[Congressional Record Volume 154, Number 60 (Wednesday, April 16, 2008)]
[House]
[Pages H2394-H2399]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ENSURING CONTINUED ACCESS TO STUDENT LOANS ACT OF 2008
The SPEAKER pro tempore. Pursuant to House Resolution 1107 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the consideration of the bill, H.R. 5715.
{time} 1532
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 5715) to ensure continued availability of access to the Federal
student loan program for students and families, with Mr. Jackson of
Illinois in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered read the
first time.
The gentleman from California (Mr. George Miller) and the gentleman
from California (Mr. McKeon) each will control 30 minutes.
The Chair recognizes the gentleman from California (Mr. George
Miller).
Mr. GEORGE MILLER of California. I yield myself 5 minutes.
Mr. Chairman, Members of the House, I rise in strong support of H.R.
5715, the Ensuring Continued Access to Student Loans Act of 2008. It
was reported by the Committee on Education and Labor with unanimous
bipartisan support, and I want to thank my colleagues on both sides of
the aisle for all of the effort they put into this legislation. It is a
very important piece of legislation.
At a time when the turmoil in the Nation's credit markets has made it
difficult for some lenders to access the capital they need to finance
their student lending activity, this bipartisan bill will ensure that
students and parents are able to continue to access the federal loans
they need to pay for college.
For quite some time now, the worsening economic downturn has made
life more difficult for many of America's families. But this downturn
has its root in the housing crisis, which has led to significant
tightening in the credit markets. What began as a challenge for home
loan borrowers has now become a challenge for other borrowers, like
those with credit card debt and automobile loans.
And in recent months, we have now seen questions raised about the
availability of student loans for the coming year, especially when
those who finance their loans through the auction rate securities, that
system has ceased to function.
As a result, some lenders are reducing their lending activity in the
federally guaranteed student loan programs, while other lenders are
anticipating increasing their market share.
And while the stress in the credit markets is taking a toll on some
lenders, students so far have not encountered serious difficulties in
getting federal loans they need to pay for college. That's the good
news.
But as we have seen too often, the shocks in the financial markets
come as a surprise leaving those affected with little time to react.
There is emergency authority already built into the current law which
would maintain access to federal loans for families in the event of any
of these surprises.
It is critical to make sure that this authority is ready to be
implemented to ensure America's families can continue to access the
federal college loans they are eligible for, regardless of what's
happening in the credit markets.
As we work with Secretary Spellings to make sure these safeguards are
ready to become operational at a moment's notice, we must also take
additional steps on behalf of students and their families.
This legislation provides new protections, in addition to those in
current law, to ensure that families can continue to access the loans
they need to pay for college.
The bill reduces borrowers' reliance on costlier private loans while
encouraging responsible borrowing by increasing the annual student loan
limits for federal student loans by $2,000 for all students. It also
increases the total amount of Federal loans students can borrow to
$31,000 for dependent undergraduates and to $57,500 for independent
undergraduates.
H.R. 5715 gives parent borrowers more time to pay off their federal
parent PLUS loans by allowing families to delay entering repayment for
up to 6 months after a student leaves school. It helps struggling home
owners pay
[[Page H2395]]
for college by making sure that short-term delinquencies in mortgage
payments don't prohibit otherwise eligible parents from being able to
pay their PLUS loans.
It clarifies that existing law gives the Secretary of Education the
authority to advance federal funds to guaranty agencies in the event
that they do not have sufficient capital to originate new loans. It
allows guaranty agencies to make lender-of-last-resort loans on a
school-wide basis.
And the bill ensures that lenders can continue to access capital to
originate new student loans by giving the Secretary of Education the
temporary authority to purchase federally guaranteed student loans from
lenders, if needed.
Finally, this legislation carries no new costs for taxpayers.
Especially in light of today's economic conditions, the high cost of
a college education continues to be one of the primary worries facing
American families. A recent poll conducted by the New York Times and
CBS News found that 70 percent of the parents surveyed said they were
``very concerned'' about how they would finance their kids' college
education.
Over the past year and a half, this Congress has worked vigorously to
make college more affordable and accessible for students and families.
Last year, we took the historic step towards this goal by providing
more than $20 billion in financial assistance to low- and middle-income
families over the next 5 years.
In February, the House passed bipartisan legislation to reauthorize
the Higher Education Act, and we will soon be prepared to conclude the
conference committee and bring that to the floor.
Now more than ever, families deserve every assurance that we are
doing all that we can to make sure that they can continue to be able to
finance their children's college education, regardless of what happens
in the credit markets.
And I want to again thank Congressman Buck McKeon, Congressman Ruben
Hinojosa and Congressman Ric Keller, the Chair and the ranking member
of the subcommittee, and all of the staff for all of the work they have
put into this legislation. This has been a very fast turnaround. It
could not have happened without the bipartisan cooperation of all of
those involved.
I reserve the balance of my time.
Mr. McKEON. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in support of H.R. 5715, a bill that will help
ensure college students and their families are able to plan with
confidence for the upcoming school year. On its own, this bill will not
restore confidence and stability to the student loan programs, but it
is an important first step.
For months, Members on both sides of the aisle have been warning the
U.S. Departments of Education and the Treasury, the various federal
financial institutions, and indeed anyone who will listen, about the
potential risks to our student loan program. Many of us recognized
early that it was only a matter of time before the turmoil in the
broader credit markets would spill into the student loan programs.
Unfortunately, those warnings have become reality. I would like to
share just a few of the headlines that have appeared in major papers
over the last several weeks. The Wall Street Journal said, Credit Woes
Hit Student Loans. The New York Times said, Fewer Options Open to Pay
For Costs of College. The Washington Post said, Credit Crisis May Make
College Loans More Costly: Some Firms Stop Lending to Students. USA
Today said, Credit Woes May Hinder College-Bound.
Mr. Chairman, with this bill, we are acting to prevent a crisis
before it develops. As these headlines demonstrate, the anxieties among
students and families are very real. This bill is far from a complete
solution. But it contains modest, yet meaningful, steps to restore
investor confidence, begin to address liquidity shortages, and most
importantly, provide assistance to student and parent borrowers.
The challenges in the student loan market are multifaceted. Last
year, federal support for the loan program was slashed, forcing loan
providers to scale back on benefits and reevaluate their future
participation in the program. This year, disruptions in the capital
markets have reduced liquidity and shaken investor and consumer
confidence.
With enactment of the College Cost Reduction and Access Act last
fall, we cut some $18 billion from the program over 5 years. Although
we were able to reinvest some of those funds in Pell Grants, which I
strongly support, it appears now that we may have done more harm along
with that good. That's because we cut so deeply into the student loan
program that many lenders have opted to stop offering federal loans
altogether.
On the issue of liquidity, what we require is a two-pronged approach
to reinstate the flawed capital into the program.
First, this bill authorizes the U.S. Department of Education to act
as a secondary market by purchasing or agreeing to purchase student
loans so that lenders and holders can make or purchase new loans in the
upcoming school year. Although this plan will provide only a modest
amount of liquidity, it sends an important signal that policymakers are
committed to the program's long-term stability. And it does so with no
cost to the taxpayer.
Second, to provide an even greater flow of capital into the program,
we are taking steps to ensure other federal financing authorities are
viewed as viable sources of liquidity. To that end, this legislation
contains a sense of Congress, urging these authorities to exercise
their existing authorities to inject liquidity into the marketplace.
We're not alone in recognizing that this market-based problem
requires a marked-based solution. Just yesterday, the chairman of the
Senate Banking Committee held a hearing on the impact of market
disruptions on student loan access, and he called for intervention by
the Federal Financing Bank. I welcome these types of creative and
complementary approaches, which will work in concert to calm the
market.
Taken together, the prospect of federal financial institutions and
the U.S. Department of Education stand ready to take the necessary
steps to invest in and commit to the future purchase of loans will
begin to quell the market uncertainty and restore confidence among
investors, as well as among students and families planning for the
coming school year.
The troubles facing our financial markets and our economy as a whole
are daunting. But we would do a real disservice to students and
families if we dismissed the challenges in the student loan program as
merely a symptom of a larger problem that is outside our control. The
fact is, we can take steps to prevent a collapse in the student loan
market. We can do so quickly, and without a cost to taxpayers, by
focusing on our commitment to market stability.
I would also offer a word of caution to those who are wary of federal
intervention: If we fail to act now, we may be forced to take on a much
greater governmental role in the future. And surely we can all agree
that it's better to preserve the private sector program now than to
replace it with a federal program later.
We made a commitment more than four decades ago that there are
national benefits to an affordable, accessible higher education system.
What we are doing today is restating that commitment and sending a
signal to students and families that we continue to believe in this
program that has opened the doors of higher education to so many
millions of aspiring young Americans.
Mr. Chairman, this is a good bill that deserves our support. I want
to thank the chairman for moving so quickly on this issue.
I reserve the balance of my time.
Mr. GEORGE MILLER of California. I yield 3 minutes to the
subcommittee Chair, the gentleman from Texas (Mr. Hinojosa).
Mr. HINOJOSA. Mr. Chairman, I rise in strong support of H.R. 5715,
the Ensuring Continued Access to Student Loans Act of 2008.
This is urgent legislation. I would like to thank our Education and
Labor chairman, George Miller, and our ranking member, Howard ``Buck''
McKeon, as well as my good friend and ranking member of the
subcommittee, Ric Keller, for working together to expedite
consideration of this bill.
{time} 1545
Nothing is more important than reassuring students and families that
there
[[Page H2396]]
will be no disruption in the availability of Federal student loans,
regardless of what happens in our financial markets. As of today, no
student has been unable to find a lender for a Federal student loan.
However, we are not going to wait until students and families are
denied loans before putting safeguards in place. That is what we are
doing here today.
Ensuring continued access to Federal student loans is of critical
importance. In my congressional district, 40 percent of all student aid
comes from the Federal Family Education Loan Program, and in my State
of Texas 66 percent of all student aid comes through this program. The
concerns that we are hearing from our constituents are real, and we
need to address them.
Mr. Chairman, I include for the record a letter dated April 7, 2008,
from Texas State Senator Judith Zaffirini, Chair of the Higher
Education Subcommittee, urging Congress to take action to avert any
disruption in the Federal Family Education Loan Program.
Senate Higher Education Subcommittee,
Austin, TX, April 7, 2008.
Hon. Ruben Hinojosa,
Chair, Subcommittee on Higher Education, Lifelong Learning, &
Competitiveness, House of Representatives, Washington,
DC.
Dear Chair Hinojosa: Thank you for your leadership in
addressing higher education. I am writing to you in my
capacity as Chair of the Senate Higher Education
Subcommittee, Chair of the Senate Finance Higher Education
Subcommittee, and Vice Chair of the Senate Finance Committee
about issues affecting higher education in Texas and to
express my support for a viable Federal Family Education Loan
Program (FFELP). This is in response to the current turmoil
in the capital markets, which appears to be affecting all
areas of credit, including student loans.
The FFELP participants provide nearly two-thirds of the
student financial aid awarded annually to Texas's
postsecondary education students and parents (contrasted with
56 percent nationally). Last year alone, for example, the
Texas Guaranteed Student Loan Corporation (TG) guaranteed
more than $3.2 billion in FFELP loans in Texas. The Federal
Direct Loan Program (FDLP) accounts for approximately five
percent of the state's federal student loan volume.
These FFELP providers also have supplied essential
resources to assist students and families obtain information
about postsecondary education: how to apply for college, how
to choose a college or university to attend, financial aid
availability, and how to apply for financial aid. In addition
to working with the Texas student financial aid community
through regional workshops on various postsecondary education
issues, FFELP providers assist the State of Texas with our
CLOSING THE GAPS initiative and provide grants and
scholarships to organizations to enhance access to college.
In Texas more than 300 lenders, including the four private
non-profit higher education authorities organized under
Chapter 53B of the Texas Education Code, compete with one
another on the basis of providing the best customer service
to borrowers. This has produced more than a 90 percent
repayment rate through excellent loan servicing and generous
borrower benefits in a state that, unfortunately, relies
heavily on student debt as the primary financial vehicle to a
finance postsecondary education.
The non-profit lenders and secondary markets organized
under the state education code have played a key role within
the FFELP delivery system by providing a continuous source of
liquidity for FFELP loan originations in Texas as well as
support for efforts to enroll more students in higher
education from underrepresented populations.
Colleges and universities should continue to have a choice
of student lenders and student loan programs. The
alternatives to a weakened FFELP most often mentioned--the
FDLP and Lender of Last-Resort program--are not viable
options in Texas. FDLP has been rejected by Texas
institutions, and LLR is untested and has been used only
sporadically.
I strongly urge you, as Chair of the Subcommittee on Higher
Education, and the Texas Congressional delegation to support
efforts to provide financial liquidity that will enable non-
profit FFELP providers to continue to finance their programs
facilitating reliable, efficient, low-cost secondary market
programs that meet the needs of Texas lenders and students.
Feel free to contact me if I can be of further assistance.
May God bless you.
Very truly yours,
Judith Zaffirini, PhD.
Mr. Chairman, the challenges facing the student loan marketplace are
not the result of lax standards or poor judgment by borrowers or
lenders. Student loans are a solid investment. For individuals, a
college education means higher earnings, greater career opportunities
and a better quality of life. For financial institutions, Federal
student loans are a sure bet. They carry a 97 percent guarantee from
the Federal Government and default rates remain at historic loans. It
is the lack of liquidity in the financial markets that is threatening
the ability of lenders in the student loan program to make loans.
H.R. 5715 focuses on two mechanisms to ensure that no student is
denied a Federal student loan because of a lack of available lenders.
First, the legislation clarifies that the Secretary may advance funding
to guaranty agencies in the student loan program so that if called
upon, they will be able to fulfill their role as lender of last resort
as required under the Higher Education Act.
Secondly, the legislation gives the Secretary temporary authority to
purchase student loans, providing an avenue for liquidity so that
lenders can make no new loans.
The CHAIRMAN. The time of the gentleman has expired.
Mr. HARE. I yield 30 additional seconds to the gentleman from Texas.
Mr. HINOJOSA. The manager's amendment clarifies that loans purchased
by the Secretary may continue to be serviced by the original lender so
the process remains seamless for students and families. These efforts
represent the tools at the disposal of the Education and Labor
Committee. However, more can and should be done.
I urge my colleagues to vote ``yes'' on H.R. 5715 so that there is no
uncertainty for students and families about their ability to finance
college education.
Mr. McKEON. Mr. Chairman, I yield 2\1/2\ minutes to the ranking
member of the Subcommittee on Higher Education, the gentleman from
Florida (Mr. Keller).
Mr. KELLER of Florida. Mr. Chairman, I thank the gentleman for
yielding.
I rise in support of the Ensuring Continued Access to Student Loans
Act. As the ranking member of the Higher Education Subcommittee, I am
proud to be a cosponsor of this important legislation. I want to
especially thank Chairman Miller, Chairman Hinojosa and Ranking Member
McKeon for their hard work in the drafting of this legislation on a
bipartisan basis.
The troubles that began in the subprime mortgage market have had a
ripple effect on our economy, including all types of consumer credit.
Unfortunately, that also includes student loans. As a result of these
disruptions in the financial markets, students and families all across
America are worrying about how they will pay for college this fall.
Through no fault of their own, students may have a more difficult time
getting the financing they need for college.
Well, at least when it comes to Federal loans, there are things we
can do now to prevent that from happening. Today we are taking positive
steps to make sure that students have access to low-interest student
loans, despite the recent turmoil in the financial markets. This bill
was developed on a bipartisan basis to take preliminary action to shore
up the Federal Family Education Loan Program and to offer new
flexibility and protections to students and their families.
There is no one-size-fits-all solution to the troubles facing our
student loan program. I appreciate the fact that the Financial Services
Committee is also looking at these issues and that we may be exploring
additional action in the future that more directly addresses issues of
liquidity.
At this time, however, this is a good bill that will have a positive
impact, and I urge my colleagues to vote ``yes'' and support its
passage.
Mr. HARE. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, I rise today in support of the Ensuring Continued
Access to Student Loans Act. Many students and families in my
congressional district fear that in our struggling economy they will
not be able to access the financial assistance they need to go to
school. While we have not yet seen this, we know that there exists the
potential for a real crisis.
I have often said in this House how frustrated I am that we wait for
an emergency to occur before reacting, rather than working to prevent
it in the first place. I am proud that today this body is proactively
putting measures in place to ensure our students and lenders that they
have the assistance that they need.
This legislation reduces borrowers' reliance on costlier private
college
[[Page H2397]]
loans; encourages responsible borrowing; gives parent borrowers more
time to pay off their Federal PLUS loans; it guarantees eligibility for
PLUS loans for struggling homeowners who otherwise have good credit;
and it provides the Secretary of Education additional tools to
safeguard access to student loans.
All these provisions are good steps forward and will keep our student
loan industry strong, which is why I am an original cosponsor of the
bill and was proud to support it when our committee marked it up just
last week. However, more needs to be done. I look forward to working
with my colleagues to continue to address our Nation's economic
troubles.
I commend Chairman Miller, Ranking Member McKeon and their staffs for
putting together this legislation so that our students and lenders have
a safety net during the time of economic insecurity. I urge all my
colleagues to support the Ensuring Continued Access to Student Loans
Act.
Mr. Chairman, I reserve the balance of my time.
Mr. McKEON. Mr. Chairman, I yield 3 minutes to the gentleman from
Wisconsin (Mr. Petri), a senior member of the committee.
Mr. PETRI. Mr. Chairman, I want to thank Chairman Miller and our
ranking member, Buck McKeon, for working together on this important
legislation. As has been pointed out, the bill we are considering today
will put in place additional measures to ensure continued access to
Federal student loans.
During committee consideration I expressed concern with one provision
in the bill that would permit an entire institution rather than the
individual the authority to participate in the lender of last resort
program. I urged the committee to consider clarifying the trigger
mechanism for school eligibility in order to avoid a situation in which
a guaranty agency is in essence the lender of first resort. I am
pleased that the chairman included language in the manager's amendment
that will be offered that requires the Secretary of Education, not the
guaranty agency, to determine whether a school qualifies for
institution-wide designation.
Furthermore, the manager's amendment requires institutions to
demonstrate that a minimum number of students or percentage of students
have been rejected by eligible lenders before receiving this
designation.
These are two important changes, so I again thank Chairman Miller for
including them in the manager's amendment and appreciate Ranking Member
McKeon's assistance on this issue.
While the focus of the bill we are considering today is making sure
contingency plans are in place should turmoil in the credit markets
affect the availability of Federal student loans and the Federal Family
Education Loan Program, we do have another Federal student loan program
that is immune to effects of the credit market, and that is the Direct
Loan Program.
Just this year, over 100 schools have applied to participate in the
Direct Loan Program. Penn State University stated that it is moving to
the Direct Loan Program because it will ``enable students to continue
their education without worrying about whether and where their Federal
student loans come from.''
Currently, the Direct Loan Program accounts for about 20 percent of
the student loan market. However, the Secretary of Education has stated
on multiple occasions that the Direct Loan Program could easily double
the amount of new loans it makes to students.
It is just commonsense that in times of market turmoil, instead of
relying on untested fall-back measures in the FFEL Program,
universities should also consider the Direct Loan Program.
I will conclude by emphasizing that to date, no student or college
has reported problems accessing Federal student loans. Currently, the
disruption is best described as forcing some students to switch
lenders. The message from Congress to students and families should be
that they should not panic and should continue to pursue Federal
student aid in the upcoming school year. There are measures in place,
and in this bill we are strengthening those measures, to ensure that
students will always have access to Federal student loans.
Mr. HARE. Mr. Chairman, I yield 1 minute to the gentleman from
Pennsylvania (Mr. Altmire), a member of the House Education and Labor
Committee.
Mr. ALTMIRE. Mr. Chairman, I rise in support of this legislation
which I joined with Chairman Miller in introducing to ensure that the
nationwide credit crisis does not prevent students from attending
college. Recent decisions to suspend the issuing of student loans by
the Pennsylvania Higher Education Assistance Agency and other lenders
demonstrates the need for this legislation.
This bill takes several proactive steps to make certain that students
are able to access the financial aid they need to pay for college. It
gives the Department of Education the temporary authority to purchase
loans from lenders in the Federal Family Education Loan Program. This
will provide additional liquidity to the market so that lenders can
continue to make student loans. Furthermore, the bill increases Federal
loan limits for students by $2,000 a year, which will reduce students'
dependence on more expensive private loans.
I thank Chairman Miller for his leadership on this issue, and urge
all of my colleagues to support this critical legislation.
Mr. McKEON. Mr. Chairman, I yield 1\1/2\ minutes to a member of our
leadership team, the gentlewoman from Texas (Ms. Granger).
Ms. GRANGER. Mr. Chairman, I rise today in support of the Ensuring
Student Access to Student Loans Act of 2008. This bill is designed to
increase investor confidence in the marketplace by authorizing the
Secretary of Education to purchase student loans. This will free up
liquidity for new loans and show lenders that student loans are a safe
and secure investment.
We are facing uncertain economic times. This bill will help ensure
that loans will continue to be available to students. Every student
should have the opportunity to attend college. But, unfortunately, the
cost of college is increasing, which has become a barrier for students
and families. This bill increases the loan limit for Stafford Loans in
order to allow students to receive more Federal funding. Making more
aid available to students will make college more accessible and
affordable to students and families.
But it is not just the cost of college that is a challenge. The free
application for Federal student aid form, or FAFSA, as it is known, is
complicated and cumbersome for students and families to complete. The
FAFSA form is so complicated that it has deterred many students and
families from applying for aid.
As we consider this bill and other higher education bills we should
work to simplify the FAFSA form to help ensure that students and
families have access to the financial aid that they need in order to
attend college.
I urge my colleagues to support H.R. 5715.
Mr. HARE. Mr. Chairman, I yield 4 minutes to the gentleman from
Illinois (Mr. Emanuel), the chairman of our caucus.
{time} 1600
Mr. EMANUEL. Mr. Chairman, let me just say to the simplification of
the student loan form--actually, it happened to be my first bill--which
is to take the 106 questions, 8 pages long, down to commonsense
English, cut it in half, and the good news is that, in fact, the Higher
Ed Reauthorization Act will then, in short order--I have all the
confidence in Chairman Miller--be on the floor this month to pass.
This, like that act, is a second step that we take to make sure that
we put a protective wall around the student loan market.
What we see today in the mortgage industry, what we see today
happening in other parts of the marketplace, should not happen to those
students and those families who are trying to send their kids to
college.
We live in an era where you earn what you learn. A college education
is a ticket to the middle class life and to greater economic security
and greater economic opportunity. What has happened in the subprime
market and what has happened in our marketplace in the financial sector
should not migrate into the student loan industry.
This legislation ensures that it will not. It has two messages, one
to parents and students, that says in this
[[Page H2398]]
time of uncertainty, know that your government is there to ensure that
you get a student loan coming up this fall.
It's also a message to the executive branch: Do not wait for a
crisis. Do not act like you do not have this authority. You have this
authority. The Congress, in a bipartisan vote, will make sure you know
in no uncertain terms to have the authority to prevent any chaos, any
disruption to the student loan marketplace.
This legislation, like the reauthorization of the higher ed bill,
will build on the facts that we have extended this year and increase
Pell Grants for the first time, pass the largest increase of student
loans since the GI Bill in 1944. This Congressman knows that when
middle class families look at their kids, look at the cost of college
that has gone up by $7,500, knows that kids today, when they graduate,
graduate with an average debt burden of $18,000 when they get their
diploma.
This Congress makes sure that middle class families don't fall
farther behind making sure their kids have a better and more
opportunistic future than they had. A college education is the key to
that future, and I am proud that we are taking this action speedily
before there is any crisis in the student loan industry.
Mr. GEORGE MILLER of California. I thank the gentleman.
I want to thank all my colleagues who participated in the debate this
evening. We will have some time for additional debate tomorrow, but I
was also remiss in not thanking Amy Jones of Congressman McKeon's staff
for all of her hard work on this bill, and the individuals on my staff,
Denise Forte, Gaby Gomez, Julie Radocchia, Jeff Appel, Stephanie Moore,
Brian Kennedy, Joe Novotny, Lamont Ivey, and Margaret Young for all
their assistance in bringing this bill to the floor.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise today in support of
H.R. 5715, ``Ensuring Continued Access to Student Loans Act of 2008'',
introduced by Representative George Miller of California. I want to
thank the Committee on Education and Labor for its efforts in this
important area.
Every generation sets out to improve upon the previous generation. We
teach our children that if they focus, are responsible, and work hard
they can be anything. Yet we have provided a false truth for the
majority of our children. Rising tuitions in higher education even at
our community colleges are keeping a lot of our youth from attending
college. For those that are able to attend, they are burdened by
extensive loans just to buy books, attend class, and maintain housing.
Families are sending their children to school, trying to qualify for
parent loans and wondering how they are going to make the payments when
they are struggling to pay their mortgage and facing their own issues
with possible unemployment.
In my home state of Texas, families are struggling to assist children
with their education while they face an unemployment rate of 4.3
percent across the state. As of the end of last year, Texas was ranked
as having the 20th highest unemployment rate (out of the 50 states).
And we are not alone as states grabble with unemployment and a falling
housing market.
H.R. 5715, Ensuring Continued Access to Student Loans Act, provides
much needed support to our families in a time when they most need it by
specifically addressing the needs of parents, students, and even
lenders. The Student loans Act would: Increase unsubsidized loan limits
for students--This bill will increase unsubsidized loan limits by
$2,000 for each year of undergraduate and graduate school. It also
increases the aggregate loan limits to $31,000 for dependent
undergraduates and $57,500 for independent undergraduate students.
Delayed repayment of parent PLUS loans--Currently PLUS loan
borrowers--parents--go into repayment 60 days after disbursement of the
loan. This bill would give families an option of not entering repayment
for up to 6-months after a student leaves school.
PLUS loan eligibility for struggling home-owners--Under current law,
parents with an adverse credit history are ineligible to receive a
parent PLUS loan, except under extenuating circumstances. In light of
the current housing market, the bill temporarily qualifies up to 180
day delinquency on home mortgages as an extenuating circumstance,
therefore making it more possible for parents struggling with the
current housing market to secure loans for their children.
Lender of Last Resort flexibility--The bill makes clear in statute
that the Secretary of Education has the mandatory authority to advance
Federal funds to Guaranty Agencies in the case that they do not have
sufficient capital. Further, the bill allows a Guaranty Agency to
designate a school (rather than an individual student) as a ``lender of
last resort school,'' in accordance with guidelines set by the
Secretary.
Authority for the Secretary of Education to purchase FFEL loan
assets--The bill gives the Secretary the temporary authority, upon a
determination that there is inadequate availability to meet demand for
loans, to purchase loans from FFEL lenders. Such purchases could only
be made in the case they are revenue-neutral or beneficial to the
Federal Government.
Federal Institutions' participation--The bill includes a Sense of the
Congress that the Federal Financial Institutions and entities
(including the Federal Financing Bank, the Federal Home Loan Banks, and
the Federal Reserve) should consider using, in consultation with the
Secretaries of Education and the Treasury, available authorities, if
needed, to assist in ensuring continued student loan access.
Conclusion
I urge my colleagues to vote for H.R. 5715, Ensuring Continued Access
to Student Loans Act. Let's support education by allowing for greater
flexibility, eligibility, and participation for students and their
families
Mr. GEORGE MILLER of California. Mr. Chairman, I move that the
Committee do now rise.
The CHAIRMAN. The question is on the motion to rise.
The question was taken; and the Chairman announced that the ayes
appeared to have it.
Recorded Vote
Mr. FOSSELLA. Mr. Chairman, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 395,
noes 1, not voting 40, as follows:
[Roll No. 200]
AYES--395
Abercrombie
Ackerman
Aderholt
Akin
Alexander
Allen
Altmire
Andrews
Arcuri
Baca
Bachmann
Baird
Baldwin
Barrett (SC)
Barrow
Bartlett (MD)
Barton (TX)
Bean
Becerra
Berkley
Biggert
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Blackburn
Blumenauer
Blunt
Boehner
Bonner
Bono Mack
Boozman
Bordallo
Boren
Boswell
Boucher
Boustany
Boyd (FL)
Boyda (KS)
Brady (TX)
Braley (IA)
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Butterfield
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Capps
Capuano
Cardoza
Carnahan
Carney
Carson
Carter
Castle
Castor
Chabot
Chandler
Clarke
Clay
Cleaver
Clyburn
Coble
Cohen
Cole (OK)
Conaway
Cooper
Costa
Costello
Courtney
Cramer
Crenshaw
Crowley
Cubin
Cuellar
Culberson
Cummings
Davis (AL)
Davis (CA)
Davis (KY)
Davis, David
Davis, Lincoln
Davis, Tom
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Dingell
Doggett
Donnelly
Doolittle
Doyle
Drake
Dreier
Duncan
Edwards
Ehlers
Ellison
Ellsworth
Emanuel
Emerson
Engel
English (PA)
Eshoo
Etheridge
Everett
Fallin
Farr
Ferguson
Filner
Flake
Forbes
Fortenberry
Fossella
Foster
Foxx
Frank (MA)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Giffords
Gilchrest
Gillibrand
Gingrey
Gohmert
Gonzalez
Goode
Goodlatte
Gordon
Granger
Graves
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hall (TX)
Hare
Hastings (FL)
Hastings (WA)
Hayes
Heller
Hensarling
Herger
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hobson
Hodes
Hoekstra
Holden
Holt
Honda
Hooley
Hoyer
Hunter
Inglis (SC)
Inslee
Israel
Issa
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Johnson, Sam
Jones (NC)
Jones (OH)
Jordan
Kagen
Kanjorski
Kaptur
Keller
Kennedy
Kildee
Kilpatrick
Kind
King (IA)
King (NY)
Kingston
Kirk
Klein (FL)
Kline (MN)
Knollenberg
Kucinich
Kuhl (NY)
LaHood
Lamborn
Lampson
Langevin
Larsen (WA)
Larson (CT)
Latham
LaTourette
Latta
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lucas
Lungren, Daniel E.
Lynch
Mahoney (FL)
Maloney (NY)
Manzullo
Marchant
Marshall
Matheson
Matsui
McCarthy (CA)
McCarthy (NY)
McCaul (TX)
McCollum (MN)
McCotter
McDermott
McGovern
McHenry
McHugh
McIntyre
McKeon
McMorris Rodgers
McNerney
McNulty
Meeks (NY)
Melancon
Mica
Michaud
Miller (FL)
Miller (MI)
Miller (NC)
Miller, Gary
Miller, George
Mitchell
Mollohan
[[Page H2399]]
Moore (KS)
Moore (WI)
Moran (KS)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murphy, Tim
Murtha
Musgrave
Myrick
Nadler
Napolitano
Neal (MA)
Neugebauer
Norton
Nunes
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Paul
Payne
Pearce
Pence
Perlmutter
Peterson (MN)
Petri
Pitts
Poe
Pomeroy
Porter
Price (GA)
Price (NC)
Pryce (OH)
Putnam
Radanovich
Ramstad
Rangel
Regula
Rehberg
Reichert
Reyes
Reynolds
Richardson
Rodriguez
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roskam
Ross
Rothman
Roybal-Allard
Royce
Ruppersberger
Ryan (OH)
Ryan (WI)
Salazar
Sali
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Saxton
Schakowsky
Schiff
Schmidt
Schwartz
Scott (GA)
Scott (VA)
Sensenbrenner
Serrano
Sessions
Shadegg
Shays
Shea-Porter
Sherman
Shimkus
Shuler
Shuster
Sires
Skelton
Smith (NE)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Souder
Space
Speier
Stearns
Stupak
Sutton
Tancredo
Tanner
Tauscher
Taylor
Terry
Thompson (CA)
Thompson (MS)
Thornberry
Tiahrt
Tiberi
Towns
Tsongas
Turner
Udall (CO)
Udall (NM)
Upton
Van Hollen
Velazquez
Visclosky
Walberg
Walden (OR)
Walsh (NY)
Walz (MN)
Wamp
Wasserman Schultz
Waters
Watson
Waxman
Welch (VT)
Weller
Westmoreland
Wexler
Whitfield (KY)
Wilson (OH)
Wilson (SC)
Wittman (VA)
Wolf
Woolsey
Wu
Yarmuth
Young (AK)
NOES--1
Stark
NOT VOTING--40
Bachus
Berman
Berry
Bishop (UT)
Brady (PA)
Brown, Corrine
Christensen
Conyers
Davis (IL)
Dicks
Faleomavaega
Fattah
Feeney
Fortuno
Franks (AZ)
Harman
Hulshof
Linder
Mack
Markey
McCrery
Meek (FL)
Peterson (PA)
Pickering
Platts
Rahall
Renzi
Rush
Sestak
Simpson
Slaughter
Spratt
Sullivan
Tierney
Watt
Weiner
Weldon (FL)
Wilson (NM)
Wynn
Young (FL)
{time} 1628
Messrs. MARIO DIAZ-BALART of Florida, ROTHMAN, BARTLETT of Maryland
and HOLT changed their vote from ``no'' to ``aye.''
So the motion to rise was agreed to.
The result of the vote was announced as above recorded.
Accordingly, the Committee rose; and the Speaker pro tempore (Mrs.
Jones of Ohio) having assumed the chair, Mr. Jackson of Illinois,
Chairman of the Committee of the Whole House on the State of the Union,
reported that that Committee, having had under consideration the bill
(H.R. 5715) to ensure continued availability of access to the Federal
student loan program for students and families, had come to no
resolution thereon.
____________________