Legislation stems from Congressman’s college affordability listening tour

WILMINGTON — Congressman John Carney (D-DE) yesterday introduced H.R. 5565, the Protect Student Borrowers Act designed to lower the cost of college and better prepare students to pay their student loans by ensuring they graduate equipped to find good-paying jobs. The legislation is one of a series of bills the Congressman will unveil over the next several days that are the product of his year-long effort to address the rising cost of college. Over the past three decades, college costs have gone up 570 percent. They’ve increased at four times the median household income, and twice as fast as health care costs.   Total U.S. student loan debt recently topped $1 trillion, which surpassed the total owed on both auto loans and credit card debt.

The Protect Student Borrowers Act ensures colleges have “skin in the game” when it comes to the amount of debt their students are taking on. The billcreates a risk-sharing program whereby colleges whose students are especially likely to default on their student loans based on data collected over the previous three years would be responsible for assuming a portion of that debt, on a sliding scale. Senators Jack Reed (D-RI), Dick Durbin (D-IL) and Elizabeth Warren (D-MA) introduced identical legislation in the Senate.

“Higher education is key to our country’s economic competitiveness, but the cost of college is higher than ever,” said Congressman Carney.  “Colleges need to be held accountable for providing students with an education that’s worth the money.”

Beginning last summer, Congressman Carney embarked on a comprehensive effort to understand the factors behind the rising cost of higher education and to explore options for making college more affordable. The Congressman hosted a roundtable discussion with Delaware parents, guidance counselors, and a college financial aid counselor to gain insight into the current financial aid system.  He also hosted a telephone town hall meeting with more than 4,000 Delawareans to learn about their experiences and challenges surrounding the cost of higher education. The Congressman hosted additional discussions with current college students, recent graduates, and a credit counselor to better understand the challenges young people with student loan debt face. He also spoke extensively with administrators from the University of Delaware, Delaware State University, Delaware Technical & Community College, Wilmington University, Wesley College, and Goldey-Beacom College. 

Click here to read more about the Protect Student Borrowers Act.

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