JEANNE SHAHEEN LEADS STUDENTS, COMMUNITY MEMBERS AT UNH IN ROUNDTABLE DISCUSSION OF THE RISING COST OF COLLEGE, STUDENT DEBT AND

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March 13, 2008

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Kate Bedingfield

603 647 2008 (o)

Alex Reese

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JEANNE SHAHEEN LEADS STUDENTS, COMMUNITY MEMBERS AT UNH IN ROUNDTABLE DISCUSSION OF THE RISING COST OF COLLEGE, STUDENT DEBT AND STUDENT LOANS

(Durham, NH) – Former Governor and current US Senate candidate Jeanne Shaheen joined students and community members at the University of New Hampshire today for a roundtable discussion of rising college cost and her proposals to ease student debt. On March 4, New Hampshire's leading provider of student loan financing, the New Hampshire Higher Education Assistance Foundation, announced it will no longer offer private loans due to turmoil in the capital markets.  

"College costs are rising, and now our faltering economy is threatening the chances for New Hampshire students to finance and attain a great education," said Shaheen. "We need a voice in Washington that will stand up for New Hampshire students and families, and we need action now."

Shaheen was joined at the roundtable by Suzy Allen, a financial aid officer at UNH; local parents concerned over the cost of college; and several UNH students. Laura Jones, a senior at UNH, said at the roundtable that after she was rejected for a private loan, she had to borrow money from her grandmother to finance her education. Erin Thesing and Jillian Andrews, also students at UNH, said they were worried that high debt burdens would dissuade their peers from pursuing careers in public service.

Governor Shaheen has been a longtime advocate for higher education. As Governor, she launched a tax-free college tuition savings plan, one of  the first of its kind in the nation, to help parents save for their children's education. She also signed into law the Granite State Scholars program to award need-based scholarships to New Hampshire students who excel in high school and choose to attend one of our state's public colleges. And she helped kick-start course credit reciprocity between New Hampshire's community colleges and universities so that community college students could continue on to get a four-year degree without losing credits.

As Senator, Shaheen will continue her commitment to New Hampshire's students. She believes we should take the following steps to ease student debt and make it easier for students to finance a college education:

1. Increase the cap on federal guaranteed  student loans

As tuition has skyrocketed, the maximum federal guaranteed student loan has not kept pace. Students have been forced to turn to private or alternative loans to fill in the gap. Not only are these private alternative loans more expensive than guaranteed student loans, but as the credit crunch begins to affect student loans, that avenue may be closed. Jeanne Shaheen believes we should increase the cap on federal guaranteed student loans so that students can receive loans at a lower rate, and those who cannot attain private loans can still finance a college education.

2. Expand loan forgiveness for public service

With the amount of debt they are carrying when they graduate, many students can't afford to take relatively low-paying jobs as teachers, firefighters, police officers and other jobs in public service. Jeanne Shaheen believes we should expand loan forgiveness for public service to help students with college debt and to attract more students to public service.

3. Simplify and expand tuition tax credits

Today the federal government offers two different tuition tax credits and a tuition tax deduction – but students can only use one at a time. The system is needlessly complicated, and students and parents have a hard time figuring out which tuition tax benefit to choose. Jeanne Shaheen believes we should offer one expanded tuition tax credit.

4. Expand Pell grants

Pell grants have not kept pace with the increasing cost of higher education, causing more and more students to rely on expensive private loans. Even with the increase enacted last fall, the maximum Pell grant this year is only $4,310 and will rise to only $5,400 in 2012. Jeanne Shaheen believes we should expand Pell grants so more students can attain a college education.

  Studies show that New Hampshire students have the second highest education-related debt of any state in the nation. But time and again, John Sununu has failed to stand up for New Hampshire's students and families. In 1996, Sununu advocated the elimination of the Department of Education (Time Magazine, 11/4/96). He voted against extending an expiring college tuition tax credit that helps more than 18,000 New Hampshire students and families (Senate Vote #330, 11/17/05), and he has voted against increasing funding for Pell Grant thirteen ten times (Senate Vote #39, 3/14/06; Senate Vote #268, 10/25/05; Senate Vote #68, 3/17/05; Senate Vote #51, 3/11/04; Senate Vote #331, 9/9/03; House Vote #72, 73, 77; 3/25/99; House Vote #377, 10/11/01; House Vote #124, 5/5/98; House Budget Committee Vote, 3/21/01; House Budget Committee Vote, 5/24/00; House Budget Committee Vote, 3/15/00). In 2005, John Sununu cast the deciding vote for the largest cut to student loans in our nation's history - $12.7 billion (Senate Vote #363, 12/21/05).