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>> PUBLIC SCHOOLS OR PRIVATE
STUDENT DEBT IS STEEP. I'M A
SOPHOMORE AT MCALLISTER COLLEGE
I'M HERE TODAY NOT FOR MYSELF AS
I COME FROM AN AFFLUENT FAMILY
BUT FOR MY BEST FRIEND WHO
CANNOT BE HERE. I BEST FRIEND IS
ONE OF MY PRIMARY IMBALANCES IN
GETTING INVOLVED WITH EMPEROR
AND ECONOMIC JUSTICE IN
MINNESOTA. IT IS AMAZING TO SEE
THE WAY SHE BUILDS COMMUNITY IN
THE TWIN CITIES AND SHE IS
HEAVILY BURDENED BY STUDENT
DEBT. SHE MERELY HAD TO DROP OUT
OF SCHOOL ON MORE THAN ONE
OCCASION AND SHE HAS BEEN
TAKING FOR CREDIT INTERNSHIPS
RATHER THAN CLASS IS TO DECREASE
YOUR TUITION COSTS. SHE IS VERY
CLOSE TO HER PARENTS BUT FOR A
NUMBER OF MONTHS SHE AVOIDED
CALLING THEM BECAUSE SHE WAS
AFRAID THEIR MONEY STRUGGLES
MIGHT COME OUT. FINANCING FOR
EDUCATION WITH AS FEW LOANS AS
POSSIBLE PUT A HUGE STRESS ON
HER FAMILY WHICH MADE HER FEEL
SO ANXIOUS AND GUILTY THAT SOME
NIGHT SHE COULD NOT FOCUS ON HER
HOMEWORK OR EVEN HER WORK IN THE
COMMUNITY WHICH SHE LOVED. IT
WAS HEARTBREAKING FOR ME TO SEE
HER IN TEARS AFTER CONVERSATIONS
WITH HER FOLKS, WHO ARE SO
STRESSED SHE BECAME PHYSICALLY
ILL SHEET FREQUENTLY FEELS BAD
ABOUT GOING OUT TO EAT YOUR
GOING TO A MOVIE ON WEEKENDS
BECAUSE OF THE FINANCIAL AND
EMOTIONAL STRAIN HER COLLEGE
EDUCATION IS PUTTING ON HER
FAMILY. SHE HASN'T EVEN BEGUN TO
PAY OFF HER LOANS YET. SHE IS A
TALENTED KIND IN PASSIONATE
ORGANIZER AND I'M AFRAID IN HER
QUEST TO FIND A JOB WITH A
SALARY HIGH ENOUGH TO PAY OFFER
LOANS TO WILL HAVE TO SACRIFICE
WORKING WITH A NONPROFIT OR
COMMUNITY ORGANIZATION TO
IMPROVE THE LIVES OF
MINNESOTANS. THIS WOULD BE A
DEVASTATING LOSS OF BOTH TO HER
AND TO OUR STATE TODAY AND
ASKING OUR LEGISLATORS NOT TO
LET THAT HAPPEN. HELP EASE THE
MENTAL AND EMOTIONAL ANGUISH
CAUSED BY THE UNDUE FINANCIAL
BURDEN OF STUDENT DEBT. THANK
YOU.
>> THANK YOU SAY IT NOW WE WILL
HEAR FROM REPRESENTATIVE
DORHOLT.
>> THANKS FOR COMING OUT AND
THANK YOU FOR BEARING THE BURDEN
IN THE NAME OF HIRE EDUCATION.
I'M STATE REPRESENTATIVE FROM 14
BE IN ST. CLOUD WHERE IT'S HOME
TO THE LARGEST MNSCU SCHOOL ST.
CLOUD STATE UNIVERSITY WHERE I
WROTE A CHECK FOR TUITION IN
1999 FOR $1,200. BY THE TIME I
GRADUATED THAT PRICE HAD
DOUBLED. YOU LOOK AT THESE
NUMBERS HERE FROM A POOR YEAR
DEGREES AND YOU ASK YOURSELF
WHAT ABOUT THE FOLKS WHO WANT TO
GO ON FOR A MASTER'S OR
DOCTORATES AND PEOPLE ARE NOT
BECAUSE OF THIS. EVERY WORD
UTTERED IN HIGH SCHOOL WAS ALL
YOU OUGHT TO DO IS GET INTO
COLLEGE AND EVERYTHING WILL BE
GREAT. AS WE ARE LEARNING NOW WE
HAVE A GREAT EDUCATION AND A
STATE THAT IS KNOWN TO THAT'S
WHAT PUT US ON THE MAP, BUT
THESE THINGS ARE HOLDING US
BACK. THE NATIONAL LEVEL WHO
THEY ARE HEARING ABOUT THE
HOUSING BUBBLE IF YOU START
LOOKING AT THESE NOVELS YOU
MIGHT BE CONCERNED ABOUT THE
STUDENT LOAN DEBT BUBBLE AND
THAT MIGHT BE THE NEXT ONE WE
FACE. AS VICE CHAIR OF HIGHER
EDUCATION I HAVE HEARD A LOT
ABOUT AND QUESTIONS ABOUT WHAT
CAN WE DO ABOUT THE COST OF
COLLEGE? WHAT WE'RE LEARNING IS
SOME HARD TRUTHS THAT THERE
ISN'T AS MUCH AS WE WOULD LIKE
TO DO ISN'T AVAILABLE TO KEEP
THOSE COSTS DOWN. THE COST
AREN'T GOING TO GO WAY, SO THIS
IS ONE THING ONE TOOL THAT WILL
HELP RELIEVE ONE OF THE TOP
BURDENS WE HAVE HERE IN
MINNESOTA FOR EVERYONE IN THIS
ROOM FOR THE FOLKS IN HIGH
SCHOOL WHO WANT TO GO TO
COLLEGE FOR EVERYONE WHO IS
HEARING DATE AFTER COLLEGE TO
GET A GOOD JOB. THIS IS ONE
TOOL THAT WE CAN MOVE MINNESOTA
FORWARD WITH AND HELP EASE AND
UNNECESSARY BURDEN IF FOR GOING
TO KEEP MINNESOTA AND HUMAN
CAPITAL AS THEIR NO. 1 PRIORITY
BECAUSE IT IS OUR NUMBER ONE
ASSET AND I WOULD HATE TO SEE US
LOSE THAT BECAUSE WE CAN'T DO
ANYTHING TO HELP STUDENTS KEEP
THIS PROBLEM AT BAY. THANK YOU
FOR THE SUPPORT AND KEEP
TALKING.
>> THANK YOU REPRESENTATIVE
DORHOLT. NOW WE WILL HEAR FROM
HEATHER JOHNSTON A SENIOR AT
NORTH HIGH SCHOOL.
>> I'M HEATHER JOHNSTON A SENIOR
AT NORTH HIGH SCHOOL IN NORTH
ST. PAUL. I'M HERE TODAY IN
SUPPORT OF OPPORTUNITY
MINNESOTA. I'M CONSIDERING THE
UNIVERSITY MINNESOTA TWIN CITIES
AS WELL AS OTHER INSTITUTIONS
ACROSS THE COUNTRY AS A LOOK
TOWARDS MY GRADUATION IN MAY. MY
EDUCATION WILL NOT STOP AFTER A
BACHELOR'S DEGREE. I CURRENT
CAREER PATH IS TO PURSUE
BIOLOGICAL SCIENCES AND CONTINUE
MY EDUCATION INTO THE MEDICAL
FIELD. IT'S DAUNTING TO THINK
ABOUT THE ENORMOUS PILE OF DEBT
I WILL HAVE INCURRED AFTER
PURSUING FURTHER EDUCATION INTO
A MASTER'S DEGREE AND
EVENTUALLY A PHD. THIS POLICY
WILL BE AN INCREDIBLE INCENTIVE
FOR CHOOSING TO STAY IN
MINNESOTA AFTER OBTAINING A
DECREASE. I'M THE YOUNGEST THREE
DAUGHTERS AND MY FAMILY AND HAVE
NOT YET STARTED MY COLLEGE
EDUCATION AND MY PARENTS OF
ALREADY INCURRED OVER $40,000 IN
COLLEGE DEBT. THIS IS AN
ENORMOUS BURDEN FOR MY FAMILY TO
BEAR AND IT'S ONLY GETTING
BIGGER. MY FAMILY IS IN THE
FORTUNATE POSITION OF BEING ABLE
TO TAKE ON THIS DEBT, HOWEVER I
CAN SAY THE SAME IS NOT TRUE FOR
MANY OF MY PEERS WHO ARE
CHOOSING TO FORGO A HIGHER
EDUCATION FOR EMPLOYMENT THREAT
OF HIGH SCHOOL. I PARENTS AS THE
GRADUATE COLLEGE HAVE LITTLE TO
NO DEBT, THE SAME IS CERTAINLY
NOT TRUE FOR MY GENERATION. I
WANT TO STAY AND LIVE IN THE
STATE WILL FOR MY EDUCATION AND
FUTURE EMPLOYMENT I UNDERSTAND
THE COST OF HIGHER EDUCATION IS
NOT GOING TO GO AWAY BUT THE
EFFECTS OF THIS BILL CANNOT BE
ACHIEVED MY ACADEMIC GOALS WHILE
ALLOWING ME TO STAY IN THE STATE
THAT I LOVE. I WANT IS NOT ONLY
FOR MYSELF BUT FOR MY PEERS AND
FUTURE HIGH-SCHOOL GRADUATES.
THANK YOU.
>> THANK YOU HEATHER. NOW WE
WILL ALSO HEAR FROM A SENIOR AT
NORTH HIGH SCHOOL.
>> I'M ALSO A SENIOR AT NORTH
HIGH SCHOOL IN NORTH ST. PAUL.
I'M ALSO HERE TODAY TO TESTIFY
IN SUPPORT OF OPPORTUNITY
MINNESOTA. I'M ONE OF APPEARS
THAT HEATHER JUST SPOKE ABOUT
AND I'M CONSIDERING NOT GOING TO
COLLEGE DUE TO THE OVERWHELMING
DEBT HIGHER EDUCATION THAT IS A
HUGE BARRIER FOR ALL STUDENTS
AND I'M CERTAINLY NO EXCEPTION.
I REALLY HAVE TWO SISTERS WHO
HAVE GRADUATED WITH ENORMOUS
DEBT ONE OF WHICH ROSE $24,000
ALONE IN HER UNDERGRADUATE
YEARS. MY FAMILY IS A MIDDLE-
CLASS FAMILY THAT ALREADY HAS A
HARD TIME PROVIDING FOR US AS IT
IS. IT MEANS AT OUR TO GO TO
COLLEGE I WOULD CERTAINLY HAVE
TO TAKE OUT A LOAN IN ORDER TO
DO SO. MY PARENTS ARE HARD
WORKERS AND IMMIGRANTS TO THIS
COUNTRY AND NEVER HAD THE
OPPORTUNITY THAT I HAVE TO GET
AN AMERICAN EDUCATION I WANT TO
TAKE THE OPPORTUNITY THAT THEY
NEVER HAD BOUGHT AT THE SAME
TIME THERE ARE OTHER
OPPORTUNITIES THAT WOULDN'T BURN
ME WITH THIS DEBT. THE COST AND
AT HIGHER EDUCATION IS A REAL
BARRIER FOR ME IN CONSIDERING
ANY OTHER PATH. IF THIS BILL
WERE TO PASS, I COULD TELL YOU
WOULD DIRECTLY INFLUENCE MY
DECISION TO GET A COLLEGE
DEGREE. I WOULD GO TO COLLEGE
AND I URGE THE MINNESOTA
LEGISLATURE TO PASS OPPORTUNITY
MINNESOTA FOR MYSELF AND ALL
THOSE LIKE ME WHO WISH TO PURSUE
THEIR DREAMS.
>> THANK YOU VINCENT. NOW WE
WILL HEAR A JUNIOR FROM THE
UNIVERSITY MINNESOTA TWIN
CITIES.
>> THANK YOU. THERE ARE SEVERAL
WAYS TO ADDRESS THE ISSUE OF
HIGHER EDUCATION DEBT. TO BE
SURE WE NEED TO RETURN TO THE
KMIT IN STATE STATUTE 1358 TO
ADHERE TO THE TWO-THIRDS
INVESTMENT FOR MINNESOTA STATE
MINNESOTA FOR PUBLIC
INSTITUTIONS TO PROVIDE ACCESS
TO AFFORDABLE HIGHER EDUCATION
AND BY DOWN TUITION. AS YOU HAVE
HEARD WE'RE FACING A CHALLENGE
THAT'S MUCH DIRE AND REQUIRES
INNOVATIVE SOLUTIONS OPPORTUNITY
MINNESOTA 7, 97 AND HOUSE FILE
1097 IS THE INNOVATIVE SOLUTION
TO THIS CHALLENGE. AT THE RISE
HIGHER EDUCATION DEBT RELIEF AND
IS AT THE SAME TIME WERE FORCED
TO BOW AND WILL EVIDENCED BY THE
REPORT WE RIP OUR LEASING TODAY
THE PERSONAL STORIES OF HIGH
SCHOOL STUDENTS BEFORE US,
POLICIES LIKE OPPORTUNITY
MINNESOTA HAVE PROVEN TO
INCREASE COLLEGE ENROLLMENT
PARTICULARLY FOR LOW AND MIDDLE-
INCOME STUDENTS. AND BILL AND
ASK AND WORK FORCE THAT CAN
DRIVE THE ECONOMY WAS HINDERED
BY DEBT. HOW IS THE OPPORTUNITY
MINNESOTA WORK? OPPORTUNITY
MINNESOTA PROVIDES A TAX CREDIT
FOR STUDENT DEBT PAYMENTS MADE
DURING THE PRIOR YEAR. THE
INDIVIDUAL WITH DEBT FROM
FEDERAL STUDENT LOANS IS
ELIGIBLE TO CLAIM THE CREDIT AS
LONG AS THE GRADUATE FROM HIGHER
EDUCATION INSTITUTION IN
MINNESOTA AND WORK IN THE STATE
FOLLOWING GRADUATION. AND OURS
TO OFFER DEBT IN AN ASSISTANCE
AS A BENEFIT AND CLIMATE ARE
ALSO ABLE TO CLAIM THOSE
PAYMENTS AS A TAX DEDUCTION. THE
TOTAL CREDIT ALLOWED IS LIMITED
EACH YEAR TO THE LESSER OF THE
PRINCIPAL AND INTEREST PAYMENTS
MADE IN THE PRIOR YEAR FOR
$4,000. IT CAN BE CLAIMED FOR NO
MORE THAN 10 YEARS. THE CREDIT
IS ALSO TARGETED TO BENEFIT
THOSE WHO NEED IT MOST, AS
INCOME GOES UP THE AMOUNT THE
CREDIT THE INDIVIDUAL CAN CLAIM
IT GOES DOWN. THE REPORT WE ARE
RELEASING TODAY CALLED UP TO THE
MINNESOTA AND ECONOMIC ANALYSIS
WAS CONDUCTED BY APPLIED
ECONOMISTS AT THE UNIVERSITY
MINNESOTA. THE ANALYSIS
INDICATES THERE ARE 800,000
$847,000 IN SOCIAL BENEFITS AND
$103,000 IN FISCAL BENEFITS TO
THE STATE OF MINNESOTA AS A
RESULT OF INDUCING JUST ONE HIGH
SCHOOL STUDENT TO ATTAIN A
DEGREE. THAT IS A TOTAL OF
NEARLY $1 MILLION IN BENEFITS
PER STUDENT. THIS IS A CRITICAL
IMPORTANCE ASPECT OF THIS
POLICY. ALL WE RECOGNIZE THE
PROGRAM HAS UPFRONT COSTS THE
ANALYSIS INDICATES THAT IT WILL
PAY FOR ITSELF IF WE CAN INDUCE
JUST 2% OF HIGH-SCHOOL STUDENTS
ARE HIGH-SCHOOL GRADUATES TO 12
PERCENT OF THE COLLEGE COACH FOR
EACH YEAR TO ATTAIN HIGHER
EDUCATION DEGREE. IT IS THAT
REQUIRED PROPER TO MINNESOTA TO
OFFSET THE FISCAL COSTS IN THE
STATE IS FEASIBLE ACCORDING TO
THE EXISTING STUDIES AND
ECONOMIC LITERATURE ON HIGHER
EDUCATION AND DEBT REDUCTION
PROGRAMS. WHAT A CLEAR
ADVANTAGES OF THE POLICY
APPROACH IS THAT REWARDS THOSE
WHO GRADUATE AND THEN STAY IN
MINNESOTA TO CONTRIBUTE TO OUR
WORK FORCE. IN THAT WAY IT'S
AMERICA BASED TAX CUTS PROVIDED
TO THE NEWS MEMBERS OF THE
MIDDLE-CLASS AS THEY ACHIEVE A
HIGHER EDUCATION. IT'S AFTERNOON
AT 3:00 THE BILL GET ITS FIRST
HEARING IN THE SENATE HIGHER
EDUCATION COMMITTEE WHERE WE
WILL HEAR FROM MORE STUDENTS
ABOUT THE STORIES OF STUDENT
DEBT HERE AGAIN FROM AMAZING
HIGH SCHOOL STUDENTS ON THE
BARRIERS OF THE COST OF COLLEGE
AND IT IMPOSES ON THE STATE'S
FUTURE LEADERS. AND HEAR
DIRECTLY FROM THE ECONOMICS WHO
HAS DEVELOPED THE SERIES. THANK
YOU.
>> THANK YOU BRIAN LET'S HEAR
FROM SENATOR CLAUSEN.
>> GOOD MORNING. IT IS A
PLEASURE TO BE HERE WITH YOU
TODAY TO SPEAK IN SUPPORT OF
SENATE FILE 997 THE EDUCATION
OPPORTUNITY CREDIT. AS A MEMBER
OF THE STATE SENATE HIGHER
EDUCATION COMMITTEE WE HAVE
HEARD FROM MNSCU WE'VE HEARD
FROM THE UNIVERSITY OF MINNESOTA
AND WE HAVE HEARD FROM PRIVATE
COLLEGES WE HAVE HEARD FROM FOR-
PROFIT COLLEGES AND I'VE HEARD
FROM MANY THE STUDENTS WHO ARE
HERE TODAY IN MY OFFICE ABOUT
THE HIGH COSTS OF TUITION AT
WHAT THE STATE OF MINNESOTA CAN