Recently by Kittredge, Betsy Miller

Committee to Consider Landmark Student Aid Legislation

By
Kittredge, Betsy Miller
 on July 20, 2009 10:04 AM | Comments (1)
On Tuesday, July 21st, the House Education and Labor Committee will consider legislation that will make college dramatically more affordable by investing billions of dollars in additional student aid, at no cost to taxpayers. The Student Aid and Fiscal Responsibility Act of 2009 will generate almost $100 billion in savings over the next ten years that will be used to boost Pell Grant scholarships, keep interest rates on federal loans affordable, safeguard federal student loan access for families, and enact President Obama’s key education priorities. The legislation, which was introduced earlier today, pays for itself by making the federal student loan programs more reliable, effective and cost-efficient for students, families and taxpayers.

WHAT:         
Full Committee Mark-Up of H.R. 2187 “H.R. 3221, The Student Aid and Fiscal Responsibility Act of 2009”

WHEN:         
Tuesday, July 21, 2009
11:00 a.m. ET
Please check the Committee schedule for potential updates »

WHERE:      
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

Supporters of the America’s Affordable Health Choices Act

By
Kittredge, Betsy Miller
 on July 17, 2009 11:24 AM
Organizations Supporting H.R. 3200, America’s Affordable Health Choices Act


Student Aid and Fiscal Responsibility Act

By
Kittredge, Betsy Miller
 on July 15, 2009 10:35 AM
Read H.R. 3221, the Student Aid and Fiscal Responsibility Act, as passed by the House.(PDF490 KB)

Read the entire Student Aid and Fiscal Responsibility Act as introduced.(HR3221) (PDF 327 KB)

A Landmark Investment in America’s Economic Future

Americans need affordable, quality education opportunities to help make our economy strong and competitive again. President Obama has identified an opportunity to make historic investments in our economic future by improving early education opportunities and making college dramatically more affordable – and all at no cost to taxpayers.

The Student Aid and Fiscal Responsibility Act embraces the president’s challenge. It will help us reach his goal of producing the most college graduates by 2020 by making college accessible and transforming the way our student loan programs operate. It will expand quality early education opportunities that will put more children on the path to success. It will strengthen community colleges and training programs to help build a highly-skilled, innovative, 21st century workforce ready for the rigors of a global economy. And it will boost the fiscal health of the country our children will inherit by paying down the deficit. (What's in the bill for you?)
 
 
Invests the bill’s savings in making college affordable and helping more Americans graduate

  • Invests $40 billion to increase the maximum annual Pell Grant scholarship to $5,550 in 2010 and to $6,900 by 2019. Starting in 2011, the scholarship will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent. See the total Pell funding from HR 3221 by Congressional District.
     
Thumbnail image for obamapellgrants2010-2019.JPG
 
  • Invests $3 billion to bolster college access and completion support programs for students. It will increase funding for the College Access Challenge Grant program, and will also fund innovative programs at states and institutions that focus on increasing financial literacy and helping retain and graduate students. 
  • Strengthens the Perkins Loan program, a campus-based program that provides low-cost federal loans to students, by providing the program with more reliable forms of credit from the federal government and expanding the program to include significantly more college campuses.
  • Keeps interest rates low on need-based – or subsidized – federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012.
  • Makes it easier for families to apply for financial aid by simplifying the FAFSA form. Building on proposals recently put forth by the Obama administration, the legislation will dramatically cut down the number of questions on the form by allowing students and families to apply for aid using the information on their tax returns.
  • Invests $2.55 billion in Historically Black Colleges and Universities and Minority-Serving Institutions to provide students with the support they need to stay in school and graduate.
  • Provides loan forgiveness for members of the military who are called up to duty in the middle of the academic year.
     
Provides reliable, affordable, high-quality Federal student loans for all families

  • Converts all new federal student lending to the stable, effective and cost-efficient Direct Loan program. Beginning July 1, 2010, all new federal student loans will be originated through the Direct Loan program, instead of through lenders subsidized by taxpayers in the federally-guaranteed student loan program. Unlike the lender-based program, the Direct Loan program is entirely insulated from market swings and can therefore guarantee students access to low-cost federal college loans, in any economy.
  • Provides all federal student loan borrowers with upgraded, modern, state-of-the-art customer service. Rather than force private industry out of the system, the bill will forge a new public-private partnership that provides all borrowers with the highest-quality customer service when repaying their loans and maintains jobs. It will establish a competitive bidding process that allows the U.S. Department of Education to select lenders based on how well they serve borrowers, educate them financially, and prevent loan defaults. It will provide a role for non-profits to continue servicing student loans.

Prepares students and workers for 21st century jobs by providing all Americans with the skills and resources they need to compete

  • Build a 21st century workforce by encouraging historic partnerships between community colleges, states, businesses, job training and adult education programs. The bill will create a new competitive grant program for community colleges to improve instruction, work with local employers, improve their student support services, and implement other innovative reforms that will lead to a college degree, certificate or industry recognized credential to help fulfill local workforce needs.
  • Expands access to education by supporting free, high-quality, online training, high school and college courses. The U.S. Department of Education would be authorized to make competitive grants available to eligible colleges, workforce programs or other entities to help support the development of these courses.
  • Ensures that community college students can learn in modern, updated, state-of-the-art facilities by renovating campuses in need of repair.

Ensures that the next generation of children enters kindergarten with the skills they need to succeed in school

  • Increases the number of low income children entering kindergarten prepared to succeed by reforming state standards and practices for birth-to-five early learning programs. The legislation would create an Early Learning Challenge Fund, which would award competitive grants to states that implement comprehensive standards-based reform of the state’s early learning system that will transform early education standards and practices, build an effective early childhood workforce, and improve the school readiness outcomes of young children.
Provide schools with access to funding for green, energy efficient modernization, renovation and repair projects

  • Provides every child with access to a world-class learning environment by providing school districts with funds for school modernization, renovation, and repair projects that will create healthier, safer, and more energy-efficient teaching and learning climates.

Meets Pay-As-You-Go fiscally responsible principles and reduce entitlement spending 

  • Saves taxpayers $87 billion over ten years by switching to the cheaper Direct Loan program, according to the Congressional Budget Office. In addition to investing in college aid, this legislation will also reduce entitlement spending by $10 billion.

(Myths vs. Facts about the Student Aid and Fiscal Responsibility Act)

Support for the Student Aid and Fiscal Responsibility Act

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SAFRA: Reliable, Affordable College Loans for Families

By
Kittredge, Betsy Miller
 on July 15, 2009 10:34 AM
The financial crisis exposed serious vulnerabilities in the lender-based federally guaranteed student loan programs – putting the low-cost federal loans that millions of families count on in jeopardy. Now more than ever, students and families need access to reliable, stable forms of federal student aid to pay for college. The Student Aid and Fiscal Responsibility Act will make our federal student loan program more cost-effective and efficient for those they were intended to serve: students and families working hard to pay for college. Specifically, the legislation will:

Create a more reliable, affordable, student-focused federal loan program by switching to all Direct Loans by 2010

  • Converts all new federal student lending to the stable, effective and cost-efficient Direct Loan program. Beginning July 1, 2010, all new federal student loans will be originated through the Direct Loan program, instead of through lenders subsidized by taxpayers in the federally-guaranteed student loan program. Unlike the lender-based program, the Direct Loan program is entirely insulated from market swings and can therefore guarantee students access to low-cost federal college loans, in any economy.
  • Provides students with low-cost federal college loans with the same interest rates, terms and conditions as loans made by lenders – and the peace of mind of knowing those loans will never disappear. Loans made through both the Direct Loan and the federally-guaranteed student loan programs carry an interest rate of 6.8 percent – a much more affordable interest rate than private loans carry. Under this legislation, federal student loan borrower will be able to borrow the same loans, at the same good rates as before – but these loans will be more cost-effective for taxpayers.  

Ensure that all student borrowers can benefit from high-quality, state-of-the-art customer service when repaying their loans

  • Upgrades the services all federal student loan borrowers receive. Rather than force private industry out of the system, the bill will forge a new public-private partnership that both maintains jobs and provides all borrowers with the highest-quality customer service when repaying their loans. It will establish a competitive bidding process that allows the U.S. Department of Education to select lenders based on how well they serve borrowers, provide financial literacy counseling, and prevent loan defaults. The legislation will also provide a role for non-profits to continue servicing student loans.
  • Preserves servicing jobs in communities across the country. Between this new public-private partnership and the more than $500 billion in outstanding federally-guaranteed student loans that will still need to be serviced, there will be tremendous demand for workers to continue providing great service to Americans repaying their loans.

Streamline financial aid operations for colleges and universities

  • College financial aid offices already have the infrastructure in place to administer Direct Loans. Schools will be able to operate these loans using the same on-site system currently used to administer Pell Grant scholarships; almost all schools participate in the program. Colleges and universities that have switched to Direct Loans, including those that converted in the midst of last year’s credit crisis, report that it was a fairly easy and inexpensive process. Currently about 1,700 schools participate in the Direct Loan program, including 500 colleges that switched in the past year alone. Under this bill about 4,500 colleges will need to switch to Direct Loans.

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SAFRA: Groundbreaking Community College Reforms

By
Kittredge, Betsy Miller
 on July 15, 2009 10:33 AM
A college degree continues to be the best pathway to the nation’s middle class. It’s also the best way to prepare our workers for the jobs of the future, to compete in a global marketplace, and to rebuild our economy so that it’s strong, innovative, and once again sets an example for the rest of the world. With more Americans than ever looking to go to college or return to school to get additional skills needed in new and emerging fields, community colleges have an increasingly important role to play in educating and training America’s workforce.

Just this week, President Obama set a new goal of graduating 5 million more Americans from community colleges by 2020. This legislation includes President Obama’s groundbreaking community college reforms that will help reach this goal and prepare students and workers for 21st century jobs by:

Creating a new Community College Challenge Grant Program that will transform community colleges into excellent education and job training centers

  • Build a 21st century workforce by encouraging historic partnerships between community colleges, businesses, job training and adult education programs. The bill will create a new competitive grant program for community colleges to improved instruction, work with local employers, improve their student support services, and implement other innovative reforms that will lead to a college degree, certificate or industry-recognized credential to fulfill local workforce needs. The Secretary of Education will be able to evaluate the effectiveness of all programs and policies funded through these grants by using 2 percent of these funds to commission the Institute for Education Sciences to conduct a rigorous study to help the Secretary determine which reforms may be replicated at other colleges and states.
  • Incentivize community colleges to achieve excellence by requiring them to meet benchmarks in order to participate in the challenge grant program. Under the program, the Secretaries of Education and Labor will award four-year grants to community colleges and other 2-year degree granting institutions on a competitive basis to support innovative pilot programs and policies. In order to continue to receive funding for year three of the grant period, community colleges must meet benchmarks they set in consultation with the Secretary of Education’s approval. Pilot programs and policies must also demonstrate that they can be replicated either in the state or nationwide. The minimum grant that can be awarded is $1 million. Funds can be used to carry at least two of the following activities:
  1. Facilitating transfer of credit articulation agreements;
  2. Expanding academic and training programs that provide relevant job-skill training for high-wage occupations in high-demand industries; 
  3. Improving student support services including those identified under the Workforce Investment Act; 
  4. Creating workforce programs that blend basic skills and occupational training leading to industry-recognized credentials; 
  5. Building and enhancing linkages including dual enrollment programs and early college high schools as well as improving remedial and adult education programs; and
  6. Implementing reform programs to increase completion rates and provision of training for students to enter high-wage occupations in high-demand industries.
  • Ensure that more students graduate with the expertise needed for high wage jobs and high-demand industries. Targets grants to high-need students and programs that focus on preparing students for jobs in fields that need workers and will continue to grow. The Secretaries would also be able to award six-year competitive grants to states to implement successful Challenge Grant Program reforms at other community and junior colleges within the state. Funding could be discontinued if the state does not make progress meeting benchmarks it develops with the Secretary by year three of the grant period.

Expanding access to education by supporting free, high-quality, online training, and high-school and college courses.

  • The U.S. Department of Education would be authorized to make competitive grants available to eligible colleges, workforce programs or other entities to help support the development of these courses.

Ensuring that Americans can learn in modern, updated, and state-of-the-art community college facilities.

  • Helps community colleges construct, renovate and repair their facilities by providing $2.5 billion, which will leverage additional funds, and ensures that funding is used for facilities that are primarily used for instruction, research, or student housing.
 

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SAFRA: Preparing the Next Generation for a Lifetime of Success

By
Kittredge, Betsy Miller
 on July 15, 2009 10:32 AM
A key piece of President’s Obama’s education agenda is helping children enter kindergarten with the skills they need to succeed by supporting comprehensive and effective early learning programs for children from birth to age 5. The first five years of a child’s life have a lasting impact on their learning, health, and behavior. Economists, business leaders, and child development experts agree that smart investments in early education are vital if we want to close the achievement gap and ensure our children are well prepared to thrive in school and in life.

Nearly 12 million children under age 5 regularly spend time in child care arrangements and children with working mothers spend on average 36 hours per week in such settings. But currently federal and state policies for child care leave families with a patchwork system of child care with mediocre quality. Our children deserve and need better. By 4 years old, children from low-income families are already 18 months behind most other 4 year-olds. From the start, education reform should include high quality early learning opportunities from birth through age 5 to help give children what they will need to grow and succeed.

To ensure more kids reach kindergarten ready to succeed, the Student Aid and Fiscal Responsibility Act includes an Early Learning Challenge Fund to increase the number of low-income children in high quality early learning settings. Specifically, the legislation will:

Invest $1 billion each year in competitive grants to challenge states to build comprehensive, high quality early learning systems for children birth to age 5 that includes:   

  • Early learning standards reform.
  • Evidence-based program quality standards.
  • Enhanced program review and monitoring of program quality.
  • Comprehensive professional development.
  • Coordinated system for facilitating screenings for disability, health, and mental health needs. 
  • Improved support to parents.
  • Process for assessing children’s school readiness.
  • Improved data systems to improve child outcomes.

Transform early learning programs by insisting upon real change in state standards and practices:

  • Build an effective, qualified, and well-compensated early childhood workforce by supporting more effective providers with degrees in early education and better compensation, and providing sustained, intensive, classroom-focused professional development to improve the knowledge and skills of early childhood providers
  • Best practices in the classroom by implementing research-based early learning and development standards aligned with academic content standards for grades K-3.
  • Promote parent and family involvement by developing outreach strategies to parents that will help them support their children’s development.
  • Fund quality initiatives that improve instructional practices, programmatic practices, and classroom environments that promote school readiness.
  • Quality standards reform that moves toward pre-service training requirements for early learning providers, and adoption of developmentally appropriate standards for teacher-child ratios and group size.

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SAFRA: What's In It For You?

By
Kittredge, Betsy Miller
 on July 15, 2009 10:31 AM
More Help Covering College Tuition and Expenses

  • Higher Pell Grant scholarship of $5,550 in 2010 and $6,900 in 2019.
About 6 million students received the Pell Grant scholarship in 2007-2008.
  • Lower interest rates on need-based (subsidized) federal student loans.
Nationwide about 5.5 million students borrow these loans each year.
  • More access to Perkins loan program by expanding it to every U.S. college campus.
Last year approximately 495,000 students received a Perkins Loan.
  • Shorter, simpler FAFSA form that makes applying for financial aid easier.
In 2003-2004, over 1.5 million college students who likely were eligible to receive Pell Grants didn’t apply for financial aid because they found the FAFSA form too confusing.

Better Opportunities to Prepare for Good Jobs

  • New college access and completion programs to help you stay in school and graduate.
  • Innovative partnerships between colleges, businesses and job training programs to help you get the real-world experience and skills you need to be ready for the jobs of the future.
  • Free, high-quality, online training and high school and college courses.

Financial Aid Programs That Are Worry-Free and Operate In Your Best Interest

  • Gives you the peace of mind of knowing that your federal student loans are stable.
  • Removes any potential for conflicts of interest between lenders and colleges.
  • Guarantees you the best customer service available when you repay your student loans.

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SAFRA: Myths vs. Facts

By
Kittredge, Betsy Miller
 on July 15, 2009 10:29 AM
The Student Aid and Fiscal Responsibility Act delivers on President Obama’s goal to expand affordable college opportunities for Americans by making historic investments in student financial aid and making federal college loans more stable and efficient – and all at no cost to taxpayers. Not surprisingly, critics are using scare tactics to try to mislead the American public about this effort. They’re desperate to preserve the status quo – a system that for too long has favored banks at the expense of students and taxpayers.
MYTH: This is another back-door government takeover of the student loan industry.

It’s ridiculous to argue this is a government takeover, when the federal student loan programs are already a federal program, established and subsidized by the federal government. The Federal Family Education Loan Program (FFELP) now depends on taxpayer dollars not just for subsidies that reimburse lenders when borrowers default on loans, but also for the capital to finance their lending activity altogether. Taxpayers now fund 6 of every 10 dollars in federal student lending activity. They absorb all the risk. There’s simply no reason to keep pumping taxpayer dollars into a broken system when the federal government can provide the same low-cost federal loans more reliably for students and at a lower cost for taxpayers. Under this bill, this federal program will continue to be a federal program, as it always has been, and private industry will continue to have a role, but one that is more effective and cost-efficient for families and taxpayers.

MYTH: Student lenders aren’t the only industry facing credit market troubles. Why should they be treated any differently from mortgage lenders or auto companies?

It’s misleading to compare the student loan industry to the auto industry or the mortgage industry. The structure of the federal student loan programs has always guaranteed private lenders a taxpayer subsidy above the cost of making loans – a benefit that auto companies or mortgage lenders don’t enjoy. If someone buys a $20,000 car, we don’t pay the automaker $24,000. Federal student loans, and the decisions made about them, have always been a part of our larger federal financial aid system. It’s a different industry, with a different purpose, than other consumer credit industries. Ensuring that students have access to low-cost, reliable federal college loans is directly tied to our ability to build a stronger, competitive workforce and economic future.

MYTH: This bill will only add to the federal budget deficit at a time when we can least afford it.

Wrong. This legislation is entirely paid for. According to the Congressional Budget Office, this bill will save $87 billion over 10 years. In addition to increasing grant aid, reducing interest rates on student loans and funding other benefits for students, this bill will reduce entitlement spending by $10 billion. It’s an investment in a stronger economy and a stronger fiscal future.

MYTH: This legislation will drive competition out of the student loan marketplace – hurting students and families.

What will hurt students is not having access to low-cost, reliable federal loans to help pay for college. The financial crisis has already caused many lenders to leave the federal student loan programs, leaving many students in a bind. The Direct Loan program provides the same low-cost loans to students as FFELP, with the added benefit of complete reliability, even in an economic crisis. And the bill will foster competition among lenders by allowing private companies to compete for bids to service these loans – ensuring that contracts are awarded to lenders who offer the best customer service and innovations for borrowers. This is competition that will help students and build on the best of what private industry can offer to borrowers.

MYTH: This is nothing but a redistribution of wealth. Why should we finance grant aid increases for the poorest students at the expense of the middle class?

Both low-income and middle-class students will benefit from this legislation. Despite recent investments made by President Obama and the Democratic Congress, the Pell Grant scholarship, today only covers about 30 percent of average college tuition and fees – down 20 percent from twenty years ago. In addition to boosting the Pell Grant for low- and moderate-income students, this legislation will also keep interest rates low on college loans for middle-class students, support programs that help students stay in school and graduate and expand access to campus-based aid. This will not only make college more affordable for students while they’re in school, but will also help reduce college debt after graduation – a strategy that can help improve purchasing power of the Pell Grant and strengthen our economy over time.

MYTH: Big government is too bureaucratic to run student loans. Services for families will suffer; they may not even get phone calls returned.

The federal government has already proven that it can originate loans more efficiently and reliably than private lenders. Where private lenders have excelled is in servicing loans to students – meaning ensuring that borrowers pay back loans on time, providing financial literacy, and helping prevent loan defaults. This legislation builds on the best of what works in the current system by creating a new public-private partnership that will allow lenders to compete for contracts to service Direct Loans. The bill will also ensure that smaller state non-profit lenders can keep servicing loans. Borrowers will receive only the best customer service, and jobs will be maintained in communities across the country.

MYTH: It will cost colleges and universities already facing deep budget crises millions to switch to direct lending – leading to more tuition hikes for families.

This is nothing more than a myth cooked up by critics to scare colleges; there is simply no evidence to back this up. Colleges and universities that have switched to Direct Loans, including those that converted in the midst of last year’s credit crisis, report that it was a fairly easy and inexpensive process, in part because schools are able use the same on-site system currently used to administer Pell Grant scholarships. Penn State, for example, did not have to hire extra staff or increase its budget during this switch last spring.

MYTH: Cutting lenders out will lead to massive job losses in an already devastated economy.

While this legislation will trim the profits of CEOs and big banks, it will not lead to enormous jobs losses. By maintaining a servicing role for both large and smaller lenders, this bill will preserve jobs and, unlike in the FFELP program, keep them from being shipped overseas.

MYTH: The Direct Loan program will not be able to handle this increased capacity.

Colleges and universities that already participate in the Direct Loan program have found it easier to administer, simpler for students and parents, and faster at originating and disbursing loans than FFELP. If this legislation passes on schedule, the U.S. Department of Education will have almost a year to prepare for this increased capacity.

MYTH: The Direct Loan program doesn’t prevent student loan defaults as well as the federally-guaranteed student loan program does.

Recent preliminary data released by the U.S. Department of Education shows that in 2007, default rates were lower in the Direct Loan program than in FFELP. By allowing private lenders to service these loans through a competitive process, which will include default prevention strategies, this bill will ensure that more borrowers can receive service from lenders that have been effective in keeping default rates low.

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America’s Affordable Health Choices Act

By
Kittredge, Betsy Miller
 on July 14, 2009 3:00 PM
Please note: This bill has been superseded by the Affordable Health Care for America Act [H.R. 3962], which blends and updates the three versions of previous bills passed by the House committees of jurisdiction in July.

The Chairmen of the three Committees with jurisdiction over health policy in the U.S. House of Representatives introduced comprehensive health care reform legislation on July 14 that will reduce out-of-control costs, encourage competition among insurance plans to improve choices for patients, and expand access to quality, affordable health care for all Americans. (CBO confirms the bill is deficit-neutral over the 10-year budget window, and even produces a $6 billion surplus.)

The America’s Affordable Health Choices Act is consistent with President Obama’s overall goals of building on what works within the current health care system by strengthening employer-provided care, while fixing what is broken. The bill will ensure that 97 percent of Americans will be covered by a health care plan that is both affordable and offers quality, standard benefits by 2019.

The House Committees on Education and Labor, Ways and Means, and Energy and Commerce have been working together in an unprecedented way as one committee to develop the proposal for health care reform. (The Education and Labor Committee passed H.R. 3200 on July 17, 2009; the Ways and Means Committee passed H.R. 3200 on July 17, 2009; the Energy and Commerce Committee pass H.R. 3200 on July 31, 2009.)

The key principles of legislation include, among other things:

  • Increasing choice and competition.
  • Giving Americans peace of mind. 
  • Improving quality of care for every American.
  • Ensuring shared responsibility.
  • Protecting consumers and reducing waste, fraud and abuse.
America's Affordable Health Choices Act: Complete Bill Text (HR 3200) »
America's Affordable Health Choices Act: Summary »
America's Affordable Health Choices Act: Section by Section »
America's Affordable Health Choices Act: As Reported »

What's In the Health Care Reform Bill for You? »
    Cómo Te Benefica La Reforma Del Seguro Médico »
Myth vs. Facts »
The Health Insurance Exchange »
Public Health Insurance Option »
Shared Responsibility »
Guaranteed Benefits »

Making Coverage Affordable »
Consumer Protections and Insurance Market Reforms »
Employers and Health Reform »
Provisions that Benefit Small Businesses »
Strengthening the Nation's Health Workforce »
Delivery System Reform »

Protecting Program Integrity by Preventing Waste, Fraud and Abuse »
Strengthening Medicare »
Improving the Medicare Part D Drug Program »
Maintaining and Improving Medicaid »
Preventing Disease and Improving the Public's Health »

Controlling Health Care Costs »
Paying for Health Care Reform »
Health Care by the Numbers »


Education and Labor Chairman George Miller's Statement »
White House Statement on the House Discussion Draft for Health Care Reform »

TODAY: Democrats to Unveil Health Care Reform Legislation

By
Kittredge, Betsy Miller
 on July 14, 2009 12:39 PM | Comments (5)
Today at 2:45pm Eastern time, House Democrats will discuss the health care reform legislation introduced by the Tri-Committees (the House Ways and Means, Energy and Commerce, and Education and Labor Committees).  The three panels with jurisdiction over health policy in the House have been working together as one committee to develop a single bill that fulfills President Obama’s goals of reducing health care costs, protecting and increasing consumers’ choices, and guaranteeing access to quality, affordable health care for all Americans.

Subcommittees Hold Hearing on Improving School Safety

By
Kittredge, Betsy Miller
 on July 2, 2009 4:48 PM
On Wednesday, July 8, the House Subcommittees on Early Childhood, Elementary and Secondary Education and Healthy Families and Communities will hold a joint hearing to examine strategies for improving school safety, including ways to prevent violence, bullying and harassment. Recent studies show students are more likely to succeed academically and graduate when learning environments are free from harassment and violence.

WHAT:         
Subcommittee Hearing on “Strengthening School Safety through Prevention of Bullying”
 
WHO:            
Witnesses TBA

WHEN:          
Wednesday, July 8, 2009
10:00 a.m. EDT
Please check the Committee schedule for potential updates »

WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.
 

Health Care Checkup: New Study Shows Play-or-Pay Health Care Policy Won't Cause Significant Job Losses

By
Kittredge, Betsy Miller
 on July 1, 2009 4:38 PM
healthcare-check-up-dr-office.jpgA new study released today by the Economic Policy Institute that concludes that claims of massive jobs losses if a ‘play-or-pay” proposal was enacted as part of health care reform are vastly overstated. In fact, health care reform in general, based on the Obama principles, would produce significant job gains, the EPI wrote.

‘Play or pay’ policy as a part of health care reform would require that employers either provide health insurance to their workers or pay a penalty as a percentage of their payroll in order to assist low- or moderate-income families to obtain quality and affordable health care.

Under the House Tri-Committee discussion draft proposal, employers who choose not to provide basic health insurance to workers would have to pay an 8 percent penalty based on their overall payroll. Those workers would then be able to choose a plan that best meets their needs from a menu of insurance options in the national health care exchange, which would include both private plans and a public health insurance option.

The EPI also found that past studies that claim significant job losses as a result of ‘play-or-pay’ were based on proposals not on the table today in either the House or the Senate.

View the EPI analysis of ‘play-or-pay’.
 
Key Conclusions from the EPI report

  • “It is highly unlikely that a health care reform package including a play-or-pay policy will lead to job losses. On the contrary, such policy reform is likely to cause significant boost to employment.”
  • “In short: concerns over job losses from comprehensive health care reform proposals that include play-or-pay employer contribution are overstated and unfounded.” 
  • “Moreover, it is likely that the positive effects on employment from health care reform will surpass by several orders of magnitude any modest job losses caused by a play-or-pay policy considered in isolation, providing a substantial boost for the U.S. economy and U.S. workers.”

What about other studies that show significant job losses associated with play-or-pay?

  • “Prior studies instead modeled a requirement that all employers provide private health insurance to their employees. With average costs of compliance of 40% of payroll or more for employers facing such a requirement, it is not surprising that those prior studies found much larger effects on employment that would be expected from a play-or-pay policy with a cost of compliance of just 4-8% of payroll.”

More information on the Tri-Committee discussion draft.

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Committee to Vote on Bill to Disclose Hidden 401(k) Fees

By
Kittredge, Betsy Miller
 on June 23, 2009 1:25 PM | Comments (1)
On Wednesday, June 24, the House Education and Labor Committee will vote on legislation to ensure that American workers have clear information about fees that could be cutting deeply into their 401(k)-style retirement savings.

The 401(k) Fair Disclosure and Pension Security Act of 2009 (H.R. 2989) is new legislation that combines provisions from the recently approved fee disclosure and investment advice bills (H.R. 1984 and H.R. 1988). The bill also includes modest adjustments to pension funding rules in order to ensure plans can weather the economic crisis without being forced to choose between cutting jobs or freezing plans.

WHAT:          
Mark-up of H.R. 2989 “The 401(k) Fair Disclosure and Pension Security Act of 2009”
 
WHO:            
The House Education and Labor Committee

WHEN:          
Wednesday, June 24, 2009
10:30 a.m. EDT
Please check the Committee schedule for potential updates »

WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

Health Care Reform: House Democrats' Discussion Draft for Providing Quality, Affordable Health Care for All Americans

By
Kittredge, Betsy Miller
 on June 19, 2009 1:14 PM
Updated: for the most up-to-date information on health care reform, please visit our page about HR 3200, America’s Affordable Health Choices Act.

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On June 19, the chairmen of the three committees with jurisdiction over health policy in the U.S. House of Representatives unveiled their discussion draft for health care reform.  The draft would reduce out-of-control costs, improve choices and competition for consumers and expand access to quality, affordable health care for all Americans. It would also guarantee that almost every American is covered by a health care plan that is both affordable and offers quality, standard benefits by 2019. More from the press conference »

Consistent with President Obama’s goals, the draft builds on what works in the current health care system by strengthening employer-provided care, while fixing what is broken with it. The draft would cover more Americans than any other proposal released to date.
Support for the House Tri-Committee Health Reform Discussion Draft

TODAY: House Democratic Chairmen to Unveil Discussion Draft for Health Care Reform

By
Kittredge, Betsy Miller
 on June 19, 2009 9:15 AM | Comments (2)
Today at 1:00 pm EDT, the chairmen of the House Ways and Means, Energy and Commerce, and Education and Labor Committees will unveil their discussion draft for health care reform. The three panels with jurisdiction over health policy in the House, have been working together as one committee to develop a single bill that fulfills President Obama’s goals of reducing health care costs, protecting and increasing consumers’ choices, and guaranteeing access to quality, affordable health care for all Americans.

Committee to Hold Hearing Tuesday, June 23, on Health Care Reform Draft Proposal

By
Kittredge, Betsy Miller
 on June 17, 2009 9:54 AM
The House Education and Labor Committee will hold a hearing on Tuesday, June 23 on the draft proposal for health care reform developed by the House Ways and Means, Energy and Commerce, and Education and Labor Committees.  The draft proposal is designed to achieve President Obama’s goals of controlling health care costs, preserving health care choices, and ensuring quality, affordable health care for all Americans.

WHAT:          
Hearing on “The House Tri-Committee Draft Proposal for Health Care Reform”
 
WHO:            
Panel I:
Dr. Christina Romer, Chair, Council of Economic Advisers, Washington, DC

Panel II:
John Arensmeyer, Chief Executive Officer, Small Business Majority, Sausalito, CA
Dr. Jacob Hacker, Professor and Co-Director of the Berkeley Center on Health, Economic, and Family Security, University of California Berkeley, Berkeley, CA
Ron Pollack, Founding Executive Director, FamiliesUSA, Washington, DC
Gerald Shea, Assistant to the President, AFL-CIO, Washington, DC
Fran Visco, President, National Breast Cancer Coalition, Washington, DC
Additional Witnesses TBA

Panel III:
Dr. Fitzhugh Mullan, Murdock Head Professor of Medicine and Health Policy, George Washington University, Washington, DC
Karen Pollitz, Research Professor and Project Director of the Health Policy Institute, Georgetown University, Washington, DC
William Vaughn, Senior Health Policy Analyst, Consumers Union, Washington, DC
Celia Wcislo, Assistant Division Director, 1199SEIU United Healthcare Workers East, Boston, MA
ReShonda Young, Small Business Owner, Alpha Express, Inc. on behalf of the Main Street Alliance, Waterloo, IA
Additional Witnesses TBA
                       
WHEN:          
Tuesday, June 23, 2009
12:00 p.m. EDT
Please check the Committee schedule for potential updates »

WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.
 

Conflicted Investment Advice Prohibition Act of 2009

By
Kittredge, Betsy Miller
 on June 16, 2009 4:47 PM
The Conflicted Investment Advice Prohibition Act of 2009 (H.R. 1988) would restore federal safeguards that ensured that investment advice provided to workers on their employer-sponsored retirement plan be independent and free from any conflicts of interest. Unfortunately, these protections were watered down with the approval of the Pension Protection Act of 2006 and former Bush administration Department of Labor midnight proposed regulations. These actions opened the door for financial services companies to provide advice to employees where they had a direct or indirect financial interest. The Conflicted Investment Advice Prohibition Act will restore workers’ protections by laying out clear rules to ensure that workers who receive investment advice at work be based on interests of the account holder’s needs, not Wall Street’s pockets.

The Health, Employment, Labor, and Pensions Subcommittee will be voting on H.R. 1988 tomorrow.

Pension Subcommittee to Vote on Bills to Disclose Hidden 401(k) Fees and Prevent Conflicted Investment Advice

By
Kittredge, Betsy Miller
 on June 15, 2009 12:05 PM
On Wednesday, June 17, the Health, Employment, Labor and Pensions Subcommittee of the House Education and Labor Committee will vote on two bills to improve workers’ retirement security: The 401(k) Fair Disclosure for Retirement Security Act (H.R. 1984), legislation to ensure that American workers have clear and complete information about fees that could be cutting deeply into their 401(k)-style retirement savings; and the Conflicted Investment Advice Prohibition Act of 2009 (H.R. 1988), which would ensure that if workers receive investment advice at work, it be free from conflicts of interest.

WHAT:          
Mark-up of H.R. 1984, “The 401(k) Fair Disclosure for Retirement Security Act” and H.R. 1988, “The Conflicted Investment Advice Prohibition Act of 2009”
 
WHO:            
The House Education and Labor Committee

WHEN:          
Wednesday, June 17, 2009
10:30 a.m. EDT
Please check the Committee schedule for potential updates »

WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.
 

Committee to Examine Innovation and Technology in the Classroom

By
Kittredge, Betsy Miller
 on June 10, 2009 5:22 PM
The House Education and Labor Committee will hold a hearing on Tuesday, June 16 to examine how technology and innovative education tools are transforming and improving education in America.

WHAT:          
Hearing on “The Future of Learning: How Technology is Transforming Public Schools”

WHO:            
Witnesses TBA

WHEN:         
Tuesday, June 16, 2009
10:00 a.m., EDT
Please check the Committee schedule for potential updates »
                        
WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

Access the webcast when the hearing begins at 10:00 am EDT »

This Week: Hearings on the Single Payer Health Care Option and Family Leave Policies

By
Kittredge, Betsy Miller
 on June 8, 2009 5:34 PM | Comments (2)
On June 10, the Health, Employment, Labor and Pensions Subcommittee will hold a hearing examining the single payer health care option.

On June 11, the House Workforce Protections Subcommittee will hold a hearing to examine proposals for expanding workers’ access to paid family and sick leave. 

Subcommittee to Hold Hearing on Family Leave Policies

By
Kittredge, Betsy Miller
 on June 8, 2009 5:25 PM
The House Workforce Protections Subcommittee will hold a hearing on Thursday, June 11 to examine proposals for expanding workers’ access to paid family and sick leave. While more than 80 percent of Americans support having paid sick days, the U.S. is the only country among the 22 nations ranked high in economic and human development that doesn’t guarantee paid sick leave to workers.

The FIRST Act, H.R. 2339, provides grants to the states to implement and improve their paid family leave programs.  Healthy Families Act, H.R. 2460, mandates that businesses with 15 or more employees provide up to 7 days of paid sick days to their employees. 
WHAT:          
Hearing on “H.R. 2339, the Family Income to Respond to Significant
Transitions Act, and H.R. 2460, the Healthy Families Act”

WHO:           
U.S. Representative Rosa DeLauro (D-CT), sponsor H.R. 2460,
Healthy Families Act
Rajiv Bhatia, director, Occupational and Environmental Health, Department of Public Health, San Francisco, CA
Deborah Frett, CEO, BPW Foundation, Washington, DC
Debra Ness, president, National Partnership for Women, Washington, DC
Sandra Poole, deputy director, California Employment Development Department Disability Insurance Branch
Additional Witnesses TBA
                                                             
WHEN:         
Thursday, June 11, 2009
10:00 a.m., EDT
Please check the Committee schedule for potential updates »
                       
WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

Note: This hearing will be webcast live from the Education and Labor Committee website. Access the webcast when the hearing begins at 10:00 am EDT » 

Committee to Hold Hearing on Charter Schools

By
Kittredge, Betsy Miller
 on June 1, 2009 1:41 PM
The House Education and Labor Committee will hold a hearing on Thursday, June 4 to examine how supporting outstanding charter schools can help build an innovative, world-class American school system that educates all students to high levels.

President Obama has repeatedly called on states to lift restrictions that limit the growth of successful charter schools and encourage rigorous accountability of them.

WHAT:          
Hearing on "Building on What Works at Charter Schools”

WHO:            
Steve Barr, founder and chairman of the board, Green Dot Public Schools, Los Angeles, CA
David Dunn, director, Texas Charter School Association, Austin, TX
Jim Goenner, board chair, National Association of Charter School Authorizers and lead authorizer at Central Michigan University, Mount Pleasant, MI
John King, managing director, Excellence Preparatory Network, Uncommon Schools, New York, NY
Barbara O’Brien, Lt. Governor, Colorado
Jim Shelton, Assistant Deputy Secretary, Office of Innovation and Improvement, Department of Education        
                                                                      
WHEN:         
Thursday, June 4, 2009
10:00 a.m, EDT
Please check the Committee schedule for potential updates »
                       
WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

Rep. Tim Bishop: On July 1, New Benefits Will Make College More Affordable

By
Kittredge, Betsy Miller
 on May 20, 2009 11:37 AM
(This is a guest blog post by Rep. Tim Bishop, Education and Labor Committee Member.)

bishop-headshot-square.jpgAn article in Newsday recently declared that the “recession is pushing college out of reach.” That’s a sobering thought—particularly because a college education can be a key path to a stronger financial future for many Americans.

Current statistics on costs at local colleges and universities help explain why this is the case. At Stony Brook University on Long Island, the average debt incurred by 2007 graduates had increased by 9% over the previous year. That’s nearly three times the annual cost of living adjustment. Completing college in New York or any other state is an increasingly expensive proposition: the average student graduates with nearly $22,000 in debt. With the current economic downturn, a college degree may appear even further out of reach for many Americans.

As a former college administrator, I understand the importance of college affordability for American students. I am heartened by the steps that President Obama and my Congressional colleagues have taken to date, including the passage of the American Recovery and Reinvestment Act of 2009. This legislation includes billions of dollars to repair and construct school facilities and improve services for the children most in need, which will better prepare our next generation for the challenges of college and the globalized economy.

On July 1st, some new benefits for students will go into effect thanks to the College Cost Reduction and Access Act. On July 1, the interest rate on need-based federal student loans will be reduced to 5.6% down from the current 6% (rates will drop even further to 3.4% by 2011). The maximum Pell Grant scholarship will increase to $5,350 which will reduce the amount that students need to borrow in the first place. In addition, monthly loan payments may be capped at 15% of discretionary income, so student loans will become less of a burden on young people getting started in their careers.

Alex, a student on Long Island who will graduate with a whopping $70,000 in debt, puts it well: “Higher education shouldn’t come at the price of indebtedness for life.”

That’s a goal for our college graduates on which I hope we all can agree.

We can get there by increasing grant aid from all sources (federal, state, and institutional), making it less expensive for students and families to borrow, and working with institutions to implement best practices to hold down costs.

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This Week: Hearings on Seclusion & Restraint in Schools, Obama's Education Agenda, and Reforming Student Aid

By
Kittredge, Betsy Miller
 on May 18, 2009 10:48 AM | Comments (3)
On Tuesday, May 19, the House Committee on Education and Labor will hold a hearing to examine abusive and deadly uses of seclusion and restraint in U.S. schools. Seclusion and restraint are physical interventions used by teachers and other school staff to prevent students from hurting themselves or others.

On Wednesday, May 20, U.S. Education Secretary Arne Duncan will testify before the House Education and Labor Committee about President Obama’s agenda for transforming American education. This will mark Secretary’s first appearance on Capitol Hill to outline the President’s education goals.

On Thursday, May 21, the House Education and Labor Committee will hold a hearing to examine proposals that will make historic increases in college aid by enacting reforms that will make the nation’s federal student loan programs more reliable, effective and efficient for students, families and taxpayers.

One of the proposals the committee will examine is President Obama’s FY 2010 budget proposal, which would increase the Pell Grant scholarship and other forms of student aid by almost $100 billion over ten years – and at no cost to taxpayers. The President’s plan would be paid for by ending the subsidies the federal government currently pays to lenders in the federally-guaranteed student loan programs and re-directing those savings back into additional aid for low- and middle-income students.

Committee to Examine Proposals for Increasing College Aid through Reform of Student Loan Program

By
Kittredge, Betsy Miller
 on May 14, 2009 6:00 PM
On Thursday, May 21, the House Education and Labor Committee will hold a hearing to examine proposals that will make historic increases in college aid by enacting reforms that will make the nation’s federal student loan programs more reliable, effective and efficient for students, families and taxpayers.

One of the proposals the committee will examine is President Obama’s FY 2010 budget proposal, which would increase the Pell Grant scholarship and other forms of student aid by almost $100 billion over ten years – and at no cost to taxpayers. The President’s plan would be paid for by ending the subsidies the federal government currently pays to lenders in the federally-guaranteed student loan programs and re-directing those savings back into additional aid for low- and middle-income students.

WHAT:         
Hearing on “Increasing Student Aid through Loan Reform”

WHO:           
Witnesses TBA

WHEN:         
Thursday, May 21, 2009
10:00 a.m. ET
Please check the Committee schedule for potential updates »

WHERE:      
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.


Secretary Duncan to Testify before Committee on Obama’s Education Agenda

By
Kittredge, Betsy Miller
 on May 14, 2009 5:57 PM
On Wednesday, May 20, U.S. Education Secretary Arne Duncan will testify before the House Education and Labor Committee about President Obama’s agenda for transforming American education. This will mark Secretary’s first appearance on Capitol Hill to outline the President’s education goals.

WHAT:         
Hearing on “The Obama Administration’s Education Agenda”

WHO:           
The Honorable Arne Duncan, U.S. Secretary of Education

WHEN:         
Wednesday, May 20, 2009
10:00 a.m. ET
Please check the Committee schedule for potential updates »

WHERE:      
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

Committee to Examine Abusive and Deadly Use of Seclusion and Restraint in Schools

By
Kittredge, Betsy Miller
 on May 14, 2009 5:54 PM
On Tuesday, May 19, the House Committee on Education and Labor will hold a hearing to examine abusive and deadly uses of seclusion and restraint in U.S. schools. Seclusion and restraint are physical interventions used by teachers and other school staff to prevent students from hurting themselves or others.

WHAT:           
Full Committee Hearing on “Examining the Abusive and Deadly Use of Seclusion and Restraint in Schools”

WHO:            
Witnesses TBA
                                               
WHEN:            
Tuesday, May 19, 2009
10:00 a.m. EDT
Please check the Committee schedule for potential updates »

WHERE:       
House Education and Labor Committee Hearing Room
2175 Rayburn House Office Building
Washington, D.C.

Managing Your Student Loans: July 1 College Affordability Benefits Every Borrower Should Know About

By
Kittredge, Betsy Miller
 on May 14, 2009 1:39 PM
The cost of paying for college is becoming even more burdensome for Americans in this economy. While families are losing income, benefits and jobs, college tuition prices continue to rise. The average student now graduates with over $22,000 in total student debt, including federal and private student loans.

This year’s class of graduating college seniors also enters one of the toughest jobs markets in decades for recent graduates. Of the 1.2 million jobs lost last year, 60 percent were held by workers aged 25 or younger. Their wages may also suffer: Economists have found that workers who graduated during recessions typically earn less over a lifetime than workers who graduate in better economic times. Many borrowers already spend high percentages of their paychecks making student loan payments – and it’s only likely to get worse.

Given these challenges, it’s critical for current college students, new or soon-to-be graduates, and workers to know about new benefits that went into effect July 1, 2009 that will make student loan payments manageable for millions of Americans. (These benefits were signed into law in 2007 as part of the College Cost Reduction and Access Act.) They include:

  • Cheaper interest rates on need-based (subsidized) federal student loans. On July 1, the interest rates on subsidized federal student loans decreased from 6 percent to 5.6 percent. This is the second of four annual cuts in this interest rate; it will continue to drop until it reaches 3.4 percent in 2011.

  • Reasonable and affordable monthly college loan payments for borrowers. On July 1, a new Income-Based Repayment program went into effect that caps borrowers’ monthly loan payments at just 15 percent of their discretionary income (15 percent of what a borrower earns above 150 percent of the poverty level for their family size). Any current or future borrower whose loan payment exceeds 15 percent of their discretionary income is eligible. After 25 years in the program, borrowers’ debts will be completely forgiven.

  • Higher Pell Grant scholarships that cover the average tuition at public universities. Due to funding provided by both the College Cost Reduction and Access Act and the American Recovery and Reinvestment Act, the maximum Pell Grant scholarship for the 2009-2010 school year will be $5,350 – more than $600 above last year’s award.

In addition, students and borrowers will be able to continue to take advantage of other recent programs enacted under the law that will make it easier for graduates to go into public service fields while grappling with student debt. To encourage more students to become teachers, the law provides up-front tuition assistance, known as TEACH Grants, of $4,000 a year – for a maximum of $16,000 – to students who commit to teaching high need subject areas in high need schools for four years after graduation. (These grants first went into effect for the 2008-2009 school year).

Recent surveys also show students’ interest in public service jobs is surging. Graduates who enter into public service careers, such as teachers, public defenders and prosecutors, firefighters, nurses, non-profit workers and more, will be eligible for complete loan forgiveness after 10 years of qualifying public service and loan payments. (This program began on October 1, 2007.)

 
WHO BENEFITS? A SNAPSHOT…

The interest rate cut…

  • Nationwide, about 5.5 million students borrow need-based federal student loans each year. According to the Congressional Research Service, half of these borrowers come from families with incomes between $26,000-68,000.
  • About 38 percent of African-American students take out need-based student loans each year.
  • About 25 percent of Hispanic students take out need-based student loans each year.

The Income-Based Repayment program…

  • While it’s difficult to estimate an approximate number of borrowers who could participate, at the end of 2008, there were almost $556 billion in outstanding federal loans, representing almost 95 million student loans to more than 30 million borrowers. In 2008, about 8.9 million students borrowed federal loans.

The Pell Grant scholarship…

  • About 6 million students received the Pell Grant scholarship for the 2007-2008 school year. Of these students, 75 percent had family incomes below $30,000.
  • About 47 percent of all African-American students receive Pell Grant scholarships each year.
  • About 37 percent of Hispanic students receive the Pell Grant scholarship each year.

WHO QUALIFIES FOR INCOME-BASED REPAYMENT?

  • Borrowers who currently are paying back federal student loans and new borrowers, whose debt exceeds 15 percent of their discretionary income. Borrowers with hefty debt loads or low-paying jobs are most likely to qualify.
  • The program covers all federal loans – both Direct and Federal Family Education loans – made to students, including Stafford, Grad PLUS and federal consolidation loans, but not those made to parents (PLUS loans). Perkins loans are also eligible if a borrower consolidates them into a FFEL or Direct Loan. 
  • A borrower must also have enough debt relative to their income to qualify for a reduced payment. If a borrower earns below 150 percent of their poverty level for their family size, their payment will be $0. If they earn above it, their payment will be capped at 15 percent of whatever their income is over that amount. 
Tips on how to apply for federal student loans and grants »