Washington, D.C. – America’s Student Loan Providers today released the following statement in response to the final report of Secretary of Education Margaret Spellings's Commission on the Future of Higher Education:
AMERICA’S STUDENT LOAN PROVIDERS commends Secretary Spellings, Chairman Charles Miller and the members of the Commission on the Future of Higher Education for their commitment to higher education and the goal of increasing access.
Our 85 members, which include the nation’s leading private, nonprofit and state-based education and financial organizations, play a vital role in making higher education a reality for millions of Americans. In academic year 2005-06, our members and others participating in the Federal Family Education Loan (FFEL) Program provided $52.5 billion in loans to 6.5 million students and their parents.
AMERICA’S STUDENT LOAN PROVIDERS supports increased federal investment in higher education and, as the Commission wrote, “a higher education system that is accessible to all qualified students in all life stages.” Essential to achieving that goal are strong, well-funded need-based grant aid and low-cost student loan programs.
- Greater federal investment is a matter of economic necessity, growing out of the nation’s increasing population of college-aged students and a global economy’s increasing demand for a well-educated workforce. The largest high school classes in history are graduating over the next few years. Equally important, the growing diversity of secondary school graduates creates challenges too; if America is to meet its workforce needs, there are cultural and information barriers that need to be addressed.
- The case for greater federal support of higher education is further demonstrated by the increasingly important role that a degree or certificate plays in the global economy. As the Commission points out, 90 percent of the fastest-growing jobs in the economy require some postsecondary education.
- Beyond meeting our workforce needs, there are important social goals that the nation has long held dear that can best be achieved through higher education. In words that remain timeless, President Johnson 41 years ago said, “Education is the key to opportunity in our society, and the equality of educational opportunity must be the birthright of every citizen.”
- Greater federal support for higher education is necessitated by the continued rise (in constant dollars) in college costs. Between 1995-96 and 2005-06, average tuition, fees, room and board at four-year institutions increased 42 percent after adjustment for inflation (“Trends in College Pricing 2005,” College Board). Additionally, as the Commission pointed out, “need-based financial aid is not keeping pace with rising tuition.” The consequence is that access to higher education is becoming increasingly difficult for many low- and middle-income families.
- Another consequence is that increasing numbers of students are obtaining federal student loans and borrowing larger amounts. While the overwhelming majority of student borrowers repay their student loans without any undue burden, the perception and reality of student loan debt may discourage some academically qualified students from accessing low-cost federal student loans, which may prevent them from attending the institution that best meets their needs, or from applying to college altogether. A strong program of need-based grant aid would go a long way toward easing the student loan burden for the neediest of students and facilitating access to postsecondary education.
AMERICA’S STUDENT LOAN PROVIDERS looks forward to working with the Commission, the Administration and the Congress on developing new ways to increase access to higher education. Colleges and universities are experiencing the same profound level of demographic change as the nation as a whole. The effects of these changes are now coming to bear upon our higher education system. It is essential that the nation’s financial aid programs be prepared to deal with the students and needs of the 21st Century.