the available funding for pell grants is down. and but you know the basic problem is rising cost i think. one of the solutions i propose in my book is the imposition imposition of federal price controls on college tuition increases which i thought when i mentioned in the book was this wildly radical idea that i sent my book off to the printer and barack obama said almost the same thing at the state of the union address and what was really striking is that it didn't it didn't cause it much controversy we've seen an explosion of for profit educational institutions project in the last decade and a half two decades but most in the last decade and along with that growth of those institutions comes an explosion in the number of people who are in debt largely as a consequence of those institutions i mean they're there they run boiler rooms where they call people and trying to get the right size they're there they're right there they're mostly federal aid mills yeah is that part of the problem. well it's an attempt to address the problem

you'd see potentially hundreds of thousands lose access to pell grants and take a step backwards. one of the things i was proud of, received a 60% increase, young people with ax to pell grants and going to college. anyone who arg gurs we need less access to college, that's that the right thing for children, our communities or for our nation weeshgs cutting off our nose to spite our face. i continue to passionately, education is an investment. not an expense. you're seen our administration push on every level. proposing a race to the top for higher education. obviously, this is about shared responsibility. we have to invest in the federal level. the high risk, this past year 40 states cut funding for higher ed. 40 states. 80% of country. shue that good for where we want to go? i know these are tough economic times but we need to invest and make sure more young people have ax, not less. we have to get there and the jobs of future will go to the countries where they have the knowledged workers. either here or overseas. that's up to us. that's in our control. >> why are tuitioning sky

the pell grant has been the standard, but frankly the buying power of pell grant has decreased from 80% of college tuition down to 20%. we have to look at that and we've tried to increase the pell grant. we have to look at college loans, make them affordable. it's important to keep this interest rate as a relatively low level. then we have to look at the cost of college. one of the things, and you know as a governor, you are under such severe pressure in terms of your budget to fund your universities and your colleges. that pressure's felt across the country. you see tuitions going up. so we have to take on a comprehensive challenge, if you will provide adequate federal support, and also challenge the colleges to deliver quality highest quality education at a more affordable price. those colleges i think are beginning to recognize it, more afford automobile prices. >> we had a big hairy and you had dishes goal in michigan, to double the number of college graduates. we ended up having these budget clenches that you've described. can i just ask you one other question? this bill is likely

especially effective and the subject of this hearing, you have these implicit taxes in the amt and pell grants and dozens if not dozens of programs, including most of the subsidies in the tax system. at the urban institute, we've done a lot of work on trying to calculate these taxes. the first graph that you actually see here on the screen is the same as figure 1before of my testimony. it shows close to the maximum benefits for which a single head of household and two children may be eligible, and then how they phase out as income increases. rates are low, or even negative, up to about 10,000 to $15,000 of income. it's thereafter they rise quickly. in the next figure that i'll be showing you, which is the same as figure three of my testimony, i show the effective tax rate for a household as income raises from 10,000 to $40,000. essentially income and social security taxes take away about 30% of earnings. and then universally available programs -- by universally, available to all of us if we have children, there's no cues, these are items like s.n.a.p., raises the rate to 55%. and for those hou

he's made student loan interest rates and pell grants and health care reform key parts of his platformat am i missing here? >> you're missing the fact that this president over the last 3 1/2 years has failed young voters. there was a pullout last week that the president's margin of young voters has gone 66-32 in 2008 down to just one point, 50-37 in mitt romney. young people are realizing their lives are not better off four years later. they're saying we want a president who's going to fix these problems not make them worse for our generation. >> you have the paul ryan budget plan, which would cut pell grants, he's offered nothing in the way of a health care reform plan, to help young people get health insurance, what does mitt romney have to offer here to young people? >> the number one issue is jobs and the economy. >> and the president is also focusing jobs and the economy. both candidates have made that a priority. >> we have been focusing on jobs and the economy for the last 3 1/2 years. this has unlt vn't just bln a bad time for young people. this has been a historically bad time

that's why we strengthened aid, like pell grants for low-income students. that's why we set up a new consumer watchdog agency called the consumer finance protection bureau, and it's not working with the department of education to give students and their parents access to a simple fact sheet on student loans and financial aid. because everybody has got to be well-informed. we call it know before you owe. know before you owe. don't be surprised, you know. two weeks from graduation, you look up and -- whap. you have jut got hit up side the head. on tuesday, college presidents from across the country came together and agreed to provide clear information about costs, financial aid and payments to all incoming students starting next year. so that's good news, all right? but we've got more to do. so today, i've directed my education secretary, and my treasury secretary, to make it easier for millions of students with federal loans to afford their loan payments. and that includes some of you. this is -- this is a program that more people need to know about. and we'

more pain on the people, where we're going to move toward some kind of -- it's december when the pell grants run out. the doors to college will be shut for possibly a generation. it's in december that every can that was kicked down the road during the past two years, we'll deal with that after the election, we'll deal with that after the election, after the election has a name, it's called december. and it's in december that a wrecking ball will possibly come down on our heads or we can follow the lead of the young people and stand and fight. three things we got to do, number one, let's take advantage of the media that we already have. there's a great document try, called the heist. it's going to be shown here at this country, we have independent filmmakers, independent media makers that can begin to check mate the power of this right wing media machine. number two, the fight in december is going to be over economics, we can fight now over economics, the student loan struggle on july 1, if congress is going to act, if we don't make congress act, the interest rate on the stafford student loan

a quarter of pell grant dollars and accounting for half of all student loan defaults and capturing 50% of the dod tuition assistance and 37% of all the benefits. the numbers, you can get the plural of anecdote is not data. the data speak to a systemic issue. >> can i respond to that? >> sure. >> i appreciate that. i respect everybody's right to disagree with the concept of private sector education. i think that we ought to understand exactly who private sector colleges and universities happen to serve in america today. what would happen if they didn't exist. this tends to be career-oriented education. the reality is that 94% of all the student who is attend private sector colleges and universities are eligible for title four student financial aid assistance. we ought to commend the schools that would not have access to post secondary education and the skills and the jobs and the incomes and the middle class families they are able to obtain through that. when i hear people who criticize us because we serve a disproportionate number of veterans or active duty military, you have to mixed

set of reports that condemned as welfare and seemed to call for reductions, condemned as welfare pell grants, title one grants to disadvantaged schools, head start, the school lunch and school breakfast programs. i believe that is a mischaracterization of those important initiatives that help those who are struggling to become part of the middle class and to share in the american dream to help them advance, that it is wrong to continue to deny those opportunities. when a mother with a couple of children who lives in usaen or san marcos or san antonio leaves the welfare program for a full-time minimum wage job, the tax credit are available to help her and other working families. that increases the value of her work in a significant way and is an incentive to advance. at the same period of time through the recent recession, there were reports by the pew research center that hispanics particularly represented the hardest hit by the recession. a 66% drop in wealth from 2005 to 2009. a widening of the gap in our country that has not been seen in the last 25 years during the time that data was col

undoubtedly high because it does not include reallocations from existing financial aid programs such as pell grant programs and the various programs in the different states. second, a $10 billion per year state-based research program that would be launched as a partnership between the federal government and the participating states. these funds would be used by states to support basic and applied research that meets each state's needs and aspirations, including but not restricted to research fostering economic development and job creation. all institutions of higher education would be eligible to compete for this research funding. such a research program would ensure that our nation as a whole not only supports research to meet national needs, such as defense, human health, but would support research that meets individual state needs such as economic development which are actually quite varied across the different states. having such a capacity for innovation and problem soling in each of our states, i believe we would be quite powerful and very catalytic. indeed, my view in the 2 1es century, suc

is very, very unfortunate because these institutions are taking vantage of the availability of pell grants and the like for students who are very likely unable to repay those loans. >> third question from your previous answer. you are looking at how a university should look in 40, 50, 100 years from now. out is that, right now speak as i want to press this -- i want to preface that by saying i don't think social science is particularly good at prognosticating what will exist. but what should exist i i have some ideas about. first of all, let's look at the cost structure and quality of these universities. i would like to in one of my chapters in my book is about creating academic leagues rather than sports leagues. why can't we have, you know, universities with strengths doing de facto merges with each other, with departments and programs, to cross boundaries and borders, artificial borders. and allow them to work together and allow the students to move from one place to another can whether graduate students or future undergraduates will be able to get a tremendous amount of the education o

the pell grant is $5500. tuition, room and board at bennett is $25,000. where's a sister going to get the other $19,000 from? loans. if you take out a loan for anything, you should take it out to invest in your education. i don't understand why -- and suze might disagree with me. suze, i'm a college president. i need those students enrolled in my college. but the thing is, we're cutting education. in the state of north carolina, they kicked the private colleges like bennett. they kicked us out of the state lottery fund. that means it is $1800 that students were getting. that's gone now. to cut education while the president has said he wants us to lead the world in the number of people with aa and ba degrees it is fool hearted. it's like a farmer that decides they are doing to eat the seed corn opposed to planting it. we should not cut education and essential services we need for poor women and children. as you said, there's not a poverty conversation. vice president biden has a middle-class tax force. i want to know where's the poor people's task force? l

you're looking at 11% of all enrollments, consuming a quarter of pell grant dollars, accounting for half of all student loan defaults, capturing 50% of the dod tuition assistance funding, 37% of all va benefits. the numbers, you know, you can bring -- the plural of anecdote is not dated. the data speaks to a systemic issue. >> can i respond to that, mr. chairman? >> certainly. sure. >> i appreciate that, because i respect everybody's right to disagree with the concept of private sector education. i think, though, that we ought to understand exactly who private sector colleges and universities happen to serve in america today, and what would happen if they didn't exist thankful tends to be career-oriented education. the reality is that today 94% of all the students who attend private sector colleges and universities in this country are eligible for title 4 student financial aid assistance. we ought to be commending the school for serving students that otherwise would not have access to post secondary education, the skills, the jobs, the incomes and the middle class families that they are

to help with veterans with the veterans administration issue or social security or medicare or pell grants or stafford loans and my job in many ways is to help people one at a time. one of the most interesting letters i got, i got a request from a young father from cincinnati who wrote a letter on me behalf of his soon to be 1-year-old twin sons. like many of you he worries for his young children's future, the type of world that they would grow up in. he asked this simple question, what's the best advice you have ever or never received? i explained like many ohioans i benefitted from family and friends who provided consult and support in mansfield, ohio, as i was groiing up the youngest of three sone brothers. as a son i learned compassion my father the town doctor treated patients regardless of their ability to pay. from my mother a teacher i learned about deansy from the community service that she demonstrated throughout her 88 years. my brothers and i each of us eagle scouts learned about hard work from summers spent working on our family farm. my wife, connie, teaches me about love and

dollars deficit reduction plan will come out of programs that serve the poor food stamps medicaid and pell grants to name a few meanwhile ryan is pushing for an additional four point six trillion dollars in tax cuts for the rich while claiming these can be paid for by closing loopholes he hasn't named yet as it stands his plan would raise the after tax income of millionaires by twelve and a half percent while significantly harming the well being of the poor. is that would jesus would do it's not hard to see why these nuns are so upset ryan isn't building up the common good of all he sharpening class distinctions he purports to oppose and because he's exploiting his religion to push this agenda and being called out for it other hypocrites on the far right are taking offense people like john mickel says. it's more interesting with the no. it's always fun. well they say that he's evil they say he's a fake catholic they're the ones that threw the first punch. and you know one of these nuns never threw any punches they simply tried to stand up for what they believe how they interpret the bible but nic

you are talking about cutting pell grants, as congress has done multiple times. every time you are talking about things like not providing opportunities and talking about, you know, increasing tax cuts to people who will not at all be affected by this and expecting some type of trickle down. there's a problem with the logic in terms of how that's fundamentally going to occur. >> but he is not in the logic game. >> michael steele, we're talking in broad strokes here. i mean, i don't think the voters yet are looking into the details of pell grants, which is everything he just said -- wes just said is true. but i think people are looking at who owns this economy, who has a better way of getting me a job. >> exactly. this is not about logic. [ laughter ] >> and i don't think there's any point in this campaign it will be about logic. >> bumper sticker. there it is. >> you know, the economy is stupid. this is not about logic. but this is the problem that obama has. that commercial is -- just resonates his problem. when you're getting out there and saying, you know, we'

that is why i extended pell grants that will give an additional 150,000 students in the latino community a chance to go to college. [applause] >> that is why i have invested in our community colleges, which are a gateway to a good job for so many hispanic-americans, americans of every stripe. that is why in almost every state, some of the calmest -- toughest neighborhoods around, have met our standard by teaching it to a test, expanding creativity, improving curriculum, focusing more on the kids that are hardest to reach, so we give every child a fighting chance. that is part of the vision of america that we believe in. in this country, we believe that if you want to take a risk and a new idea, you should have the chance to succeed and you should not have to have wealthy parents to be successful. latino-owned businesses have been the fastest-growing small businesses, and we have cut their taxes 18 times. we have expanded new loans and credits so they can grow and they can hire. >> that is the vision we believe in. in america we believe you should not go broke because you get sick. hard-w

he's increased the amount of pell grants. provided families with a $10,000 tax credit.this past week, he has been arguing that for 7.5 million students that their student loan rates should not double. the republicans have stood in the middle of that. that is wrong. second, this issue was an raised earlier. because of president obama, 2.5 million young people have health care. third, i was so proud of my president last friday when he signed the executive order for dream act students. [ applause ] >> there are thousands and thousands and thousands of kids who have been brought here by no act of their own who want to be doctors and engineers and the next steve jobs. instead they are not able to go to college. that's wrong. we gotta make sure we are educating everybody at their fullest potential. i believe immigrants are our best import. half of all start-ups were started by immigrants in this country. that's why you should vote for obama. >> mike: thank you very much. also all no who have brought questions to you -- us to. we have heard from folks on the left. we'll hear f

also giving fewer grants to college students by cutting pell grants. >> lawyers in a priest beating case will be back in court today but the jury is staying home until monday. the judge delayed the trial after an emotional outburst. two women confronted the father in a hallway. one of them was the sister of the defendant. lynch says that he and his brother were sexually abused by him when they were kids. the jurors in this jerry sandusky sex abuse case resume deliberations this morning. they won't hear about the latest courtroom bombshell. one of his sons says that the former penn state coach abused him. she was bullied on a school bus and it was all caught on tape >> now that case of a bus monitor has attracted hundreds of thousands of dollars in donations for her. >> we're talking about $440,000. the response from the on-line community has been overwhelming all from the 10 minute video that you might want to take a look at. >> the video instantly when viral outraging viewers across the country. she said she did her best to keep her cool. one kid even said that her children should kill

you'd see potentially hundreds of thousands of people lose access to pell grants and pell grants take a step backwards that's one of the things i've been most proud of, that we've seen a 50% increase from $6 -- sixman to -- six million to nine million young people going to college. we need to -- anyone who args we need less access to college, that's the right thing for children or families, our communities, our nation, i think we're cutting off our nose to spite our face. i continue to think passionately that education is an investment, not an expense. we're never asking for the investment in the status quo. hopefully you've seen our administration push a level of reform at every level. we're proposing a race to the top for higher education. but obviously this is about shared responsibility. so we have to invest at the federal level. but what you're talking about today, this past year, 40 states cut funding for higher ed. 40 states. 80% of the country. who you is that good for where we need to do? -- to go? these are really tough economic times but we need to use a race to the top for

welfare, how many home care hours to take away from the elderly and disabled and whether to eliminate pell grant for students attending private colleges. there was a veggity hoping that the governor will accept less severe cuts. >> no, that's wrong. there's common sense here. you have to stop cutting from the poor. >> besides the incomplete budget the republicans point out it relies on $8.5 billion worth of new taxes and assumes voters will pass them. that vote is still more than four months away. >> you think the voters are going to give you your tax increases come november and all you offer them is this sham, you are sadly out of touch. >> some lawmakers say a budget that's incomplete and relies on new taxes that may not come through should equal a dock in pay. >> the voter intent of prop 25 was on time, one that really balanced, and that if it wasn't so, that the legislators would lose pay. >> a judge ruled several weeks ago the state controller cannot be the sole determiner of whether a state budget is balanced so republicans called on governor brown to veto this budget. in sacramento,na net

. >> the argument for president obama to say i'm on your side whether it's pell grants student loan interestre on your side. but we have a trump card in ohio. mitt romney came to ohio during the big collective bargaining debate and sided with govern john casick, and it was not just teachers, state and county and city workers, it was also police and fire. so that's why we beat that down with 62%. here comes mitt romney. here comes lynn cheney. here comes karl rove, the groups who were just telling all the police, fire and teachers last year that they were the problem in america are now coming in campaigning for mitt romney. our folks don't forget that, and we'll continue to remind them. >> cenk: one last quick question for you. i know in your book you're very hopeful about recapturing the american spirit. i'm less hopeful. i thick we can do it but i think it will be a long, heard fight. i think our politics are fundamentally broken, they can pour in all this money, and it's the disadvantage. what am i missing. >> you need to buy the book "a mindful nation." i think the slight of hand that we

for pell grants, which you have to have a certain income level. my dad's firm went bankrupt>> the funding is for the institution and not for the students. for a program, in have to have a certain income level. for most of my undergrad, my parents paid out of pocket. when my parents went bankrupt, i was an undergrad. >> you are conversation and relatively quiet. when do we see angela rye excited about an issue or upset about something? >> i am on my good behavior right now. i'm a very passionate person. >> how do we know? >> we see it at work. i've been nonprofit called i.m.p.a.c.t. you see it there. one of our directors always talks about is being very loud and passionate. i am passionate of just about everything. >> number-one passion? >> making a difference. the name is i.m.p.a.c.t. and we want to make a difference. i came to washington, d.c. and helps in making this. -- in hopes of making this. i want to be a trial blood -- a trial lawyer before ait would only help one client. . i came to the nation's capital where that happens. >> give me an e

ryan plan that cuts 3.3 trillion from low income programs, programs like medicaid, food stamps, pell grants and job training. so one hand you're supporting the ryan plan that is your plan, and on the other hand, you talk about poverty is a moral failure. >> clearly that was a talking point that someone wrote for him. remember, mitt romney is also the person that said he wasn't very concerned the very poor because there are social safety net programs that cake care of those people. what he clearly doesn't understand, and if we're going to talk about a lack of understanding on how things with work, as you pointed out, the romney/ryan budget plan would slash all of those plans. so if you want to talk about the moral hob ligations, how about the obligations of the people that rely on those programs including our veterans and millions of american children. >> now wes, the republicans in congress and willard romney rail against stimulus every day, but the evidence keeps mounting more and more, the "washington post" says under questions from skeptical republicans, the director of the nonpartisan a

. >> cenk: i hear you, governor granholm, he has it good done good on pell grants. >> yes, he has takenl grants. but i'm interested from your perspective in the studio. if the president puts on the table a simple thing of keeping the student loan the percentage rate that it is right now. he has hammered congress about in a again today. everyone realizes, i hope, that he can't get done what congress refuses to do. i wonder if there would be a strategy that would appeal to millennials about congress, and the only way you can see the bold kind of change that you want is to have a congress that works with the president. we need to occupy the majority in congress. is that something that would resonate? >> governor, we'll have to make that a question as food for thought. you're a tv pro now and we're up against time. >> sorry. >> we will talk about that. we'll thank you and watch you tonight. governor jennifer granholm from "the war room"." cenk uygur stay with us. we'll be back and talk about the lifestyles of the pets of the 1%. fash

under president obama my pell grant increased which offsets the loss in funding while the state was cutting funding for that which is the reason i was able to finish school. i had health insurance and now at the moment, you know, i'm relatively guaranteed health insurance into the future so i don't have have to be concerned about that. in addition to that, now my student loans are huge. they're now contingent of me paying that back is contingent upon the income i make. i was able to go into a job of public service. i won't be able to do that under president romney. my life has changed dramatically. i don't want to think about what would happen. >> does it make you concerned that the forces that have allied against healthcare reform, including insurance companies that have paid, you know, $100 million to prevent it from happening, that you are -- you know, that you're up against some very big guns, aren't you concerned that -- about that kind of influence in washington if the supreme court strikes it down? what happens if that happens even if there is a president obama and he doesn't have a

it is in december that the pell grants run out and low income kids going to college will be shut down for a generation. it is december that every can that was kicked down the road, we will deal with that after the election. after the election has a name. it is called december. it is in december that a wrecking ball will probably come down on our heads or we can follow the lead of the young people and stand and fight. let's take advantage of the media that we already have. there is a great documentary about who's told the american dream. we have independent media makers who can begin the checkmate of this right-wing media machine. number two -- a fight in december will be over economics. we can fight now on economic questions. student loans -- the student loan struggle. if we don't make congress act, the interest rate on the student loans will double. to 6.8% taking $20 billion out of the pockets of the next generation of students, 8 million students will cough up an extra $20 billion because congress is missing in action. we need to get excited about young people's issues and stop the

they are at odds over cuts to welfare, in home and child care and pell grants but they are making progress. >> we're very, you know, responsive to not only the governor's interests but our interest to put the deficit behind us. that's what we all want. but we're now down to, i would say the relatively short strokes here. >> if both houses of the state legislature do not pass a balanced spending plan by friday they lose their pay for every day the state goes without one. they must close a $16 billion gap. >> many of the best golfers in the bay area. the u.s. open getting under way thursday, practice rounds, fans a preview. but you have to get there to see it. marla tellez is live at the stop at candlestick park with an update what you need know. good morning. >> reporter: jon, good morning. if you have plans to head to the olympic club unless you have special credentials you'll have to take a shuttle bus there. you can see the u.s. open tent set up behind us and already plenty of people starting to arrive. the first shuttle bus leaves at 6:00 this morning. the first passengers just boarded

they're sucking in the pell grants and the stafford loans. and then hang on, they have a student loan default rate almost twice the level of other clemtion and universities. what does that tell you? they have come up with an economic model which reaches deep in the treasury to bring in money to keep the lights on and to pay their c.e.o.'s very, very generous salaries. they are also of course loaning money to students and those students are defaulting, unable to repay their student loans at twice the rate of other colleges and universities. now, you would say to yourself, well, senator, if that's the case, why don't you do something about it? the problem is, the for-profit school industry in america is one of the most politically wired industries in this country. they have friends in high places, and it's very difficult to get reform legislation through the house or the senate when they are so politically connected. yet senator harkin and i believe it's worth the effort and we're going to ask our colleagues to join us in that effort. what's wo

jimy williams is what he has talked about and if you have talked to him like i have, he says the pell grants is disproportionately helping african-american people, and health care is disproportionately helping out, and if i go out to say it is black and for black people, and that is a winner and helps out t the problem, and people are drawn in. now-year-old could have an intellectual and targeted and universal conversation, but there is a different way to frame it so that the argument can be subsumed under what barack obama is doing. it is a complicated thing, but the problem is that if you have a guy up there who is black already, he is at a disadvantage and he cannot say if trayvon martin was my son, he would look like mine, and so he can't speak on, that and to what degree is the president effective if he deploys a racial rhetoric that leads to divisive efforts where the senators and the congressmen cannot come together. one choice line he said to me, you know, michael, i'm dealing with a congress that does not read cornel west and michael eric dyson. i said, did you chumpp me? i'm an act

acceleration of the same with the romney/lion budget, cutting medicare and social security, cutting pell grant, all the things that are hallmarks of what it's going to take a make a middle class life. >> we will be talking more about the fed and also one of its favorite sons coming up. diamond is forever, but what does a jp morgan ceo's capitol hill testimony tell us about the future of financial reform? cnbc's incredible andrew ross sorkin joins the conversation next on "now." with the spark cash card from capital one, olaf's pizza palace gets the most rewards of any small business credit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! put it on my spark card! [ high-pitched ] nice doin' business with you! [ garth ] why settle for less? great businesses deserve the most rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? in absolute perfect physical condition and i had a heart attack right out of the clea

president has reform, basically reduced 60 billion dollars in bank subsidies, increased the amount of pell grantsilies with a $10,000 tax credit, and this past week, you know, he's been arguing that for 7.5 million students that their student loan rates should not double and the republicans have stood in the middle of that, that's wrong. and this issue was raised earlier, because of president obama's 2.5 million young people have health care. third, i was so proud of my president last friday when he signed the executive order for dream act, for dream act students. there are-- (applause) >> thousands and thousands and thousands of kids who have been brought here by no act of their own, who turn around, who want to be doctors and engineers and the next steve jobs, instead they're he not able to go to college and that's wrong. we've got to make sure that we are educating everybody at their fullest potential and i believe that immigrants are our best import. you know, half of all startups that were created in it country were created by immigrants. and that's why you should vote for obama. >> mike: al