Making College Affordable for All: Talking Points for the 2010 Lame Duck Session

Talking points from the United States Student Association. November 15 - December 31, 2010.

The Lame Duck session is the few weeks after the next Congress has been elected, but the current one remains in power. During this time, members of Congress must navigate the tricky legislative waters of a post‐election environment, often prioritizing policies they championed during campaigns. Three such priorities USSA will be pushing during the Lame Duck session are: The DREAM Act, Pell Grant, and American Opportunity Tax Credit.

The DREAM Act

The DREAM Act is bi‐partisan legislation that will provide a path to legal status for thousands of young people who have been raised in the United States, worked hard in school, and would like to pursue higher education or serve their country in the military. The largest cohorts by far to benefit from this critical piece of legislation are young children currently enrolled in our elementary and secondary school ‐ they account for 43% of all potential beneficiaries. The DREAM Act lives up to our shared American belief that no child’s future should be limited because of their race, color, or ancestry.

Immigration is a top issue for Latino voters with 78% in support of the DREAM Act.

• Now that the election is over, the electorate expects results. While the campaign may have been about the candidates, the legislative session must be about the issues.
• In every state, immigration was among the top two issues that Latino voters want policymakers to address. DREAM students and their supporters canvassed, called, and knocked on doors to get word out to vote. Voters chose representatives who would do the right thing for the American economy by enhancing our capacity to create an educated workforce.
• Record turnout amongst Latinos was key to the victories of several DREAM Act supporters, including Senator Reid. In the Nevada Senate race, Harry Reid's margin over Sharron Angle among Latinos was 90% ‐ 8%. Latino turnout was up from 12% of the electorate in the 2006 midterms to 15% in 2010.

 The DREAM Act is supported by 70% of likely voters and by leaders in education, the military, business and religious orders.

• Passing the DREAM Act before the end of the year must be a priority because it enhances our ability to have a more educated workforce, increase the tax base and grow our economy. It is in the best interest of the American people for our legislators to work together in passing this critically important piece of legislation.
• Addressing popular topics like DREAM will show that Congress can continue to work together on legislation that will improve our country’s socio‐economic prosperity.

 Passing the DREAM Act will increase American prosperity.

• The immigrant youth affected by the DREAM Act have lived in the United States since they were children. They are highly educated, highly motivated individuals who will be able to boost our economy in communities that have been negatively affected by the economic crisis.

 DREAM is a win for both sides of the aisle.

• The DREAM Act enjoys bi‐partisan support because it speaks to Democratic and Republican ideals of growing our nation’s economy through hard‐work and innovation. A recent study by the UCLA North American Integration and Development Center finds that the estimated 800,000 youth legalized through the DREAM Act will potentially generate $1.38 trillion dollars over their work‐life.

 The DREAM Act follows our nation’s tradition of service

• Thousands of qualified young men and women stand ready in this time of war to serve in our military and prove their devotion to this great nation. These brave young people are answering the call of great American leaders like President John F. Kennedy as they ask only what they can do for their country.

 Our immigration system is outdated, and does not accommodate these highly talented young people who have grown up in America.

• Contrary to popular belief, there is no “line” for these young immigrants to enter. Their only hope of joining the lawfully present workforce is through the DREAM Act.
• Like any other infrastructure, our immigration system must be maintained to ensure that it meets our needs. Unfortunately, this structure has fallen into disrepair, allowing future doctors, teachers, and service men and women to fall into a legal black hole.

The Pell Grant Program

The Pell Grant Program was once considered the cornerstone of federal financial aid. Created in 1976, its purpose was to allow low‐income students the chance to go to college without worrying about the cost. Yet, after decades of underfunding and the devaluation of education in the federal government, the Pell grant’s purchasing power has plummeted. At its creation, the grant covered 72% of the cost of college; in 2008, that number had fallen to just 32%. Add to that, the program is currently facing a $5.7 billion shortfall that, if left unfilled in the Lame Duck session, will lead to a massive reduction $845 for the maximum award amount and a 15% cut for nine million students. In one of its last acts, the 111th Congress must prioritize the affordability and accessibility of college for low‐income students.

Student debt is skyrocketing, making investments in need-based Aid critical for the affordability and accessibility of America’s colleges and universities.

• A third of college students require loans to help finance their education, and the average borrower is graduating nearly $25,000 in debt.  
• Such financial strain is preventing college graduates from pursing the risks that have traditionally fostered economic mobility: buying a home or a car, starting a family, or even taking a dream job over one that simply pays the bills. Programs like the Pell grant would allow students to have the financials means to complete college without falling into such heavy levels of debt. 
• Americans now owe more in student loan debt than credit card debt, an incomprehensible scenario that reflects the current reality that people are mortgaging their futures in order to go to college. This is an unsustainable rise in debt that can only be effectively countered with investments programs such as the Pell Grant.
•  In the past 20 years, the federal financial aid system has switched from one primarily reliant on grants to one based on loans. This reversal is forcing students into unmanageable levels of debt simply by going to college.

 Investments in increasing college graduation rates today will stave off another avoidable jobs crisis tomorrow.

• A recent Georgetown University report has concluded that in 2018, the U.S. will have 22 million new jobs available to college‐educated workers. However, based on current graduation rates, the U.S. will be eight million college graduates short of filling this need. This is an entirely avoidable unemployment crisis that Congress can stave off by investing in higher education programs, like the Pell Grant, today.

• Over 30 state legislatures are planning to cut higher education budgets in FY 11, meaning less money for low‐income students. If Congress is concerned about producing the college graduates necessary to fill high‐skill jobs in the coming years, it will mitigate the disastrous state budgetary policies by fully‐funding the Pell Grant.

 Congressional inaction will lead to 9 million low-income students having their college education pushed further out of reach.

• The $5.7 billion shortfall was filled in the House Appropriations Committee FY11 spending bill, yet the Senate did not. If Congress simply passes a “Continuing Resolution” that funds government programs at last year’s level, the funding gap will not be filled and nine million students will have their grants slashed.

 Students of color are being priced out of a college education through rising costs deterring completion or enrollment.

• 92% of black students rely on financial aid, which is increasingly based on loans, and 69% who don’t graduate say they dropped out because of high loan debt.
• 49% of Latino students delay or don’t attend college because of the high cost of college.

 
American Opportunity Tax Credit

The American Opportunity Tax Credit (AOTC) modified the Hope Credit to qualify more parents and students over two years for tax credit to pay for college expenses.

AOTC provides up to $2,500 in credit per year for up to four years of school, covers more low‐income families with a tax refund of up to $1,000, and applies to course materials such as books in addition to tuition. Over 4.5 million students have received average refunds of $800. As a provision in the Recovery Act, AOTC will expire at the end of this year unless made permanent.

The cost of a higher education is skyrocketing and the AOTC provides students and families much needed financial relief during these tough economic times.

• Public four‐year college charge an average of $7,605 in tuition and fees for in‐state students, and the cost of textbooks is nearing $1,000 per year as well. These costs must be mitigated by financial relief in order for families to navigate the lingering effects of the recession while putting a member through college.

The United States Student Association is the country’s oldest and largest student-led organization, represents over 4.5 million students at over 400 campuses across the nation.