Q/A: Know Before You Owe with U.S. Senator Chuck Grassley
Q: How can students avoid graduating with an overwhelming debt burden?
A: A new school year is under way and a fresh crop of students has started a new chapter on college campuses across the country. In our 21st century economy, it's widely considered a smart move to pursue higher education or vocational training as the next generation looks to secure financial independence and self-sufficiency. Many studies report that college graduates significantly improve their lifetime earning potential by earning an advanced degree. However, reading the fine print of those studies also shows a disparate range of earning potential based on one's field of study, as an example. So, considering the substantial student debt burden that a growing percentage of graduates struggles to repay - the U.S. Department of Education's student loan portfolio exceeds $1 trillion - it's important that policymakers examine the federal government's lending practices and the borrowing behavior of college-bound students. Specific steps can be taken to encourage financial literacy and teach students to become smarter, savvier borrowers. The federal government has a responsibility to the taxpaying public and to student borrowers to ensure that students understand their income to debt ratio, as an example. My bipartisan legislation, the Know Before You Owe Federal Student Loan Act, would strengthen loan counseling requirements and establish a more transparent process in which institutions of higher education take steps to help student borrowers graduate with less debt hanging over their heads. Apart from my legislation, colleges should take care to keep tuition and living expenses as low as possible to avoid putting pressure on students to borrow more than they can afford.
Q: How would your bill address staggering student debt in America?
A: As a fiscal conservative, I share the tight-fisted views of hard-working Iowans who agree that Washington can't tax, spend or borrow its way to prosperity. Borrowing beyond one's means or potential ability to repay puts future prosperity at risk. A sensible rule of thumb for student borrowers is not to take on more debt than what is necessary to pay for college. A University of Iowa estimate suggests about 40 percent of the average $25,000 student loan debt exceeds what is needed to pay tuition, room and board. That means a student borrower graduates with an extra $10,000 debt burden. That makes it even harder to stretch a paycheck to pay other monthly bills, such as rent, insurance and utilities. And let's be clear. The federal government shouldn't lend more than is necessary and underwrite lifestyle extras that aren't necessary to earn a college education. Student borrowers need to come to grips with the size and scope of their debt burden. That's why my bill would upgrade the student loan counseling provision into an annual requirement, not just for first-time borrowers. It also would require colleges: to furnish an estimate of a student's projected debt to income ratio that forecasts a repayment schedule with the starting wages in their particular field of study; inform student borrowers how not graduating on time would add significantly to their debt burden; and to counsel them against the risks of over borrowing. Again, students need to understand they do not need to borrow the maximum amount for which they are eligible. Finally, my bill would require that students receive regular statements about their loan while they are still in school, not just when they must start repaying. Regular reminders about one's repayment responsibilities will help promote mindful borrowing, as opposed to an out of sight, out of mind debt burden. Knowing what you owe, before you go to college, will help make the next generation of students smarter borrowers and better financial stewards. These are invaluable lifetime lessons that will pay it forward for years to come.
Grassley Praises Committee Passage of Bill to Fight Transnational Drug Trafficking
WASHINGTON - Sen. Chuck Grassley of Iowa, Chairman of the Judiciary Committee and the Caucus on International Narcotics Control, today praised Judiciary Committee passage of a bill he co-sponsored to help combat transnational drug trafficking.
"Since drug cartels are continually evolving, this legislation ensures that our criminal laws keep pace," Grassley said. "The bill closes a loophole abused by drug traffickers who intend for drugs to end up in the United States but supply them through an intermediary. The Justice Department needs every legal tool to help crack down on those who ship these substances over the border into our country."
Grassley is the lead Republican on the bipartisan Transnational Drug Trafficking Act, introduced in January with Sen. Dianne Feinstein as the lead Democrat. The bill, which passed the Senate unanimously in the 112th and 113th Congresses, would provide the Department of Justice with new tools to prosecute international drug traffickers in foreign countries. In particular, it would help the department build extradition cases on drug kingpins from the Andean region, which includes Colombia and Peru. Kingpins from these countries often use Mexican drug trafficking organizations as intermediaries to ship illegal narcotics to the United States.
The bill also would help the Department of Justice combat the international trafficking of methamphetamine, which is increasingly being trafficked from Mexico into the United States, including into Iowa. Meth continues to be a problem in Iowa. The latest data indicates that meth labs are at an all-time low in Iowa, but treatment admissions are at an all-time high.
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Grassley Joins Effort to End Federal Power Grab that Threatens Agriculture
WASHINGTON - Senator Chuck Grassley has joined 46 senators to introduce a resolution of disapproval of the rule on the Waters of the United States put forth by the Environmental Protection Agency (EPA) and the Army Corps of Engineers.
A resolution of disapproval is a legislative procedure used to try to overturn regulations and rules put forth by the executive branch. If the Senate and House pass the resolution, the President must sign it to become law. If the President vetoes the bill, Congress must overturn the veto for the resolution to take effect.
"The indifferent attitude that the EPA took toward agriculture is a real concern for Iowans who know the impact agriculture has on the state's economy. Every Iowa farmer has to be on their toes. The rule could result in significant red tape and expense for Iowa farmers as they make routine decisions about how best to use their land, even ironically hampering projects to improve water quality," Grassley said.
Grassley is a cosponsor of a bipartisan bill in the Senate to require that the Waters of the United States rule be completely revised with stakeholder input. He also is a cosponsor of legislation that would clearly define the scope of Clean Water Act jurisdiction in the law rather than leaving it to the EPA. In addition, both the Senate and House of Representatives appropriations committees have passed bills that deny funding for the EPA to carry out this rule.
The resolution was led by Senator Joni Ernst. Original cosponsors of the resolution include Senators Lamar Alexander, John Barrasso, Roy Blunt, John Boozman, Richard Burr, Shelly Moore Capito, Dan Coats, Thad Cochran, John Cornyn, Tom Cotton, Mike Crapo, Ted Cruz, Steve Daines, Mike Enzi, Deb Fischer, Jeff Flake, Cory Gardner, Lindsey Graham, Orrin Hatch, Dean Heller, John Hoeven, Johnny Isakson, Ron Johnson, James Lankford, Mike Lee, John McCain, Mitch McConnell, Jerry Moran, Lisa Murkowski, Rand Paul, David Perdue, Jim Risch, Pat Roberts, Mike Rounds, Marco Rubio, Ben Sasse, Tim Scott, Jeff Sessions, Richard Shelby, Dan Sullivan, John Thune, Thom Tillis, Pat Toomey, David Vitter, and Roger Wicker.
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