Chet Edwards For Congress - Higher Education

Time for new GI Bill

econnor — Sun, 20 Apr 2008 12:11:31 -0700

Sunday, April 20, 2008

Waco Trib: Time for new GI Bill

Waco Tribune
By Perry Jefferies, guest column

FORT HOOD — If you followed the congressional testimony by Gen. David Petraeus and Ambassador Ryan Crocker, you probably noticed that nearly every question and answer began with a paean to the troops and the marvelous job they do every day.

As a veteran of Operation Iraqi Freedom, a former member of the Texas National Guard and a U.S. Army retiree, I appreciate those words.

But drowned out by this singing of praises is a much-needed discussion of how to support troops when they come home.

Though it did not receive much attention, a bipartisan group of 196 representatives, including long-time veterans’ advocate Congressman Chet Edwards, introduced a new GI Bill.

Modeled on the World War II bill that put 2.2 million combat veterans through college, it would make college affordable to all veterans of Iraq and Afghanistan.

Today’s Montgomery GI Bill is only a shadow of the benefit given to veterans of World War II. Current educational benefits cover only 60 to 70 percent of the average cost of four years at a public college or university and pay for less than half of the cost of tuition at a private institution.

National Guardsmen and Reservists — including those who have served multiple combat tours in Iraq and Afghanistan — receive a fraction of these meager benefits.

It’s no wonder that 90 percent of veterans start their education at community colleges, compared to less than half of college students as a whole.

Right now, 18 percent of newly returned veterans are unemployed — three times the national average. More than a thousand Iraq and Afghanistan veterans have already shown up in the nation’s homeless shelters.

With some troops in Iraq on their third, fourth, and even fifth tours, it’s time to enact the same readjustment tool for the latest “Greatest Generation.”

The New GI Bill, S.22/H.R.5740, would substantially increase educational benefits and provide veterans with a living stipend.

This would allow our veterans to go to school without taking out massive loans or having to sleep on Mama’s couch.

The bill would also establish fair benefits for our National Guardsmen and Reservists and help rebuild our struggling economy.

Every dollar invested in educational benefits for WWII veterans added seven dollars to the national economy. That’s a stimulus package the nation can use right now.

As a Texas veteran, I also see the strain that five years of war in Iraq have put on our military and enlistment levels.

The Pentagon has responded with lower enlistment standards. The military enlisted 25 percent fewer “high-quality” recruits in 2007 than in 2004. In 2007, only 79 percent of new Army enlistees had a high-school diploma.

The maximum age for a new recruit has been raised to 42 from 35.

And the percentage of Army recruits receiving waivers for criminal convictions has risen to 12 percent.

The New GI Bill would be a better recruiting tool for motivated troops and their families than a waiver for felony convictions.

Here at Fort Hood, the 1st Cavalry Division just had its welcome home.

The troops assigned to that unit have already been given their next departure date.

As we ask these brave men and women to make yet another sacrifice, now is the time to get this bill passed.

In the next few weeks, lawmakers will wrangle over the emergency supplemental spending bill. One provision they must include is a new GI Bill. Educating our nation’s veterans is a cost of war, and a GI Bill that properly rewards our troops for their service and their sacrifices is not only in our nation’s best interest, but it’s also the right thing to do.

Perry Jefferies, a native Wacoan and now resident of Copperas Cove, began his military career with the Texas National Guard and retired in 2004 after 25 years of military service. Jefferies is a founding member of Iraq and Afghanistan Veterans of America.

Every dollar invested in educational benefits for WWII veterans added seven dollars to the national economy. That’s a stimulus package the nation can use right now.

Congress approves Pell Grant limit increase by 2012

econnor — Sat, 12 Jan 2008 12:11:31 -0700

Feb. 12, 2008
Congress approves Pell Grant limit increase by 2012

Baylor Lariat
By Sommer Ingram | Baylor Lariat reporter

As the costs of higher-level education continue to rise across the country, Congress continues its efforts to make education more affordable for students and their families. Last week, the U.S. House of Representatives passed the Higher Education Reauthorization Act, which reauthorizes the Higher Education Act through fiscal year 2012, increasing the maximum Pell Grant per year to $9,000.

The increase in the Pell Grant is $68 billion from 2009 to 2012. Congressman Chet Edwards, D-Texas, supports the bill.

"Keeping the doors of our colleges and universities open to bright, hard-working students is not only important for their future, it is critical for the future of our nation," said Edwards in a news release. "If America is going to compete in the global economy, we must knock down the financial barriers that are making it harder for qualified students to pursue a higher education. One of the ways we do that is by increasing Pell Grants."

Dr. Charles North, professor of economics, said that while Pell Grants are an effective way of getting kids from low socioeconomic backgrounds to college, they aren't the sole solution.

"If our goal is to reduce the amount of poverty in the United States, we need to focus more on pre-K through 12 children, because the roots of poverty are in elementary school," he said. "I'd like to see more money aimed at the earlier, more formative years in kids' lives so they can develop the skills and mindset needed for college."

In his State of the Union Address, President Bush proposed a multi-million dollar program called Pell Grants for Kids. Modeled after the Pell Grant program for college students, this program would provide grants on a competitive basis to schools to create scholarship programs for low-income students from kindergarten to twelfth grade to attend private schools. Unlike the increase in the Pell Grant, this new plan was proposed amid criticism of being a voucher in disguise.

"In my opinion, this is just a back door way of providing funding for kids to attend private schools--much like a voucher," said Dr. Kent Gilbreath, professor of economics. "It is highly unlikely that such a proposal will pass because Congress hasn't seemed to support vouchers. Simply calling this a 'Pell Grant' doesn't change anything."

Gilbreath said there are things that need to be addressed within the original Pell Grant program itself.

"The biggest problem with Pell Grants is that the amount of money has not kept up with the growing cost of higher-level education, kind of like minimum wage wasn't increased for years," he said.

Because Pell Grants are restricted to families below a certain income level, many middle-class families who can't afford college tuition out of their own pockets don't get help from the federal government.

"We must provide the very best education we can for everyone, because the future of our competitiveness as a nation is based on brains, not brawn," Gilbreath said.

Gilbreath said the increase in Pell Grants has no effect on the economy and talk of recession.

"That matter is rather irrelevant," he said. "But one of the big clouds looming on the horizon is the huge amount of debt students leave college with -- it can have a stifling effect on the economy and business cycle. But Pell Grants are a step up both economically and socially for thousands of low-income families, so an increase is a huge step in the right direction."

Spending Bill Provides For Projects In Hill County

econnor — Sun, 30 Dec 2007 12:11:31 -0700

Hillsboro Reporter: Spending Bill Provides For Projects In Hill County

Dec. 30, 2007

An omnibus spending bill was signed by President George W. Bush Wednesday, December 26, aboard Air Force One on his way to Texas.

The $515 billion bill included 8,993 earmarks costing nearly $10 billion, according to the White House.

Included in the earmarks that President Bush chastised congress for are some that will benefit projects in Hill County.

Senator Kay Bailey Hutchison secured $140,000 for improvements to the City of Hillsboro’s downtown streetscape.

“This funding will help revitalize Hillsboro’s downtown while attracting new businesses and more jobs for Hillsboro’s families,” Sen. Hutchison said.

Congressman Chet Edwards secured funding for improvements to Hillsboro’s water and wastewater systems, the Lake Whitney Dam powerhouse and Farm Road 933 near White Bluff, along with funds for the GEAR UP Program in Hill and Bosque counties.

An earmark of $492,200 will add to the City of Hillsboro’s efforts to upgrade its aging water-delivery and wastewater-collection systems.

Hillsboro City Manager Jack Harper said that the funding will primarily be used to replace parts of the system that are in desperate need of repair.

The city has made significant improvements to its wastewater-treatment plant with an expansion that nearly doubled the capacity.

It has used funds left over from that project to address inflow and infiltration problems in the wastewater-collection system, but still has a long way to go in replacing some of the old, clay sewer lines in the city.

“Improving water pipelines and infrastructure are important for Hillsboro’s families and businesses and for the community’s future growth,” said Edwards. “I want to salute Mayor John Erwin, former Mayor Will Lowrance, City Manager Jack Harper and community leaders for their vision and hard work on this project. It was a privilege to work with them.”

Edwards earmarked $4.42 million to replace two turbines and upgrade generators at Lake Whitney Dam.

“By replacing turbines and upgrading hydropower capacity at the Lake Whitney Powerhouse, we will be able to provide electricity to 1,500 more area homes on average each year,” the congressman said. “It will also help lower the cost of electricity for cities and families throughout Central Texas by lowering the purchase price of energy during the high demand periods.”

The planned improvements will increase the powerhouse’s generating capacity to 42-megawatts.

Farm Road 933 at the entrance to White Bluff will benefit from $196,000 that will pay to add a left-turn lane.

Edwards said that the federal funding will jumpstart the project with the Texas Department of Transportation (TxDOT), which will fund the project on the state level.

He said that improving the roadway will ease traffic congestion, reduce the risk of serious auto accidents and help encourage economic development.

Edwards also secured $97,000 for the GEAR UP Program.

Administered through the Region 12 Education Service Center, the program prepares at-risk junior high and high school students academically and socially for college.

School districts in Hill and Bosque counties, along with Hill College, McLennan Community College and Texas State Technical College, provide programs that are designed to increase the number of students who will continue their education beyond high school.

The President included a signing statement criticizing congress for failing to cut back on earmarks. He wrote that “these projects are not funded through a merit-based process and provide a vehicle for wasteful government spending.”

He said that the funding passed for troops in Iraq and Afghanistan included in the bill were good down payments and called for congress to take action quickly in 2008 to provide the remainder of the needed funding.

Approps bill includes $3.3 million for local projects

econnor — Thu, 27 Dec 2007 12:11:31 -0700

Thursday, December 27, 2007

Waco Trib: Appropriations bill includes $3.3 million for local projects

Waco Tribune
By David Doerr

The $555 billion spending bill President Bush signed as he flew to spend time at the Western White House has provisions that could affect some of his Central Texas neighbors. The appropriations include $3.3 million secured by Rep. Chet Edwards, D-Waco, for projects in McLennan County.

Local earmarks include:

$1.4 million to remove debris and repair damage to Lake Waco Parks from flooding earlier this year. Edwards said in a press release the repairs should allow the U.S. Army Corps of Engineers to open Airport Park and Airport Beach in 2008.

$294,000 for a study to help Beverly Hills determine how to repair Memorial Drive from the Waco Veterans Affairs hospital to Valley Mills Drive.

$294,000 to build a new swimming pool at the Bellmead community center.

$246,000 for the Brazos River Authority to study the effects of population growth on water supply in the Middle Brazos water basin.

$658,000 to help Baylor University finish a physical sciences laboratory used by at least 20 research groups.

$146,000 for Texas State Technical College to buy equipment and increase capacity for manufacturing workforce training.

$121,000 for Waco's AVANCE Early Childhood Intervention and Family Support Program to assist 300 families from at-risk, low-income households with parenting education, early childhood development, and ESL and GED classes.

$97,000 for Baylor University Language and Literacy Center speech pathologists to assess the relationship between language and reading.

The appropriations bill also includes language requiring the Government Accountability Office to conduct a cumulative emissions impact study on Central Texas Coal plants.

It also set aside $357,000 for a Fort Hood - Texas A&M University program to revegetate 30,000 acres disturbed by artillery.

Brazos Valley tallies $41 million in earmarks

econnor — Wed, 26 Dec 2007 22:09:42 -0700

Saturday, December 29, 2007

BV tallies $41 million in earmarks

The Bryan College Station Eagle

By JANET PHELPS |Eagle Staff Writer

More than $41 million will be poured into Brazos Valley projects next year, thanks to earmarks by U.S. Rep. Chet Edwards, D-Waco.

President Bush criticized special project money as "wasteful government spending" when he signed the $555 billion bill Wednesday that funds the Iraq war into 2008 and keeps government agencies running through September.

The money will go to 16 projects in Brazos, Robertson, Madison and Grimes counties. The projects range from high-profile aerospace engineering and biofuel research at Texas A&M University to a small, church-based drug prevention program.

Edwards said Friday he was proud of the federal money he secured for local projects because it's an effective way to encourage local growth.

The Constitution gives Congress the power to make appropriations, he said, and earmarks allow local leaders to identify and receive funding for projects they see as important.

"I believe [locally initiated projects] make more sense than letting some bureaucrat in the Office of Management and Budget in Washington, D.C., make decisions about what projects to fund," he said. "I would challenge anyone to criticize agricultural research at A&M or emergency response training that help make our cities safer."

A majority of the $41.6 million will go to Texas A&M, including $985,000 for biofuels research and $705,000 for aerospace engineering projects that are used by NASA for lunar and Mars exploration.

Ken Peddicord, director of Texas A&M's Texas Engineering Experiment Station, said the funding is an important step in advancing research into new energy sources.

Texas A&M's BioEnergy Alliance -- a partnership between the Texas Agricultural Experiment Station and the Texas Engineering Experiment Station -- has developed groundbreaking research in alternative fuels such as sorghum that do not come from food sources, he said.

"This money allows the program to strike off in new directions, to move away from corn and ethanol," he said.

St. Joseph Health System also received money for repairs to its Madisonville hospital.

Gentry Woodard, director of legislative affairs and grants for the St. Joseph Health System, said employees at the 57-year-old hospital have volunteered on weekends to make repairs themselves.

Edwards said the staff dedication is one reason he allotted $117,000 to pay for repairs to the roof and emergency room upgrades.

"It was terribly important to that community," he said.

The earmarks come on top of the 2008 defense appropriations bill that was signed into law in November, in which Edwards secured $6.8 million for Texas A&M defense projects and $2.6 million for Lynntech Inc.

Other local earmarks include:

$392,000 to repave County Road 172 in northern Grimes County.

$196,000 to make improvements to Collard Street in Madisonville.

$376,000 to improve communication technology equipment at the Navasota Police Department.

$12.5 million to train emergency first responders at the National Emergency Response and Rescue Training Center at Texas A&M.

$2 million to fund research at the Nuclear Security Science and Policy Institute at Texas A&M.

$21.9 million to 23 farming, forestry and animal health research programs at Texas A&M.

$1.39 million to provide anti-terrorism training to educators and local law enforcement through the Texas Engineering Extension Service's Advanced Law Enforcement Rapid Response Training program and Texas A&M's Project Protect.

$588,000 to Brazos Valley Transportation Management Center to study local traffic solutions and plan for future growth.

$150,000 to Project Focus, a drug- and alcohol-abuse prevention program at Shiloh Baptist Church in Bryan.

Working for a Quality Education for All Children

Kat — Sat, 03 Jun 2006 11:07:12 -0700

Working for a Quality Education for All Children

Chet Edwards believes quality, affordable education is the key to America's economic future. Education should primarily be a state and local responsibility, but the federal government can play an important supporting role with Head Start, public school funding, college financial aid and university research.

Chet supported the Higher Education Reauthorization Act in 2007 which improves rates and access to student financial assistance such as Pell grants, college work-study, and federally-insured loans, so that every hard-working student has an opportunity to go to college, regardless of his or her financial situation. Chet strongly opposes cuts to student financial aid and other vital education programs.

Chet is a strong supporter of the GEAR UP program, which provides college preparatory instruction, mentoring, counseling, outreach and support services for at-risk students to help them stay in school and encourage them to attend college. Chet has secured funding for GEAR UP programs in McLennan, Bosque, and Hill counties.

Chet wants to fully fund the No Child Left Behind Act, so that local school districts have the resources to meet high standards and help alleviate the heavy property tax burden on Texas homeowners.

Chet favors increased funding for Head Start so that children can begin elementary school with basic skills.

Chet supports Title I programs, which include rural education funding, reading programs and Advanced Placement programs.

Chet support character education and after school programs that enhance a student's potential.

Chet is fighting to save vocational education funding, which is currently threatened by some in Washington.

Chet opposes private school vouchers, which would drain needed funds from public schools and send those funds to wealthy, private schools.

Chet strongly supports university research programs for Texas A&M, Baylor, TSTC and other universities.

Chet has been a leader in the fight to restore Texas teachers' rights to collect Social Security benefits and co-sponsored legislation that would fix this unfair provision in federal law (GPO-WEP issue).

Editorial: Where's shared sacrifice?

Kat — Mon, 27 Feb 2006 10:34:02 -0700

February 27, 2006
Editorial: Where's shared sacrifice?

Waco Tribune Herald
By Editorial Staff | Waco Tribune Herald

We doubt a single college student exists who, when appraised of the deep budgetary hole this nation has dug for itself, wouldn't say, “I'll do my share to help get us out.”

Well, college students are doing more than their share.

Meanwhile, a lot of Americans are coasting.

Congressman Chet Edwards has brought rightful attention to what's being called the “student tax” - $11.9 billion in cuts from federal student assistance recently signed by President Bush.

Particularly in the form of higher interest rates for subsidized student loans, it could cost an individual student hundreds of additional dollars.

Meanwhile, as Edwards points out, if Congress stays the course in extending Bush's tax cuts, someone making $1 million a year in dividends would be getting a $220,000 annual tax break.

Don't look now, but Bush's new budget looks to cut further into college aid, a move that will especially hurt the middle class.

While the poorest Americans will continue to qualify for Pell grants, as well they should, and the wealthiest continue to accumulate tax-deferred college savings accounts, those in the middle with no other student aid will rely on work-study and college loans.

In the debilitating hit on college aid, students are seeing where reality clashes with rhetoric in the political world, particularly when tax cuts are put ahead of government's obligations.

It is common to talk about cutting budgets “across the board,” but that's not what happens. We have soldiers fighting overseas. Even in peacetime the military budget generally will be hands-off. It makes up roughly one-half of what's called discretionary spending. The big tickets of non-discretionary spending are entitlements like Social Security and Medicare, and interest on the national debt (which accounts for about 16 cents of ever dollar the government spends.) That leaves such things as education and veterans services vulnerable to plundering - that is, if exorbitant tax cuts are considered sacrosanct.

College students would offer to help dig this nation out its hole, but what has been done to them is punitive. Congress should step back and ask, “Is the sacrifice being shared?”

Edwards urges reversal of cuts to financial aid

Kat — Fri, 24 Feb 2006 12:35:22 -0700

February 24, 2006
Edwards urges reversal of cuts to financial aid

AP via Bryan-College Station Eagle
By ANGELA K. BROWN | Associated Press

WACO - Pepper Jones, a single mother of four children, says she couldn't go to college without about $14,000 in student loans and other grants.

But with Congress' recent passage of a bill that cuts nearly $12 billion in financial aid programs, Jones worries whether she'll be able to afford her education. She says she might give up her dream of teaching disabled children to pursue a career that pays more money.

"Teachers don't make any money, so if my student loans' interest rates go up, I won't be able to afford to pay them back," said Jones, 26, who attends McLennan Community College in Waco. "I guess I could do something else that I wouldn't like at all."

Earlier this month, Congress approved a bill cutting $11.9 billion by reducing lender subsidies and retaining a scheduled shift from variable interest rates to a 6.8 percent fixed rate on most loans.

The bill was part of a $39 billion, five-year deficit reduction bill that the U.S. House passed by a 216-214 vote; the Senate's vote was 51-50, with Vice President Dick Cheney's as the tie-breaker.

U.S. Rep. Chet Edwards, D-Waco, who voted against the bill, said it is the nation's largest reduction in federal student aid and essentially would put a $6,500 tax on student loans. Some 10 million college students now receive financial assistance, he said.

"The federal government is the largest single source of student financial aid in this country, so when Washington starts cutting back on the student financial aid, it can have a dramatic impact on millions of students all across the country," Edwards said Thursday at a news conference at McLennan Community College.

The college's president, Dennis Michaelis, and Elton Stuckly, president of Texas State Technical College in Waco, said they were concerned about the impact of the cuts. At least 60 percent of their students receive financial aid.

Lumina Victor, 20, a business administration major at McLennan Community College, is the youngest of 10 children. She and one of her sisters are the only ones in their family to attend college - and solely because of student loans. She said they now fear not being able to pay back the increased interest rates.

"It'll probably hit me hard when I get out," Victor said.

Edwards said he was urging lawmakers to vote again on the matter.

Local college students fear high interest ...

Kat — Fri, 24 Feb 2006 10:31:09 -0700

February 24, 2006
Local college students fear high interest rates, loss of student loans

Waco Tribune Herald
By David Doerr | Tribune-Herald staff writer

McLennan Community College student Pepper Jones is what some consider a prime example of students struggling to put themselves through college. She's also the sort of student who may suffer because of Congress' massive cuts in financial aid.

The mother of four, Jones, 26, says she's at the crossroads of her education, trying to decide if it's worth it to fulfill her dream of becoming a first-grade teacher. She doesn't want to change her major to pursue another career so she can graduate sooner, but she might consider it if she's unable to get federal financial aid to pay for college.

U.S. Rep. Chet Edwards, D-Waco, used Jones as an example of students who might be hurt after Congress, by the narrowest of margins, cut $11.9 billion from federal college student financial aid over the next five years. It's the “largest reduction in federal student aid in our nation's history,” he said.

Edwards held a press conference Thursday with MCC President Dennis Michaelis and Elton Stuckly, Texas State Technical College president, to speak out against the cuts, signed into law by President Bush this month.

Ironically, the job Jones might have to settle for - that of a medical transcriptionist - pays more than teaching.

“You have to choose between money and what you truly want to do - and money will probably win hands down,” said Jones, who is in her second year at MCC and has $14,000 in loans to repay. “I'm just wondering how I'm going to pay them back if interest rates keep going up.”

The legislation, part of the Deficit Reduction Act of 2005, will cause students and parents to pay higher interest rates on federal student loans and reduce financial aid for low-income students by changing eligibility formulas for Pell Grants, Edwards said.

While the average cost of tuition and fees at four-year colleges has risen by 40 percent in the past five years, some students, already facing high gasoline and utility bills, are being forced to defer dreams of a college education, Edwards said.

For those who do continue college, rising interest rates on student loans are making them think twice about how much debt they're willing to accumulate by the time they graduate, he said.

If the cuts were going to reduce the national debt, Edwards said, he could understand the reasoning for such reductions. Instead, the cuts are paying for a tax cut for dividend income earners for people making more than $1 million a year on investments, he said.
“I don't think members of Congress or the president's cabinet ought to be getting tax cuts paid for by making college less affordable,” he said.

U.S. Rep. John Carter, R-Round Rock, disagreed with Edwards' assessment of the budget cuts in a statement issued after the press conference. “The Deficit Reduction Act expands access to college and improves student benefits by encouraging a more efficient and effective government,” Carter said. “This bill takes important steps to reduce the federal deficit while continuing to support the needs of all Americans.”

On Thursday, Edwards, a member of the House Appropriations Committee, vowed to push for reversal of the cuts and urge others in Congress to reject the Bush administration's 2007 budget proposals eliminating certain vocational education programs, ending funding for federal Perkins loans and freezing funding increases to the federal Pell Grant program.
Perkins loans are for students with exceptional needs, providing borrowers with a fixed 5 percent interest rate. Low-income students are also eligible for Pell grants, which do not have to be repaid.

Budget writers say the cuts are necessary to eliminate ineffective and duplicative programs. However, several college students who participated in Thursday's press conference said the cuts would only worsen their already difficult financial situations.

“Anything that takes away money from our budget causes us to take money from somewhere else,” said Robert Kent, a 38-year-old MCC engineering student who works at Subway to help pay for college as well as six children. He says he relies on financial aid to keep the gas tank filled and the electricity on.

MCC President Michaelis said he was particularly worried about losing funding for vocational and technical programs that have helped the college purchase equipment such as mannequin simulators that are used to train lab technicians and other health professionals. Last year, the college received $712,635 from the program.

“In terms of billions of dollars in (the federal) budget, that money doesn't mean much,” he said, “but I'll tell you what - to this college, it means everything.”
Stuckly said TSTC relies heavily on the vocational program funding, which amounted to about $1.5 million last year.

“Anytime you start talking about $1.5 million,” he said, “the anxiety level goes way up because we need it.”

Raising The Cost Of Student Loans Unwise

Kat — Sun, 06 Nov 2005 22:06:08 -0700

November 6, 2005
Edwards: Raising The Cost Of Student Loans Unwise
Special to the Eagle

Bryan-College Station Eagle
By REP. CHET EDWARDS | Op-Ed

I am deeply disappointed that the U.S. House leadership pushed through the Budget Committee on Thursday partisan legislation that could add $5,000 to $28,000 to the cost of college student loans. This legislation, contained in the 2006 Budget Reconciliation bill, could be on the House floor for a vote as early as this week.

Unless we can stop the higher interest rates and new origination fees in this bill, they, in effect, will amount to an expensive new student tax. This student tax would place a tremendous burden on thousands of college and university students in our district who have taken out loans to pay for their college educations.

With costs for gasoline, utility bills and higher education already rising rapidly, the new student tax could force some students to take on a second or third job, and for others it might mean dropping out of college. For high-achieving middle- and low-income high school students, it might mean many of them have to give up their dream of a college education.

By significantly increasing the interest payments on college loans, this bill might force future teachers into taking higher-paying jobs instead of pursuing their calling to teach.

As our nation faces both increasing foreign competition and the largest trade deficits in history, there could not be a worse time for Congress to increase the cost of college loans. Doing so would be unfair to students and a prescription for long-term economic stagnation.

Budget estimates are that this bill would reduce federal funding for college student loans by $14 billion over the next five years; $7.8 billion of that would be direct cost increases to students, and $6 billion would be from cutting subsidies and increasing fees to lenders. It is, in reality, a $7.8 billion tax on students and families with outstanding student loans. If half of the cost increase to lenders are also passed on to students, it would be a $10.8 billion tax on students.

How does this bill raise costs to students and families? First, it would mandate a new 1 percent origination fee on consolidated student loans. Second, there would be a new 1 percent increase in the interest rate for borrowers who want to consolidate their student loans at a fixed rate. Third, borrowers who are still in school would no longer be able to lock into their present low loan rates. Finally, the bill raises fees on new student loans as well as raising the cap on the interest rates that students and parents pay. With subsidies to banks and other lenders also cut by $6 billion, the bill will most likely reduce the private capital available to students for college loans.

According to Dr. Charles Young, president emeritus of UCLA, the present 5.3 percent rate for consolidating federally insured student loans would increase to 7.18 percent. That is a 35 percent increase in the loan rate.

When stretched out over 20 years on a $20,000 loan, the new student tax would total an extra $5,255. For a $40,000 loan over 25 years, the student tax would add $13,932 to total loan repayments.

These increases assume that interest rates on 91-day T-bills do not go up. If, for example, those T-bill rates went up 0.75 percent between now and May 31, 2006, a student borrower could be forced to pay $19,709 more on a 25-year, $40,000 student loan.

College students and their families have a right to be outraged that the new student tax could be passed into law by Congress with very little input from those who will be hit the hardest.

The House leadership is no doubt hoping this bill will pass before college students and their families even know about it.

To add insult to injury, the Republican House leadership has chosen to cut $14 billion from student financial aid programs over the next five years in order to pay for an extension of its dividend cuts that gives a $220,000 annual tax break to those making $1 million a year in dividend income.

I believe the House leadership is out of touch with the values and priorities of American families, Democrats, Republicans and independents alike. If Congress would ask those making a million dollars a year in dividend income to give up just a part of their $220,000 annual tax cut, it wouldn't be necessary to pass a $14 billion student tax that will hurt high achieving students and harm our nation's future competitiveness.

The $14 billion student tax is a bad idea and should be defeated. I hope the voices of college students and their families will be heard in Congress before it is too late.