[Congressional Record Volume 153, Number 13 (Tuesday, January 23, 2007)]
[Extensions of Remarks]
[Page E176]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   COLLEGE STUDENT RELIEF ACT OF 2007

                                 ______
                                 

                               speech of

                         HON. BRIAN P. BILBRAY

                             of california

                    in the house of representatives

                      Wednesday, January 17, 2007

  Mr. BILBRAY. Madam Speaker, I rise in opposition to H.R. 5, the 
College Student Relief Act of 2007.
  Make no mistake; H.R. 5 is a bad bill which does not live up to its 
title. In fact, this legislation provides no assistance to help future 
and current students attend college. Instead of helping increase 
attendance, this legislation seeks to reduce interest rates for those 
making payments on their student loans. This is a worthy goal. But this 
legislation accomplishes this by taxing private lenders, ultimately 
reducing the number of lenders willing to participate in the student 
loan program.
  H.R. 5 provides a short-term reduction in interest rates for students 
who received federally guaranteed subsidized loans while they were 
attending college. In order to pay for this required rate reduction, 
this legislation forces private lenders to reduce their rates below 
market value. Additionally, this legislation doubles the tax imposed on 
these lenders by increasing the lender origination fee from .05 percent 
to 1 percent.
  Over the course of this debate we have heard stories from Members of 
Congress about how the ability to go to school greatly added to their 
quality of life. I agree wholeheartedly that there are numerous 
benefits to attending college. However, not one of those Members of 
Congress would have had greater access to college if H.R. 5 had been in 
effect when they were undergraduates, because this bill does nothing 
for aspiring students.
  Finally, I think it is important to note that we have a very 
competitive private marketplace providing student loans. When the 
government places mandates reducing their ability to compete--we all 
lose by driving competitors out of the marketplace. H.R. 5 directly 
targets the Federal family education Loan industry, dealing a 
devastating blow to the industry that has helped millions of students 
go to college.
  I urge my colleagues. to oppose this legislation and work toward a 
bill that will actually help college students realize their goals of 
furthering their education.

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