system.

George Miller (D-CA) is chairman of the House Education and Labor Committee and one of the three principal authors of the �America�s Affordable Health Choices Act� introduced this week.

Student Aid and Fiscal Responsibility Act

Wed, 15 Jul 2009 10:35:00 -0500

Read the entire Student Aid and Fiscal Responsibility Act.(HR3221) (PDF 327 KB)

A Landmark Investment in America�s Economic Future

Americans need affordable, quality education opportunities to help make our economy strong and competitive again. President Obama has identified an opportunity to make historic investments in our economic future by improving early education opportunities and making college dramatically more affordable � and all at no cost to taxpayers.

The Student Aid and Fiscal Responsibility Act embraces the president�s challenge. It will help us reach his goal of producing the most college graduates by 2020 by making college accessible and transforming the way our student loan programs operate. It will expand quality early education opportunities that will put more children on the path to success. It will strengthen community colleges and training programs to help build a highly-skilled, innovative, 21st century workforce ready for the rigors of a global economy. And it will boost the fiscal health of the country our children will inherit by paying down the deficit. (What's in the bill for you?)

Invests the bill�s savings in making college affordable and helping more Americans graduate
Provides reliable, affordable, high-quality Federal student loans for all families
Prepares students and workers for 21st century jobs by providing all Americans with the skills and resources they need to compete
Ensures that the next generation of students enter kindergarten with the skills they need to succeed in school
Meets Pay-As-You-Go fiscally responsible principles and reduces the deficit

Invests the bill�s savings in making college affordable and helping more Americans graduate

Invests $40 billion to increase the maximum annual Pell Grant scholarship to $5,550 in 2010 and to $6,900 by 2019. Starting in 2010, the scholarship will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent.

Invests $3 billion to bolster college access and completion support programs for students. It will increase funding for the College Access Challenge Grant program, and will also fund innovative programs at states and institutions that focus on increasing financial literacy and helping retain and graduate students.
Strengthens the Perkins Loan program, a campus-based program that provides low-cost federal loans to students, by providing the program with more reliable forms of credit from the federal government and expanding the program to every U.S. college campus.
Keeps interest rates low on need-based � or subsidized � federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012.
Makes it easier for families to apply for financial aid by simplifying the FAFSA form. Building on proposals recently put forth by the Obama administration, the legislation will dramatically cut down the number of questions on the form by allowing students and families to apply for aid using the information on their tax returns.
Invests $1.2 billion in Historically Black Colleges and Universities and Minority-Serving Institutions to provide students with the support they need to stay in school and graduate.

Provides reliable, affordable, high-quality Federal student loans for all families

Converts all new federal student lending to the stable, effective and cost-efficient Direct Loan program. Beginning July 1, 2010, all new federal student loans will be originated through the Direct Loan program, instead of through lenders subsidized by taxpayers in the federally-guaranteed student loan program. Unlike the lender-based program, the Direct Loan program is entirely insulated from market swings and can therefore guarantee students access to low-cost federal college loans, in any economy.
Provides all federal student loan borrowers with upgraded, modern, state-of-the-art customer service. Rather than force private industry out of the system, the bill will forge a new public-private partnership that provides all borrowers with the highest-quality customer service when repaying their loans and maintains jobs. It will establish a competitive bidding process that allows the U.S. Department of Education to select lenders based on how well they serve borrowers, educate them financially, and prevent loan defaults. It will provide a role for non-profits to continue servicing student loans.

Prepares students and workers for 21st century jobs by providing all Americans with the skills and resources they need to compete

Build a 21st century workforce by encouraging historic partnerships between community colleges, states, businesses, job training and adult education programs. The bill will create a new competitive grant program for community colleges to improve instruction, work with local employers, improve their student support services, and implement other innovative reforms that will lead to a college degree, certificate or industry recognized credential to help fulfill local workforce needs.
Expands access to education by supporting free, high-quality, online training, high school and college courses. The U.S. Department of Education would be authorized to make competitive grants available to eligible colleges, workforce programs or other entities to help support the development of these courses.
Ensures that community college students can learn in modern, updated, state-of-the-art facilities by renovating campuses in need of repair.

Ensures that the next generation of children enters kindergarten with the skills they need to succeed in school

Increases the number of low income children entering kindergarten prepared to succeed by reforming state standards for early education programs and boosting the quality of existing programs. The legislation would create an Early Learning Challenge Grant program, which would award competitive grants to states that implement a standards-based birth-to-five early learning system that will improve early education standards, classroom environments, and invest in the early childhood workforce.
Provides every child with access to a world-class learning environment by providing school districts with funds for school modernization, renovation, and repair projects that will create healthier, safer, and more energy-efficient teaching and learning climates.

Meets Pay-As-You-Go fiscally responsible principles and reduces the deficit

Saves taxpayers $87 billion over ten years by switching to the cheaper Direct Loan program, according to the Congressional Budget Office. In addition to investing in college aid, this legislation will also direct $10 billion in savings back to the U.S. Treasury to help pay down the deficit.

(Myths vs. Facts about the Student Aid and Fiscal Responsibility Act)

Support for the Student Aid and Fiscal Responsibility Act

Rep. Petri's (R-WI) statement �
(PDF, 17kb))
AEC Science & Technology
(PDF, 121 kb)
Business Roundtable �
(PDF, 52kb)
Californians for Schools Facilities
(PDF 328kb)
Campus Progress �
(PDF, 26KB)
National Association of Federally Impacted Schools
(PDF 47kb)
Rebuild America's Schools �
(PDF, 63kb)
The Institute for College Access & Success �
(PDF, 30KB)
United States Student Association
(PDF 970kb)

SAFRA: Reliable, Affordable College Loans for Families

Wed, 15 Jul 2009 10:34:00 -0500

The financial crisis exposed serious vulnerabilities in the lender-based federally guaranteed student loan programs � putting the low-cost federal loans that millions of families count on in jeopardy. Now more than ever, students and families need access to reliable, stable forms of federal student aid to pay for college. The Student Aid and Fiscal Responsibility Act will make our federal student loan program more cost-effective and efficient for those they were intended to serve: students and families working hard to pay for college. Specifically, the legislation will:

Create a more reliable, affordable, student-focused federal loan program by switching to all Direct Loans by 2010

Converts all new federal student lending to the stable, effective and cost-efficient Direct Loan program. Beginning July 1, 2010, all new federal student loans will be originated through the Direct Loan program, instead of through lenders subsidized by taxpayers in the federally-guaranteed student loan program. Unlike the lender-based program, the Direct Loan program is entirely insulated from market swings and can therefore guarantee students access to low-cost federal college loans, in any economy.
Provides students with low-cost federal college loans with the same interest rates, terms and conditions as loans made by lenders � and the peace of mind of knowing those loans will never disappear. Loans made through both the Direct Loan and the federally-guaranteed student loan programs carry an interest rate of 6.8 percent � a much more affordable interest rate than private loans carry. Under this legislation, federal student loan borrower will be able to borrow the same loans, at the same good rates as before � but these loans will be more cost-effective for taxpayers.

Ensure that all student borrowers can benefit from high-quality, state-of-the-art customer service when repaying their loans

Upgrades the services all federal student loan borrowers receive. Rather than force private industry out of the system, the bill will forge a new public-private partnership that both maintains jobs and provides all borrowers with the highest-quality customer service when repaying their loans. It will establish a competitive bidding process that allows the U.S. Department of Education to select lenders based on how well they serve borrowers, provide financial literacy counseling, and prevent loan defaults. The legislation will also provide a role for non-profits to continue servicing student loans.
Preserves servicing jobs in communities across the country. Between this new public-private partnership and the more than $500 billion in outstanding federally-guaranteed student loans that will still need to be serviced, there will be tremendous demand for workers to continue providing great service to Americans repaying their loans.

Streamline financial aid operations for colleges and universities

College financial aid offices already have the infrastructure in place to administer Direct Loans. Schools will be able to operate these loans using the same on-site system currently used to administer Pell Grant scholarships; almost all schools participate in the program. Colleges and universities that have switched to Direct Loans, including those that converted in the midst of last year�s credit crisis, report that it was a fairly easy and inexpensive process. Currently about 1,700 schools participate in the Direct Loan program, including 500 colleges that switched in the past year alone. Under this bill about 4,500 colleges will need to switch to Direct Loans.

SAFRA: Groundbreaking Community College Reforms

Wed, 15 Jul 2009 10:33:00 -0500

A college degree continues to be the best pathway to the nation�s middle class. It�s also the best way to prepare our workers for the jobs of the future, to compete in a global marketplace, and to rebuild our economy so that it�s strong, innovative, and once again sets an example for the rest of the world. With more Americans than ever looking to go to college or return to school to get additional skills needed in new and emerging fields, community colleges have an increasingly important role to play in educating and training America�s workforce.

Just this week, President Obama set a new goal of graduating 5 million more Americans from community colleges by 2020. This legislation includes President Obama�s groundbreaking community college reforms that will help reach this goal and prepare students and workers for 21st century jobs by:

Creating a new Community College Challenge Grant Program that will transform community colleges into excellent education and job training centers

Build a 21st century workforce by encouraging historic partnerships between community colleges, businesses, job training and adult education programs. The bill will create a new competitive grant program for community colleges to improved instruction, work with local employers, improve their student support services, and implement other innovative reforms that will lead to a college degree, certificate or industry-recognized credential to fulfill local workforce needs. The Secretary of Education will be able to evaluate the effectiveness of all programs and policies funded through these grants by using 2 percent of these funds to commission the Institute for Education Sciences to conduct a rigorous study to help the Secretary determine which reforms may be replicated at other colleges and states.
Incentivize community colleges to achieve excellence by requiring them to meet benchmarks in order to participate in the challenge grant program. Under the program, the Secretaries of Education and Labor will award four-year grants to community colleges and other 2-year degree granting institutions on a competitive basis to support innovative pilot programs and policies. In order to continue to receive funding for year three of the grant period, community colleges must meet benchmarks they set in consultation with the Secretary of Education�s approval. Pilot programs and policies must also demonstrate that they can be replicated either in the state or nationwide. The minimum grant that can be awarded is $1 million. Funds can be used to carry at least two of the following activities:

Facilitating transfer of credit articulation agreements;
Expanding academic and training programs that provide relevant job-skill training for high-wage occupations in high-demand industries;
Improving student support services including those identified under the Workforce Investment Act;
Creating workforce programs that blend basic skills and occupational training leading to industry-recognized credentials;
Building and enhancing linkages including dual enrollment programs and early college high schools as well as improving remedial and adult education programs; and
Implementing reform programs to increase completion rates and provision of training for students to enter high-wage occupations in high-demand industries.

Ensure that more students graduate with the expertise needed for high wage jobs and high-demand industries. Targets grants to high-need students and programs that focus on preparing students for jobs in fields that need workers and will continue to grow. The Secretaries would also be able to award six-year competitive grants to states to implement successful Challenge Grant Program reforms at other community and junior colleges within the state. Funding could be discontinued if the state does not make progress meeting benchmarks it develops with the Secretary by year three of the grant period.

Expanding access to education by supporting free, high-quality, online training, and high-school and college courses.

The U.S. Department of Education would be authorized to make competitive grants available to eligible colleges, workforce programs or other entities to help support the development of these courses.

Ensuring that Americans can learn in modern, updated, and state-of-the-art community college facilities.

Helps community colleges construct, renovate and repair their facilities by providing $2.5 billion, which will leverage additional funds, and ensures that funding is used for facilities that are primarily used for instruction, research, or student housing.

SAFRA: Preparing the Next Generation for a Lifetime of Success

Wed, 15 Jul 2009 10:32:00 -0500

A key piece of President�s Obama�s education agenda is supporting comprehensive and effective early learning programs for children from birth to age 5. The first five years of a child�s life has a lasting impact on their learning, health, and behavior. Economists, business leaders, and child development experts agree that smart investments in early education are vital if we want to close the achievement gap and ensure our children are well prepared to thrive in school and in life.

Nearly 12 million children under age 5 regularly spend time in child care arrangements and children with working mothers spend on average 36 hours per week in such settings. But currently there are no federal quality standards for child care and families are left with a patchwork system of child care with mediocre quality. Our children deserve and need better. By 4 years old, children from low-income families are already 18 months behind most other 4 year-olds. From the start, education reform should include early learning, or we miss out on 5 critical years. A comprehensive range of high quality early learning opportunities from birth through age 5 is necessary to give children what they will need to grow and succeed.

To ensure more kids reach kindergarten ready to succeed, the Student Aid and Fiscal Responsibility Act includes an Early Learning Challenge Fund to increase the number of low-income children in high quality early learning settings. Specifically, the legislation will:

Invest $10 billion over 10 years in competitive grants to challenge states to build a comprehensive, high quality early learning system for children birth to age 5 that includes:

Early learning standards reform.
Evidence-based program quality standards.
Enhanced program review and monitoring of program quality.
Comprehensive professional development.
Coordinated system for facilitating screenings for disability, health, and mental health needs.
Improved support to parents.
Process for assessing children�s school readiness.
Use data to improve child outcomes.

Transform early learning programs by insisting upon real change in state standards and practices:

Build an effective, qualified, and well-compensated early childhood workforce by supporting more effective providers with degrees in early education and providing sustained, intensive, classroom-focused professional development to improve the knowledge and skills of early childhood providers
Best practices in the classroom by implementing research-based early learning standards aligned with academic content standards for grades K-3.
Promote parent and family involvement by developing outreach strategies to parents to improve their understanding of their children�s development.
Fund quality initiatives that improve instructional practices, programmatic practices, and classroom environment that promote school readiness.
Quality standards reform that moves toward pre-service training requirements for early learning providers, and adopting best practices for teacher-child ratios and group size.

SAFRA: World-Class Learning Facilities For All Students

Wed, 15 Jul 2009 10:31:00 -0500

School facilities should be safe and healthy learning environments for students. But according to recent estimates, America�s elementary and secondary schools, and community colleges are hundreds of billions of dollars short of the funding needed to bring them up to good condition. Poor learning conditions aren�t just bad for students� health: research shows a correlation between facility quality and student achievement.

Modernizing school buildings will help revive our economy by creating jobs and preparing workers for the clean energy fields of the future. And by ensuring students can learn in modern, updated, renovated and safer environments, this legislation will help prepare future generations to compete in a 21st century global economy. Specifically, this legislation will:

Provide elementary and secondary schools and community colleges with access to funding for modernization, renovation and repair projects

For K-12 schools:

Authorizes $5 billion for elementary and secondary school facility projectsover the next two fiscal years, and ensures that school districts will receive funds for school modernization, renovation, and repairs that create healthier, safer, and more energy-efficient teaching and learning climates.
Allocates the same percentage of funds to school districts that they receive under Part A of Title I of the Elementary and Secondary Education Act, except that it guarantees each such district a minimum of $5,000.

For Community Colleges:

Provides grants to states to help community colleges finance new construction, modernization, renovation, and repair projects.
Allows grant funds to be used to match private donations to a community college capital campaign.

Encourage energy efficiency and the use of renewable resources

Requires the majority of funds to be used for projects that meet green building standards. Allows states to reserve one percent of the elementary and secondary funding to administer the program, provide technical assistance, and to develop voluntary guidelines for high-performing school buildings.
Increases transparency by requiring school districts to publicly report the types of modernization, renovation, and repairs completed as well as the educational, energy and environmental benefits of such projects.
Brings innovative projects to scale by requiring the Secretary of Education, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, to disseminate best practices in school construction and to provide technical assistance to states and school districts.

Provide additional aid to Gulf Coast schools still recovering from Hurricanes Katrina and Rita

Provides $70 million over two years for public elementary and secondary schools that were damaged by Hurricanes Katrina and Rita. Many students still attend school in temporary classrooms.

Ensure fair wages and benefits for workers by applying Davis-Bacon protections to all grants for instructional facility modernization, renovation, and repair projects

SAFRA: What's In It For You?

Wed, 15 Jul 2009 10:31:00 -0500

More Help Covering College Tuition and Expenses

Higher Pell Grant scholarship of $5,550 in 2010 and $6,900 in 2019.

About 6 million students received the Pell Grant scholarship in 2007-2008.

Lower interest rates on need-based (subsidized) federal student loans.

Nationwide about 5.5 million students borrow these loans each year.

More access to Perkins loan program by expanding it to every U.S. college campus.

Last year approximately 495,000 students received a Perkins Loan.

Shorter, simpler FAFSA form that makes applying for financial aid easier.

In 2003-2004, over 1.5 million college students who likely were eligible to receive Pell Grants didn�t apply for financial aid because they found the FAFSA form too confusing.

Better Opportunities to Prepare for Good Jobs

New college access and completion programs to help you stay in school and graduate.
Innovative partnerships between colleges, businesses and job training programs to help you get the real-world experience and skills you need to be ready for the jobs of the future.
Free, high-quality, online training and high school and college courses.

Financial Aid Programs That Are Worry-Free and Operate In Your Best Interest

Gives you the peace of mind of knowing that your federal student loans are stable.
Removes any potential for conflicts of interest between lenders and colleges.
Guarantees you the best customer service available when you repay your student loans.

News of the Day: Fix loan system for a stronger future

Wed, 15 Jul 2009 10:30:00 -0500

Chairman Miller has an op-ed in the Politico today about the plan to reform federal student loans.

Here it is in its entirety:

Fix loan system for a stronger future
By: Rep. George Miller

This summer, millions of students will sit down with their families to figure out how to pay for college. They will unwittingly enter into a financial lending system that is badly broken � and not benefiting them as intended.

However, if Congress and President Barack Obama are successful, this system is about to undergo a major change.

The college financing system that was supposed to ensure all students access to college is dangerously out of control, for three reasons.

First, tuition has skyrocketed and shows no signs of abating.

Second, the roller-coaster credit markets have put the federally guaranteed student loan program, which for years has originated almost three-quarters of all federal college loans, on life support.

And third, Pell Grants and other aid that a generation ago offered students about half of their tuition costs today cover only about 30 percent.

Over the past three years, the Democratic Congress has made great progress in restoring the scholarship�s purchasing power by increasing it by $1,500. But we�ve got to build on this success if we�re serious about reversing this trend for good.

The student loan market is changing quickly. Even a year ago, families could have confidence that lower-cost federal student loans, whether provided through the government or a private lender, were dependable. Today, it�s a very different story.

Taxpayers pay private companies to make loans, reimburse them if borrowers default and now even fund an emergency mechanism enacted last year to keep them afloat during the credit crisis. In short, taxpayers are pumping billions of dollars into a system that gives lenders all the rewards but none of the risks.

There is good reason that college affordability, next to health care and energy, is one of Obama�s top three domestic priorities.

We must fix this broken system � or risk jeopardizing the educational future of American families and our nation�s competitive future.

Our choice is clear: We can continue funneling taxpayer dollars through boardrooms, or we can start sending them directly to dorm rooms.

Today, after vigorous discussions with all key stakeholders, I am unveiling legislation to create a reliable, affordable and high-quality federal student-aid program that will revive the essential opportunity of a college education for all Americans.

This legislation will meet two crucial goals at once. It will help more students graduate with less debt by dramatically increasing grant aid and stabilizing student loans. And it will do this without costing taxpayers a dime: a pay-as-you-go college aid transformation.

First, this legislation will build on our commitment to strengthening the Pell Grant for low-income students. It will boost the maximum annual scholarship from $5,500 to $6,900 by 2019 by linking it to cost-of-living increases.

Second, it will keep interest rates down on loans for middle-class students. In 2012, interest rates on subsidized federal student loans will increase from 3.4 percent to 6.8 percent. This bill will make these interest rates variable starting that year, keeping them low and affordable.

Third, it will pay for these investments and insulate all federal student loans from market swings by originating all new loans, starting in 2010, through a more stable option: the Direct Loan Program. Direct lending provides students with the same low-cost loans as lenders but at a fraction of the cost � and without the conflicts of interest that entangled lenders in recent years.

This simple change will save taxpayers almost $90 billion over 10 years, according to the Congressional Budget Office. The result will be a more dependable, efficient and cost-effective program for families and taxpayers.

Fourth, this bill will upgrade customer services for all federal loan borrowers. Rather than force private industry out of the system, we will forge a new public-private partnership that maintains jobs and provides all borrowers with high-quality services when repaying loans. It will establish a competitive bidding process, allowing lenders and nonprofits to keep doing what they do best: service loans. We�ll harness private-sector innovation for the public good.

Fifth, this legislation will deliver on new initiatives Obama has proposed to prepare students to compete in the jobs of the future. This includes making a game-changing $10 billion investment to turn our community colleges into job training and education vessels that will help drive a strong economic recovery.

Finally, this bill will help build a sound fiscal future for our children by also returning $10 billion to pay down our deficit.

All parents hope their children can receive the best education possible without being crippled by debt. To do this, we must transform our financial aid system from one that benefits banks over students into one that makes paying for college a better deal for families and taxpayers.

Rep. George Miller (D-Calif.) is the chairman of the House Education and Labor Committee.
To find out more about this proposed legislation, visit our blog post about the Student Aid and Fiscal Responsibility Act.

SAFRA: Myths vs. Facts

Wed, 15 Jul 2009 10:29:00 -0500

The Student Aid and Fiscal Responsibility Act delivers on President Obama�s goal to expand affordable college opportunities for Americans by making historic investments in student financial aid and making federal college loans more stable and efficient � and all at no cost to taxpayers.

Not surprisingly, critics are using scare tactics to try to mislead the American public about this effort. They�re desperate to preserve the status quo � a system that for too long has favored banks at the expense of students and taxpayers.
MYTH: This is another back-door government takeover of the student loan industry.

It�s ridiculous to argue this is a government takeover, when the federal student loan programs are already a federal program, established and subsidized by the federal government. The Federal Family Education Loan Program (FFELP) now depends on taxpayer dollars not just for subsidies that reimburse lenders when borrowers default on loans, but also for the capital to finance their lending activity altogether. Taxpayers now fund 6 of every 10 dollars in federal student lending activity. They absorb all the risk. There�s simply no reason to keep pumping taxpayer dollars into a broken system when the federal government can provide the same low-cost federal loans more reliably for students and at a lower cost for taxpayers. Under this bill, this federal program will continue to be a federal program, as it always has been, and private industry will continue to have a role, but one that is more effective and cost-efficient for families and taxpayers.

MYTH: Student lenders aren�t the only industry facing credit market troubles. Why should they be treated any differently from mortgage lenders or auto companies?

It�s misleading to compare the student loan industry to the auto industry or the mortgage industry. The structure of the federal student loan programs has always guaranteed private lenders a taxpayer subsidy above the cost of making loans � a benefit that auto companies or mortgage lenders don�t enjoy. If someone buys a $20,000 car, we don�t pay the automaker $24,000. Federal student loans, and the decisions made about them, have always been a part of our larger federal financial aid system. It�s a different industry, with a different purpose, than other consumer credit industries. Ensuring that students have access to low-cost, reliable federal college loans is directly tied to our ability to build a stronger, competitive workforce and economic future.

MYTH: This bill will only add to the federal budget deficit at a time when we can least afford it.

Wrong. This legislation will actually help us pay down the deficit. According to the Congressional Budget Office, this bill will save $87 billion over 10 years. In addition to increasing grant aid, reducing interest rates on student loans and funding other benefits for students, this bill will direct $10 billion in savings to the U.S. Treasury to reduce our deficit. It�s an investment in a stronger economy and a stronger fiscal future.

MYTH: This legislation will drive competition out of the student loan marketplace � hurting students and families.

What will hurt students is not having access to low-cost, reliable federal loans to help pay for college. The financial crisis has already caused many lenders to leave the federal student loan programs, leaving many students in a bind. The Direct Loan program provides the same low-cost loans to students as FFELP, with the added benefit of complete reliability, even in an economic crisis. And the bill will foster competition among lenders by allowing private companies to compete for bids to service these loans � ensuring that contracts are awarded to lenders who offer the best customer service and innovations for borrowers. This is competition that will help students and build on the best of what private industry can offer to borrowers.

MYTH: This is nothing but a redistribution of wealth. Why should we finance grant aid increases for the poorest students at the expense of the middle class?

Both low-income and middle-class students will benefit from this legislation. Despite recent investments made by President Obama and the Democratic Congress, the Pell Grant scholarship, today only covers about 30 percent of average college tuition and fees � down 20 percent from twenty years ago. In addition to boosting the Pell Grant for low- and moderate-income students, this legislation will also keep interest rates low on college loans for middle-class students, support programs that help students stay in school and graduate and expand access to campus-based aid. This will not only make college more affordable for students while they�re in school, but will also help reduce college debt after graduation � a strategy that can help improve purchasing power of the Pell Grant and strengthen our economy over time.

MYTH: Big government is too bureaucratic to run student loans. Services for families will suffer; they may not even get phone calls returned.

The federal government has already proven that it can originate loans more efficiently and reliably than private lenders. Where private lenders have excelled is in servicing loans to students � meaning ensuring that borrowers pay back loans on time, providing financial literacy, and helping prevent loan defaults. This legislation builds on the best of what works in the current system by creating a new public-private partnership that will allow lenders to compete for contracts to service Direct Loans. The bill will also ensure that smaller state non-profit lenders can keep servicing loans. Borrowers will receive only the best customer service, and jobs will be maintained in communities across the country.

MYTH: It will cost colleges and universities already facing deep budget crises millions to switch to direct lending � leading to more tuition hikes for families.

This is nothing more than a myth cooked up by critics to scare colleges; there is simply no evidence to back this up. Colleges and universities that have switched to Direct Loans, including those that converted in the midst of last year�s credit crisis, report that it was a fairly easy and inexpensive process, in part because schools are able use the same on-site system currently used to administer Pell Grant scholarships. Penn State, for example, did not have to hire extra staff or increase its budget during this switch last spring.

MYTH: Cutting lenders out will lead to massive job losses in an already devastated economy.

While this legislation will trim the profits of CEOs and big banks, it will not lead to enormous jobs losses. By maintaining a servicing role for both large and smaller lenders, this bill will preserve jobs and, unlike in the FFELP program, keep them from being shipped overseas.

MYTH: The Direct Loan program will not be able to handle this increased capacity.

Colleges and universities that already participate in the Direct Loan program have found it easier to administer, simpler for students and parents, and faster at originating and disbursing loans than FFELP. If this legislation passes on schedule, the U.S. Department of Education will have almost a year to prepare for this increased capacity.

MYTH: The Direct Loan program doesn�t prevent student loan defaults as well as the federally-guaranteed student loan program does.

Recent preliminary data released by the U.S. Department of Education shows that in 2007, default rates were lower in the Direct Loan program than in FFELP. By allowing private lenders to service these loans through a competitive process, which will include default prevention strategies, this bill will ensure that more borrowers can receive service from lenders that have been effective in keeping default rates low.

Photos and Video of the America�s Affordable Health Choices Act Press Conference

Tue, 14 Jul 2009 18:40:00 -0500

Created with flickrSLiDR.

Chairman Miller begins speaking at 1:48

America�s Affordable Health Choices Act

Tue, 14 Jul 2009 15:00:00 -0500

The Chairmen of the three Committees with jurisdiction over health policy in the U.S. House of Representatives introduced comprehensive health care reform legislation on July 14 that will reduce out-of-control costs, encourage competition among insurance plans to improve choices for patients, and expand access to quality, affordable health care for all Americans.

The America�s Affordable Health Choices Act is consistent with President Obama�s overall goals of building on what works within the current health care system by strengthening employer-provided care, while fixing what is broken. The bill will ensure that 97 percent of Americans will be covered by a health care plan that is both affordable and offers quality, standard benefits by 2019.

The House Committees on Education and Labor, Ways and Means, and Energy and Commerce have been working together in an unprecedented way as one committee to develop the proposal for health care reform.

The key principles of legislation include, among other things:

Increasing choice and competition.
Giving Americans peace of mind.
Improving quality of care for every American.
Ensuring shared responsibility.
Protecting consumers and reducing waste, fraud and abuse.

America's Affordable Health Choices Act: Complete Bill Text (HR 3200) �
America's Affordable Health Choices Act: Summary �

What's In the Health Care Reform Bill for You? �
Myth vs. Facts �
The Health Insurance Exchange �
Public Health Insurance Option �
Shared Responsibility �
Guaranteed Benefits �

Making Coverage Affordable �
Consumer Protections and Insurance Market Reforms �
Employers and Health Reform �
Strengthening the Nation's Health Workforce �
Delivery System Reform �

Protecting Program Integrity by Preventing Waste, Fraud and Abuse �
Strengthening Medicare �
Improving the Medicare Part D Drug Program �
Maintaining and Improving Medicaid �
Preventing Disease and Improving the Public's Health �

Controlling Health Care Costs �
Paying for Health Care Reform �
Health Care by the Numbers �

Education and Labor Chairman George Miller's Statement �
White House Statement on the House Discussion Draft for Health Care Reform � Check back for additional updates

Support for the HR 3200 - America's Affordable Health Choices Act

AARP
AFL-CIO
American Medical Association
Consumers Union
FamiliesUSA
Main Street Alliance

Chairman Miller Statement on Introduction of the America�s Affordable Health Choices Act

Tue, 14 Jul 2009 14:45:00 -0500

WASHINGTON, D.C. � Below are the prepared remarks of U.S. Rep. George Miller (DCA),
chairman of the House Education and Labor Committee, at a press conference to
introduce the House Tri-Committee legislation to reform health care, the America�s
Affordable Health Choices Act.
*****
Three weeks ago, we took a historic step forward in the critical quest to fix our broken
health insurance system. We presented a reform discussion draft to the Congress and the
American people.

Our three committees heard from over 70 stakeholders at hours of hearings on our draft.
We held discussions with our colleagues whose input has strengthened our effort.

Today, we are proud to introduce a health care reform bill based on our work so far, �America�s Affordable Health Choices Act.�

Our bill embraces the desires of the American people and meets the goals articulated by
President Obama -- to lower costs, preserve choice, and expand access to care. And our
bill addresses America�s economic and fiscal health and the medical well being of our
people.

Clearly, economic growth is compromised by spiraling health care costs and the rising
deficits fueled by unchecked and inefficient health care spending. That is why our bill
will curtail health care spending and be fully paid for. It will save more than $500
billion in health care expenditures that will drive down the cost of health care. And we
will not pass new costs on to future generations.

Let me be specific about what our bill means for average Americans:

LOWER COSTS FOR HEALTH CARE

� No more co-pays or deductibles for preventative care.
� No more rate increases because of a pre-existing condition, your gender, or
occupation.
� An annual cap on your out-of-pocket expenses.
� Group rates of a national pool if you buy your own plan.
� Guaranteed, affordable oral, hearing and vision care for your kids.

GREATER CHOICE OF CARE

� You can keep your doctor and your current plan if you like them.
� Your choices will be protected and enhanced. You will have access to a wide
variety of choices for quality and affordable plans, including a high-quality public
health insurance option to compete with private insurers.

HIGHER QUALITY OF CARE

� You and your doctors make health care decisions � not insurance companies.
� More family doctors and nurses will be able to enter the workforce, helping
guarantee you access to better treatment that meets your needs.
� Mental health care must be covered.

STABILITY AND PEACE OF MIND

� Never again will you go without health insurance.
� You will have the peace of mind knowing that you will never lose coverage if you
lose a job or switch jobs.
� You will never be denied coverage because of a pre-existing condition.
� And you won�t face any lifetime limits on how much insurance companies will
pay � meaning you will never again be one treatment away from bankruptcy.

And our reforms will cover 97 percent of Americans by 2019.

Beginning this week, our committees will mark up our respective areas of jurisdiction.
Our Republican and Democratic colleagues have already been busy drafting amendments
to the bill and they will have the opportunity to offer their amendments.

We will continue to improve our bill by working with those with constructive ideas and
will endeavor to satisfy the many competing demands that naturally accompany a bill of
this scope and importance.

Not every change can be included nor every concern resolved. That is the legislative
process.

But we will -- this year -- produce a bill that is fair and fully paid for, that reduces costs
and preserves choice, and that expands access.

And it will be a major accomplishment for the American people.

TODAY: Democrats to Unveil Health Care Reform Legislation

Tue, 14 Jul 2009 12:39:53 -0500

Today at 2:45pm Eastern time, House Democrats will discuss the health care reform legislation introduced by the Tri-Committees (the House Ways and Means, Energy and Commerce, and Education and Labor Committees). The three panels with jurisdiction over health policy in the House have been working together as one committee to develop a single bill that fulfills President Obama�s goals of reducing health care costs, protecting and increasing consumers� choices, and guaranteeing access to quality, affordable health care for all Americans.

News of the Day: USA Today poll

Tue, 14 Jul 2009 10:12:28 -0500

The USA Today has a poll on their front page that shows Americans want a health care bill. On June 19th, House Democrats released a Discussion Draft that would reduce out-of-control costs, improve choices and competition for consumers and expand access to quality, affordable health care for all Americans. It would also guarantee that almost every American is covered by a health care plan that is both affordable and offers quality, standard benefits by 2019.

The USA Today poll found:

The poll of 3,026 adults, surveyed Friday through Sunday, has a margin of error of +/-2 percentage points. Some questions, asked of half the sample, have an error margin of +/-3 points.

By 56%-33%, those surveyed endorse the idea of enacting major health care changes this year. Just one in four say it's not important to them.

When it comes to financing the costs, six of 10 favor the idea of requiring employers to provide health insurance for their workers or pay a fee instead. Increasing income taxes on upper-income Americans, an approach backed by House Ways and Means Chairman Charles Rangel, D-N.Y., is endorsed by 58%. Just over half support taxing sugary soft drinks.

We encourage you to read the entire article and visit our webpage with many fact sheets about the Discussion Draft.