[Congressional Record (Bound Edition), Volume 154 (2008), Part 14]
[House]
[Pages 18740-18743]
[From the U.S. Government Publishing Office, www.gpo.gov]




        ENSURING CONTINUED ACCESS TO STUDENT LOANS ACT EXTENSION

  Mr. HINOJOSA. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6889) to extend the authority of the Secretary of Education 
to purchase guaranteed student loans for an additional year, and for 
other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6889

       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) by striking ``July 1, 2009'' each place it appears in 
     subsections (a)(1) and (f) and inserting ``July 1, 2010''; 
     and
       (2) in subsection (e)--
       (A) by striking ``September 30, 2009'' each place it 
     appears in paragraphs (1)(A) and (2) and inserting 
     ``September 30, 2010'';
       (B) by striking ``February 15, 2010'' in paragraph (2) and 
     inserting ``February 15, 2011''; and
       (C) by striking ``2009, and 2010'' in paragraph (3) and 
     inserting ``2009, 2010, and 2011''.

     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, 2009'' and 
     inserting ``June 30, 2010'';
       (2) in paragraph (7), by striking ``June 30, 2009'' and 
     inserting ``June 30, 2010''; and
       (3) in paragraph (9)(A)--
       (A) in clause (ii), by striking ``June 30, 2010'' and 
     inserting ``June 30, 2011'';
       (B) in clause (ii)(III), by striking ``June 30, 2009'' and 
     inserting ``June 30, 2010''; and
       (C) in clause (iii), by striking ``July 1, 2010'' and 
     inserting ``July 1, 2011''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Hinojosa) and the gentleman from Utah (Mr. Bishop) each will 
control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. HINOJOSA. Mr. Speaker, I request 5 legislative days during which 
Members may revise and extend and insert extraneous material on H.R. 
6889 into the Record.

[[Page 18741]]

  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. HINOJOSA. I yield myself as much time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 6889, legislation to 
extend the Ensuring Continued Access to Student Loans Act for an 
additional year.
  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 loans program regardless of what is happening in the financial 
markets.
  In May, the President signed the Ensuring Continued Access to Student 
Loans Act. This law is providing much-needed liquidity to the student 
loan marketplace by authorizing the Secretary on a temporary basis to 
purchase student loans so that lenders have the funds to make new 
loans.
  As a result of our swift action, there has been no disruption in 
students' and families' access to loans for the 2008-2009 academic 
year.
  The Department of Education, the lenders, secondary markets, guaranty 
agencies, and institutions of higher education are to be commended for 
their efforts to get new financing systems in place and operational for 
the start of this academic year.

                              {time}  1745

  Their cooperation has ensured continued access to college loans.
  Come spring, students and families will be making their plans for the 
next academic year. Given the ongoing turmoil in our financial markets, 
it is critical that we extend the authority for the Secretary to 
purchase student loans to avoid any uncertainty about the access to 
this critical source of student financial aid. It would be a tragedy 
for a student to decide to forego or postpone college because of a fear 
of not being able to get a Federal student loan.
  This legislation has no budgetary cost. It will simply extend the 
Secretary's authority under the Ensuring Continued Access to Student 
Loans Act for an additional year.
  Mr. Speaker, students and families will be able to rest assured that 
we have the mechanisms in place to make sure that there is sufficient 
capital for student loans even if the current credit crisis continues 
or worsens.
  This Congress has taken unprecedented steps to make college more 
accessible and more affordable. We enacted the largest increase in 
student aid with the College Cost Reduction and Access Act, a $20 
billion investment in human capital. In August, the President signed 
the Higher Education Opportunity Act into law.
  The legislation takes significant steps to improve our student aid 
delivery system, ensure the integrity of our student loan programs, and 
provide students and families with the tools that they need to make 
informed choices about which college to attend and how to finance it. 
These are complex issues, and on a bipartisan, bicameral basis, we came 
together with some practical solutions.
  Today's legislation is another example of our bipartisan commitment 
to college access. I would like to thank our committee chairman, George 
Miller, and our senior Republicans on the full committee and the Higher 
Education Subcommittee, Representative Buck McKeon and Representative 
Ric Keller from Florida, for their leadership in quickly moving this 
legislation forward. We stand united in our goal of ensuring continued 
access to student loans.
  I urge all my colleagues to support H.R. 6889.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BISHOP of Utah. Mr. Speaker, I rise today in support of H.R. 
6889, a bill to extend the authority of the Secretary of Education to 
purchase guaranteed student loans for an additional year. And I do want 
to thank my friends, the senior Republicans, Mr. McKeon and Mr. Keller, 
as well as the two significant chairmen, Mr. Miller and Mr. Hinojosa, 
who introduced this extension.
  We have been reading about the instability that still exists in the 
credit markets, and, in fact, it has gotten worse. Through this 
extension, Congress is assuring students and families that they will be 
able to receive the Federal assistance they need to pay for school.
  The steps in the underlying bill are modest, but they make a real 
difference for students and families. I appreciate that this bill 
carries no cost to taxpayers, proving that we can use a creative 
approach to respond to economic difficulties without bloated spending 
that will drive up taxes.
  Since the implementation of H.R. 5715, we have seen at least 10 
lenders take advantage of the program that has been put in place. 
Without this relief, these lenders could have dropped out of the 
program altogether. Up until this point, we have seen over 6,000 
employees laid off as a result of the cutbacks lenders have had to 
make. In addition, 106 lenders have suspended their lending service as 
a result of the credit crunch and the cuts made in the College Cost 
Reduction and Access Act. Without this extension, students could attend 
college this year without knowing whether the financing would be there 
to attend college next year.
  In difficult economic times, many Americans turn to higher education. 
That's because a college degree continues to be one of the single best 
investments an individual, and our Nation, can actually make. College 
graduates have higher lifetime earnings, lower unemployment rates, 
greater civic involvement, and exhibit numerous other qualities that 
help enrich our society and keep our Nation competitive.
  With all the benefits of higher education, it's concerning that amid 
these economic uncertainties many current and prospective students are 
worried about whether they will be able to access student loans. And as 
more and more students look to higher education to help get them 
through these difficult economic times, we cannot allow market 
turbulence to limit college access.
  This extension signals our unwavering support for the Nation's 
largest source of financial aid, the Federal Family Education Loan 
Program. It is a crucial step that will help protect students and 
families and restore market confidence.
  Mr. Chairman, I know how important it is that higher education be 
made affordable and accessible. This is particularly important in our 
turbulent economy. For the same reason, it's important that we come 
together to pass an all-of-the-above energy reform package that will 
help bring down prices and free us from our costly dependence on 
foreign oil.
  Mr. Speaker, I believe that stabilizing our loan program will have an 
economic positive yield, just as solving the real problems of energy 
will have an economic yield. Our energy prices and energy problems are 
not just affecting those who stop at the pump, they affect those who 
will be trying to heat their homes this winter; they affect those who 
will be trying to buy food; they affect not just commuters, but all of 
us. Students as well as parents need real solutions to the energy 
crisis that is confronting us. They need to be able to make the 
commute. They need to be able to make those heating payments. They need 
to realize the cost of food will not keep spiraling upwards simply 
because farmers cannot afford energy to put into their tractors to grow 
the food and truckers cannot afford the energy to take that produce and 
send it to the markets where we can then buy it and enjoy it.
  We have to realize that the solution to this problem has to be an 
all-of-the-above approach, that we are not doing enough to encourage 
conservation by small business or by citizens. But even if we did the 
maximum amount of conservation efforts, that still does not solve the 
entire problem. It's estimated that if the most stringent efforts of 
conservation were put in place, only about half of the foreign imports 
that we bring into this country would be eliminated; the other half 
would still have to be there.
  We also have not done enough over the last few years to put in 
infrastructure so that we can move energy from

[[Page 18742]]

one part of this country to the other. There are bottlenecks all over 
this country in which energy cannot take place. There is plenty of 
pipeline for natural gas going from the Gulf of Mexico up north, but it 
cannot get to New England because there is a bottleneck that we have 
yet to solve in that particular problem. That infrastructure problem 
needs to be addressed. The lack of refinery capacity needs to be 
addressed. The lack of electrical corridors needs to be addressed.
  We also have to recognize that we do not have a successful payment 
plan for alternative energies for the future, not only for our 
immediate problems, but for the long-term problems of this particular 
country. We need to recognize that this is a supply and demand issue, 
and that that supply can only be satisfied if we have an all-of-the-
above strategy.
  There is not a single source of energy that does not have some 
detractor. I was amazed to read in the local paper the other day about 
a detractor from a wind farm who said that the noise of the blades kept 
him up at night, and that they chopped up too many birds, which 
violates our Migratory Bird Treaty. I was amazed to find out that 
somebody was opposed to a solar energy plant down in New Mexico because 
it would consume too much of the desert land.
  There is not a source of energy that doesn't have someone who will 
jump up and complain about it and potentially bring a lawsuit about it. 
That is why if we start to take any of those resource potentials off 
the table, we might as well take them all off because everything drops 
one after the other. The only way to be fair and the only way to be 
equitable and the only way to make sure that we have a real solution is 
to make sure that every source of energy known to this country, every 
source of energy in this country is on the table and is part of the 
real solutions.
  Our students, for their future, require that. The parents, for the 
present, require that. The citizens of this country demand an all-of-
the-above approach and that it be talked about in committees, in public 
hearings, and here on the floor. Nothing else solves the problem. And 
our goal and responsibility should be to come to this Congress to solve 
the problem, not try to create a political atmosphere so that we can 
take credit for what may or may not happen, but simply to solve the 
problem.
  If we do not fulfill our responsibility, the students who will 
benefit from these extensions will have a short-lived benefit and will 
not look at us in kindness for the generosity when we help them get 
their education, but refuse to allow this economy to sustain them post-
education.
  With that, Mr. Speaker, I reserve the balance of my time.
  Mr. HINOJOSA. Mr. Speaker, I want to thank Congressman Bishop from 
the State of Utah for his support of this student loan extension, H.R. 
6889. And let me reassure him that this week, if our friends and 
colleagues from the great State of Texas and the State of Louisiana are 
able to get back because of the devastation that occurred with 
Hurricane Ike, we will be able to address the energy bill that he was 
referring to. And I am sure that the Speaker of the House, Nancy 
Pelosi, and others in leadership position are prepared to give us the 
opportunity to take care of this great need that we have throughout our 
country on the lack of energy.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BISHOP of Utah. If I may, once again; I appreciate the remarks 
that have been given. I am fully supportive of this particular piece of 
legislation, I urge my colleagues to do so as well. But I also realize 
that, in the words of the Broadway song, ``It's a fine, fine line 
between reality and pretend.''
  I certainly hope that when we come to this floor and actually deal 
with the issue of energy once and for all, we have the ability of 
dealing with the reality of the situation for a real solution. That's 
the crying need.
  Mr. PETRI. Mr. Speaker, I rise in opposition to H.R. 6889, which 
would extend the authority of the Secretary of Education to purchase 
Federal guaranteed loans previously made under the Federal Family 
Education Loan, FFEL, Program and advance funds for lender-of-last 
resort loans. I believe this bill is premature and is merely a response 
to alarms raised by an industry that has continually benefited from 
government subsidies.
  Earlier this year, the lending community expressed serious concerns 
that unstable credit markets would affect their ability to provide 
Federal student loans for the upcoming school year. In response, 
Congress approved the Ensuring Continued Access to Student Loans Act of 
2008, which put in place several provisions to ensure that students and 
families had continued, uninterrupted access to Federal loans, 
regardless of what is happening in the credit markets. That measure 
gave the Secretary of Education the temporary authority to buy back 
loans from lenders participating in the FFEL program.
  However, now almost four months after the emergency provisions were 
signed into law and one month into the fall semester, it has become 
clear that despite the credit crunch students are having little trouble 
securing Federal student loans. The New England Board of Higher 
Education and the New England Council recently released a survey of its 
region's financial aid officers that revealed ``students and parents 
experienced little or no problems accessing Federal student loans for 
this fall.'' Schools in my own State of Wisconsin have told me that 
students are encountering few difficulties in securing Federal student 
loans, and in fact, any disruption has simply resulted in some students 
to switching lenders. Recently, the State of Massachusetts called off a 
plan to provide public financing to a State nonprofit lender because 
only a small percentage of students were still looking for a lender. 
Over 2,000 lenders continue to participate in the FFEL program.
  Furthermore, this year hundreds of schools, including Penn State, 
Michigan State and Indiana, decided it was in the best interests of 
their students to leave the Federal Family Education Loan Program, 
FFEL, and enroll in the Direct Loan Program because it is immune to the 
effects of the credit crunch and provides the exact same Federal loans 
to their students. In fact, the Direct Loan Program has seen a 47 
percent increase over last year in the amount of loans originated. 
Schools are reporting they are happy with the transition to the 
program, and the Education Department has continually asserted that the 
Direct Loan Program is capable of handling the increased capacity.
  Therefore, I find it alarming that just four months after passing the 
Ensuring Continued Access to Student Loans Act of 2008, and with 
widespread agreement that there currently is no student loan crisis, we 
have decided to extend until 2010 these authorities that provide 
government liquidity and financing to private lenders. While it is 
impossible to say these authorities did not help avoid a crisis, it's 
equally impossible to say private sector funds will not be available 
next year for student loans. I find it curious that today's action 
coincides with reports from the lending community that, despite the 
fact that there is no real crisis this year, one may exist in the 2009-
10 school year.
  While there is no doubt that the financial markets remain unsettled, 
the current authority for these powers runs through July 31, 2009. 
Washington is once again eager to extend temporary authorities. Instead 
of rushing to react to the ``alarms'' sounded by the lending community, 
I believe it would be more prudent for Congress to continue to monitor 
the situation in the student loan markets to determine if more action 
is really necessary before we extend another handout to an industry 
that has continually proven to work in the interests of their own 
pocketbooks and not for students and taxpayers.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in strong support 
of H.R. 6889, which will extend the authority of the Secretary of 
Education to ensure the continued access to Federal student loans for 
one more year, introduced by my distinguished colleague from 
California, Representative George Miller. This significant piece of 
legislation provides greater access to colleges and universities, 
making higher education affordable for all Americans, not just the 
wealthy.
  A quality education continues to be the best pathway to social and 
economic mobility in this country. Earlier this year, we passed H.R. 
5715 (now Public Law 110-227), the Ensuring Continued Access to Student 
Loans Act of 2008.


        Facts on Ensuring Continued Access to Student Loans Act

  This legislation amended under the Higher Education Act of 1965 (HEA) 
by:
  Increasing annual and aggregate borrowing limits for unsubsidized 
Stafford Loans to undergraduate students;

[[Page 18743]]

  delaying the start of repayment for parent borrowers of PLUS Loans;
  extending eligibility for individuals with adverse credit to borrow 
PLUS Loans, under extenuating circumstances;
  revising procedures for ensuring the availability of lender-of-last-
resort, LLR, loans under the FFEL program;
  temporarily authorizing the Secretary to purchase loans previously 
made under the FFEL program at no net cost to the Federal Government; 
and
  expanding eligibility for aid provided through American 
Competitiveness, AC, Grants and Science and Mathematics Access to 
Retain Talent, SMART, Grants.
  The Ensuring Continued Access to Student Loans Act of 2008 also 
expresses a sense of Congress that institutions such as the Federal 
Financing Bank, the Federal Reserve, and Federal Home Loan Banks, in 
consultation with the Secretaries of Education and the Treasury, should 
consider using available authorities to assist in ensuring continued 
access to Federal student loans for students and their families; and 
that any action taken by these entities should not limit the 
Secretary's authority with regard to the LLR program, nor the 
Secretary's authority to purchase loans previously made under the FFEL 
program.
  It also requires the Government Accountability Office, GAO, to 
evaluate the impact that increases in Federal student loan limits may 
have on tuition, fees, room and board, and on the borrowing of private, 
non-federal, student loans.


                               Conclusion

  In this time of economic downturns, costly natural disasters, rising 
food and gas prices--families are focused on meeting their basic needs 
and having a hard time saving for educational expenses. Often times 
Federal loans are all families have to help their children go to 
college.
  We cannot allow our institutions of higher learning to be 
inaccessible for the vast majority of our youth. This important piece 
of legislation gives our young people and their families the 
opportunity to not only dream of attending college but actually realize 
that dream. I urge my colleagues to join me in supporting H.R. 6889.
  Mr. BISHOP of Utah. Mr. Speaker, I yield back the balance of my time.
  Mr. HINOJOSA. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Hinojosa) that the House suspend the rules 
and pass the bill, H.R. 6889.
  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. HINOJOSA. 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.

                          ____________________