U.S. Sen. Judd Gregg (R-NH) and Rep. John Boehner (R-OH), the chairmen of the Senate and House education committees, announced today they will offer legislation that would cut off excess subsidies to student loan providers and use the money to expand incentives for highly qualified teachers to teach key subjects in high poverty K-12 schools, where they are badly needed. Boehner and Gregg called on colleagues in both chambers to support the legislation so it can be signed into law by President Bush without delay.
"This proposal will shut down excess subsidies to student loan providers and use the money to help high poverty schools recruit and retain high quality teachers. I join Senator Gregg in calling for Democrats and Republicans alike to support this plan and send it to the President's desk without delay," Rep. Boehner said.
"We are short-changing students and we should stop it," said Sen. Gregg. "The government is spending millions unnecessarily because some lenders are exploiting loopholes in the federal higher education laws. Not only is this a waste for taxpayers, but these dollars could be put to use in programs that help students."
The Gregg-Boehner plan would:
-- Shut down the 9.5 percent interest rate subsidy that has resulted in excess profits for some student loan providers, as President Bush first urged Congress to do in February 2004.
-- Use the savings achieved from shutting down the 9.5 percent subsidy to more than triple federal student loan forgiveness for math, science, and special education teachers who agree to teach for five or more years in high poverty K-12 schools. The maximum amount would go from the current maximum of $5,000 to a new maximum of $17,500.
"(W)e need to have loan forgiveness - student loan forgiveness for teachers who teach in special ed or math or science in schools that need special ed, math or science teachers," the President said at a September 27th education speech in Springfield, Ohio, repeating a call he has made many times since taking office. "The loan forgiveness ought to go from $5,000 to $17,500 to provide incentives for teachers to fill the needs where they're needed most."
House Republicans are introducing two bills today: a "clean" one-year extension of the Higher Education Act, and a stand-alone bill (the Taxpayer-Teacher Protection Act) that shuts down the 9.5 policy and uses the money for teacher loan forgiveness.
Boehner and Rep. Howard P. "Buck" McKeon (R-Calif.) introduced legislation in May 2004 that would shut down the 9.5 percent policy and use the money to expand college access for low and middle income students. The provision was included in H.R. 4283, the College Access & Opportunity Act, comprehensive legislation to reauthorize the Higher Education Act. President Bush first called on Congress to shut down the 9.5 percent policy in February 2004.
"Today's proposal is a double victory for America's parents, students, and taxpayers," said McKeon. "The plan will not only eliminate the 9.5 percent floor interest subsidy which President Bush has been requesting all year, but it will address the very serious problem of a lack of highly qualified teachers in math, science, and special education. I am proud to stand with Chairman Boehner and Chairman Gregg in supporting this plan, and I urge my colleagues on the other side of the aisle to do likewise, and end the needless bleeding of taxpayer dollars."
"The President called on Congress seven months ago to end these excess subsidies for student loan providers. We've worked all year to pass comprehensive legislation (H.R. 4283) that would meet the President's goal. House Democrats gave us no indication they supported that provision of H.R. 4283 until just days ago, and in fact did not address the 9.5 percent issue in their own higher education reauthorization bill," Boehner said. "However, House Democrats' recent decision to take a stand on the issue has removed the main obstacle preventing the House from acting on the President's request. This plan offers a way to do it quickly and in bipartisan fashion."
K-12 schools in high poverty areas are facing a shortage of qualified teachers in key subjects. The loan forgiveness portion of the Gregg-Boehner proposal closely resembles the Teacher Recruitment and Retention Act (H.R. 438), legislation introduced by Rep. Joe Wilson (R-S.C.) and passed with overwhelming bipartisan support in July 2003.
"Today's action is the kind of common sense that Americans expect from Washington," said Wilson. "This is such great news for children in disadvantaged schools throughout the nation. This will help us reach the goal of having a highly qualified teacher in every classroom, so every child gets the best education possible."
Boehner is chairman of the House Committee on Education & the Workforce. Gregg is chairman of the Senate Committee on Health, Education, Labor and Pensions.
Matt's Chat
This looks like a proposal I can get behind and actually support. I have no problem with programs that come with a built-in way to pay for it. Congrats to Rep. Boehner and Sen. Gregg and best of luck on this one!Mark's Remarks
This sounds like an excellent plan....It is far better than the joke of the DREAM Act, which will be crushing Americans while rewarding those who come here illegally with a free education. This is a well thought out plan, and I hope it goes through.
