Education Department Head Testifies on Budget Priorities

February 24, 2016

On Wednesday, February 24, 2016, the House Education and Workforce Committee convened a hearing on the U.S. Department of Education’s Fiscal Year 2017 budget.  The lone witness, Department Acting Secretary Dr. John King highlighted the proposed two percent increase in Department funding, which would promote preschool for all, expand the initiative to provide two years of free community college, and increase access to Pell grants, among other proposals.  CBA submitted a statement for the record to inform members about the role of private student lenders in the higher education system and to share recommendations and experiences as policies are debated on Capitol Hill and in the Department.

 

During the question and answer portion of the hearing, Rep. Todd Rokita (R-IN) drew attention to the Department’s use of mandatory funds to increase spending on its priorities without impacting the discretionary budget caps set by Congress.  Otherwise, there was little attention given to the rising costs of the federal student loan programs, especially given their sizeable role in the federal budget. 

 

Members of the Committee commented on student loan refinancing proposals.  Rep. Glenn Grothman (R-WI), a cosponsor of a bill to allow the refinancing of federal loans (H.R. 649), asked Dr. King if he would support such a proposal.  Notably, the Acting Secretary was non-committal in his support, and suggested outreach to borrowers on the Department’s consolidation program would be sufficient.  Rep. Matt Salmon (R-AZ) also decried the inability to refinance federal graduate loans, citing the “government monopoly” of the student loan market.  Given that many Republicans oppose such federal refinancing proposals, Rep. Susan Bonamici (D-OR) used the opportunity to tell her colleagues Congress is free to establish a federal refinancing program and many Democrats would support it. 

 

The hearing was the first of several for Acting Director King in the House and Senate this week.  He also appeared before the Education and Workforce Committee on the implementation of the Every Student Succeeds Act (ESSA) and the Senate Health, Education, Labor and Pension Committee for a hearing on his pending confirmation to be the agency’s permanent Director.