Heidi Alexander: “Thank you, Madam President. Higher Education Act Last year something happened in Washington, DC, that most of us in the…”

“Thank you, Madam President. Higher Education Act Last year something happened in Washington, DC, that most of us in the Senate and most Americans would like to see more of. The President and the Republican House of Representatives and a bipartisan group here in the Senate worked together to reform the student loan program. It is a lot of money, and it affects a lot of students. Every year the Federal Government loans about $100 billion to students who attend colleges and universities around this country. We have 6,000 of those higher education institutions. In addition to those loans--which, of course, students pay back--the Federal Government grants about $33 or $34 billion each year in Pell grants--up to $5,645--which students don't pay back. Last year we were in this usual pattern that has developed around the Congress where student loans become a semi-annual political stunt. Every 2 years, before an election, one party or the other would show up with a student loan proposal to try to appeal to students, hoping that students and others in America would reward them with their votes. Last year we changed that for new student loans. The President and the Republican House of Representatives and the Democratic Senate in a bipartisan way worked together to reform the student loan program by applying a market-priced system to the $100 billion or so we loan every year, and saying to the students: We will give you the benefit of that.…”