Courtney Joins With Students To Condemn The Trump Budget For Targeting College Affordability Programs

NORWICH, CT —Yesterday, Congressman Joe Courtney (CT-02), a member of the House Education and the Workforce Committee, joined college students and other community stake-holders for a press conference in Hartford criticizing President Donald Trump's budget that would slash federal programs designed to reduce higher education costs for many families. The Trump Budget would eliminate the in-school interest subsidies for Stafford Student Loans, freeze Pell grants, eliminate the Public Service Loan Forgiveness Program, and significantly reduce federal work-study funds. Together, these proposals would dramatically increase college costs and student loan debt for students and graduates in Connecticut and across the country.

"It's clear that families preparing to send their kids off to college are worried about what the changes in President Trump's budget might mean for their bottom line," said Courtney. "With the level of student debt soaring right alongside the cost of a college degree, there is simply no excuse for undermining federal programs that are intended to relieve some of the burdens on families. Keeping college affordable must be a top priority in Washington. I am urging President Trump to reconsider many of the proposals in his budget, particularly those impacting access to college aid, and to uphold his campaign promises to fight for the middle-class rather than cutting their lifelines.

"One common sense proposal is my bill that I reintroduced last month with Sen. Elizabeth Warren called the Bank on Students Emergency Loan Refinancing Act. That measure would allow graduates with exiting high-interest loans to refinance at today's lower rates. Student debt hinders our economy because it delays or prevents borrowers from making other major investments including purchasing a home, starting a business, or simply saving for retirement. I will continue to work to keep the dream of college within reach for Connecticut families."

Rachael Johnston, Federal Political Coordinator for the Eastern Connecticut Association of Realtors, said: "The good majority of buyers on the market are first timers - Millennials just starting out, establishing careers, and looking for a home to begin establishing roots and become a member of a community. Unfortunately, many of these Millennials are saddled down with huge amounts of student loan debt affecting their financial ability to buy. We recently had a young professional couple who were a prime example of this unfortunate scenario - she was a Social Worker, just having obtained her Master's Degree, he was an engineer, both with great jobs. Unfortunately, the road leading to these great jobs involved a lot of student loan debt and as a result, a high debt to income ratio. Their mortgage request sadly was denied. This couple planned on having a family and becoming entrenched in their new community. Instead, they remain renters."

Dr. Katherine Marcello, MD, Family Medicine Resident at Middlesex Hospital, East Hampton Family Practice, said: "I fear if the PSLF program is eliminated it will discourage more medical students from going into primary care which will be detrimental to the health of the American people. It is well documented that health systems with a strong primary care foundation have better health outcomes and more health equity, all at a lower cost. I chose family medicine because I can impact my patient's lives and overall health to the fullest potential; a family doctor is the quintessential physician in every sense. The PSLF program has allowed me to feel my debt is manageable and reassured me that I could pursue my love for family medicine, without feeling I needed to choose a higher paid specialty."

In 2015, 70% of college seniors graduated with debt. Moreover, this year, more than one in four borrowers is in delinquency or in default on their student loans. According to a recent analysis, a quarter of borrowers default over the life of their loans. It is clear that the student loan debt crisis is getting increasingly worse, with no signs of slowing down. This crisis threatens our economy and the futures of young people all across America. With interest rates scheduled to rise again this summer, the urgency for Congress to address student loan debt and reject President Trump's budget cuts are more important than ever.

The Trump budget fails middle-class and working-class families by ignoring important federal programs that support higher education affordability. Trump slashes the overall Department of Education budget by $9 billion (13%) and focuses higher education cuts on programs that are vital to low- and middle-income students and graduates.

• Subsidized Stafford Loans: The budget proposal phases out this loan program that subsidizes interest on Stafford Loans for students while enrolled in school and for six months after leaving school. For a student taking out the maximum loan amount, ending this program means they would owe an additional $5,700 in interest when entering loan repayment. Over the next decade, this phase-out will cost students and families $39 billion.
• Public Service Loan Forgiveness: President Trump proposes to eliminate this program, which forgives federal student debt for people in the public sector who make ten years of on-time loan payments. This program was created through the bipartisan College Cost Reduction and Access Act of 2007, and the first year of borrowers had their loans forgiven this year. There are currently 552,931 doctors, lawyers, teachers, and social workers enrolled in this program.
• Federal Work Study: The President is seeking to halve the nearly $1 billion federal work study program, which was created in the 1960s as a way to help students pay for school in exchange for providing their school with labor. The program supports one in ten full-time, first-year undergraduates. In FY2016, Connecticut schools received approximately $11.2 million in federal work-study funding to support nearly 8,400 students.
• Pell Grants: The Trump budget keeps Pell Grants frozen at $22.5 billion—the same as FY2016 levels. While this is not a cut, an increase is needed to keep pace with costs. Additionally, the draft budget proposes to cut $3.9 billion from Pell's current $10.6 billion surplus. Many higher education advocacy groups have requested that this surplus be used to fund the reinstatement of year-round Pell Grants rather than to reduce the deficit.