Higher Education

Source: Campaign for America's Future & the Campaign for College Affordability

"Democrats believe we must invest in our nation's economic future by helping students and families pay for college. We need a new direction for America so that every qualified student will be able to afford the price of college." - Rep. George Miller, October 24, 2006 ¹

The Promise

Democrats pledge to cut the cost of college loans and increase maximum Pell grants by more than $1000 to $5,100. The first step would be to cut interest rates on college loans in half, to 3.4% for middle class students.

The Problem

Students and their families are scrambling to pay for college:

• Tuition costs are rising far faster than inflation while real wages have been stagnant. The average cost of tuition at a public college has increased 42 percent, ² but median household income has fallen 2 percent. ³
• Federal assistance to students and parents has been shrinking and states have been cutting back institutional support. ⁴
• Congress recently raised interest rates on student loans and cut $12 billion from the Federal Student Aid program.
• The maximum Pell Grant Award is worth less, in real dollars, than it was 30 years ago. ⁵
• In July 2006, interest rates increased from a variable rate that was set at 5.3% to a fixed rate of 6.8%.
• Each year, the cost of higher education translates into 400,000 qualified students not going on to four-year colleges.
• The average student debt burden in 2004 was almost 60% higher than the mid-1990's.
• High debt affects student’s ability to go into low paying public service jobs such as teaching and social work.

The People

• A survey by the American Association of University Professors finds 81% of Americans say that the high cost of tuition is a "very serious problem."
• A survey by the American Association of University Professors finds 42.8% of Americans surveyed believed "the high cost of college" was the "biggest problem facing higher education." ⁶

The Down Payment

Democrats pledge to introduce legislation in the first 100 hours to cut interest rates for middle class student loans in half.

1. Miller, George. “College Board Reports Shows Urgent Need for New Direction that Makes College More Affordable, Says Miller.” October 24, 2006. http://www.housedemocrats.gov/news/librarydetail.cfm?library_content_id=1016
2. U.S. Department of Education, National Center for Education Statistics, Higher Education General Information Survey (HEGIS). Average Undergraduate Tuition and Fees and Room and Board Rated Charged for Full-Time Students in Degree-Granting Institutions, by Type and Control of Institution: 1964-65 through 2004-05.
3. U.S. Census Bureau, Table H-8. Median Household Income by State: 1984 to 2005.
4. Institute for Higher Education Policy 2004.
5. Public Interest Research Group, Background on Higher Education Act Reauthorization, March 28, 2006.
6. http://www.aaup.org/NR/rdonlyres/DCF3EBD7-509E-47AB-9AB3-FBCFFF5CA9C3/0/2006Gross.pdf