[Congressional Record Volume 144, Number 137 (Monday, October 5, 1998)]
[Senate]
[Page S11504]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        STUDENT LOAN FLEXIBILITY

 Mr. GREGG. Mr. President, if I could have the attention of the 
distinguished chairman of the Committee, Senator Jeffords, I would like 
to engage him in a brief discussion of a proposal that was raised 
during Senate consideration of the higher education reauthorization 
bill.
  As the chairman will recall, the managers' amendment offered during 
Senate consideration included sense-of-the-Senate language regarding 
the need for greater flexibility in federal student loan programs. 
Specifically, there were some of us interested in increasing the annual 
limits on unsubsidized loans while maintaining the aggregate limits, so 
that students could take greater advantage of federal loans available 
at lower interest rates. Unfortunately, a substantive amendment to 
advance that proposal was scored by the Congressional Budget Office 
(CBO) as increasing mandatory spending, and adequate offsets could not 
be found.
  My purpose in raising this matter again today is to elicit from the 
chairman an indication of his support for this loan flexibility 
proposal on a substantive policy basis, in the hope that, if we can 
ever find the additional resources necessary to cover its costs, we 
might enjoy the chairman's support in pressing for its enactment.
  Mr. JEFFORDS. Mr. President, I agree with the Senator from New 
Hampshire that one of the main obstacles to the adoption of the loan 
flexibility proposal was the cost implications raised by CBO. In fact, 
budget considerations prevented us from making a number of beneficial 
changes in the Act which I know members would have liked to have 
provided. I am favorably disposed to the loan flexibility proposal on a 
substantive policy basis, and I am willing to continue to work with the 
Senator from New Hampshire and other interested parties to gain its 
enactment.
  Mr. GREGG. Mr. President, I very much appreciate the chairman's 
comments and his support and look forward to our continued work 
together.

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