[Congressional Record Volume 154, Number 71 (Thursday, May 1, 2008)]
[House]
[Pages H2983-H2987]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         ENSURING CONTINUED ACCESS TO STUDENT LOANS ACT OF 2008

  Mr. GEORGE MILLER of California. Mr. Speaker, I move to suspend the 
rules and concur in the Senate amendments to the bill (H.R. 5715) to 
ensure continued availability of access to the Federal student loan 
program for students and families.
  The Clerk read the title of the bill.
  The text of the Senate amendments is as follows:

       Senate amendments:
       (1) On page 2, line 5, strike ``AND GRADUATE''
       (2) On page 7, line 11, strike ``issued'' and insert: 
     ``first disbursed''.
       (3) On page 9, line 12, strike ``issued'' and insert: 
     ``first disbursed''.
       (4) On page 9, line 24 through page 10 line 11 strike and 
     insert:
       ``(B)(i) Extenuating circumstances.--An eligible lender may 
     determine that extenuating circumstances exist under the 
     regulations promulgated pursuant to paragraph (1)(A) if, 
     during the period beginning January 1, 2007, and ending 
     December 31, 2009, an applicant for a loan under this 
     section--
       ``(I) is or has been delinquent for 180 days or fewer on 
     mortgage loan payments or on medical bill payments during 
     such period; and
       ``(II) is not and has not been more than 89 days delinquent 
     on the repayment of any other debt during such period.
       ``(ii) Definition of mortgage loan.--In this subparagraph, 
     the term `mortgage loan' means an extension of credit to a 
     borrower that is secured by the primary residence of the 
     borrower.
       ``(iii) Rule of construction.--Nothing in this subparagraph 
     shall be construed to limit an eligible lender's authority 
     under the regulations promulgated pursuant to paragraph 
     (1)(A) to determine that extenuating circumstances exist.''.
       (5) On page 10, after line 24 insert:
       (1) in paragraph (1), by inserting after the second 
     sentence the following: ``No loan under section 428, 428B, or 
     428H that is made pursuant to this subsection shall be made 
     with interest rates, origination or default fees, or other 
     terms and conditions that are more favorable to the borrower 
     than the maximum interest rates, origination or default fees, 
     or other terms and conditions applicable to that type of loan 
     under this part.'';
       (6) On page 12, line 14, strike ``lenders willing to make 
     loans'' and insert: ``eligible lenders willing to make loans 
     under this part''.
       (7) On page 13, after line 2 insert:
       ``(6) Expiration of authority.--The Secretary's authority 
     under paragraph (4) to designate institutions of higher 
     education for participation in the program under this 
     subsection shall expire on June 30, 2009.
       ``(7) Expiration of designation.--The eligibility of an 
     institution of higher education, or borrowers from such 
     institution, to participate in the program under this 
     subsection pursuant to a designation of the institution by 
     the Secretary under paragraph (4) shall expire on June 30, 
     2009. After such date, borrowers from an institution 
     designated under paragraph (4) shall be eligible to 
     participate in the program under this subsection as such 
     program existed on the day before the date of enactment of 
     the Ensuring Continued Access to Student Loans Act of 2008.
       ``(8) Prohibition on inducements and marketing.--Each 
     guaranty agency or eligible lender that serves as a lender-
     of-last-resort under this subsection--
       ``(A) shall be subject to the prohibitions on inducements 
     contained in subsection (b)(3) and the requirements of 
     section 435(d)(5); and
       ``(B) shall not advertise, market, or otherwise promote 
     loans under this subsection, except that nothing in this 
     paragraph shall prohibit a guaranty agency from fulfilling 
     its responsibilities under paragraph (2)(C).
       ``(9) Dissemination and reporting.--
       ``(A) In general.--The Secretary shall--
       ``(i) broadly disseminate information regarding the 
     availability of loans made under this subsection;
       ``(ii) during the period beginning July 1, 2008 and ending 
     June 30, 2010, provide to the Committee on Health, Education, 
     Labor, and Pensions of the Senate and the Committee on 
     Education and Labor of the House of Representatives and make 
     available to the public--

       ``(I) copies of any new or revised plans or agreements made 
     by guaranty agencies or the Department related to the 
     authorities under this subsection;
       ``(II) quarterly reports on--

       ``(aa) the number and amounts of loans originated or 
     approved pursuant to this subsection by each guaranty agency 
     and eligible lender; and
       ``(bb) any related payments by the Department, a guaranty 
     agency, or an eligible lender; and

       ``(III) a budget estimate of the costs to the Federal 
     Government (including subsidy and administrative costs) for 
     each 100 dollars loaned, of loans made pursuant to this 
     subsection between the date of enactment of the Ensuring 
     Continued Access to Student Loans Act of 2008 and June 30, 
     2009, disaggregated by type of loan, compared to such costs 
     to the Federal Government during such time period of 
     comparable loans under this part and part D, disaggregated by 
     part and by type of loan; and

       ``(iii) beginning July 1, 2010, provide to the Committee on 
     Health, Education, Labor, and Pensions of the Senate and the 
     Committee on Education and Labor of the House of 
     Representatives and make available to the public--

       ``(I) copies of any new or revised plans or agreements made 
     by guaranty agencies or the Department related to the 
     authorities under this subsection; and
       ``(II) annual reports on--

       ``(aa) the number and amounts of loans originated or 
     approved pursuant to this subsection by each guaranty agency 
     and eligible lender; and
       ``(bb) any related payments by the Department, a guaranty 
     agency, or an eligible lender.
       ``(B) Separate reporting.--The information required to be 
     reported under subparagraph (A)(ii)(II) shall be reported 
     separately for loans originated or approved pursuant to 
     paragraph (4), or payments related to such loans, for the 
     time period in which the Secretary is authorized to make 
     designations under paragraph (4).''.
       (8) On page 13, line 12, strike ``agency's'' and insert: 
     ``agencies''.
       (9) On page 14, line 3, strike ``adding at the end'' and 
     insert: ``inserting before the matter following paragraph 
     (5)''.
       (10) On page 15, line 19, strike ``loans originated'' and 
     insert: ``loans first disbursed''.
       (11) On page 15, line 21, after ``October 1, 2003,'' 
     insert: ``and before July 1, 2009,''.
       (12) On page 16, line 1, after ``Federal Government'' 
     insert: ``(including the cost of servicing the loans 
     purchased)''.
       (13) On page 16, strike lines 5 through 23, and insert the 
     following:
       ``(2) Federal register notice.--The Secretary, the 
     Secretary of the Treasury, and the Director of the Office of 
     Management and Budget, shall jointly publish a notice in the 
     Federal Register prior to any purchase of loans under this 
     section that--
       ``(A) establishes the terms and conditions governing the 
     purchases authorized by paragraph (1);
       ``(B) includes an outline of the methodology and factors 
     that the Secretary, the Secretary of the Treasury, and the 
     Director of the Office of Management and Budget, will jointly 
     consider in evaluating the price at which to purchase loans 
     made under section 428, 428B, or 428H; and
       ``(C) describes how the use of such methodology and 
     consideration of such factors used to determine purchase 
     price will ensure that loan purchases do not result in any 
     net cost to the Federal Government (including the cost of 
     servicing the loans purchased).''.
       (14) On page 20, after line 9 insert the following:

     SEC. 10. ACADEMIC COMPETITIVENESS GRANTS.

       (a) Amendments.--Section 401A of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a-1) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Academic Competitiveness Grant Program Authorized.--
     The Secretary shall award grants, in the amounts specified in 
     subsection (d)(1), to eligible students to assist the 
     eligible students in paying their college education 
     expenses.'';
       (2) in subsection (b)--
       (A) by striking ``academic year'' each place it appears and 
     inserting ``year''; and
       (B) in paragraph (2), by striking ``third or fourth'' and 
     inserting ``third, fourth, or fifth'';
       (3) in subsection (c)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``full-time'';
       (ii) by striking ``academic'' and inserting ``award''; and
       (iii) by striking ``is made'' and inserting ``is made for a 
     grant under this section'';
       (B) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) is eligible for a Federal Pell Grant;
       ``(2) is enrolled or accepted for enrollment in an 
     institution of higher education on not less than a half-time 
     basis; and''; and
       (C) in paragraph (3)--
       (i) by striking ``academic'' each place the term appears;
       (ii) in subparagraph (A)--

       (I) by striking the matter preceding clause (i) and 
     inserting the following:

       ``(A) the first year of a program of undergraduate 
     education at a two- or four-year degree-granting institution 
     of higher education (including a program of not less than one 
     year for which the institution awards a certificate)--'';

[[Page H2984]]

       (II) by striking clause (i) and inserting the following:

       ``(i) has successfully completed, after January 1, 2006, a 
     rigorous secondary school program of study that prepares 
     students for college and is recognized as such by the State 
     official designated for such recognition, or with respect to 
     any private or home school, the school official designated 
     for such recognition for such school, consistent with State 
     law, which recognized program shall be reported to the 
     Secretary; and''; and

       (III) in clause (ii), by inserting ``, except as part of a 
     secondary school program of study'' before the semicolon;

       (iii) in subparagraph (B)--

       (I) in the matter preceding clause (i), by striking ``year 
     of'' and all that follows through ``higher education'' and 
     inserting ``year of a program of undergraduate education at a 
     two- or four-year degree-granting institution of higher 
     education (including a program of not less than two years for 
     which the institution awards a certificate)''; and
       (II) in clause (ii), by striking ``or'' after the semicolon 
     at the end;

       (iv) in subparagraph (C)--

       (I) in the matter preceding subclause (I) of clause (i), by 
     inserting ``certified by the institution to be'' after 
     ``is'';
       (II) by striking clause (i)(II) and inserting the 
     following:
       ``(II) a critical foreign language; and''; and
       (III) in clause (ii), by striking the period at the end and 
     inserting a semicolon; and

       (v) by adding at the end the following:
       ``(D) the third or fourth year of a program of 
     undergraduate education at an institution of higher education 
     (as defined in section 101(a)), is attending an institution 
     that demonstrates, to the satisfaction of the Secretary, that 
     the institution--
       ``(i) offers a single liberal arts curriculum leading to a 
     baccalaureate degree, under which students are not permitted 
     by the institution to declare a major in a particular subject 
     area, and the student--

       ``(I)(aa) studies, in such years, a subject described in 
     subparagraph (C)(i) that is at least equal to the 
     requirements for an academic major at an institution of 
     higher education that offers a baccalaureate degree in such 
     subject, as certified by an appropriate official from the 
     institution; and
       ``(bb) has obtained a cumulative grade point average of at 
     least 3.0 (or the equivalent as determined under regulations 
     prescribed by the Secretary) in the relevant coursework; or
       ``(II) is required, as part of the student's degree 
     program, to undertake a rigorous course of study in 
     mathematics, biology, chemistry, and physics, which consists 
     of at least--

       ``(aa) 4 years of study in mathematics; and
       ``(bb) 3 years of study in the sciences, with a laboratory 
     component in each of those years; and
       ``(ii) offered such curriculum prior to February 8, 2006; 
     or
       ``(E) the fifth year of a program of undergraduate 
     education that requires 5 full years of coursework, as 
     certified by the appropriate official of the degree-granting 
     institution of higher education, for which a baccalaureate 
     degree is awarded by a degree-granting institution of higher 
     education--
       ``(i) is certified by the institution of higher education 
     to be pursuing a major in--

       ``(I) the physical, life, or computer sciences, 
     mathematics, technology, or engineering (as determined by the 
     Secretary pursuant to regulations); or
       ``(II) a critical foreign language; and

       ``(ii) has obtained a cumulative grade point average of at 
     least 3.0 (or the equivalent, as determined under regulations 
     prescribed by the Secretary) in the coursework required for 
     the major described in clause (i).'';
       (4) in subsection (d)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by striking ``The'' and inserting ``In general.--The'';
       (II) in clause (ii), by striking ``or'' after the semicolon 
     at the end;
       (III) in clause (iii), by striking ``subsection 
     (c)(3)(C).'' and inserting ``subparagraph (C) or (D) of 
     subsection (c)(3), for each of the two years described in 
     such subparagraphs; or''; and
       (IV) by adding at the end the following:

       ``(iv) $4,000 for an eligible student under subsection 
     (c)(3)(E).''; and
       (ii) in subparagraph (B)--

       (I) by striking ``Notwithstanding'' and inserting 
     ``Limitation; ratable reduction.--Notwithstanding'';
       (II) by redesignating clauses (i), (ii), and (iii), as 
     clauses (ii), (iii), and (iv), respectively; and
       (III) by inserting before clause (ii), as redesignated 
     under subclause (II), the following:

       ``(i) in any case in which a student attends an institution 
     of higher education on less than a full-time basis, the 
     amount of the grant that such student may receive shall be 
     reduced in the same manner as a Federal Pell Grant is reduced 
     under section 401(b)(2)(B);'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Limitations.--
       ``(A) No grants for previous credit.--The Secretary may not 
     award a grant under this section to any student for any year 
     of a program of undergraduate education for which the student 
     received credit before the date of enactment of the Higher 
     Education Reconciliation Act of 2005.
       ``(B) Number of grants.--The Secretary may not award more 
     than one grant to a student described in subsection (c)(3) 
     for each year of study described in such subsection.''; and
       (C) by adding at the end the following: and
       ``(3) Calculation of grant payments.--An institution of 
     higher education shall make payments of a grant awarded under 
     this section in the same manner, using the same payment 
     periods, as such institution makes payments for Federal Pell 
     Grants under section 401.'';
       (5) by striking subsection (e)(2) and inserting the 
     following:
       ``(2) Availability of funds.--Funds made available under 
     paragraph (1) for a fiscal year shall remain available for 
     the succeeding fiscal year.'';
       (6) in subsection (f)--
       (A) by striking ``at least one'' and inserting ``not less 
     than one''; and
       (B) by striking ``subsection (c)(3)(A) and (B)'' and 
     inserting ``subparagraphs (A) and (B) of subsection (c)(3)''; 
     and
       (7) in subsection (g), by striking ``academic'' and 
     inserting ``award''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on January 1, 2009.

     SEC. 11. INAPPLICABILITY OF MASTER CALENDAR AND NEGOTIATED 
                   RULEMAKING REQUIREMENTS.

       Sections 482 and 492 of the Higher Education Act of 1965 
     (20 U.S.C. 1089, 1098a) shall not apply to amendments made by 
     sections 2 through 9 of this Act, or to any regulations 
     promulgated under such amendments.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. George Miller) and the gentleman from California (Mr. 
McKeon) each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. George 
Miller).


                             General Leave

  Mr. GEORGE MILLER of California. Mr. Speaker, I request 5 legislative 
days in which Members may insert extraneous material on H.R. 5715 into 
the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. GEORGE MILLER of California. I yield myself such time as I may 
consume.
  (Mr. GEORGE MILLER of California asked and was given permission to 
revise and extend his remarks.)
  Mr. GEORGE MILLER of California. Mr. Speaker, I rise in strong 
support of H.R. 5715, the Ensuring Continued Access to Student Loans 
Act of 2008, as amended by the Senate. Earlier this month the House 
acted swiftly to pass this bipartisan legislation to ensure that 
students and families will be able to continue to access Federal loans 
they need to pay for college, regardless of what happens in the 
Nation's credit markets.
  Over the past few weeks, the President has also voiced his support 
for this legislation. I am glad that the President has recognized the 
importance of this legislation, and am very pleased that with today's 
vote, we will have an opportunity to send to him this bill for his 
signature.
  The bill we are considering today now includes some of the amendments 
added by the Senate to strengthen the purpose of the legislation. I 
want to thank Senator Kennedy and Senator Enzi for all of their support 
for this legislation and all of their efforts to get it through the 
Senate on a timely basis.
  Because today's vote is timely, the sooner we get this legislation to 
the President's desk, the sooner it can be implemented by the 
Department of Education. This week, many incoming freshmen will be 
reviewing their financial aid packages and making decisions on where 
they plan to attend college this fall. For many of these students, 
their families are already worried about paying bills in today's 
economy. They shouldn't also have to worry about whether Federal aid 
they depend on to pay for college will actually be there this fall when 
they need it.
  Over the past few months, we have been closely monitoring what has 
been happening in the financial markets, and we have heard from 
stakeholders across the political and economic spectrum: The Department 
of Education, college financial aid officers, lenders, financial 
analysts, and students. Not surprising, we have heard varying 
predictions. Some believe that the lenders will continue to face 
trouble accessing capital for loans, and others believe that the 
markets will ease up.
  Fortunately so far, the credit crunch has not prevented any student 
parent from getting the Federal loans for which they are eligible. But 
we believe that it is only prudent to prepare for the possibility that 
the ongoing stress in the Nation's financial markets could jeopardize 
access to student loans.
  In addition to the provisions already passed overwhelmingly by the 
House

[[Page H2985]]

earlier this month, the legislation before us today includes additional 
measures approved by the Senate amendments. This amended legislation 
assures that loans made through the lender-of-last-resort program are 
made with similar terms and conditions as other FFELP loans.
  It makes the Secretary's authority to designate entire institutions 
as a lender-of-last-resort program temporary. It ensures that guaranty 
agencies and lenders operating under the lender-of-last-resort program 
are subject to the same rules regarding inducements and conflicts of 
interest that other FFELP lenders are subject to.

                              {time}  1315

  It safeguards the lender-of-last-resort program from abuses by 
requiring guaranty agencies and lenders acting as lenders of last 
resort to report on loans made through the program. It protects 
taxpayers by requiring reporting on the cost of the lender-of-last-
resort program as compared to the current loan program. Finally, the 
amended legislation reduces low-income students' reliance on Federal 
student loans by directing all loans generated by this legislation into 
the Academic Competitiveness and SMART grants.
  I believe that these additions will enhance this bill by providing 
further protection for parent borrowers, boosting aid to low-income 
students, increasing accountability in the lender-of-last-resort 
program.
  Now more than ever, families deserve every assurance that we are 
doing all that we can to make sure that they will continue to be able 
to finance their children's education. I am confident that our efforts, 
coupled with proper planning in the Department of Education, will help 
ensure that students are able to get the financial assistance they need 
to attend college this fall.
  I would like to thank Mr. McKeon, our committee's senior Republican, 
Mr. Hinojosa, the subcommittee Chair, Mr. Keller, the senior Republican 
on the subcommittee, and all of their staff and all my colleagues on 
both sides of the aisle for their commitment to acting promptly on 
behalf of America's students and families. Again, thank you to Senator 
Kennedy and Senator Enzi for their support.
  I urge my colleagues to join us in swiftly passing this legislation.
  I reserve the balance of my time.
  Mr. McKEON. Mr. Speaker, I rise in support of H.R. 5715, and yield 
myself such time as I may consume.
  I am pleased to be here just 2 weeks after the House voted 
overwhelmingly in support of this effort to restore confidence in our 
student loan program. Today we will give final approval to this measure 
and send it to the President for his signature. It is not often that 
Congress acts so nimbly to respond to a current market challenge, and I 
welcome this show of bipartisan cooperation. I hope it is a sign of 
things to come.
  When we debated this bill on the floor 2 weeks ago, I noted that 
while it is a good start, it is not a complete solution. That continues 
to be true today. I am particularly interested in exploring a more 
market-oriented solution to what is obviously a market-based problem. I 
am hopeful that the administration will pursue steps such as an 
intervention by the Federal Financing Bank, along with the other 
proposals that have been offered to restore balance. Still, the steps 
taken under this bill are important preliminary measures, and I look 
forward to their swift enactment.
  The original bill passed by the House focused on restoring stability 
to an uncertain market and offering reassurances to students and their 
families. We did that by establishing the U.S. Department of Education 
as a temporary backstop to purchase loans and inject modest amounts of 
liquidity into the market in order to ensure lenders can make new loans 
in the coming school year. We also offered new loan availability and 
flexibility, and we called on the Federal financial authorities to 
exercise their authority to stabilize the market.
  I appreciate that the other Chamber chose to move quickly on our 
bill, rather than taking up a competing bill that would have slowed 
down this important assistance to students and families. However, some 
important improvements were made as this bill moved through the other 
body, and I want to highlight those here today.
  In early 2005 and early 2006, Congress approved a budget 
reconciliation measure that created two new grant programs to help low-
income students pursuing a college education. Those two new programs 
are the Academic Competitiveness Grant and the SMART Grant. These grant 
programs are meant to promote student academic achievement, 
particularly in fields that are vital to our continued competitiveness 
in a changing world.
  During the committee deliberations on a comprehensive renewal of the 
Higher Education Act, Representative Rob Bishop took a leadership role 
in clarifying the role of States and not the Federal Government in 
establishing rigorous high school curricula. The purpose of the 
Academic Competitiveness Grant was to encourage students to pursue 
challenging course work to prepare for college, but it was never 
intended to usurp State and local responsibility for establishing 
curricula. I am pleased we were able to incorporate his proposed 
changes into the bill that is moving today.
  Mr. Speaker, I support this bill, but I would be remiss if I did not 
highlight what I believe to be the root causes of the current 
difficulties in our financial markets. 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, disruption in the capital markets have reduced liquidity and 
shaken investor and consumer confidence.
  I appreciate the steps taken in this bill to begin to stabilize a 
program that has been badly shaken. I am especially pleased that this 
bill contains no net cost to the American taxpayer and that it does not 
force colleges and universities to embrace the government-run Direct 
Loan Program that the vast majority have already rejected. I will 
remain vigilant in protecting against any efforts to capitalize on the 
current situation by imposing a big government monopoly on student 
loans. In fact, it is because I did not support a big government 
intervention that I favor the bill before us. The fact is that if we 
fail to act now, we may be forced to take on much greater government 
role in the future.
  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 door of higher education to so many 
millions of aspiring young Americans.
  Mr. Speaker, this is a good bill that deserves our support. I want to 
thank Chairman Miller, along with the chairman and ranking member of 
the subcommittee, Representatives Hinojosa and Keller, for their 
leadership on this issue. I would also like to recognize the staff for 
their hard work as well. I urge all my colleagues to join me in support 
of this measure.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 3 minutes to 
the gentleman from Texas (Mr. Hinojosa), the chairman of the 
subcommittee.
  Mr. HINOJOSA. Mr. Speaker, I rise in strong support of H.R. 5715, the 
Ensuring Continued Access to Student Loans Act. I especially want to 
thank Chairman George Miller and ranking member Buck McKeon and all the 
others who have worked with us to be able to resolve the challenge of 
access and affordability to higher education to all those who wish to 
go to that level of education.
  This is urgent legislation, and I thank the leadership in both the 
House and the Senate for ensuring its swift passage. We are all united 
in our commitment to provide every assurance to students and families 
that there will be no disruption in the Federal student loan programs, 
regardless of what is happening in the financial markets in our 
country.
  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. Today 
is the day that many incoming freshman students must decide which 
college they will attend in

[[Page H2986]]

the fall. Financial aid is a critical consideration for that decision 
process. We can leave no doubt in the minds of students, families or 
campuses about the availability of that aid. That is why we must send 
this legislation to the President for his signature without delay.
  Mr. Speaker, this legislation will provide much-needed liquidity to 
the student loan marketplace by authorizing the Secretary of Education 
on a temporary basis to purchase student loans so that lenders have the 
funds to make new loans. The legislation clarifies the lender-of-last-
resort option so that, if called upon, guaranty agencies will be able 
to fulfill their role as lender of last resort as required under the 
Higher Education Act.
  The legislation will reduce the reliance on private loans to fill the 
gap between Federal student aid and the cost of college by increasing 
the amount a student can borrow in the unsubsidized loan program.
  This contingency plan for the student loan marketplace will come at 
no cost to the taxpayers. In fact, any savings that may be generated 
will be directed to the Academic Competitiveness and SMART grants that 
are available to needy students who complete a rigorous program of 
study in high school and those students who are pursuing majors in 
high-need fields, such as science, engineering, technology and foreign 
languages.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. GEORGE MILLER of California. I yield the gentleman 30 more 
seconds.
  Mr. HINOJOSA. Finally, with H.R. 5715 we are signaling that we will 
bring all of our tools to the task of guaranteeing access to student 
loans. This legislation also calls upon Treasury and our Federal 
financial institutions to do their share to ensure that there is 
sufficient capital in the Federal student loan marketplace.
  I urge all my colleagues to vote ``yes'' on this critical stopgap 
legislation.
  Mr. McKEON. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Florida (Mr. Keller), the ranking member of the 
Subcommittee on Higher Education.
  Mr. KELLER of Florida. I thank the gentleman for yielding.
  I rise today in support of the Ensuring Continued Access to Student 
Loans Act. As the ranking member on the Higher Education Subcommittee 
and founder and chairman of the Pell Grant Caucus, I am honored to be a 
cosponsor of this important legislation.
  How did we get here? The troubles that began in the subprime mortgage 
market have had a ripple effect on our economy, impacting all types of 
consumer credit. Unfortunately, that includes student loans. As a 
result of these disruptions in the financial markets, students and 
families all across the country are worrying about how they will pay 
for college this fall. Through no fault of their own, middle class 
families are worrying that their children may have a difficult time 
getting the financing they need for college. At least when it comes to 
Federal loans, there are steps we can take now to prevent that from 
happening. That is why I support this bill before us.
  This bill will increase loan limits by $2,000 to undergraduate 
students, it will give students more flexibility in their loan payment 
options, and it includes provisions that will help generate more low-
interest loans. Additionally, the savings achieved in this bill will 
provide more aid to full- and part-time eligible students through 
national SMART grants.
  This is how SMART grants work. If you are eligible for a traditional 
Pell Grant and you major in math, science or foreign languages that are 
critical and you have a B average, you will be able to get an 
additional $4,000 above and beyond the maximum award of $4,800. This 
bill expands that to allow full- and part-time students to partake. 
That means we will be helping a total of approximately 100,000 students 
who are majoring in math and science and critical languages, and also 
helping ourselves, because we desperately need more math and science 
majors.
  I have a chart here regarding our strong support for Pell grants on a 
bipartisan basis to put this bill in perspective. Since I came to 
Congress in 2000, I have noted that we have increased Pell Grant 
funding by 149 percent, from $7.6 billion to $18.9 billion.

                              {time}  1330

  We have increased the maximum award from $3,300 to $4,800, an 
increase of 45 percent. Now, with this new expanded legislation for 
more part-time students to get these SMART Grants, those particular 
students in math and science will get, as I said earlier, $8,800 in 
eligible grants.
  And, finally, and particularly significantly, we have made it 
possible for an additional 1.9 million students to go to college, an 
increase of 49 percent from 3.9 million students getting Pell Grants in 
2000 to 5.8 million today.
  Making sure that college is affordable has been a bipartisan priority 
of this Congress. This bill will help ensure access to college for many 
worthy students and provide much needed stability to the student loan 
market at a time when it is most important to our college students.
  I want to thank Chairman George Miller, Chairman Hinojosa, and 
Ranking Member McKeon for their speedy and bipartisan work on this 
bill. I want to thank my colleagues in the Senate for turning this 
legislation around so quickly and adding some key provisions dealing 
with the SMART Grants. I also want to thank the White House for 
indicating its strong support of this legislation and their willingness 
to sign it upon arrival.
  For these reasons, I urge my colleagues to vote ``yes'' on H.R. 5715, 
and let's make college more affordable for all young people.
  Mr. GEORGE MILLER of California. I recognize the gentleman from 
Connecticut, a member of the committee, for 2 minutes.
  Mr. COURTNEY. Mr. Speaker, what a difference 6 weeks makes. On March 
14, under Mr. Miller's leadership, the Education and Labor Committee 
held a hearing on the question of student loan availability. And at 
that time, Secretary Spellings from the Department of Education came in 
and said that the administration was merely ``monitoring the 
situation,'' and expressed some diffidence and confusion about whether 
or not in fact the Federal Government really had a role to play in 
terms of being lender of last resort.
  During the last 6 weeks, what we have seen is the collapse of Bear 
Stearns, we have seen lenders withdrawing from the student loan market, 
and a clear signal that the subprime mortgage crisis is in fact 
extending to the student loan market. In Connecticut, the Connecticut 
Commissioner of Higher Education Mike Meotti and the Director of 
Financial Aid at University of Connecticut, who I met with, confirmed 
the fact that they were seeing some withdrawal from the market and a 
need to step up their activity in terms of giving students more help as 
they enter a very challenging year, again, because of what is happening 
in the financial markets.
  This legislation, which now the administration has come around in 
support of, will in fact strengthen the Direct Student Loan program and 
will confirm that the Federal Government will in fact be a lender of 
last resort so that it will make sure that, in August and September, 
students and families will not be running into difficulty and will in 
fact be able to go to college in the fall.
  The Federal Government acted swiftly to help Bear Stearns, an 
investment bank which frankly morally and ethically didn't deserve the 
help. Millions of students, however, do. And this legislation, which 
will clearly confirm that the Federal Government has a role to play 
going into the summer months as students reach out to get financial 
assistance, that in fact the doors of colleges and universities will 
remain open.
  I applaud Mr. Miller for his leadership going back to last March 14 
and ensuring that passage of this bill will occur on a bipartisan 
basis.
  Mr. McKEON. Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. I yield 1 minute to the gentleman 
from Pennsylvania (Mr. Altmire).
  Mr. ALTMIRE. Mr. Speaker, I rise in strong support of this bill that 
I joined with Chairman Miller in introducing to ensure the current 
credit crunch 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 
around the

[[Page H2987]]

country clearly demonstrate the need for this legislation.
  This bill is a model for bipartisan cooperation. Problems in the 
credit market began affecting the student loan market only 2 months 
ago, and since that time Congress has quickly moved to identify the 
problem, craft a responsible solution to that problem, and quickly move 
that solution through the legislative process. And, today, we are 
sending this bill to the President for his signature.
  Congress can be proud of taking this proactive step to prevent a 
crisis and I am proud of what we did today, and encourage my colleagues 
to support this bill.
  Mr. McKEON. Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. I yield 3 minutes to the gentleman 
from New York (Mr. Bishop), a member of the committee.
  Mr. BISHOP of New York. Mr. Speaker, I thank the chairman for 
yielding, and I thank the chairman and the ranking member of the full 
committee and also of the subcommittee for working together so quickly 
and so cooperatively to bring this legislation to the floor. It is very 
badly needed, and the passage of it will allow us to expand upon the 
gains that this Congress has made in the dual goals of access and 
affordability. And let me just quickly reflect on those.
  We have significantly reduced student loan interest rates. We have 
significantly increased the Pell Grant maximum. We have overridden the 
administration's recommendation to eliminate the SCOG program. We have 
overridden the administration's recommendation to eliminate the Perkins 
Loan program. We have done all of this on a bipartisan basis, and we 
have done all of this with a focus on keeping student need and student 
interests uppermost in our mind.
  There are several very positive features of this bill. Let me talk 
just about three of them. The first is seeing to it that we maintain 
liquidity in the student loan market, a situation that is forced upon 
us by factors that have nothing to do with the Student Loan program. 
The second is the increase in loan limits on an annual basis. The most 
important element of this is that it will reduce student reliance on 
private lending, and that certainly is a goal of ours, to see to it 
that students have access to government regulated loans as opposed to 
private loans. And, lastly, the easing of the repayment requirements 
for the parent loan will be enormously helpful to needy families and 
the students of those families.
  So I again want to commend leadership on both sides of the aisle and 
both sides of the Capitol for working so quickly on this. I want to 
commend the Education Department and the administration for their 
willingness to be supportive, and I urge speedy passage.
  Mr. McKEON. Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. I yield 3 minutes to the gentleman 
from New Jersey (Mr. Andrews).
  (Mr. ANDREWS asked and was given permission to revise and extend his 
remarks.)
  Mr. ANDREWS. Mr. Speaker, I congratulate Mr. Miller and Mr. McKeon 
for skillfully navigating this legislation to the floor, and I strongly 
support it.
  Our country's economy has been severely affected by a lack of 
liquidity crisis. In plain language, people who need to borrow money to 
do good things who are creditworthy are having a very difficult time 
borrowing that money.
  The early tremors are present in the education field that young men 
and women who need money to go to school are beginning to have trouble 
borrowing that money; and we are, frankly, concerned that an earthquake 
may follow those tremors.
  Rather than wait for that disaster to occur, Chairman Miller and Mr. 
McKeon are taking preventive, action along with the Secretary of 
Education, to try to prevent such a calamity from occurring.
  This legislation is commendable on any number of grounds. First, it 
strengthens the lender of last resort program so that guarantee 
agencies around the country will be equipped to quickly move capital to 
students and schools who find it difficult or impossible to get that 
capital from the banking institutions. Second, it increases the limits 
that students can borrow money that is guaranteed under the Federal 
guaranteed loan programs.
  This is especially important, because so many of our students need 
what are called gap loans. This is the person who has an aid package of 
$28,000, but who needs 31,000 to go to school. In the past, the way 
families and students have dealt with this problem is to find a private 
lender to make a loan to fill that gap. There is increasing evidence 
that achieving that loan is increasingly difficult. By raising the loan 
limits in a fiscally responsible way, this bill alleviates that 
problem.
  And, finally, by encouraging the growth of technological progress in 
the education sector, this bill ramps up the infrastructure that will 
be necessary to move loans to more students around the country as the 
time has come.
  There is a lot of cynicism, Mr. Speaker, in this country about 
government, and some of it is quite justified. But I would hope that 
the cynics would watch the process that has occurred here where two 
leaders, one Democrat, one Republican, have come together, listened to 
the Secretary of Education, carefully analyzed the problem, and worked 
together to produce a piece of legislation that I believe will solve 
that problem. I commend them for their leadership.
  I am proud to support this legislation, and I would urge Republicans 
and Democrats to vote ``yes.''
  Mr. McKEON. Mr. Speaker, I would like to echo the words of others 
that have spoken here today, and thank Chairman Miller, thank Mr. 
Hinojosa again, Mr. Keller, and especially Mr. Kennedy and Mr. Renzi on 
the other side for working very closely and deciding to take up our 
bill, because this could have been delayed. They moved expeditiously, 
and now we will be able to get this to the President's desk. And, 
hopefully, the concerns that I have felt for several months now will 
never come to bear; that we will go through this year, and students 
will be able to get their loans and we will do this without any 
hiccups. But, if not, this will be a big help as we move forward.
  I yield back the balance of my time.
  Mr. GEORGE MILLER of California. I associate myself with the remarks 
of the gentleman.
  Mr. SOUDER. Mr. Speaker, I support H.R. 5715, and voted for it when 
it was first considered on the House floor. Although I have some 
reservations, I believe it is a reasonable compromise that will provide 
the student loan market added flexibility and stability going forward. 
Had I been present, however, I would have voted ``aye.''
  Mr. GEORGE MILLER of California. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. George Miller) that the House suspend 
the rules and concur in the Senate amendments to the bill, H.R. 5715.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. GEORGE MILLER of California. Mr. Speaker, on that I demand the 
yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________