[Congressional Record Volume 155, Number 171 (Wednesday, November 18, 2009)]
[Senate]
[Pages S11495-S11496]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ENZI (for himself, Mr. Nelson, of Nebraska, Mr. Alexander, 
        Mr. Burr, Mr. Coburn, Mr. Gregg, Mr. Hatch, Mr. Isakson, Mr. 
        McCain, Ms. Murkowski, and Mr. Roberts):
  S. 2796. A bill to extend the authority of the Secretary of Education 
to purchase guaranteed student loans for an additional year, and for 
other purposes; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. ENZI. Mr. President, I rise today to introduce legislation to 
extend for 1 year the Ensuring Continued Access to Student Loans Act of 
2008, ECASLA. Without this extension, hundreds of thousands of students 
may not have access to student loans for the 2010-2011 academic year.
  Since 1965, the Federal Family Education Loan, FFEL, program has 
successfully helped millions of Americans realize the dream of a 
college education. Today, it continues to provide student loans for 
nearly 70 percent of America's college students at over 3,400 schools. 
However, during the credit crisis of 2008 many private, non-profit FFEL 
lenders encountered difficulty raising the necessary capital to make 
student loans, and others left the FFEL program. Congress responded by 
passing the bipartisan, cost-neutral Ensuring Continued Access to 
Student Loans Act of 2008. ECASLA preserved liquidity in the student 
loan market by giving the Secretary of Education temporary authority to 
purchase student loans made under the FFEL program. It has been a 
resounding success--it has preserved liquidity in the student loan 
market, it has been cost neutral, in fact it has generated revenue and, 
most importantly, it has maintained student access to FFEL loans.
  However, while it was meant to be temporary, serious problems persist 
in the financial markets and many private, non-profit FFEL lenders are 
again considering leaving the FFEL program when ECASLA expires on July 
1, 2010. The potential consequences could be catastrophic for America's 
college students, many of whom will be unable to secure student loans 
for 2010-2011 academic year without a functioning FFEL program.

[[Page S11496]]

  Given this predicament, the solution is simple--extend ECASLA for an 
additional year. Unfortunately, instead of working with Congress to 
pass a clean, bipartisan, one-year extension of ECASLA, the Department 
of Education is pursuing yet another government takeover and placing 
undue pressure on FFEL-participating schools to switch to the 
government-run Direct Loan, DL, program. Some schools will make this 
choice, but most do not want to because the FFEL program provides a 
product and services that meet individual student needs rather than the 
one-size-fits-all approach of the government-run DL program.
  Moreover, schools begin making financial aid determinations in 
January--just seven weeks from now. Given that it can take 4 months to 
make the switch to the government-run DL program, most schools do not 
have the time, staff, resources or capacity to make the switch while at 
the same time attending to the financial aid needs of current and 
enrolling students. Furthermore, making the switch is not simply a 
matter of ``flipping a switch,'' as the Department of Education 
asserts. Among other things, schools must install new computer 
software, hire and train financial aid personnel, and receive 
substantial technical assistance from the Department of Education. 
While the Department has been able to successfully assist the several 
hundred schools that have made the switch over the past year, thousands 
will need assistance over the next 7 months. The Department simply does 
not have the resources to devote the necessary time and attention to 
all of these schools, which will frantically be trying to switch before 
ECASLA expires on July 1, 2010.
  At this point, the only responsible course of action for Congress is 
to pass a clean, one-year extension of ECASLA. This will ensure that 
students have access to student loans, and will give Congress the time 
needed to have a serious and well thought discussion about the future 
of the Federal student loan program.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2796

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXTENSION OF STUDENT LOAN PURCHASE AUTHORITY.

       Section 459A of the Higher Education Act of 1965 (20 U.S.C. 
     1087i-1) is amended--
       (1) in subsections (a)(1), (a)(3)(A), and (f), by striking 
     ``July 1, 2010'' and inserting ``July 1, 2011''; and
       (2) in subsection (e)--
       (A) in the matter preceding clause (i) of paragraph (1)(A) 
     and the matter preceding subparagraph (A) of paragraph (2), 
     by striking ``September 30, 2010'' and inserting ``September 
     30, 2011'';
       (B) in paragraph (2), by striking ``February 15, 2011'' and 
     inserting ``February 15, 2012''; and
       (C) in paragraph (3), by striking ``2010, and 2011'' and 
     inserting ``2010, 2011, and 2012''.

     SEC. 2. EXTENSION OF AUTHORITY TO DESIGNATE LENDERS FOR 
                   LENDER-OF-LAST-RESORT PROGRAM.

       Section 428(j) of the Higher Education Act of 1965 (20 
     U.S.C. 1078(j)) is amended--
       (1) in paragraph (6), by striking ``June 30, 2010'' and 
     inserting ``June 30, 2011'';
       (2) in paragraph (7), by striking ``June 30, 2010'' and 
     inserting ``June 30, 2011''; and
       (3) in paragraph (9)(A)--
       (A) in the matter preceding subclause (I) of clause (ii), 
     by striking ``June 30, 2011'' and inserting ``June 30, 
     2012'';
       (B) in subclause (III) of clause (ii), by striking ``June 
     30, 2010'' and inserting ``June 30, 2011''; and
       (C) in the matter preceding subclause (I) of clause (iii), 
     by striking ``July 1, 2011'' and inserting ``July 1, 2012''.
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