Senator Pat Toomey has repeatedly voted for millionaires’ interests over helping working families and students. Despite the more than 273,000 Pennsylvania students who rely on Pell Grants to fund their higher education, Toomey has voted again and again and again to cut the program. He’s also effectively voted to raise student loan interest rates, adding to the burden on borrowers and their families in order to cut taxes for his millionaires friends.
“Pell Grants give students in difficult financial situations an opportunity to fund and receive a quality education. Student loan borrowers, who relied on federal student loans to finance their education, are also being unfairly saddled with higher interest rates that they cannot refinance like a home or a car,” said American Bridge 21st Century President Jessica Mackler. “Instead of making a higher education a reality to hundreds of thousands of Pennsylvania students and providing an opportunity for student loan borrowers to refinance their loans and unburden themselves and families, Pat Toomey sides with millionaires and places their interest above those of students and families who are just trying to follow their own American Dream. Toomey can’t be trusted to support the students and families of the Keystone state. He’ll always side with rich special interests and Washington Republicans.”
TOOMEY VOTED REPEATEDLY TO CURTAIL PELL GRANTS AND PELL GRANT ACCESS
2015: Toomey Voted Against Restoring $89 Billion In Proposed Cuts To Pell Grants Included In Senate Republicans’ FY 2016 Budget Resolution. In March 2015, Toomey voted against an amendment to the Senate’s FY 2016 budget resolution that, according to Congressional Quarterly would have “adjust[ed] the resolution to increase new budget authority for social services’ education, training and employment by $92.3 billion and increase outlays in that area by $89.3 billion between fiscal years 2016 and 2025. The changes are intended to reflect future legislation that would restore $89 billion in federal Pell grant reductions.” The amendment was rejected by a vote of 46 to 54. [Senate Vote 101, 3/26/15; Congressional Quarterly, 3/26/15; Congressional Actions, S. Con. Res. 11]
2013: Toomey Voted To Repeal The Health Care And Education Reconciliation Act Of 2010, Which Expanded Funding For Pell Grants, As Part Of A Package Repealing The Affordable Care Act. In March 2013, Toomey voted for an amendment that, according to Huffington Post, “sought to ‘establish a deficit-neutral reserve fund to provide for the repeal of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010.’” According to The New York Times, the Health Care and Education Reconciliation Act of 2010 “eliminate[d] fees paid to private banks to act as intermediaries in providing loans to college students and use much of the nearly $68 billion in savings over 11 years to expand Pell grants and make it easier for students to repay outstanding loans after graduating.” The amendment was to the Senate Budget for FY 2014. The vote was on the amendment, which the Senate rejected by a vote of 45 to 54. [Senate Vote 51, 3/22/13; Huffington Post, 3/22/13; New York Times, 3/30/10; Congressional Actions, S. Amdt. 202]
2013: Toomey Voted For Freezing Pell Grants At 2012-2013 Levels For The Next 10 Years As Part Of The FY 2014 Ryan Budget. In March 2013, Toomey voted for cutting spending on Pell Grants, as part of House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2014 to 2023. According to the House Budget Committee, “The Department of Education attributed 25 percent of recent program growth to the $619 increase in the maximum award enacted in the stimulus bill that took effect in the 2009–10 academic year. To get program costs back to a sustainable level, the budget recommends maintaining the maximum award for the 2012–2013 award year of $5,645 in each year of the budget window.” The vote was on the House Republicans’ fiscal year 2014 budget resolution, which Senate Budget Committee chairwoman Patty Murray offered as a substitute amendment to the Senate’s fiscal year 2014 budget resolution. The Senate rejected the amendment by a vote of 40 to 59. [Senate Vote 46, 3/21/13; House Budget Committee, 3/12/13]
2012: Toomey Effectively Voted To Cut Spending On Pell Grants, Making 1 Million Students Ineligible As Part Of The FY 2013 Ryan Budget. In May 2012, Toomey effectively voted to cut spending on Pell Grants, as part of House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2013 to 2022. According to the House Budget Committee, the budget “puts Pell on a sustainable path by limiting the growth of financial aid and focusing it on low income students who need it the most.” According to U.S. News and World Report, “Under the Ryan budget, more than 1 million students would no longer be eligible for Pell grants in the next decade, according to Education Trust, and those who did qualify would receive less aid.” The vote was on a motion to proceed to consider the House-passed budget resolution, which the Senate rejected by a vote of 41 to 58. [Senate Vote 98, 5/16/12; House Budget Committee, 5/20/12; U.S. News and World Report, 9/5/12; Congressional Actions, H. Con. Res. 112]
2011: Toomey Effectively Voted For FY 2012 Ryan Budget, Which Cut Spending On Pell Grants To Pre-Stimulus Levels.In May 2011, Toomey effectively voted for cutting spending on Pell Grants, as part of House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2012 to 2021. According to the House Budget Committee, the budget would “Return Pell grants to their pre-stimulus levels to curb rising tuition inflation and make sure aid is targeted to the truly needy.” The vote was on a motion to proceed to consider the House-passed budget resolution, which the Senate rejected by a vote of 40 to 57. [Senate Vote 77,5/25/11; House Budget Committee, 4/5/11]
March 2011: Toomey Voted To Cut Maximum Pell Grant Amount By $845, As Part Of Senate Democrats’ FY 2011 Government Funding Plan. In March 2011, Toomey voted against the Senate Democrats’ plan for funding the government through fiscal year 2011, which, according to the Senate Appropriations Committee, “maintains the maximum Pell award level of $5,550.” By contrast, the committee stated, “The House Republican CR slashes the maximum annual Pell Grant award by $845 to $4,705, a 15 percent cut below the current maximum of $5,550.” The amendment failed by a vote of 42 to 58. [Senate Vote 37, 3/9/11; Senate Appropriations Committee, 3/4/11]
… Even Though 273,833 Pennsylvanians Benefitted From Pell Grants
Pennsylvania Students Received More Than $916 Million Dollars In Pell Grant Funding. According to the U.S. Department of Education, “Funds for State Formula-Allocated and Selected Student Aid Programs U.S. Department of Education Funding Pennsylvania Program 2014 Actual 2015 Estimate 2016 Estimate Amount Change FY 2015 to 2016 Percent Change FY 2015 to 2016 Federal Pell Grants 916,900,000 920,600,000 936,900,000 16,300,000 1.8%” [State tables by State – U.S. Department of Education, accessed 10/10/15]
- 273,833 Pennsylvanians Received Pell Grants In 2013-14.According to the U.S. Department of Education, 273,833 Pennsylvanians received Pell Grants in the 2013-14 award year. Of the awards, 141,576 were for recipients at public institutions, 64,514 were for recipients at private institutions, and 67,743 were for recipients at proprietary institutions. [U.S. Department of Education, Accessed 10/13/15]
STUDENT LOANS
Toomey Functionally Voted To Raise Student Loans By Opposing Extension Of Low Student Loan Interest Rate
2013: Toomey Effectively Voted Against Extending Subsidized 3.4 Percent Interest Rate On Student Loans For One Year. In July 2013, Toomey effectively voted against a bill that, according to The New York Times, “would have renewed a subsidized 3.4 percent interest rate on Stafford loans, whose rates doubled to 6.8 percent on July 1.” According to Congressional Quarterly, the underlying bill “would extend a 3.4 percent fixed interest rate on federal subsidized undergraduate student loans for one year.” The vote was on a motion to end debate, which required 60 votes to succeed. The Senate rejected the motion by a vote of 51 to 49. [Senate Vote 171,7/10/13; The New York Times, 7/11/13; Congressional Quarterly, 7/10/13]
2013: Toomey Effectively Voted Against Extending Reduced Federal Undergraduate Student Loan Rates Of 3.4 Percent For An Additional Two Years. In June 2013, Toomey voted against considering a bill that, according to Congressional Quarterly, “would extend the current 3.4 percent fixed interest rate on subsidized federal Stafford loans made to undergraduate students for two years.” The actual vote was on a motion to end debate on a motion to proceed. The Senate rejected the motion by a vote of 51 to 46. [Senate Vote 143, 6/6/13; Congressional Quarterly, 6/21/13]
2013: Toomey Effectively Voted Against GOP Student Loan Interest Rate Plan Setting Interest Rates On New Student Loans To Treasury Rate Plus 3 Percent. In June 2013, Toomey effectively voted against a bill that, according to Congressional Quarterly, was the “GOP Student Loan Interest Plan” and “would tie interest rates for federal undergraduate and graduate student loans to the 10-year Treasury borrowing rate plus 3 percentage points.” The vote was on a motion to end debate on the motion to proceed to the bill. The Senate rejected the motion by a vote of 40 to 57. [Senate Vote 142, 6/6/13; Congressional Quarterly, 6/6/13]
2013: Toomey Voted For Increasing Student Loan Interest Rates From 3.4 Percent To 6.8 Percent As Part Of The FY 2014 Ryan Budget. In March 2013, Toomey voted for increasing student loan interest rates from 3.4 percent to 6.8 percent, as part of House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2014 to 2023. According to Education Votes, “[T]he Ryan plan […] would allow student loan interest rates on new Stafford loans to double this July, from 3.4 percent to 6.8 percent.” The vote was on the House Republicans’ fiscal year 2014 budget resolution, which Senate Budget Committee chairwoman Patty Murray offered as a substitute amendment to the Senate’s fiscal year 2014 budget resolution. The Senate rejected the amendment by a vote of 40 to 59. [Senate Vote 46, 3/21/13; Education Votes, 3/20/13]
2012: Toomey Voted Against Applying Payroll Taxes to Income From S Corporations In Order To Pay For Keeping Subsidized Student Loan Interest Rates At 3.4% Until July 2013. In May 2012, Toomey voted against a bill that, according to CBS, “would extend low interest rates on federally subsidized student loans for another year. Barring an extension, the rate on new loans for undergraduates would increase from 3.4 percent to 6.8 percent this July […]; [the bill] would require some privately owned companies to pay higher payroll taxes for Social Security and Medicare.” The bill, named the Stop the Student Loan Interest Rate Hike Act of 2012, was defeated by a vote of 51-43; passage of the bill would have required 60 votes under a unanimous consent agreement. [Senate Vote 113,5/24/12; CBS, 5/8/12; CRS, 4/24/12; Congressional Actions, 5/23/12]
Toomey Voted To Eliminate Subsidies For College Loans; Causing Interest Rates To Double
2012: Toomey Effectively Voted To Eliminate Subsidies For College Loans; Causing Interest Rates To Double To 6.4 Percent As Part Of The FY 2013 Ryan Budget. In May 2012, Toomey effectively voted to eliminate subsidies for college loans, as part of House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2013 to 2022. According to the House Budget Committee, the budget would “Reform the Credit Reform Act to reflect the true cost of federal student loan programs that are driving up the cost of tuition.” According to the New Republic, “3.4 percent (the government’s current subsidized interest rate for Stafford loans, which were established in 2007 and will expire in July if not renewed) versus 6.8 percent (the unsubsidized interest rate to which the Ryan budget proposed returning those loans). The vote was on a motion to proceed to consider the House-passed budget resolution, which the Senate rejected by a vote of 41 to 58. [Senate Vote 98, 5/16/12; House Budget Committee, 5/20/12; New Republic,4/27/12; Congressional Actions, H. Con. Res. 112]
2012: Toomey Effectively Voted Against A Bill Preventing The Interest Rate On Subsidized Student Loans From Doubling To 6.8 Percent. In April 2012, Toomey effectively voted against a bill that, according to the Associated Press, would “extend today’s 3.4 percent interest rates on subsidized Stafford loans for another year.” Without the bill, interest rates on subsidized student loans would have doubled from 3.4 percent to 6.8 percent on July 1, 2012. According to the Christian Science Monitor, the bill was paid for by regulation changes preventing “wealthy individuals from shielding some of their income from payroll taxes by incorporating themselves as S corporations.” The vote was on a motion to end debate on the motion to proceed; it needed 60 votes and was defeated 52-45. [Senate Vote 89, 5/8/12; Associated Press, 5/8/12; Christian Science Monitor, 5/8/12]
2014: Toomey Effectively Voted Against Allowing Those With Pre-July 2013 Student Loans To Refinance At 2013-2014 Academic Year Interest Rates, Which For Undergraduate Loans Was 3.86 Percent. In June 2014, Toomey effectively voted against a bill that, according to Congressional Quarterly, “would allow eligible borrowers who took out student loans prior to July 1, 2013 to refinance those loans to rates offered to new borrowers. It would be offset by increasing taxes on those who earn more than $1 million a year.” The vote was on a motion to end debate on a motion to proceed to consider the bill, which required 60 votes to succeed. The Senate rejected the motion by a vote of 56 to 38. [Senate Vote 185, 6/11/14; Congressional Quarterly, 6/11/14]
2013: Toomey Opposed A Democratic Proposal That Extended Stafford Loans At Their Current Rates For Two Years And A GOP Proposal That Tied Student Loan Rates To A Variable Set By The U.S. Treasury. According to the Morning Call, “Pennsylvania’s senators are split on what do to about a key student loan interest rate set to double soon unless Congress intervenes. Democratic Sen. Bob Casey Jr. backs his party’s plan to extend current rates, affecting subsidized Stafford loans, for two years. But Republican Sen. Pat Toomey is opposed to an extension — as well as to his own party’s plan, which would tie student loan rates to a variable rate set by the U.S. Treasury. ‘A better approach than spending the $8 billion that the Democrats’ bill spent and a better approach than the Republican alternative, is to address the main issues facing students and younger generations: the rising cost of education, unsustainable government debt, and inadequate employment opportunities in today’s stagnant economy,’ Toomey spokeswoman Elizabeth Anderson said. Both plans would only save borrowers about ‘$7 per month or about three or four cups of coffee at Star-bucks,’ she said.”” [Morning Call, 6/12/13]
May 2012: Toomey Voted Against Preventing Student Loan Interest Rates From Doubling. According to the LancasterSunday News, “Voting 51 for and 43 against, the Senate failed to reach 60 votes needed to pass a Democratic bill (SB 2343) that would prevent interest rates on newly issued Stafford student loans from doubling to 6.8 percent July 1. Casey, yes; Toomey, no.” [LancasterSunday News, 5/27/12]
Toomey Voted Against Capping Future Federal Student Loan Interest Rates, Paid For With A Millionaires Tax
2015: Toomey Voted Against Allowing Student Loan Borrowers To Refinance At 2013-2014 Student Loan Rates – 3.9 Percent For Undergraduates – Paid For By Requiring Millionaires To Pay A Tax Rate Of At Least 30 Percent. In March 2015, Toomey effectively voted against an amendment to the Senate’s FY 2016 budget resolution that, according to Congressional Quarterly, would have “increase[d] new budget authority and outlays during that period by $64.4 billion, and reduce[d] deficit figures over those fiscal years by $8 billion. The changes are intended to reflect future legislation that would allow student loan borrowers to refinance outstanding debt at 2013-14 interest rates, which would be offset by requiring millionaires to pay a federal tax rate of at least a 30 percent.” The Senate rejected the amendment by a vote of 46 to 53. [Senate Vote 86, 3/25/15; Congressional Quarterly, 3/24/15; Congressional Actions, S. Con. Res. 11]
- Warren’s 2014 Bill Offset Costs With “Buffet Tax” That Would Require Those With Incomes Over $1 Million To Pay A Tax Rate Of At Least 30 Percent Of Their Adjusted Gross Income Minus Charitable Contributions. According to Congressional Quarterly, “The bill would be paid for by a tax increase on those earning more than $1 million a year — the so-called Buffett Tax, a reference to investor Warren Buffett who has said he pays a lower tax rate than his secretary.” According to the Congressional Research Service’s summary of the bill, it would “[a]mend[] the Internal Revenue Code to require an individual taxpayer whose adjusted gross income exceeds $1 million to pay a minimum tax rate of 30% of the excess of the taxpayer’s adjusted gross income over the taxpayer’s modified charitable contribution deduction for the taxable year (tentative fair share tax). [It would] [e]stablish[] the amount of such tax as the excess (if any) of the tentative fair share tax over the excess of: (1) the sum of the taxpayer’s regular tax liability, the alternative minimum tax (AMT) amount, and the payroll tax for the taxable year; over (2) certain tax credits. [It would] [p]rovide[] for a phase-in of such tax [and would] [r]equire[] an inflation adjustment to the $1 million income threshold for taxable years beginning after 2015.” [Congressional Quarterly, 6/11/14; CRS Summary of S. 2432, 6/4/14]
2013: Toomey Voted Against Capping Future Federal Student Loan Interest Rates, Paid For With A Millionaires Tax.In July 2013, Toomey voted against an amendment that, according to Congressional Quarterly, “would [have] lower[ed] interest rate caps from 8.25 percent to 6.8 percent for federal undergraduate student loans, from 9.5 percent to 6.8 percent for graduate loans and from 10.5 percent to 7.9 percent for PLUS loans. The cost of the reduced rates would [have] be[en] paid for by a 0.55 percent tax on individuals whose income exceeds $1 million or $500,000 if it is a married individual filing a separate tax return.” The Senate rejected the amendment by a vote of 46 to 53. [Senate Vote 183, 7/24/13; Congressional Quarterly, 7/24/13]
Toomey Wanted To Set Federal Student Loan Rates Based On Annual Market Conditions With A Cap On Maximum Rate
2013: Toomey Voted To Issue New Federal Student Loans At Fixed Rates Set Each Year Based On Market Conditions, But With A Cap On The Maximum Rate. In July 2013, Toomey voted for a bill that, according to Congressional Quarterly, “would set federal student loan interest rates issued after July 1, 2013 to the Treasury Department’s 10-year borrowing rate, plus 2.05 percent for subsidized and unsubsidized undergraduate loans, 3.6 percent for graduate loans and 4.6 percent for PLUS loans. The loan rates would be capped at 8.25 percent, 9.5 percent and 10.5 percent, respectively.” The Senate passed the bill by a vote of 81 to 18. The House later agreed to the Senate version, and the president signed the bill into law. [Senate Vote 185, 7/24/13; Congressional Quarterly, 7/24/13; Congressional Actions, H.R. 1911]
- Before Bill, Federal Student Loan Rates Had Been Set At 3.4 Percent Since July, 2011, But Had Risen To 6.8 Percent On July 1. According to Congressional Quarterly, “In September 2007, Congress enacted the College Cost Reduction Act (PL 110-84), which overhauled federal student aid programs, primarily by reducing the federal subsidies paid to private lenders that offer federally backed student loans and redirecting the savings to enhance other student aid programs. Among other things, the law set fixed interest rates for federally subsidized, undergraduate student loans, which previously had been tied to economic factors and were increasing at the time. Specifically, interest rates on the popular Stafford loan programs were reduced for new loans, dropping to 6% on July 1, 2009, and gradually declining to 3.4% on July 1, 2011. The lower interest rates were initially set to expire July 1, 2012, and were supposed to increase to 6.8% for student loans originated on or after that date. To prevent that increase during the 2012 presidential campaign, Congress last year enacted the Interest Rate Reduction Act as part of the surface transportation authorization law. […] The student loan provisions of that law extended the 3.4% interest rate for new, federally subsidized, undergraduate student loans for another year, through June 30, 2013.” [Congressional Quarterly, 7/29/13]
- Under Final Legislation And Treasury Note Rate At Time, Interest Rate On Federal Undergraduate Student Loans Issued From July 1, 2013 To June 1, 2014 Would Be Fixed 3.86 Percent Loans. According to Congressional Quarterly, “Specifically, [the final legislation] ties the interest rates for all federal student loans (except Perkins loans) issued on or after July 1, 2013, to 10-year Treasury notes — with rates for subsidized and unsubsidized Stafford loans to be set each year at the 10-year Treasury note plus 2.05%, rates for graduate loans to be set at the 10-year note plus 3.6% and rates for parent PLUS loans to be set at the 10-year note plus 4.6%. […] Rates each year would be determined on June 1, with the Treasury note rate being set by the most recent Treasury auction (therefore, all loan rates this year would be based off the 1.81% 10-year Treasury rate from May). Those rates would remain in effect for the 12-month period beginning July 1 — and loans made to students during that period would remain at that same interest rate for the life of the loan.” [Congressional Quarterly, 7/29/13]
Published: Jan 11, 2016