Democrats' education agenda includes cutting college costs

WASHINGTON -- Congressional Democrats say when they take the gavel from Republicans next month, they will put money in the pockets of college students and closely examine a law reforming elementary and secondary schools.

How they will pay for their plans isn't clear.

Democrats, who won the House and Senate in last month's elections, say they will quickly move to slash interest rates on need-based college loans in half -- from 6.8 percent to 3.4 percent.

"That will be done almost immediately, certainly within the first couple of weeks of the new session," California Democratic Rep. George Miller, the incoming chairman of the House education committee, said in an interview.

In addition, Pell grants -- which do not have to be paid back and go only low-income students -- will likely get a boost. Party leaders say they want to raise the maximum Pell award from $4,050 to $5,100. But that would cost roughly $4 billion, prompting some to press for a go-slow approach.

"I think it's clearly going to have to be over a period of a couple of years," Miller said.

Direct government loans

Democrats haven't spelled out how they'll pay for their promises, which may run head-on into another pledge: to require any new spending to be offset with cuts elsewhere or new taxes to avoid increasing the deficit.

Miller and Massachusetts Sen. Edward Kennedy, the new chairman of the Senate education committee, say the government can save money by steering college students toward getting direct loans from the government instead of borrowing from banks that in turn get federal subsidies.

That idea will likely face resistance from Republicans who say it's important to keep the banks in the subsidized college loan business.

"I'll be as blunt as possible: you will never convince me -- never -- that the federal bureaucracy can do a better job than the private sector in managing the student loan program," Republican Rep. Howard "Buck" McKeon, the outgoing chairman of the House education committee, said in a recent speech to bankers.

Money also is a sticking point in the debate over the No Child Left Behind law, passed in 2001 and now up for renewal. Democrats have promised hearings early in the new year.

The law requires schools that get federal poverty aid and fall short of annual progress goals to take steps to boost student achievement. Schools in need of improvement must provide tutoring, offer public school choice to students or initiate other reforms such as overhauling their staffs.

Kennedy and Miller joined President Bush to push for the law's passage, and they still support it. However, they say Republicans haven't spent the money needed. They say the administration has provided about $50 billion less than Congress called for. Republicans point out that it's common for legislation to be funded at less than the full level Congress authorizes.

Michigan Democratic Rep. Dale Kildee, who is likely to lead the subcommittee with oversight of the No Child Left Behind law, said the federal government has an obligation to boost funding.

"We have mandated to these local districts to achieve or face restructuring," Kildee said. "The schools that have the greatest problems have the fewest resources."

Education Secretary Margaret Spellings noted that the law passed with Republican and Democratic support, and said she is optimistic leaders in both parties will make sure the law gets renewed for another five years.

Besides money, a point of contention between some of the law's critics and its supporters is an unprecedented requirement that all students be proficient in reading and math by 2013-14, a goal critics say is unrealistic. Spellings says the date should not be moved.

"Politically it's very difficult," said Michael Rebell, an expert in the law at Columbia University's Teachers College. "Nobody wants to be the one to say that I'm going to leave any children behind."

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On the Net: House Committee on Education and the Workforce:

http://edworkforce.house.gov/

Senate Committee on Health, Education, Labor and Pensions:

http://help.senate.gov/