01.23.06

Cantwell Calls for Affordable Tuition, Objects to Proposed Cuts to Student Aid

Republican proposal would make $12 billion in cuts, pass thousands in extra interest and fees on to students, parents

SEATTLE, WA – Monday, U.S. Senator Maria Cantwell (D-WA) joined Congressional colleagues and education professionals at the University of Washington (UW) to demand continued federal support for student aid. A pending budget bill would make deep cuts to federal student aid programs, delivering a damaging hit to college affordability. Cantwell joined Senator Patty Murray (D-WA), Congressmen Jay Inslee (D-WA) and Jim McDermott (D-WA), and University of Washington President Mark Emmert to call for continued investment in our nation’s young people.

"It’s wrong to look for extra savings in the pockets of our poorest students," said Cantwell. "We need to stop the biggest cut in the history of federal student loans. If we want to keep opportunity alive, we cannot drop thousands of dollars in extra costs directly on the backs of students and parents struggling to make tuition payments."

The pending Budget Reconciliation bill would increase interest rates and fees paid by parents, while reducing subsidies to lenders. As a result, it would cut student aid by $12.7 billion over five years. Over the coming decade, more than 15 million undergraduates will attend U.S. colleges—one in five from families living in poverty.

"Many of today’s undergraduate students are the first in their family to attend college," said Cantwell. "I know what that’s like. With the help of federal Pell Grants, and a lot of hard work, I was the first in my family to graduate from college. At the time, the Pell Grant covered 35 percent of costs. Now, the average Pell Grant covers less than 25 percent of tuition, fees, room, and board. We need to invest in our future. Instead, the administration is pushing deep cuts."

At the University of Washington, over one-third of undergraduates—more than 12,000 students—would have to pay more on their loans if this proposal became law. Based on 2003-2004 costs, the average UW student borrower would pay $1,400 more in interest, and every $10,000 in parent loan debt would accrue an additional $1,500 in interest over a 10-year period—all at a time when tuition is already skyrocketing. Since 1980, college tuitions have risen twice as fast as inflation.