Students descend upon Washington DC
Students get a lesson in lobbying as they petition U.S. legislators for tuition relief

-- Margaret A. Pribel

A group of Metropolitan students descended upon the nation’s Capitol for the DC Summit. Minnesota State University Student Association (MSUSA) hosted the summit. “This was the first conference of this kind,” said Clayt Freed, executive director of MSUSA. “The turnout was great considering most people hadn’t heard of us or what we’re trying to do before they got a call from us asking them to spend a few thousand dollars to come to this seminar. We got a turnout of 210 students from 25 states.”

The summit lasted four days. Students spent Saturday and Sunday learning how to lobby for tuition freeze legislation and preparing to meet with political leaders on Monday and Tuesday.

Students from St. Cloud State University (SCSU) were particularly impassioned. After meeting with Representative Jim Ramstad’s assistant, Nita Scarpari, SCSU student Dana Kutcher was very excited about how shocked Scarpari was to learn that while students in Virginia only pay $63 per credit, SCSU undergraduate students pay $153 per credit. By comparison, Metropolitan State University students currently pay $138 per credit before student fees are added. Scarpari mentioned that Representative Ramstad is receptive to student issues and was instrumental in loosening restrictions for foreign students after Homeland Security’s initial clampdown.

After learning some lobbying skills at the seminar, students visited several state representatives. The students who met with Martin Olav Sabo were a little disappointed with his response, but also thought they could have been more dynamic. Sabo listened to the group but didn’t have much to say. He noted that next week the budget would be signed and then they’d be dealing with what was available. It sounded a little futile to students. “This position can be improved with about ten calls to him daily,” noted Freed. Students also met with Minnesota Senators Mark Dayton and Norm Coleman.

Students were invited to attend a press conference given by Senators Edward Kennedy (D-Mass.) and Gordon Smith (R-OR), and Representatives Thomas Petri (R-WI) and George Miller (D-Calif.). The legislators used the conference to unveil bipartisan legislation, the Student Aid Reward (STAR) Act.

The STAR act encourages colleges and universities to use less expensive government student loan plans. Current loan plans include subsidies to middlemen like banks and private lenders like Sallie Mae, even though these programs guarantee profits and zero risk of default. Loans issued by the U.S. Treasury and managed by private companies are a much less expensive way to administer financial aid. The Congressional Budget Office estimates that the Kennedy plan will produce $17.2 billion in grant aid at zero taxpayer cost. The cost of direct loans is less than one cent on the dollar, while government-guaranteed loans cost taxpayers 12 cents on the dollar.

The STAR act is meant to increase financial aid to students in need, and to help the U.S. compete in the global market. Universities and colleges are falling behind in graduating scientists and engineers. In a list of countries that graduate the most scientists and engineers, the U.S. once ranked third. Today our country has fallen to fifteenth. Senator Gordon Smith cited that these changes are essential to America’s future, and he went on to say, “This is not rocket science, but this will create more rocket scientists.”

Kennedy also proposed a $1,000 per student per semester Pell Grant increase in order to keep up with rising education costs. Tuition increases have outpaced Pell Grant increases since the financial aid program was established in the 1970s. “Pell Grant costs still relate to education costs in 1975,” said Representative George Miller. Additionally, he pointed out, “Student loans used to be 20 percent of student funding; now it’s 70 percent.” Miller wants to be sure that rising costs don’t keep students from their education.

Senator Kennedy addressed the ongoing 9.5 percent student loan scandal. He cited new data from the Department of Education that concludes taxpayers are still paying for bank and lender profits, money that could be used to send more American students to college. Last year Senator Kennedy discovered a loophole that enabled banks to receive a 9.5 percent rate of return on guaranteed loan subsidies. Kennedy said that new Education Department data indicate that $1 billion will be paid to banks this year to guarantee them a 9.5 percent rate of return on student loans that are already guaranteed against default.

“The choice is clear: Either we value education and opportunity or we value special interests,” Senator Kennedy stated, “This is a value issue.”

Go to www.studentaidaction.org, the state Public Interest Research Group (PIRG) Web site, where you can send a letter to your legislators and keep up on STAR act developments.

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