Opening Statement of Chairman Ric Keller

Subcommittee on 21st Century Competitiveness

Hearing on
"Paying for College: Innovative Private-Sector Proposals to Complement Record Federal Investment in Student Aid"

May 23, 2006

Good morning, and thank you all for joining us today. We're here to learn about how innovative private sector proposals can help increase college access and complement the record federal investment in student aid.

A college degree is the passport out of poverty for millions of American students each year. Without a college education, many workers today are shut out of quality, high-paying jobs. I believe our top priority should be opening the doors of higher education to low- and middle-income Americans.

That's why I'm proud of the record federal investment in student financial aid in recent years. 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. The maximum grant is up from $3,300 in 2000 to $4,050 today. We've paid down the Pell Grant shortfall and secured the program for years to come. With the passage of the College Access and Opportunity Act earlier this year, we've further improved the Pell Grant program, the Perkins Loan program and increased college access for millions of American students.

But the federal government can only do so much. I know this firsthand. My mother had a family friendly employer who cut a check to allow me to go to college.

That's why I am happy to be here today to learn about ways the private sector can help increase college access for our low- and middle-income students. One proposal we will discuss is my Family Friendly Employers Act, a bill to reward family friendly employers like my mother's who help send their employees' children to school.

My bill allows 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. My bill would simply expand the first $2,500 of that benefit to apply to employees' children.

The costs of this bill will be low. Employers will be able to provide the first $2,500 benefit to either their employee or his or her children, but not both. Also, the benefit applies to each employee's children in sum, so that an employee would receive the same benefit, no matter the number of children.

The Family Friendly Employers Act will encourage more generous businesses to invest in their companies, their communities, and in our children's education.

We have an excellent panel of witnesses today to talk about this bill and other private sector proposals to complement the federal investment in student aid. I want to thank you for appearing before the Subcommittee today. I look forward to your testimony. With that, I yield to Mr. Kildee for any opening statement he may have.