GRAMM-RUDMAN-HOLLINGS IS IMPERFECT BUT NECESSARY, SAYS DODD - PENNSYLVANIA'S GRADUATE STUDENT DEBT SEEN GROWING RAPIDLY

Sep 28, 2026

News coverage on federal budget policy and its consequences for higher education, focusing on Sen. Christopher Dodd’s view that the Gramm-Rudman-Hollings balanced budget law is imperfect but necessary to protect education spending. A separate section reports rapid growth in Pennsylvania graduate and professional school Guaranteed Student Loan debt, citing PHEAA figures and analyzing default behavior, debt escalation, and inflation-adjusted trends from 1974-75 to 1983-84.

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GRAMM-RUDMAN-HOLLINGS IS IMPERFECT BUT NECESSARY, SAYS DODD

PENNSYLVANIA'S GRADUATE STUDENT DEBT SEEN GROWING RAPIDLY

Vol.14,No.44 Thursday,March 6,1986 GRAMM-RUDMAN-HOLLINGS IS IMPERFECT BUT NECESSARY,SAYS DODD While admitting it"may not be perfect,"one key Senate Democrat says theGramm-Rudman-Hollings balanced budget law could help higher education programsin the long run by forcing Congress to deal with the deficit. By taking on the deficit,says Senate Labor and Human Resources Committee mem-ber Christopher Dodd,D-Conn.,Congress should be equipped to "keep educationcuts to a minimum."Moreover,Dodd says,the public finally gets a sense ofwhere members of Congress stand on education programs.Forcing budget cuts"wil1 be a realistic report card"of their activities,he explained. Dodd made his remarks during a Graduate and Professional Financial Aid Councilmeeting in Washington,D.C.,Tuesday.While attesting that potential cuts dueto Gramm-Rudman-Hollings sequestration goes against many of his liberal in-stincts,Dodd said Gramm-Rudman is far better than other ideas floating around,such as giving President Reagan line-item veto power. The Reagan administration,never a fan of student aid or many other social pro-grams that enjoy public support,may have manufactured the deficit,Dodd said.By so doing,the administration enhanced its position against those programs byarguing for budget cuts from a fiscal rather than a philosophical base,he ex-plained. Money TalksThe administration was aided,Dodd said,by growing publicconcern about the deficit,saying the time had come to "reverse this cycle.While Jesse Jackson may be talking"against the cuts,said Dodd,administrationstandard-bearer Sen."Jesse Helms [R-N.C.]is winning,"because of the budgetdeficit. Moreover,the Reagan administration's proposal to cut s1.7 billion in federalstudent aid in fiscal 1987 may be"far greater"than the student aid budgetsequestration that would take place under Gramm-Rudman-Hollings,Dodd said.The Reagan budget cut represents an approximate 23 percent cut in student aid,Dodd said.Cuts under Gramm-Rudman-Hollings for fiscal 1987 are estimated atfrom 15 percent to 30 percent. Dodd says the federal commitment to education spending must remain strong,forsocial,economic,political and even defense reasons."I almost feel foolishtalking about it,"he said."It should be self-evident today." What's more,Dodd's family constantly reminds him of the importance of federalfunds for education,he said.His brother is a Georgetown University professorand three other family members are involved in education."I get lobbied atevery level,"he said.--Bill Reinhard ( 6 March 6,1986 # PENNSYLVANIA'S GRADUATE STUDENT DEBT SEEN GROWING RAPIDLY Average graduate and professional school Guaranteed Student Loan(GSL)debtlevels in Pennsylvania rocketed from $4,207 in 1974-75 to $11,531 in 1983-84--an increase of 174 percent--according to a newly released report. The study,by the Pennsylvania Higher Education Assistance Agency(PHEAA),says41 percent of that increase has occurred in the last three years."That trendis almost certain to have continued through the current year,"added JerryDavis,PHEAA's director of research and policy analysis. Yet,despite the high debt burden,Davis told the Graduate and ProfessionalFinancial Aid Council in Washington,D.C.,that the state's former graduatestudents rarely default on their Guaranteed Student Loans(GSLs).Davis saysPennsylvania's graduate student GSL default rate accounts for just 6 percent ofthe state's overall rate. Tied To Employment"Default possibilities seem more closely related towhether [those leaving school]had jobs when their loans matured than whetheror not they borrowed too much,"Davis said yesterday. The increasing debt burden remains a concern for many members of Congress andthe higher education community,and PHEAA's report,"Growing by Leaps andBounds,"says that increases in Pennsylvania's debt burden has outstripped theinflation rate. "In constant [inflation-adjusted]dollars,the graduate and professional school

FAQs

Why does Sen. Christopher Dodd say Gramm-Rudman-Hollings is imperfect but necessary?

He argues the balanced budget law may not be perfect, but it could help protect higher education by forcing Congress to address deficits and keep education cuts to a minimum.

What does the Pennsylvania report say about graduate student debt growth?

It shows average Guaranteed Student Loan debt in Pennsylvania rose sharply from $4,207 in 1974-75 to $11,531 in 1983-84, an increase of 174%.

How does Pennsylvania’s report describe default risk for graduate GSL borrowers?

It notes that, despite high debt, graduate students in Pennsylvania rarely default, with the graduate student GSL default rate accounting for about 6% of the state’s overall rate.

Sep 28, 2026

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