[Congressional Record Volume 140, Number 41 (Friday, April 15, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 15, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 S. 2004, STUDENT LOAN ELIGIBILITY FOR CERTAIN INSTITUTIONS OF HIGHER 
                               EDUCATION

                                 ______


                        HON. WILLIAM (BILL) CLAY

                              of missouri

                    in the house of representatives

                        Thursday, April 14, 1994

  Mr. CLAY. Mr. Speaker, I rise in support of S. 2004, the extension of 
the college loan default exemption for certain institutions of higher 
education.
  This legislation will extend the exemption for historically black 
colleges and universities, Tribally controlled community colleges and 
Navajo community colleges from the 25 percent default cutoff for 
participation in the student loan program until July 1, 1998.
  My remarks will address the necessity of this legislation for 
historically black colleges and universities (HBCUs).
  First, institutional measures to reduce default rates are already 
underway and time must be allotted to permit these measures to have an 
impact on the default rates. Second, this extension will allow the 
higher education community time to work with the Department on 
developing criteria to address the issue of loan defaults.
  Mr. Speaker, postponing congressional action on this exemption places 
these institutions at very serious risk of closure because the 
institutions affected enroll disproportionately large numbers of 
students who rely on student loans in order to be able to even attend 
institutions of higher education. The cessation of funding for the 
students would have a calamitous effect on the operations and even the 
survival of a significant number of HBCUs.
  Although defaults at historically black colleges and universities 
make up less than three percent of all higher education defaults, based 
on the 1990 cohort default data, more than one-third of the 
historically black colleges and universities could be eliminated from 
the student loan program this year, if the exemption is not extended.
  Many of the students that attend HBCUs have unusual conditions. What 
has historically been true, and that fact remains today, is that HBCUs 
have been the college of last resort for a great number of black 
students who have the scholastic ability but lack the fiscal and 
monetary resources in order to attend colleges and universities.
  I firmly believe that, in spite of the current fiscal difficulties, 
that it is in our national interest to support black and minority young 
people in the Nation's historically black colleges and universities. 
The other vital dimension is that the graduates of these HBCUs 
contribute to the national economy.
  Mr. Speaker, these students represent a previous and vital human 
capital that we can ill-afford to sacrifice because of their property. 
The national leadership in black America today is overwhelmingly 
products of HBCUs. It is imperative, I believe, that we continue this 
proud and valuable tradition as a service, not only to these young 
people, but also to our Nation.
  Mr. Speaker, I urge my colleagues to support this vital legislation.

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