Statement by Edward J. McElroy, President,
 American Federation of Teachers,
In Support of the College Cost Reduction Act of 2007

Note: Yesterday, the U.S. House of Representatives’ Committee on Education and Labor marked-up the College Cost Reduction Act of 2007. The bill increases Pell Grants for college students to $5,200; cuts the interest rate for student loans in half; and includes innovative loan-forgiveness provisions for nurses, early childhood educators, highly qualified teachers and public employees. The bill also cuts waste by eliminating more than $20 billion in taxpayer-funded subsidies for lenders like NelNet and Sallie Mae.

WASHINGTON, D.C. – By taking major steps to support America’s students and their families, the College Cost Reduction Act holds great promise for our entire nation. The bill will ensure that available funds are used exactly as intended—to help more students attend and complete college. The 1.4 million members of the American Federation of Teachers (AFT) commend Chairman George Miller (D-Calif.) and the members of the Committee on Education and Labor for their leadership and action on this issue.

The AFT remains in support of a diverse student loan market—where both Direct Loans and FFEL Program loans are offered as options. We believe, however, that for too long lenders have profited at the expense of the very people they were supposed to help. It is time we put the emphasis back on helping students attend college, not on subsidizing private banks. 

The College Cost Reduction Act presents an unparalleled opportunity to cut waste and increase Americans’ access to higher education. As the bill moves to consideration by the full House and Senate, we hope all of the members of the U.S. Congress will opt to strengthen investment in our nation’s students. 

# # # #