Rubén Hinojosa

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 1079) supporting the goals and ideals of Financial Literacy Month 2008, and for other purposes.

Mr. HINOJOSA. Mr. Speaker, I am delighted to be able to recognize and yield 5 minutes to the gentlewoman from New York (Mrs. Maloney).

Mr. HINOJOSA. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Mr. HINOJOSA. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, personal financial management skills and lifelong habits begin to develop during childhood. It is essential that we begin preparing our youth as early as possible to make informed financial choices, as well as manage money, credit, debt, and risk, and become responsible workers, heads of household, investors, entrepreneurs, business leaders, and citizens. We need to begin working closely with the Department of Education in States and localities to ensure that we begin the financial literacy learning process at least by the time a child enters kindergarten, and we need to work with the States to encourage them to require some form of financial literacy as a required part of the education curriculum. Policymakers of both parties at the local, State, and Federal levels recently have increased their focus on financial literacy and economic education issues because national surveys from such groups as Jump$tart, the National Council on Economic Education, and the National Federation for Credit Counseling reveal troubling gaps in students' and the public's knowledge of these subjects. Economic competency and financial literacy skills are critical for individuals to make sound decisions regarding home ownership, in savings, investment, credit and borrowing, as well as retirement planning. An educated and literate populace will strengthen the national economy as individuals improve their own economic well-being. Mr. Speaker, our government should lead by example. We should coordinate and communicate a unified message on financial literacy across this Nation. We should authorize and appropriate such funds as necessary to create a broad-based public awareness campaign comprised of a substantial mass market, multimedia effort in support of a national financial literacy initiative on the scale of the ``Truth'' campaign developed through the Public Education Fund to discourage smoking among young people. Furthermore, I believe that the National Endowment on Financial Education and several other financial literacy nonprofits and community-based groups would agree with me. In 2004, Congress passed a bill known as the FACT Act. One of the provisions in that act required Treasury and a Financial Literacy Commission to create such a campaign. It is now 2008, and Treasury has failed. So now it's our turn to take back control of the situation. We can introduce legislation authorizing funds for such a national multimedia financial literacy campaign. The National Endowment on Financial Education recently completed one that was a success. I hope that all of my colleagues will support such legislation once it has been introduced. Mr. Speaker, some disturbing facts. The personal savings rate in the United States was a negative 1 percent at the end of 2006, and it was zero percent at the end of the fourth quarter of 2007, which puts it among the lowest level since the government began collecting the savings rate data in 1959. Although more than 42 million people living in the U.S. participate in 401(k) plans, a Retirement Confidence Survey conducted in 2004 found that only 42 percent of workers surveyed have calculated how much money they will need to save for retirement, and only 37 percent of workers say that they are not currently saving for retirement. Even more disturbing is the fact that the average baby boomer has only $50,000 in savings, apart from equity in their home, and the first wave of baby boomers have already entered their retirement years. This is unbelievable and dangerous to our economy and our way of life. Something I want to discuss at length, Mr. Speaker, is the plight of what are known as the ``unbanked.'' As many as 10 million households in the United States are unbanked, without access to mainstream financial products and services. This is a very common occurrence in my congressional district. People tend to operate in a cash society along the Texas Mexico-border. If these individuals were to buy their goods and services by drawing down funds from a checking or a savings account, they would eventually be incorporated into the entire mainstream financial system. By doing so, they would establish credit. Lenders would have access to their credit reports and scores, and this would hopefully result in these previously unbanked persons attaining the American Dream of homeownership. Unfortunately, even when these formally unbanked individuals finally have the ways and means to purchase a home, they quickly discover that they have to protect themselves from predatory lenders. I believe that the legislation that Chairman Frank and the Committee on Financial Services is crafting will help low-income individuals who have been duped by unscrupulous salespersons, which has resulted in the current economic crisis. Chairman Frank definitely has his finger on the pulse of this problem, and he will make sure the train stays on the track. I salute Congresswoman Biggert for her work on this issue. Six years ago, to address all of these financial literacy problems, my colleague and good friend and staunch supporter of financial literacy, Congresswoman Judy Biggert, and I cofounded and currently cochair the Congressional Financial and Economic Literacy Caucus. The caucus seeks to address these issues head-on by increasing public awareness of poor financial literacy rates and working to find the ways and means to improve them. The caucus has helped promote policies that advance financial literacy and economic education. Together, we have done so by connecting Members of Congress with Federal agencies that can help them teach financial literacy at town hall meetings, through financial literacy e-newsletters, financial literacy fairs, financial football, the stock market game, and many more activities. Mr. Speaker, I want to take this opportunity to commend my colleagues and friends, Congresswoman Eddie Bernice Johnson and Congressman Don Payne, for all that they are doing to improve financial literacy. With a solid background knowledge of financial literacy, America's youth can become responsible employees, heads of household, investors, entrepreneurs, and business leaders. Parents and teachers need to teach our youth to start saving young, stay insured, budget their money, not borrow what they cannot repay, and especially avoid excessive credit card debt and the credit card sharks that prey on students on every college campus across the United States. Before I close, Mr. Speaker, I want to take this opportunity to thank Congresswoman Biggert for working with me over the years on financial literacy. It is a pleasure to work with you and to be able to accomplish so much in just a few years. I also want to commend her staff, Nicole Austin and Zach Cikanek, for their dedication to the financial literacy cause. I want to also express my sincere appreciation for the assistance Denise Wilson of our Committee on Government Reform provided my staff. I applaud the staff from America's credit unions, who made presentations to young people at local schools on financial topics such as student loans, balancing a checkbook and auto loans during National Credit Union Youth Week, which was held the week of April 20 of this year. I also want to commend the American Bankers Association Education Foundation for holding their annual Teach Children to Save Day. Today, April 29, just happens to be Teach Children to Save Day. It is my understanding that over 12,000 bankers from 1,100 bank branches signed up to host financial literacy events today. Furthermore, I understand that tomorrow is El Dia de los Ninos, and they too will be exposed to financial literacy education in English and in Spanish. Many American children will share financial literacy lessons with approximately 435,000 students, which is quite an endeavor, but one which they can accomplish under the direction of Kathryn Kelly. I include the following extraneous material for the Record: NFCC and MSN Money Release Consumer Survey Results on Capitol Hill-- 2008 Survey Reveals Serious Gaps in Financial Literacy Silver Spring, MD.--The National Foundation for Credit Counseling (NFCC) and MSN Money today released the results of their 2008 Consumer Financial Literacy Survey during a Congressional Briefing on Capitol Hill. The purpose of the survey, conducted by Princeton Survey Research Associates International, is to identify what Americans know about their finances and to assess their overall financial health. Having identified the key areas of deficiency, the NFCC and MSN Money plan to target their financial education initiatives to those Americans most at-risk. While some results were positive, others revealed an undeniable need for financial education. Key findings were as follows: Significant number struggle with mortgage payments and complexity of buying a home. One in every 10 Americans with a mortgage, or roughly 10 million adults, report being late or missing a mortgage payment in the last year. Adding more stress to the current housing market, almost one-quarter of Americans say they do not know enough about owning a home to consider buying one. Millions have serious difficulties paying bills each month, most notably Generation Y. While a majority of the public reports that they pay their bills on time and do not have any debts in collections, a notable minority has fallen behind and is struggling, with seven percent, or roughly 15 million adults, either getting calls from collectors or seriously considering filing for bankruptcy. Higher income households and older Americans are more likely to stay on top of their bills. Whites and Latinos are more likely to pay their bills on time and stay clear of collections than blacks. Alarmingly, only 59 percent or roughly 23 million of the young adults in Generation Y, those ages 18-29, pay their bills on time every month. That translates into millions of tomorrow's leaders, those who will drive the engine of our economy for years to come, who are not practicing a most basic financial principle. The previous generation of consumers, those ages 30-49, also do not appear to be modeling good financial behavior. Only a minority keep close track of expenses/spending. Financial experts generally agree that having a household budget is sound financial management. However, similar to the findings from 2007, only a minority of Americans say they keep close track of what they their typical monthly expenses are. Although a majority of the public has at least a somewhat good idea of where their money goes each month, nearly two in 10, or roughly 40 million adults, keep little or no track at all. Contrary to some stereotypes, how closely Americans manage their money does not vary by gender, age, or income. Women continue to be as likely as men, younger people as likely as older people, and lower income households as likely as higher income ones to keep close track of what they spend. Savings and emergency funds lacking. A majority of the public does not have a sufficient emergency fund, defined as three to six months income saved. More than one-third, or roughly 76 million adults, say they do not have any non- retirement savings. Although a majority is currently saving for their retirement, more than one-quarter are not. Many Americans are under-insured, Latinos at higher risk. Even though the baby boomer generation has come of age, only a little more than one-quarter say they have long-term care insurance. Another at-risk group is renters, with only one in 10 saying they have renters insurance. Latinos are also less likely to have medical and life insurance than whites or blacks. Minority has ordered credit report. Financial experts recommend that consumers check their credit history at least once a year. Yet, only a minority of Americans has ordered their credit report in the past year, in spite of the fact that it can be acquired for free. And one-third, or roughly 72 million adults, readily admit that they do not know their all-important credit score. Parents and home the biggest influence on financial education. A plurality of the public says they have learned the most about personal finance from their parents or at home. Almost half of those who closely monitor their finances are more likely to say that they learned about personal finance from their parents or at home, underscoring the potential positive influence parents can have on their children financially. To a lesser extent, some say they learned the most about personal finance on their own, followed by a financial professional, self-help sources, school, work, friends, and their spouse or partner. Americans worry about future income growth; Midwest has greatest concerns. And matters are not likely to improve, according to some Americans. Only one-quarter expect their income to outpace inflation. More than half of all Americans believe their income will shrink, not keep pace with inflation, or stay even; this worry is greatest among Americans in the Midwest at nearly 70 percent. ``If there were ever a time that Americans needed to embrace financial literacy, it is now,'' said Susan C. Keating, president and CEO of the NFCC. ``The NFCC is proud to make public the results of this survey in hopes that it will be a wake-up call to consumers. We live in a credit- dominated society and it is important that consumers avail themselves to the many opportunities to sharpen their financial skills and avoid any traps along the path to financial stability.'' ``The findings of this study are staggering, especially given the current economic outlook. We conducted this study to get at the core of what financial issues plague Americans and with this information we are now better equipped to help consumers where they need it most,'' said Richard Jenkins, editor-in-chief of MSN Money. ``The good news is that there's an array of tools, expert advice and other resources available to better equip Americans with the information they need to stay on top of their finances. As a first step, I encourage consumers to check out the NFCC and MSN Money Web sites for tips and guidance on how to get their finances on track and stay ahead during these tough financial times.'' Survey Methodology. Princeton Survey Research Associates International conducted telephone interviews between March 5th and March 15th, 2008 from a representative sampling of 1,001 Americans nationwide. The margin of error for questions based on the total sample is +/- 3 percentage points.

Mr. HINOJOSA. Mr. Speaker, I submit the following extraneous material for the Record: Financial Counseling: a Meaningful Strategy for Building Wealth in the Latino Community (By Beatriz Ibarra, National Council of La Raza) summary The report shows that current policies to improve financial literacy for Latinos fail to include one-on-one financial counseling programs, the linchpin of any strategy to close the wealth gap for Hispanics. Financial Counseling: A Meaningful Strategy for Building Wealth in the Latino Community provides specific policy recommendations on how to increase programs proven to improve financial decision-making of Hispanics--especially the more than 14.5 million who lack a basic checking account.

Mr. HINOJOSA. Mr. Speaker, I yield back the balance of my time.

Mr. HINOJOSA. Mr. Speaker, on that I demand the yeas and nays.

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Chairman, I rise in strong support of H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008. This is urgent legislation. I would like to thank our Education and Labor chairman, George Miller, and our ranking member, Howard ``Buck'' McKeon, as well as my good friend and ranking member of the subcommittee, Ric Keller, for working together to expedite consideration of this bill. Nothing is more important than reassuring students and families that there will be no disruption in the availability of Federal student loans, regardless of what happens in our financial markets. As of today, no student has been unable to find a lender for a Federal student loan. However, we are not going to wait until students and families are denied loans before putting safeguards in place. That is what we are doing here today. Ensuring continued access to Federal student loans is of critical importance. In my congressional district, 40 percent of all student aid comes from the Federal Family Education Loan Program, and in my State of Texas 66 percent of all student aid comes through this program. The concerns that we are hearing from our constituents are real, and we need to address them. Mr. Chairman, I include for the record a letter dated April 7, 2008, from Texas State Senator Judith Zaffirini, Chair of the Higher Education Subcommittee, urging Congress to take action to avert any disruption in the Federal Family Education Loan Program. Senate Higher Education Subcommittee, Austin, TX, April 7, 2008. Hon. Ruben Hinojosa, Chair, Subcommittee on Higher Education, Lifelong Learning, & Competitiveness, House of Representatives, Washington,

Mr. HINOJOSA. The manager's amendment clarifies that loans purchased by the Secretary may continue to be serviced by the original lender so the process remains seamless for students and families. These efforts represent the tools at the disposal of the Education and Labor Committee. However, more can and should be done. I urge my colleagues to vote ``yes'' on H.R. 5715 so that there is no uncertainty for students and families about their ability to finance college education.

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Speaker, on rollcall Nos. 143 and 144, I was unavoidably detained. Had I been present, I would have voted ``yea'' on rollcall Nos. 143 and 144.

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Chairman, I rise in strong support of H.R. 2857, the Generations Invigorating Volunteerism and Education or ``GIVE'' Act. This legislation reauthorizes and strengthens our national service programs. I would like to thank my good friend Carolyn McCarthy, chairwoman of the Healthy Families and Communities Subcommittee and Congressman Todd Platts, the ranking member, for their excellent, bipartisan work on this legislation. The spirit of service runs strong in America. Many Americans--young and old, rich and poor--look for ways to give back to their communities and the Nation. Our national service programs nurture this spirit and ensure that all American have opportunities to serve. The GIVE Act will increase the number of Americorps volunteers to 100,000. In my congressional district Americorps volunteers are promoting community development, improving education, and enhancing the quality of life for many of our residents. They bring a great deal of energy and contribute to a strong sense of community in our area. The GIVE Act fosters an ethic of civic engagement in young people through a summer of service program that will enable students in middle and high school to volunteer and earn an education award for college. The GIVE Act promotes service in areas of national need for global competitiveness, such as science, technology, engineering, and mathematics. The GIVE Act will ensure that we can effectively and efficiently mobilize volunteers in times of national disaster. The GIVE Act strengthens opportunities for our seniors by providing flexibility to the senior corps programs. In my congressional district, we have very strong programs that engage our seniors in service and provide them companionship and support. Our seniors continue to make tremendous contributions to our communities. We cannot afford to let their talent or energy go to waste. My home State of Texas is a big believer in national service. We have 48,000 senior corps members. Since 1994, 24,000 Texans have earned education awards by serving as Americorps volunteers; 48,000 students have participated in Learn and Serve America, linking service with academic achievement. The GIVE act will make this great tradition of service even stronger. I urge all of my colleagues to vote ``yes.''

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Speaker, on rollcall Nos. 73 and 74, had I been present, I would have voted ``yea'' on No. 73 and ``aye'' on No. 74.

Mr. HINOJOSA

Mr. HINOJOSA. Madam Speaker, I rise to inform you that I was unavoidably detained in my district over the past few days to come to the floor of the House of Representatives to cast my vote on certain rollcall votes. Had I been present, I would have voted the following way: I would have voted ``aye'' for rollcall Nos. 43 through 45, rollcall Nos. 48 through 51, and rollcall Nos. 53 through 57. I would have voted ``nay'' for rollcall Nos. 46, 47, 52.

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Chairman, as chairman of the Subcommittee on Higher Education, I yield myself as much time as I may consume. Mr. Chairman, I rise in strong support of H.R. 4137, the College Opportunity and Affordability Act. This legislation will complete our work on the reauthorization of the Higher Education Act and build on the historic investment we made last year in the College Cost Reduction and Access Act. We opened the 110th Congress taking a fresh look at our higher education laws. Especially, we called for ideas to close the college access and completion gaps for low-income and minority students; to improve the financial aid application and delivery system; to improve preparations so that low-income and first-generation college students are ready to succeed in college academically, financially, and socially; leverage more resource for need-based aid; and yes, to address the escalating cost of a college education. This bill offers comprehensive, bipartisan solutions to all of these issues. I would like to thank Chairman Miller and the ranking members of the full committee and the subcommittee, especially to my good friend Congressman McKeon of California and Congressman Keller of Florida, for working with us to craft a bill that every Member of this Chamber should be proud to support. Mr. Chairman, we must be strong and determined to pass H.R. 4137 because we are falling behind in producing college graduates. During our hearings, we learned that the United States has gone from first to fourth place in the world for college graduates in the workplace. We are only one of two industrialized nations where older workers are more likely to have a college degree than younger workers. This comes at a time when the Bureau of Labor Statistics projects a shortage of 3 million college-educated workers as early as the year 2012. The gaps in college access and completion is large and growing for low-income and minority students because of the high costs of a college education. According to the Education Trust, since 1994, white students have increased in college completion by 12 percent. African American students have only increased by 5.5 percent, and the Hispanic students only by 3 percent. Given that over 40 percent of our public school children are racial or ethnic minorities and one in five is Hispanic, it is imperative that we act swiftly and decisively to close the gaps. Mr. Chairman, this is what the College Opportunity and Affordability Act will do. H.R. 4137 will close the college access and completion gaps by increasing the authorized Pell Grant maximum to $9,000 and providing access to Pell Grants and the Academic Competitiveness and SMART Grants year round. The legislation recognizes the critical role that minority-serving institutions will have to play if we are to produce the college graduates our economy needs to thrive. These institutions represent less than one-third of all of the colleges and universities in our country, but they enroll more than half of all minority students in post-secondary education. H.R. 4137 authorizes increased investments in building the capacity of these essential institutions and ensures that they are full partners in teacher preparation and our national competitiveness and innovation agenda. Additionally, H.R. 4137 includes the minority-serving Institution Digital and Wireless Technology Opportunity program, which is a major step forward in ensuring that these colleges and universities can maintain a state-of-the-art educational delivery system. I am particularly proud of our whole committee's work to strengthen minority access to STEM fields through a youth engagement in STEM partnerships and programs that focus on preparing teachers for these high-need fields. The College Opportunity and Affordability Act also addresses gaps at the post-baccalaureate level. It has been exactly 10 years since I introduced legislation to create a graduate program for Hispanic- serving institutions, and with the passage of this long awaited legislation, we will be one step closer to enacting this long overdue program. Additionally, our bill includes the Patsy Mink Fellowship program to provide support for women and minorities to complete graduate degrees and join the ranks of university faculty where they are severely underrepresented. H.R. 4137 will improve early college preparation by strengthening programs that are very important to fill the pipeline such as GEAR UP, the TRIO program, the HEP and the CAMP programs and emphasizing financial literacy and early financial aid estimates. I'm a strong believer of reading and writing literacy, and that's why I am so in favor of programs such as Reading is Fundamental, which is going to help us in graduating more students from high schools. This bill will leverage resources through great partnerships. One example is the new Grants for Access and Persistence program which will leverage State and private resources to increase student aid so that low-income, first-generation college students are prepared to enroll and succeed in college. This bill takes real steps to address college costs through public information, accountability, and incentives at the State and institutional levels to keep tuition increases low and college within reach of all students. H.R. 4137 protects students and families by bringing sunshine and real consumer protection to the student loan programs both at the Federal and the private level. Finally, the legislation before us today recognizes our collective obligation to the men and women returning from war and seeking to resume their lives. Our Nation owes all our veterans the support to achieve their dreams through a college education after so valiantly serving our country. H.R. 4137 establishes a new scholarship program for veterans and their families. It ensures fairness for veterans in student aid; it also authorizes Centers of Excellence for veteran student success to provide a one-stop support system on college campuses to help veterans succeed in college and to graduate. Mr. Chairman, this legislation is ambitious and thorough because that is what these times demand. I encourage all my colleagues in Congress to vote ``yes'' on H.R. 4137. Let's get this job done. Mr. Chairman, I reserve the balance of my time.

Mr. HINOJOSA. Mr. Chairman, I am pleased to recognize the distinguished gentleman, the majority whip of our caucus, the gentleman from South Carolina (Mr. Clyburn) for 2 minutes.

Mr. HINOJOSA. Mr. Chairman, I am pleased to recognize the gentleman from Illinois, the Democratic Caucus Chair, Congressman Rahm Emanuel, for 2\1/4\ minutes.

Mr. HINOJOSA. Mr. Chairman, I am pleased to recognize the gentleman from New Jersey, a distinguished member of our Higher Education Subcommittee (Mr. Holt), for 2 minutes.

Mr. HINOJOSA. Mr. Chairman, I move that the Committee do now rise.

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Chairman, I am pleased to recognize a distinguished member of our Education and Labor Committee, Mr. Rob Andrews from New Jersey, for 1\1/2\ minutes. (Mr. ANDREWS asked and was given permission to revise and extend his remarks.)

Mr. HINOJOSA. Madam Chairman, it is an honor to be able to close this debate on the higher education bill, one that is going to be one of the most meaningful pieces of legislation that I have participated in, together with our chairman, George Miller, and with our good friend, Buck McKeon from California, who has been a real gentleman and a great leader in higher education. I believe that this will open the doors to so many men and women throughout the country. It will raise the level of education attainment in many regions of the country. All I can say is we are delighted that we can be working with leaders of the quality of Buck McKeon and Mike Castle, and many others on the other side of the aisle. Madam Chairman, I yield back the balance of my time.

Mr. HINOJOSA. Madam Chairman, I yield back the balance of my time.

Mr. HINOJOSA. Madam Chairman, I offer amendments en bloc.

Mr. HINOJOSA. Mr. Chairman, I am pleased to recognize a former Cornell College professor and now member of the Education and Labor Committee, the gentleman from Iowa (Mr. Loebsack), for 2 minutes.

Mr. HINOJOSA. Mr. Chairman, I am pleased to recognize a very well- recognized member of our Education and Labor Committee, the gentleman from New York (Mr. Bishop) for 2 minutes.

Mr. HINOJOSA

Mr. HINOJOSA. Mr. Speaker, on rollcall No. 32, had I been present, I would have voted ``yea.'' Stated against: