Witnesses Highlight Innovative Private-Sector and Non-Profit Approaches to Enhance Student Aid, Bolster College Access 

WASHINGTON, D.C. – Testifying before the U.S. House Subcommittee on 21st Century Competitiveness, witnesses today described innovative private and non-profit approaches to bolster college access for low- and middle-income students.  With federal aid to college students and families reaching record levels – and college tuition and fees rising rapidly as well – today’s hearing focused on proposals that complement federal efforts to ensure students are prepared to achieve in college and to assist students with financing their education. 

“Funding for Pell Grants, the foundation of federal student aid, has increased 71 percent since 2000, up from $7.6 billion to $13 billion today, and the maximum grant is up from $3,300 in 2000 to $4,050 today,” noted Subcommittee Chairman Ric Keller (R-FL).  “We've paid down the Pell Grant shortfall and secured the program for years to come.  And just two months ago, we took action to further improve the Pell Grant program, safeguard the Perkins Loan program, and increase college access for millions of American students.  Yet in spite of our record investment, the federal government can only do so much.  Today, we learned about what others are doing to build successfully upon our federal commitment to higher education.” 

At the hearing, Keller discussed the Family Friendly Employers Act (H.R. 1518), legislation he has authored to allow employers to provide up to $2,500 in tax-free reimbursements for tuition, books, and fees for their employees' children's education.   

“Employers already enjoy a $5,250 benefit to help provide for their employees' non-job-related education,” Keller said.  “This bill would simply expand the first $2,500 of that benefit to apply to employees’ children.  Simply put, it will encourage more generous businesses to invest in their companies, their communities, and in our children’s education.” 

Tom Davis, owner of Davis Brothers Construction in Houston, endorsed Keller’s proposal.  As an employee benefit, Davis assists his firm’s workers with paying for their children’s college education.  On average, the benefit amounts to about $5,000 per child per year.  The Keller bill would significantly enhance Davis’ ability to continue the benefit – and allow other firms to offer the same. 

“The Family Friendly Employers Act you are considering would make a huge difference, not only for companies making a decision to help their employees with their children’s education, but also in our society,” said Davis.  “A tax incentive like the one provided in the Family Friendly Employers Act would encourage more businesses to help send their employees’ children to college.” 

Allison G. Jones, Assistant Vice Chancellor for California State University System, described for the panel community-based partnerships championed by the system to expand college access to traditionally underrepresented populations. 

“Over the past year, California State University has held town hall meetings with African-American, Hispanic, and Vietnamese communities to discuss how collectively we can better reach out to and serve students in those communities,” Jones told the panel.  “We are sharing with these communities the value of a CSU education as the bridge to economic opportunity and professional success.  These activities are building long-term partnerships with African American, Hispanic, and Vietnamese community leaders who work with and influence the youth in their respective communities.” 

Finally, Rassan Salandy – Director of University Recruitment and Public Relations for New York City’s Posse Foundation – provided the subcommittee an overview of the organization, which prepares public school students for attendance at top-tier universities nationwide and promotes cross-cultural communication on campus.   

“By the year 2020 the Posse Foundation expects to be operating out of 10 cities, partnered with approximately 80 universities, and boasting an alumni network of over 7,000,” noted Salandy.  “It is an organization driven by the belief that more can be done to identify students with exceptional promise and academic ability.  These are extraordinarily talented and motivated young people who, if just given the opportunity, will excel.  As the United States becomes an increasingly multicultural society, Posse believes that the leaders of this new century should reflect the country’s rich demographic mix.” 

Today’s hearing on innovative private-sector efforts comes during an especially active year on student aid and college access legislation.  The Deficit Reduction Act – enacted in February 2006 – reauthorized mandatory spending programs under the Higher Education Act (HEA), establishing key benefits for college students and saving American taxpayers billions by making college access programs operate more efficiently and effectively.  Less than two months later, the House backed the College Access & Opportunity Act, which reauthorized remaining HEA programs by strengthening Pell Grants, arming parents and students with more information about college costs than ever before, bolstering minority serving institutions, and improving access to math and science education at the college level. 

For more information on House Republican efforts to expand college access for low- and middle-income students, visit the Education & the Workforce Committee website at http://edworkforce.house.gov/issues/109th/education/hea/hea.htm. 

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