IV
104TH CONGRESS
2D SESSION
H. RES. 506
Expressing the sense of Congress that all parents should be afforded the
opportunity to plan ahead for their children’s college education through
tuition prepayment plans that guarantee college for their offspring at
a fixed price.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 1, 1996
Mrs. MORELLA submitted the following resolution; which was referred to the
Committee on Economic and Educational Opportunities
RESOLUTION
Expressing the sense of Congress that all parents should
be afforded the opportunity to plan ahead for their chil-
dren’s college education through tuition prepayment
plans that guarantee college for their offspring at a
fixed price.
Whereas over the past 15 years, the average tuition at pri-
vate colleges has increased 90 percent, and at public in-
stitutions, tuition has risen 100 percent;
Whereas median family income during the same period rose
only 5 percent;
Whereas at public institutions, tuition, room, and board as a
percentage of median family income rose to a high of 15
percent of median family income in 1993;
•HRES 506 IH
Whereas at private institutions, tuition, room, and board as
a percentage of median family income rose to 41 percent
in 1993;
Whereas the earnings advantage of completing college in-
creased between 1970 and 1993 for both males and fe-
males;
Whereas 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 di-
ploma;
Whereas by the year 2000, 86 percent of new jobs will re-
quire postsecondary education and training;
Whereas as the cost of college continues to increase, concern
about saving for college has grown;
Whereas most families have difficulty saving for college be-
cause there are no guidelines for how much to save and
they must decide, sometimes by default, how much to put
aside for unknown future expenses;
Whereas tuition prepayment plans offer a systematic college
savings plan that sets manageable monthly payments en-
abling families to know just how much money they must
set aside each month in order to guarantee their child’s
tuition;
Whereas tuition prepayment plans help families fight infla-
tion by locking in and guaranteeing their child’s edu-
cation at a fixed price;
Whereas tuition prepayment programs give students more
choice among schools because additional savings may en-
able some students to consider more expensive schools as
well as private institutions;
•HRES 506 IH
Whereas tuition prepayment programs encourage families to
begin thinking about their children’s education ahead of
time, and the additional savings may prompt parents to
set higher educational goals for their children;
Whereas tuition prepayment plans could reduce the need to
borrow for college which could reduce student debt, re-
duce the student default rate, and reduce the financial
burden faced by the next generation;
Whereas 12 States have adopted a tuition prepayment plan
or a savings plan;
Whereas the State of Florida’s Prepaid College Program is
entering its 8th year of providing better access to higher
education for its children and has sold more than
327,000 contracts to citizens concerned about preparing
for their children’s future; and
Whereas the State of Maryland is planning to adopt a pre-
payment-installment program to help parents pay for
their children’s college education in advance: Now, there-
fore, be it
Resolved, by the House of Representatives, That it
is the sense of Congress that all States should adopt a
tuition prepayment plan to allow families the opportunity
to save for their children’s education in advance and at
a guaranteed rate.
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