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Calling it the “cornerstone bill on the push for college affordability,” U.S. Sen. Bob Casey pitched a new, three-pronged plan Wednesday to reduce college debt. He expects the bill to be introduced to the Senate in coming weeks.
“Higher education is essential for anyone trying to achieve the American dream,” the Scranton Democrat said during a teleconference. “Students who learn more now earn more later. You’ve heard me say it, and it’s true.”
Casey and other Democrats have cobbled together and refined ideas previously proposed and dubbed it the “In the Red Act.”
Citing data that shows “42 million Americans owe $1.3 trillion in college debt” and that “in Pennsylvania the average debt is about $32,000,” Casey said the bill tries to address the problem by:
• Expanding a program that allows students with federal loans from the 2013-14 school year and after to refinance them to lower rates. The bill would allow more students to refinance their debt, including some with high-interest private loans.
• Make two-year community college free for many students who maintain high grades. “In the old days we decided high school should be free, and that was good idea,” Casey said. “Now we must think of treating community college the same way.” Assuring more people have access to some higher education is key to remaining globally competitive, he added.
• Link the amount paid out in Pell grants to the Consumer Price Index and make funding of the grants mandatory. Casey said 8.2 million students got grants in 2014, most from families with annual incomes below $30,000, and that the true value of the grants decreases over time if the amounts remain flat while tuition rises.
Casey admitted the bill has no Republican supporters in the Senate so far, but added that “it’s very early in the process.” He said college debt “is not just a problem for students from one party,” and that he’s hoping for bipartisan support as the bill moves forward.
The timing may be helpful, he added. Late last year, Republicans and Democrats joined in a bipartisan effort to re-authorize the law formerly known as “No Child Left Behind,” which was re-dubbed the “Every Student Succeeds Act.”
“If you’re a Democrat or a Republican, you’re hearing a lot about this,” Casey said. “And you’ve got to have an answer as a member of the Senate and the House. I hope as Republicans wrestle with the answer, they will take a closer look at our bill.”