The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“SAVING FOR COLLEGE” mentioning the U.S. Dept. of Commerce was published in the Extensions of Remarks section on pages E1443-E1444 on Aug. 1, 1996.
The publication is reproduced in full below:
SAVING FOR COLLEGE
______
HON. CONSTANCE A. MORELLA
of maryland
in the house of representatives
Thursday, August 1, 1996
Mrs. MORELLA. Mr. Speaker, in an effort to help families save for college, I am introducing a resolution to encourage States to adopt programs that will allow parents to pay for their child's college education years in advance and at a fixed rate.
Throughout history, American families have believed that a good education provided the path to a better life. Indeed, the earnings advantage of completing college increased between 1970 and 1993 for both males and females. According to the Department of Commerce, a person with a bachelor's degree will average 55 percent more in lifetime earnings than a person with a high school diploma.
However, college costs have risen rapidly in both public and private institutions. Over the past 15 years, the average tuition at private colleges has increased 90 percent, and at public institutions tuition has risen 100 percent. Moreover, the median family income during the same period rose only 5 percent.
For most Americans, student loans are the primary source of education funding. From the G.I. bill to Pell grants and the Stafford Loan Program, financial aid has enabled millions of working class families to send their children to college. While one option in addressing the rising cost of college would be to increase student financial aid, a sensible alternative approach would be to encourage families to save for college.
Several States have adopted ``tuition prepayment programs'' that offer families a systematic approach to saving for college. These prepaid tuition programs provide families with a plan under which they can set aside a fixed amount each month, based on the number of years remaining before the beneficiary enrolls in college. Under most of these plans, participation guarantees that tuition will be ``locked-in'' at today's prices, helping families fight inflation.
The State of Florida has an excellent program that has been operating for eight years with great success. Florida has sold more than 327,000 contracts to residents planning ahead for their children's college education. I am pleased that my own State of Maryland is planning to adopt a prepaid tuition program to help residents who are concerned about preparing for their children's future.
There are several reasons for encouraging more States to adopt plans that promote college savings:
Additional savings might enable some students to consider more expensive public as well as private schools. Consequently, families will have more choice as to which schools their children might attend. Additional savings may enable a student to live on campus rather than at home, and to attend school full-time rather than part-time.
Savings for college encourages parents to begin thinking about their children's education and planning for their future. Planning ahead might encourage parents to set higher educational standards and goals for their children.
Providing plans to encourage college savings reduces the need for student loans, which could reduce student debt and the student default rate.
Mr. Speaker, I have long supported measures to help students pay for college. At present, approximately 500,000 families nationwide participate in tuition prepayment programs that make college more affordable for middle-class families. I believe that all of our States should provide prepaid tuition or other savings plans to give American families everywhere the opportunity to save for their children's college education in advance. Helping our nation's families send their children to school is crucial to the economic strength and the cultural growth of our country.
____________________
