Democratic Bill Provides Loan Forgiveness to Politicians, Lobbyist at Taxpayer Expense and Does Little for Low-to-Middle Income Students

Washington, Jul 11, 2007 -  

House Conference Secretary John Carter (TX-31) today voted against H.R. 2699, a bill that the Democrats are calling the “College Cost Reduction Act,” although it does little to help students and forces working families to subsidize student loan debts of Members of Congress and lobbyists.

“One of the top concerns facing families today is the rising cost of higher education. This Democrat bill fails to help low-income students because less than one third of the savings are directed to the Pell Grant program,” said Carter. “In fact, most of the so-called ‘student aid’ in this bill won’t help a single college student. Instead, it forces working families to subsidize individuals who have already graduated with a college degree. A Central Texas family deciding whether they can afford to send a high school senior to college won’t see any additional help- but they will be forced to subsidize loan forgiveness for Members of Congress and lobbyists.”

Last year, 180 House Democrats voted against the College Access & Opportunity Act (HR 609), a bill that would have increased access to higher education for low-to-middle income students. Now, after breaking their promise to restore fiscal responsibility and reform entitlement spending, Democrats are forcing beleaguered taxpayers to foot the bill for nine costly new entitlement programs under the guise of helping students.

Of the $18 billion spent on higher education, less than one third goes towards the Pell Grant Program. The other $13 billion goes towards nine costly new entitlement programs, benefits for those who have already graduated from college and new programs aimed at institutions, rather than students.

The Democrat Majority blocked a Republican motion, offered by Rep. Peter Roskam (R- IL), that would have stopped loan forgiveness for Members of Congress and lobbyist.

“I have worked with my Republican colleagues to expand access to higher education for students, and will continue to support measures that will result in real relief for students,” Carter said. “The Democrat bill does nothing to send more students to college or to reduce the cost of education.

“There is no reason we should be erasing student loan debt for Members of Congress and lobbyist, soaking taxpayers by creating nine new entitlement programs and forcing working families to subsidize college graduates.”