[Congressional Record Volume 155, Number 132 (Thursday, September 17, 2009)]
[Extensions of Remarks]
[Page E2316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           STUDENT AID AND FISCAL RESPONSIBILITY ACT OF 2009

                                 ______
                                 

                               speech of

                            HON. ALLEN BOYD

                               of florida

                    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. BOYD. Madam Chair, I rise to express my concern with H.R. 3221, 
the Student Aid and Fiscal Responsibility Act of 2009. This legislation 
was crafted in the Committee on Education and Labor after President 
Obama's Fiscal Year 2010 Budget proposed reforming the federal student 
loan system. Although I support the President's goal of ensuring our 
affordable and accessible educational opportunities for our nation's 
children, I have some serious reservations with this bill.
  H.R. 3221 calls for the transition of all federal student lending to 
the Direct Loan Program by July 1st 2010. Not only will this move end 
the reliable administration and servicing of student loans at more than 
4,000 schools across the country, this transition will risk job losses 
at a time when unemployment is threatening to hit 10 percent 
nationwide. This industry represents over 30,000 jobs throughout our 
country, and 700 Sallie Mae employees in my district alone.
  These employees have a history with the program, the college 
administrators and the students that they serve, given the over 40 
years of the program's existence. During that time the private industry 
has continued to evolve to better help students with their financial 
responsibilities through quality customer service and product 
innovation. It is evident that as the Direct Loan and Federal Family 
Education Loan (FFEL) programs have competed over the years the quality 
of the student experience has been changed for the better. I am not 
comfortable taking this dynamic out of the equation via the provisions 
in H.R. 3221. Furthermore, I am concerned that the quick transition 
required by this bill could prove burdensome to many of the schools 
that are currently using the FFEL program despite the efforts of the 
Department of Education to prepare for it.
  I believe that the country and students would be better served if the 
private industry framework of the current system was enhanced instead 
of proceeding with H.R. 3221 as written and I would therefore urge my 
colleagues to vote no.

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