[Congressional Record Volume 165, Number 151 (Thursday, September 19, 2019)]
[Extensions of Remarks]
[Page E1178]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




FOSTERING UNDERGRADUATE TALENT BY UNLOCKING RESOURCES FOR EDUCATION ACT

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                               speech of

                            HON. PETER WELCH

                               of vermont

                    in the house of representatives

                      Tuesday, September 17, 2019

  Mr. WELCH. Mr. Speaker, I rise today as a strong supporter of 
Historically Black Colleges and Universities (HBCUs) and Minority 
Serving Institutions (MSIs), and the intent of H.R. 2486, the Fostering 
Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act. 
These institutions, which serve high populations of traditionally 
underrepresented students, need stable and reliable funding. We have 
seen the positive impacts that mandatory funding has had on improving 
degree completion, achieving future gainful employment, and propelling 
upward mobility for these populations. However, the funding source, 
currently in the bill, comes at the expense of critical small nonprofit 
education institutions like the one in my district, the Vermont Student 
Assistance Corporation (VSAC).
  Unlike some large Guarantee Agencies (GAs), VSAC does so much more 
for Vermont students than just acting as a loan guarantor. They are a 
public nonprofit agency that advocates for students and families to 
ensure that they have the information, the counseling, and the 
financial aid to achieve their education goals. Their 161 employees 
provide need-based education grants, scholarships, loan services, and 
community outreach. In this past year alone, VSAC:
  Issued $20.1 million in need-based grants to 11,766 Vermont students;
  Provided 3,195 scholarship awards worth over $5.4 million;
  Counseled 6,642 low-income and first-generation college-bound Vermont 
students;
  Answered 62,000 phone calls from borrowers who needed assistance with 
their financial aid and repayment questions; and
  Trained 355 education professionals to better serve their students.
  The funding source in the bill--eliminating Account Maintenance Fees 
paid to GAs for guaranteeing Federal Family Education Loans--operates 
under the misunderstanding that the program has been eliminated and 
therefore no services and resources need to be provided for these 
loans. In fact, VSAC continues to service over $410 million of these 
FFELP loans for 26,500 borrowers, and the funding that accompanies the 
servicing of these loans helps VSAC achieve its broader mission of 
borrow advocacy and counseling. This work is particularly important for 
borrowers in the wake of problems with the new federal direct loan 
program and private lenders. VSAC and other organizations are facing 
the reality of having no way to replace this lost revenue stream to 
continue to help thousands of borrowers navigate the complicated and 
difficult process of finding a way to pay for higher education.
  This doesn't have to be an either-or decision. As we move forward, I 
urge the Chairman to work with me and Senate leaders to try to identify 
an alternative funding source. We must ensure that smaller GAs like 
VSAC are protected and able to continue the vital work they provide to 
their communities.

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