[Congressional Record Volume 153, Number 79 (Monday, May 14, 2007)]
[Extensions of Remarks]
[Page E1033]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E1033]]


                     THE STUDENT LOAN SUNSHINE ACT

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                         Wednesday, May 9, 2007

  Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise to support the Student 
Loan Sunshine Act, and to congratulate Chairman Miller and Ranking 
Member McKeon for moving quickly on this critical issue.
  The recent investigation by New York Attorney General Andrew Cuomo 
has brought attention to serious problems in our student aid industry. 
While it is unfair to malign all schools and all lenders, it is clear 
that in large part due to lax oversight by the Department of Education, 
there have been many instances of actions intended for profit--rather 
than for improving student access to education. It is time to put an 
end to the conflicts of interest and corrupt practices that increase 
costs for students and taxpayers.
  This legislation is an important first step in improving oversight of 
the student loan industry and in ending inappropriate relationships 
between lenders and colleges and universities.
  H.R. 890 will ban loan arrangements that include benefits to higher 
education institutions, prohibit lenders from serving as staff in 
campus financial aid offices, and ban gifts from lenders to campus 
officials and their families. It allows the continuation of preferred 
lender lists but requires that these lists include at least 3 lenders 
and that the institutions explain their choices. This bill includes 
civil penalties for companies that violate the new regulations and 
increases the Department of Education's authority to regulate the 
private loan market. The Student Loan Sunshine Act also makes it clear 
that lenders who are transparent in their processes and advocate on 
behalf of students continue to be an important part of the student aid 
system.
  Mr. Speaker, the recent scandals in the student loan industry 
illustrate the Department of Education's failure to adequately regulate 
the student loan industry and the conflicts of interest too often noted 
in this administration. As the New York Times reported, Department 
officials were alerted to inappropriate lender subsidies in 2003 and 
failed to act. This week a top ED official, who formerly worked for 
Sallie Mae, has resigned. It has also been noted that a recently 
investigated lender was a top contributor to the Republican party. It 
is time to refocus higher education policy where it should be--on the 
student.
  This Congress has made access to higher education a priority. It is 
critical to the future of students, our communities and our Nation. 
With more and more students and parents relying on student loans and 
with student debt burden increasing, clearly we must do all we can to 
ensure the integrity of student aid programs. The Student Loan Sunshine 
Act is an important first step. I also look forward to working with 
Chairman Miller and the other members of the Education and Labor 
Committee to pass a strong Higher Education Act Reauthorization that 
protects students, increases access to higher education, and improves 
our Nation's global competitiveness.
  I urge my colleagues to join me in supporting H.R. 890.

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