Senator Grassley today introduced his Know Before You Owe Federal Student Loan Act of 2015.

Floor Statement of Sen. Chuck Grassley on

The Know Before You Owe Federal Student Loan Act of 2015

Delivered Wednesday, Sept. 16, 2015

Student debt is a big, and growing concern for millions of American graduates.  As we look at ways of addressing this issue, it is important to keep in mind that about 90% of that debt is owed to the federal government.  The federal government currently holds more than $1 trillion in student loan debt.  That makes the U.S. Department of Education one of the country's largest lenders.  As such, any solution to the debt problem needs to examine the federal government's lending practices.

Federal banking regulations require commercial lenders to confirm a borrower's ability to repay the loan.  Federal student loans are given out without a credit check or any analysis of the student's ability to repay the loan in the future.  This is intentional since many prospective college students have no credit and little to no income, but it also puts all the burden on student borrowers to make sure they don't borrow too much.

As a nation, we have accepted that it makes moral and financial sense to assist low-income Americans in accessing higher education opportunities, and we do that to the tune of billions of dollars through Pell Grants, subsidized student loans, and many other student aid programs.  However, while need-based federal student aid is vital to help students who could not otherwise afford to attend college, students are able to borrow well in excess of their financial need and potentially in excess of what they will be able to repay.

College financial aid offices are required to issue federal loans up to the full amount for which the student is eligible even if a financial aid administrator knows a student is borrowing more than the student needs and will likely have trouble repaying.  Think about that.  Even if the financial aid administrator knows the student plans to put the funds toward an engagement ring or a sports car, federal rules say they must issue the loan.  If a bank followed the same rules as the federal government, it would be accused of predatory lending.

There have been lots of suggestions about how to address the student debt issue, but if you don't tackle the root of the problem, it's like closing the barn door after the horse has gotten out.  A good place to start is looking at how our current federal student lending practices may be helping to fuel the student debt problem.  For example, about 60% of students at the University of Iowa graduate with debt, and their average debt is $25,000.  However, the University estimates that of that $25,000 average figure, about $13,000, or 60%, is debt that was incurred to pay for tuition, room and board, books, etc. and the remainder is for what can be called lifestyle expenses.  In other words, about 40% of the average student debt taken out by University of Iowa students goes toward lifestyle enhancing extras, like eating out and buying designer coffee drinks.

The Senate Health, Education, Labor, and Pensions Committee will be looking at a number of reforms to the student loan program as it drafts legislation to reauthorize and reform the Higher Education Act.  I know Chairman Alexander has in the past proposed giving higher education institutions additional tools to reduce overborrowing.  I have worked with Senator Franken on some measures to provide more information about college costs when students are selecting a college in the first place, which will hopefully encourage more price competition to combat rising tuition.  There is room for a lot of innovation in higher education and I don't pretend to have the total solution to the problem of college costs and student debt.  What I am proposing is some simple, common sense first steps to empower students with the information they need to make sound financial decisions.

The Higher Education Act already contains a requirement for colleges to provide counseling to new borrowers of federal student loans.  However, the current disclosures in the law do not do enough to ensure that students understand the scope and impact of the debt they will face after graduation.  My "Know Before You Owe Federal Student Loan Act" strengthens the current student loan counseling requirements by making the counseling an annual requirement before new loans are disbursed rather than just for first time borrowers.  My bill then adds several key components to the information institutions of higher education are required to share with students as part of loan counseling.  Under my bill, colleges would have to provide an estimate of the student's projected loan debt-to-income ratio upon graduation.  This would be based on the starting wages for that student's program of study and the estimated total student loan debt the student will likely take out to complete the program.  That way, students will have a real picture of the student loan payments they will face and whether they will be able to afford those payments with their likely future income.

We often hear the statistics showing that, on average, a college degree results in higher earnings over a lifetime.  However, not all college degrees have the same earning potential and many students are in for a rude awakening when they graduate and find that what they are able to earn with their degree does not match their level of debt.  Students deserve to have this information when they are deciding how much to borrow, not after they graduate with unmanageable debt.

My bill will also ensure that students are counseled to borrow only the minimum amount necessary to cover expenses and informed that they do not have to accept the full amount of loans offered.  Students will also be given options for reducing borrowing through scholarships, reduced expenses, work-study, or other work opportunities.  Also, not graduating on time can significantly increase student loan debt so students will be counseled on the impact of adding an additional year of study to total indebtedness and how they can stay on track to graduate on time.

Crucially, the bill also requires that a student manually enter, either in writing or through electronic means, the exact dollar amount of federal direct loan funding that the student desires to borrow.  The current process almost makes borrowing the maximum the default option.  If you want to borrow less than is offered, you have to ask for less.  Because the amount of federal student loans a student is eligible to borrow is not limited by a calculation of financial need or ability to repay, it is important that the student make a conscious, informed decision about how much to borrow rather than simply accepting the total amount of federal student loans for which they are eligible.

Many schools already make a concerted effort to counsel students against overborrowing, and such efforts are showing signs of success in my home state of Iowa.

My alma mater, the University of Northern Iowa, created a program five years ago with the theme "Live Like a Student".  The program includes workshops and courses designed to educate students on the importance of living within their means while they are in school so they need not live like a student later in life.  As a result, the university has lowered average student debt from more than $26,000 to $23,163.

Grand View University has a Financial Empowerment Plan where students and families construct a comprehensive four-year financing plan.  Under this plan, borrowing is based on the student's future earning potential in the student's field of study.  The four-year plan also helps ensure students graduate on time and tuition increases are capped at 2% a year over those four years.

Iowa Student Loan, our state-based nonprofit lender, also has a program called the Student Loan Game Plan, which is an online, interactive resource that calculates a student's likely debt-to-income ratio.  It walks students through how their borrowing will affect their lifestyle in the future and what actions they can take now to reduce their borrowing.  As a result, in the past year, 18.2% percent of students who participated decreased the amount they had planned to borrow by an average of $3,680, saving students $2.1 million in additional loan debt.

My legislation would also require that students receive regular statements about their loan while they are in school just like they will when they graduate and start repaying.  With just about any other kind of loan, borrowers start getting statements right away and are expected to make payments.  With federal student loans, payments are not required until a period of time after graduation and no statements are sent out until that time.  So, students forget about their amount of debt they are accruing until they graduate and get their first bill.  What's more, many federal student loans still accrue interest while the student is in school, which will be added to the loan total when they start repaying.  That means that not only do students forget about how much debt they have while in school, making them less conscientious about living like a student, but their loan may actually be growing while they are in school.  Students have the option to pay that interest while they are in school so that it isn't capitalized into their loan.  However, few students take advantage of this option.  The regular statements that my bill calls for would encourage this practice so students get used to paying some amount toward their loans even before they graduate.  That will also make students more aware of their borrowing and less likely to overborrow each time they take out a new loan.

A college education generally remains a good investment.  However, when students' academic dreams become a nightmare upon graduation because they borrowed more from the federal government than they can afford to repay with the degree they earned, they understandably feel that something is wrong.  The federal government, as the lender making these loans, has a responsibility to at least ensure that students know what they are getting themselves into before they get in over their heads.  My legislation will do that.  I urge my colleagues to support this bill to help prevent more students from drowning in federal student loan debt.

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with special guests Rend Collective

7:00 PM Saturday, October 10, 2015

i-Wireless Center

1201 River Drive, Moline, IL 61265

 

 

Grammy and Dove® award-winning, Christian worship sensation Chris Tomlin hits the road again this fall for his "Love Ran Red" Tour, featuring Rend Collective.

The highly anticipated night of worship will feature new songs from Tomlin's new release, Love Ran Red album along with an array of hits from the past.  With nine albums, 12 No. 1 radio singles, a GRAMMY® Award and eight additional nominations, three Billboard Music Awards, 21 Dove Awards, a platinum and four gold albums to his credit, Chris Tomlin is among the most well-known and influential artists in contemporary Christian music. Referred to by Time magazine as "most likely the most often sung artist anywhere," Tomlin also has 15 of the Top 100 CCLI songs, with 4 of them being in the top 10.

Opening the show will be the energetic Northern Irish worship favorites Rend Collective.

 

Tickets: Click Here

Hudson, WI - Like the Johnny Appleseed of small libraries, Little Free Library creator and executive director, Todd H. Bol, will spread the word about the joy and power of free book exchanges as he makes his way from Hudson, Wisconsin through 4 cities in Iowa, ending at the Iowa City Book Festival.

"Since I am heading to the Book Festival to speak, I thought I would use the drive across Iowa to continue working on our goal to get 100,000 Little Free Libraries built across the United States," says Bol.

For the "LFL Across Iowa Tour," Mr. Bol will be stopping in Des Moines, Dubuque, Davenport, and Cedar Rapids with his trailer containing notable Little Free Libraries, a mobile Little Free Library with books for the public to take home, plus tools and library kits to donate libraries and help volunteers build libraries for their communities.

?  Des Moines metro area: On Tuesday, September 29th from 10 AM to 1 PM, volunteers from the Des Moines area will be participating in a Community Build Day at the West Des Moines Public Library. During the event they aim to build 4 donated Little Free Libraries for their community.

?  Dubuque: On Wednesday, September 30th, Mr. Bol is honored to be the guest at a Community Build Day in Dubuque from 10 AM to 1 PM at the Spark Family Hair Salon, made famous for barber Courtney Williams' efforts to improve the reading skills of children in his neighborhood by offering free haircuts to kids who read to him ? a story recently featured on Good Morning America and in People Magazine and USA Today, among others.

?  Between Davenport, Cedar Rapids and Iowa City: On Thursday, October 1st, Mr. Bol will make his way to Davenport. On the following day, October 2nd, he will head to Cedar Rapids. During his trip he intends to make frequent stops in towns along the way so he can commit what he calls "Random Acts of Library" engagement efforts that include book and coffee mug giveaways designed to spread the word about Little Free Libraries.

?  On Saturday, October 3rd, Mr. Bol will be at the Iowa City Book Festival where he will be a featured speaker. In addition, he will host a library building event and promote The Little Free Library Book by Margret Aldrich, which was published by Coffee House Press in 2015. Author Margret Aldrich will also be in attendance at the Iowa City Book Festival.

Little Free Library is a nonprofit organization with a mission to build community and promote literacy and the love of reading by building free book exchanges worldwide. They seek to increase the number of Little Free Libraries in the United States from 30,000 in 2015 to 100,000. Website: http://littlefreelibrary.org/.

 

Summary of Events for the LFL Across Iowa Tour

Tuesday 9/29, 10 AM - 1 PM: Community Build Day, West Des Moines - Volunteers will be building libraries with Mr. Bol.

West Des Moines Public Library

4000 Mills Civic Parkway

West Des Moines, Iowa 50265

 

Wednesday 9/30: Community Build Day, Dubuque - Hosted by barber Courtney Williams. Volunteers will be building libraries with Mr. Bol.

Spark Family Hair Salon

1572 Central Ave

Dubuque, IA 52001

 

Thursday 10/1: Random Acts of Library between Dubuque and Davenport

During his journey Mr. Bol will stop in towns he comes across to give away books and coffee mugs, and perhaps build a library or two.

 

Friday 10/2: Random Acts of Library between Davenport and Cedar Rapids

During his journey Mr. Bol will stop in towns he comes across to give away books and coffee mugs, and will perhaps build a library or two.

 

Saturday 10/3: Iowa City Book Festival

 

Mr. Bol will speak about the founding and growth of Little Free Library as a global movement, host a demonstration build at the Little Free Library booth, and celebrate the publication of Margret Aldrich's The Little Free Library Book published by Coffee House Press.

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Grassley Receives "Fueling Growth" Award for Support of Ethanol Industry

WASHINGTON - Sen. Chuck Grassley of Iowa on Tuesday received the 2015 Fueling Growth Award from Growth Energy for his work to develop policies that support clean-burning, domestically produced ethanol.  Grassley was presented the award at the Growth Energy Advocacy Conference in Washington, D.C., where he spoke about renewable energy and the Renewable Fuel Standard.

"I'm honored to receive this award," Grassley said.  "I've been an advocate of renewable fuels for a long time, starting with ethanol.  Alternative energy sources reduce our dependence on foreign oil, increase national security, and create jobs for American workers in addition to extending our fuel supply and lowering prices at the pump."

The award is given annually by Growth Energy to members of Congress who support ethanol advancement and work to craft consistent and fair federal policy for the industry.

Grassley vigorously advocates for the maintenance and strength of the Renewable Fuel Standard.  In July 2015, Grassley urged the Environmental Protection Agency to revise and increase its proposed volume obligations for renewable biofuels under the Renewable Fuel Standard for 2014, 2015 and 2016.  In April, Grassley led a bipartisan group of senators in calling for a strong volume requirement for biodiesel under the RFS.

In July 2015, Grassley also secured Finance Committee passage of tax incentives for biodiesel and cellulosic ethanol in a bipartisan tax extenders bill.   The committee accepted a Grassley amendment to change the biodiesel fuels tax credit from a mixture credit to a production credit for 2016.  Among the benefits, the change would ensure that U.S. tax policy incentivizes a domestic industry instead of subsidizing imported biofuels.  The provision, along with other tax extenders provisions, awaits full Senate consideration.

Nationally, the renewable fuels industry supported more than 400,000 jobs and added $53 billion to the nation's Gross Domestic Product in 2014, according to Growth Energy.

The Iowa Renewable Fuels Association reported that with 43 ethanol plants and 3.9 billion gallons produced in 2014, Iowa ethanol production is at a record high and is the largest producer of ethanol in the country.  Iowa's production accounts for about 27 percent of national ethanol production.

 

ATF Whistleblowers Allege Sexual Harassment, Discrimination, Intimidation by Managers

 

WASHINGTON - Senate Judiciary Committee Chairman Chuck Grassley is asking about the handling of multiple claims of sexual harassment, bullying, gender discrimination and witness intimidation by senior Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) managers dating back to 2012, including alleged attempts to prevent independent oversight by the Inspector General.  The allegations from eight whistleblowers include threats, unwanted sexual advances, graphic sexual comments and attempts to retaliate against employees who disclosed the inappropriate behavior.

One whistleblower reported that in the fall of 2012, a then-Special Operations Division Deputy Chief yelled at her in front of subordinates and used her battle with cancer as justification for transferring her job duties to male counterparts.  This may be a violation of the Rehabilitation Act, which prohibits discrimination on the basis of disability in federal employment.  She reported the behavior to his superior, the Special Operations Division Chief at the time, which was followed by increased retaliation, including threats to launch an internal personnel investigation against the whistleblower.

Other whistleblowers alleged that the same Special Operations Division deputy chief attempted to photograph several female employees despite their objections, and that he squeezed one woman's thigh at a work related dinner event.  They also claim that he used derogatory and offensive language to refer to women in the workplace. One whistleblower alleged that she was placed on administrative leave after she was called as a witness to testify in an Internal Affairs investigation of harassment claims.

Many of the whistleblowers reported their claims to the Internal Affairs Division, which they say has been largely unhelpful. They allege that such disclosures are frequently suppressed for years, preventing further investigations by the Office of Inspector General. They also claim that ATF Acting Director Thomas Brandon and then-Director, B. Todd Jones were aware of the allegations of sexual harassment, yet the alleged harasser has since been promoted.

In a letter to Attorney General Loretta Lynch and Justice Department Inspector General Michael Horowitz, Grassley is seeking information on the procedures for reporting and responding to claims of harassment, whether they were followed, and how harassers are disciplined.  Grassley also requested statistical information, broken down by gender, on agency responses to such allegations.

Text of Grassley's letter

 

Prepared Statement by Senator Chuck Grassley of Iowa, Chairman, Senate Judiciary Committee

Hearing on "Reforming the Electronic Communications Privacy Act"

September 16, 2015

 

Today's hearing is intended to help inform the Committee about the most recent views of a wide variety of stakeholders concerning the need to reform the Electronic Communications Privacy Act, or ECPA, and various ways of doing so.  The Committee's last hearing on the topic was four and a half years ago.  Since then, numerous proposals have been advanced by members of the Committee.

In 1986, Congress enacted ECPA to both protect the privacy of Americans' electronic communications and provide the government with a means to access those communications and related records in certain circumstances.  However, dramatic changes in the use of communications technology have occurred since then.

Americans now depend on email, text messages, social networking websites, web-based apps, and countless other electronic communication methods on a daily basis.  And more than ever, these communications are being retained in some form, due to the dramatic reduction in the cost of storing data in the cloud.

These communication technologies are enriching all of our lives.  They are of great help to me in keeping in touch with my constituents in Iowa.  And for the most part, we have American technology companies to thank for this digital revolution.  These companies are now a significant engine of growth for our economy by creating an increasingly global market for these communications technologies.

But of course, these technologies are also being used every day by those who intend to do our society great harm - terrorists, violent drug dealers, child predators, environmental criminals, and the like.  These technologies create a digital trail that is often essential to bringing these offenders to justice.

In light of these changes, there is a growing consensus that ECPA must be modernized to adapt to this new landscape.  And whatever updates to the law we make, of course, must be consistent with the requirements of the Fourth Amendment.

The privacy and technology communities have criticized ECPA for failing to provide sufficient privacy safeguards for individuals' stored electronic communications.  Indeed, given the way Americans use email today, it hardly makes sense that the privacy protections for an email should turn on whether it's more than 180 days old, or whether it's been opened.

At the same time, law enforcement officials have expressed concern with certain aspects of the current ECPA framework and how it currently works in practice.  And they are concerned that reform efforts to a statute they use every day do not unduly hamper their ability to investigate violations of the law.

For example, the Department of Justice has expressed concern about efforts to change the ECPA notice requirements to provide targets with unprecedented amounts of information that could compromise ongoing investigations.

Both the Department and civil law enforcement agencies have expressed the need to address an emerging gap in their authorities if the target of an investigation fails to respond to lawful civil process for email evidence in the target's possession.  They contend that this gap could allow offenses such as civil rights violations, securities fraud, and consumer fraud to go unpunished.

In addition, many state and local law enforcement officials are frustrated with the current timeliness and quality of responses by providers.  Unlike traditional search warrants, law enforcement agents cannot control how quickly they obtain evidence through ECPA warrants; they rely on the providers to conduct searches for them.  To these officials, any heightening of ECPA's legal standards should be accompanied by changes to the law that ensure that they receive the information they need on a timely basis.

In addition, some officials have expressed concern that the voluntary nature of ECPA's emergency exception can result in unacceptable delay in important cases - for example, when a child is abducted.

Closely related to these concerns is the ongoing issue of encryption and the "Going Dark" problem, which the Committee recently held a hearing on.  This is another example of a situation where agents may meet the legal standard to obtain critical evidence - but then are not able to access it quickly enough, or even at all.

As I said at our last hearing on ECPA reform in 2011, if we are considering changing the legal standards under ECPA, we should also "be working to ensure that these same providers are granting law enforcement the necessary access" to address the "Going Dark" issue.  I sent a letter to the Deputy Attorney General last week to get an update from the Department about how that process is proceeding.

Reforming ECPA's treatment of stored electronic communications, therefore, is a complicated and potentially far-reaching endeavor that sits at the intersection of the privacy rights of the public, the investigative needs of law enforcement professionals, society's interest in encouraging and expanding commerce, and the dictates of the Constitution.

The key is to strike the right balance between these interests.  As Ranking Member Leahy declared at our last hearing on this topic in 2011, "meaningful ECPA reform must carefully balance privacy rights, public safety, and security."  I couldn't agree more.  I'm grateful for the presence of all the witnesses here today and look forward to their testimony.  I now recognize Senator Leahy for his opening statement.

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Washington, D.C. - Congressman Dave Loebsack will have a member of his staff in Clinton and Scott Counties for open office hours. Henry Marquard, Loebsack's District Representative, will be at the following locations. Marquard will be on hand to work with individuals who are having difficulty with a government agency, have suggestions for Dave, or would just like to share their concerns. Members of the public are invited to attend. Marquard holds regular office hours throughout Eastern Iowa.

If residents are unable to attend but have a concern to share with the Congressman, please call our district office toll-free at 1-866-914-IOWA (4692).

Marquard's schedule for September is as follows.

Tuesday, September 22

Willow Harvest Weekend will be held at the Amana Arts Guild Complex in the Village of High Amana on Friday, Saturday and Sunday, October 9, 10, and 11, 2013.  Under the guidance Joanna E. Schanz, students will harvest and sort willow on Friday.  Saturday and Sunday will be spent learning the traditional techniques of German stake and Strand willow as students make their own basket.

Class open to all levels of weaving skills from very beginner to advanced.

Registration on line at www.broomandbasket.com.    For paper registration or questions, phone 319.622.3315 days & 319.622.3009 evenings.

DES MOINES, IA (09/16/2015)(readMedia)-- State Treasurer Michael L. Fitzgerald's Great Iowa Treasure Hunt's fall publication is scheduled to be released soon. "The upcoming publication has the most up-to-date unclaimed property listings in the Great Iowa Treasure Hunt, so make sure to search, even if you've checked before. A lot of Iowans may be pleasantly surprised," said Fitzgerald. "You may also search for your name any time by visiting GreatIowaTreasureHunt.gov."

The Great Iowa Treasure Hunt program has returned over $198 million in unclaimed property to more than 468,000 individuals since Fitzgerald started it in 1983. Unclaimed property refers to money and other assets held by financial institutions or companies that have lost contact with the property's owner for a specific period of time. State law requires these institutions and companies to annually report and deliver unclaimed property to the state treasurer's office, where it is held until the owner or heir of the property is found. Common forms of unclaimed property include savings or checking accounts, stocks, uncashed checks, life insurance policies, utility security deposits, safe deposit box contents and many other types of property.

(@GreatIATreasure).

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Ritu Gurung of Davenport has completed the Doctor of Philosophy, Chemistry degree at Wichita State University and is among the summer 2015 graduates. For a complete list, go to http://www.wichita.edu/gradlist.

WSU enrolls more than 14,500 students and offers more than 50 undergraduate degree programs in more than 150 areas of study in six undergraduate colleges.

The Graduate School offers an extensive program including more than 40 master's degrees that offer study in more than 100 areas; a specialist in education degree; and doctoral degrees in applied mathematics; audiology; chemistry; communication sciences and disorders; human factors and community/clinical psychology; educational leadership; nursing practice; physical therapy; and aerospace, electrical, industrial and mechanical engineering.

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Rock Island, IL: Not every book is right for every reader, but we should have the right to think and decide for ourselves. That's the idea behind Banned Books Week, Sept. 27 to Oct. 3, 2015, and the reason for a public "read-in" on Sept. 29 at the Rock Island Main Library.

The Rock Island Library and the Midwest Writing Center will host local writers, librarians and other bibliophiles who love reading and listening to the spoken word in a Banned Books Week Reading of banned or challenged works on Tuesday, Sept. 29 at the Rock Island Main Library Community Room, 401 19th Street. Refreshments start at 5:30 pm with guest readings starting at 6:00 pm. Drawings will also be held for Banned Books Week t-shirts, buttons and other giveaways.

This Banned Books Week event celebrates our freedom of speech and our freedom to choose what we read, listen to, or view.

The event is sponsored by the Rock Island Public Library and Midwest Writing Center. The event is free and open to the public. The content of some readings may not be suitable for all ages. Banned Books Week is presented annually in the final week of September by the Office of Intellectual Freedom of the American Library Association.

For more free programs, visit www.rockislandlibrary.org, call 309-732-READ or pick up a fall events brochure at the Rock Island Main Library, 30/31 or Southwest Branches.

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Loebsack to Attend QC Stand Down for Homeless Veterans

Washington, D.C. - Congressman Dave Loebsack announced today that he will be speaking at the Quad Cities Stand Down for Homeless Veterans, TOMORROW, Saturday, September 19th. While at the event, Loebsack will talk with veterans and vendors in order to hear their concerns and thank them for their service. The Stand Down will offer a "one-stop-shop" for homeless veterans to access services available to assist them. The event runs all day on Saturday. Media are invited to attend.

QC Stand Down 2015 for Homeless Veterans

QCCA Expo Center

2621 4th Ave.

Rock Island, IL

Dave will arrive and speak around 11:30am

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