Mr. Redfield of Maine and Mr. Cherry of North Carolina introduce for themselves and Mr. Cole, Ms. Wood, Mr. Carpenter, Mr. Garwood, Mr. Plawinski, Mr. Littwin, Mr. Hollins, Mr. Laverone, Mr. Portela,

The Federal Student Scholarship Act of 2004

Section One (1) - Findings:

1) The price of a college education has increased exponentially over the past years, far outgrowing inflation. The College Board released a study in December of 2003 that noted the average price of tuition (excluding room and board) have grown 7.7% and 5.7% for public and private colleges and universities since 2002. The study projects the price will increase by at least a factor of four within the next four years.

2) Many families in America find themselves unable to pay for a college education. USA Today released a document in January of 2004 stating that 63% of students would not be able to attend college without significant financial assistance - and over 25% of the students in America are currently receiving no Federal Financial Aid.

Section Two (2) - Intent

1) Passing this bill would authorize Congress to levy a 5 cent tax on packages of consumer bought cigarettes and tobacco products.

2) Profits from this tax would be earmarked for a Federal Student Scholarship Fund to supplement the Pell Grant Program already in place.

Section Three (3) - Estimates

1) The United States Council on a Smoke Free America estimates that there are 23,000,000 packs of cigarettes sold in America per year.

2) A 3.8 cent tax on each pack of cigarettes sold to consumers would generate upwards of $1,150,000,000 in revenue to be directed solely to a Federal Student Scholarship Fund.

3) The United States Census Bureau estimates there are 16,374,000 students in high school throughout the United States of America.

4) The United States Council on a Smoke Free America released a study claiming that a 10% increase would decrease cigarette usage in adult smokers by 3%-5% and predicted that a similar increased could decrease cigarette usage by underage smokers by up to 25%.

5) Based on the financial report from the Department of Education of Fiscal Year 2003 - an additional $1,150,000,000 in grantable monies would significantly decrease the 25% of American students who receive no financial aid and, as a result, do not attend a secondary education institution.

Section Four (4) - Stipulations

1) This bill would be enacted beginning the fiscal year of 2006.

2) The Federal Student Scholarship Fund would be administered by the Department of Education as an extension of the Free Application for Federal Student Aid (FAFSA) Program. All grants and scholarships would be need based, as determined by the Department of Education.

Section Five (5) - Sources

http://www.impacteen.org/generalarea_PDFs/AccessLaws.pdf
http://www.usatoday.com/news/education/200...ollege-jobs.htm
http://www.fafsa.ed.gov/
http://www.fool.com/college/college01.htm