[Congressional Record Volume 155, Number 132 (Thursday, September 17, 2009)]
[Extensions of Remarks]
[Pages E2300-E2301]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            STUDENT AID FINANCIAL RESPONSIBILITY ACT OF 2009

                                 ______
                                 

                               speech of

                          HON. PETER J. ROSKAM

                              of illinois

                    in the house of representatives

                     Wednesday, September 16, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 3221) to 
     amend the Higher Education Act of 1965, and for other 
     purposes:

  Mr. ROSKAM. Madam Chair, I rise in strong opposition to H.R. 3221, 
the Student Aid and Financial Responsibility Act, which abolishes a 
historically successful private-public partnership in the student 
lending market in favor of a newer government-run program. In an unwise 
grab for total government control over the student lending market, this 
Majority is going to destroy a program that has provided need-based 
financial assistance to thousands of graduate students that have 
attended Midwestern University in my Congressional District.
  Created in 1966, the Federal Family Education Loan program has 
distributed more than 200 million loans to college students totaling 
nearly $800 billion. In 1993, the Direct Loan program--the government 
``option'' in the student lending program--was established to promote 
competition. Now, this Majority wants to consolidate all federally 
supported student lending under the Direct Loan Program. Let me be 
clear about the consequences of this ploy: millions of dollars in 
financial aid for thousands of students across the country will be 
lost. Doing away with the Federal Family Education Loan program will 
also do away with the School as Lender program.
   H.R. 3221 ignores the needs of graduate students. School as Lender 
is a vital need-based aid program for financially struggling graduate 
student education. Opponents of the School as Lender program have 
characterized these schools as profit-hungry proxies for commercial 
lenders. To the contrary, these schools obtain credit to make loans and 
use the proceeds from their origination to support financial aid. 
School as Lender institutions are prohibited by law from making money 
from the program--all proceeds from the sale of loans must be returned 
to graduate students in the form of need-based grants. School lenders 
have low default rates, indicating that schools are not irresponsibly 
encouraging students to

[[Page E2301]]

assume more loan burden than they can afford. Without School as Lender, 
many students will now be forced to take out more loans and student 
debt.
   Within my Congressional District, one of the pioneers of the School 
as Lender program, Midwestern University, uses its School as Lender 
program to provide need-based grants to students who would otherwise 
not be able to pursue the University's graduate programs in osteopathic 
medicine, pharmacy, dental medicine and other health sciences. 
Decreasing access to education for low-income students would further 
inflame the shortage of the healthcare workforce as Congress considers 
a massive expansion of health insurance coverage. Over the past three 
academic years, Midwestern University has paid out over four million 
dollars in School as Lender scholarship monies to more than 1,500 
students. Midwestern lacks profit motives to continue the program--they 
simply desire to maintain an affordable option to attract graduate 
students.
   Midwestern University offers flexible and innovative student loan 
options. Through the School as Lender program, Midwestern is able to 
break down cost barriers that keep many low-income students from 
seeking graduate degrees. I urge my colleagues to stand on the side of 
students in need and reject this government grab for control of student 
lending that will rob many graduate students of the assistance needed 
to pursue advanced education.

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