Aderholt Remarks at Hearing on Career Ready Students
Good morning. Thank you to our witnesses who have come to testify before us today on the topic of career preparation, and the importance of maximizing students’ employment and earnings potential. I look forward to hearing about what you have identified works for students and what we should bear in mind as we evaluate programs in the subcommittee’s jurisdiction.
An education, whether a two or four year degree or other credential, is likely to be among one of the larger investments individuals will make in their lifetime. It is, in fact, an investment in themselves. An investment in their future.
Students rightfully expect to get a good return on their investment, by moving up the economic ladder, finding a job in their chosen industry, and being able to provide for themselves and their families.
It’s no secret that college costs can be high – many of us have experienced this in our own families. Each year the federal government provides more than $100 billion in grants and loans to help students pay for college.
The Congressional Budget Office projected that the federal government would issue about $90 billion in new student loans in 2025, with roughly half going to undergraduates or parents of undergraduates, and the other half going to graduate students.
All told, 43 million borrowers currently have a total of $1.6 trillion in outstanding federal student loans. About half of these borrowers owe less than $20,000 and about three-quarters owe less than $40,000 – these amounts are far below amounts often featured in the mainstream media.
Financing higher education - for both the Federal government and the individual - is a significant investment. Borrowers expect it to be worth it on the other side of graduation, with expanded job opportunities and higher pay, but that is only one side of the equation. Taxpayers also deserve to know their money is being well spent. For 2025, the Congressional Budget Office expects the government to lose 18 cents for every dollar it lends in 2025. In the recent era of higher inflation, brought on by unnecessary Federal spending, students would benefit even more from cost-effective ways to obtain the knowledge and skills needed to advance in the labor market.
College can and does translate into financial benefits that make their time and money worth it, but for too many this is not a universal experience. And for many, completing a degree is a big hurdle. According to the National Student Clearinghouse Research Center, the overall six-year graduation rate in 2024 was about 61 percent, this means nearly two in five students who enrolled in 2018 did not finish within six years; by eight years, the completion rate was only a few percentage points higher. These rates are unacceptable – we can and should be doing better for our students.
Right now, there are 8 million jobs unfilled in the country, with just 7 million unemployed individuals looking for work. While labor force participation among people in their prime working years has rebounded, overall participation still lags pre-pandemic levels, and even then, participation had generally been trending lower than just a decade or two earlier.
Small businesses regularly report difficulty finding qualified applicants for available jobs, and there are concerns about shortages in key industries such as manufacturing, especially if a mismatch between in-demand jobs and workers with the necessary skills persists.
Thankfully there are innovative leaders focused on students’ outcomes. I’m pleased we will be able to hear from some of them today about what they have found is working for students, including the perspectives of private industry and community colleges.
I think many of us have heard from businesses in our districts about the need for skilled workers in high-demand fields, such as health care, manufacturing, or construction trades. Employers have a strong pulse on current and future workforce needs, and we will hear today from a company about programs they developed to educate students and develop talent.
I would also like to highlight that we will hear from a community college in my district. Community colleges serve students from a variety of backgrounds and goals. Some seek a certificate, others an associate’s degree, and still others plan to transfer to a four-year program. Some are currently in high school, dual enrolled in college, while others are right out of high school. Others are older, and some are trying to change careers and have families and work responsibilities. I look forward to hearing about the continued success of this school, and how it is focused on improving students’ outcomes, including retention, completion, earnings, and employment opportunities.
Before I turn to Ranking Member DeLauro for her remarks, I will introduce our panel of witnesses. First, we have Mr. Preston Cooper, who is a Senior Fellow at the American Enterprise Institute. His research focuses on the return on investment of different types of higher education. Next, we will hear from Dr. Vicki Karolewics, president of Wallace State Community College in Hanceville, Alabama. I look forward to hearing from an education leader from the fourth district of Alabama and about how your institution works to increase students’ success. We will also hear from Mr. Dennis Parker, a consultant in North American Regional Talent Development at Toyota, who will tell us about the successful approach Toyota has taken to develop talent. And last, but not least, we will hear from Mary Alice McCarthy, senior director of the Center on Education & Labor at New America, whose expertise includes college and career readiness, credentialing, and workforce development. You are all busy, so we appreciate you taking time to share your insights with us today.
I would now like to turn to the Committee’s Ranking Member for any remarks she would like to make.
