Date: 1982-04-22
Speaker: WILLIAM J. COYNE (democrat)
Chamber: H

Mr. Speaker. in a recent radio broadcast from the island of Barbados. President Ronald Reagan defended his proposed reduction in college student . aid by suggesting that young people have a "great misperception" as to his pur. pose. That is the "view from Barbados." I would like to share with my colleagues the "view from Pittsburgh." Considering the scope of the pro. posed student aid cuts. the perception by Pittsburgh students that the administration is not acting in their interests can only be expected. It is not based on faulty information. it is based on facts. For fiscal 1983. the administration proposes a 33percent reduction in Department of Education programs. If approved. these cuts will contribute to an American public less well educated. seriously impeding our Nations ability to compete effectively in the world economy. According to the Department of Education. the administrations fiscal 1983 budget woud eliminate 2.9 million students from Federal higher education programs. To comprehend the magnitude of that number. we must take a closer look at how drastically these programs are affected. In fiscal year 1983. the administra. tion would eliminate an estimated 1 million students from the guaranteed student loan program (GSL). For those who continue to qualify under the new rules. borrowing costs would increase. including: A doubling of the loan origination fee. to 10 percent. a raising of interest rates to market levels 2 years after graduation. a needs test for rill. applicants. In addition. graduate and professional students would become ineligible for these loans. Currently. 600.000 studentsover half the Nations graduate enrollmentreceive these loan. Without such assistance they would be forced to scramble for more costly financing. The Pell grants. the largest of the Nations needbased student aid programs. will provide 21/ million grants in 1982. The administration proposes to slash funding by more than 39 percent below the already reduced 1982 level. Some 700.000 students from lowand moderateincome families would likely lose their grants as a result. While costs continue to spiral. the maximum grant amount would be reduced. Campusbased aid would be cut roughly 60 percent. from $1 billion to $400 million. The administration requests no new funding for supplemental employment opportunity grants. State student incentive grants. and national direct student loans. The sole survivor. the college work study program. would be reduced 25 percenta loss of 1.2 million awards. If these destructive reductions are approved by Congress. the educational consequences would be devastating.We would create a segregated higher education system. with private education available for the elite while lowand moderateincome students are forced to attend State and city universities. In my own city of Pittsburgh. the student aid cutbacks would have a debilitating effect on students attending public as well as private schools. According to data compiled by my officebased on information provided by Pittsburgh colleges and universities45 percent of Pittsburgh students now receiving title IV education funds face a reduction in their educational aid. Students at the University of Pittsburgh. CarnegieMellon University. Duquesne. Point Park College. Carlow College. Robert Morris. Chatham. and Allegheny Community College could expect aid reduction totaling $34.9 million. The biggest cutback would come in graduate student loans. which the administration would reduce by 62 percent. This would mean an $18.8 million loss to Pittsburgh students. Pell grants would be reduced by $5.8 million. reducing funds available to 6.318 students. A $2.1 million cutback in national direct student loans would mean a 42percent decrease in funds available to 4.556 Pittsburgh students. The elimination of $3.3 million in supplemental education opportunity grants would force 5.310 students to look elsewhere for this needed assistance. This Nation has a proud and longstanding commitment to education. a commitment honored by Republicans and Democrats alike. It was a Republican President. Dwight Eisenhower. who initiated a Federal program to insure quality education for all Americans. whatever their economic circumstance. Our economic strength. indeed our national security depends on our ability to produce trained. welleducated students capable of leading and revitalizing our American society. The demands on our Nations creativity have never been greater. An investment in education is the best investment we can make to foster a sound base for that creativity. It is an investment most taxpayers. I am certain. do not choose to shirk. We in Congress must stop the erosion of Federal support for higher education. Congress must send the administration a message. If we can show the administration that opposition to student aid cutbacks is bipartisan and deeply felt. it may begin to look for a tactful way to withdraw its destructive proposals. The administration changed course when massive public opposition developed to its social security cuts last year. I hope that congressional opposition ot the student loan cutbacks sparks a similar reaction.