[Congressional Record (Bound Edition), Volume 154 (2008), Part 5]
[House]
[Pages 6203-6208]
[From the U.S. Government Publishing Office, www.gpo.gov]




         ENSURING CONTINUED ACCESS TO STUDENT LOANS ACT OF 2008

  The SPEAKER pro tempore. Pursuant to House Resolution 1107 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the consideration of the bill, H.R. 5715.

                              {time}  1532


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 5715) to ensure continued availability of access to the Federal 
student loan program for students and families, with Mr. Jackson of 
Illinois in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered read the 
first time.
  The gentleman from California (Mr. George Miller) and the gentleman 
from California (Mr. McKeon) each will control 30 minutes.
  The Chair recognizes the gentleman from California (Mr. George 
Miller).
  Mr. GEORGE MILLER of California. I yield myself 5 minutes.
  Mr. Chairman, Members of the House, I rise in strong support of H.R. 
5715, the Ensuring Continued Access to Student Loans Act of 2008. It 
was reported by the Committee on Education and Labor with unanimous 
bipartisan support, and I want to thank my colleagues on both sides of 
the aisle for all of the effort they put into this legislation. It is a 
very important piece of legislation.
  At a time when the turmoil in the Nation's credit markets has made it 
difficult for some lenders to access the capital they need to finance 
their student lending activity, this bipartisan bill will ensure that 
students and parents are able to continue to access the federal loans 
they need to pay for college.
  For quite some time now, the worsening economic downturn has made 
life more difficult for many of America's families. But this downturn 
has its root in the housing crisis, which has led to significant 
tightening in the credit markets. What began as a challenge for home 
loan borrowers has now become a challenge for other borrowers, like 
those with credit card debt and automobile loans.
  And in recent months, we have now seen questions raised about the 
availability of student loans for the coming year, especially when 
those who finance their loans through the auction rate securities, that 
system has ceased to function.
  As a result, some lenders are reducing their lending activity in the 
federally guaranteed student loan programs, while other lenders are 
anticipating increasing their market share.
  And while the stress in the credit markets is taking a toll on some 
lenders, students so far have not encountered serious difficulties in 
getting federal loans they need to pay for college. That's the good 
news.
  But as we have seen too often, the shocks in the financial markets 
come as a surprise leaving those affected with little time to react. 
There is emergency authority already built into the current law which 
would maintain access to federal loans for families in the event of any 
of these surprises.
  It is critical to make sure that this authority is ready to be 
implemented to ensure America's families can continue to access the 
federal college loans they are eligible for, regardless of what's 
happening in the credit markets.
  As we work with Secretary Spellings to make sure these safeguards are 
ready to become operational at a moment's notice, we must also take 
additional steps on behalf of students and their families.
  This legislation provides new protections, in addition to those in 
current law, to ensure that families can continue to access the loans 
they need to pay for college.
  The bill reduces borrowers' reliance on costlier private loans while 
encouraging responsible borrowing by increasing the annual student loan 
limits for federal student loans by $2,000 for all students. It also 
increases the total amount of Federal loans students can borrow to 
$31,000 for dependent undergraduates and to $57,500 for independent 
undergraduates.
  H.R. 5715 gives parent borrowers more time to pay off their federal 
parent PLUS loans by allowing families to delay entering repayment for 
up to 6 months after a student leaves school. It helps struggling home 
owners pay for college by making sure that short-term delinquencies in 
mortgage payments don't prohibit otherwise eligible parents from being 
able to pay their PLUS loans.
  It clarifies that existing law gives the Secretary of Education the 
authority to advance federal funds to guaranty agencies in the event 
that they do not have sufficient capital to originate new loans. It 
allows guaranty agencies to make lender-of-last-resort loans on a 
school-wide basis.
  And the bill ensures that lenders can continue to access capital to 
originate new student loans by giving the Secretary of Education the 
temporary authority to purchase federally guaranteed student loans from 
lenders, if needed.
  Finally, this legislation carries no new costs for taxpayers.
  Especially in light of today's economic conditions, the high cost of 
a college education continues to be one of the primary worries facing 
American families. A recent poll conducted by the New York Times and 
CBS News found that 70 percent of the parents surveyed said they were 
``very concerned'' about how they would finance their kids' college 
education.
  Over the past year and a half, this Congress has worked vigorously to 
make college more affordable and accessible for students and families. 
Last year, we took the historic step towards this goal by providing 
more than $20 billion in financial assistance to low- and middle-income 
families over the next 5 years.
  In February, the House passed bipartisan legislation to reauthorize 
the Higher Education Act, and we will soon be prepared to conclude the 
conference committee and bring that to the floor.
  Now more than ever, families deserve every assurance that we are 
doing all that we can to make sure that they can continue to be able to 
finance their children's college education, regardless of what happens 
in the credit markets.

[[Page 6204]]

  And I want to again thank Congressman Buck McKeon, Congressman Ruben 
Hinojosa and Congressman Ric Keller, the Chair and the ranking member 
of the subcommittee, and all of the staff for all of the work they have 
put into this legislation. This has been a very fast turnaround. It 
could not have happened without the bipartisan cooperation of all of 
those involved.
  I reserve the balance of my time.
  Mr. McKEON. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise in support of H.R. 5715, a bill that will help 
ensure college students and their families are able to plan with 
confidence for the upcoming school year. On its own, this bill will not 
restore confidence and stability to the student loan programs, but it 
is an important first step.
  For months, Members on both sides of the aisle have been warning the 
U.S. Departments of Education and the Treasury, the various federal 
financial institutions, and indeed anyone who will listen, about the 
potential risks to our student loan program. Many of us recognized 
early that it was only a matter of time before the turmoil in the 
broader credit markets would spill into the student loan programs.
  Unfortunately, those warnings have become reality. I would like to 
share just a few of the headlines that have appeared in major papers 
over the last several weeks. The Wall Street Journal said, Credit Woes 
Hit Student Loans. The New York Times said, Fewer Options Open to Pay 
For Costs of College. The Washington Post said, Credit Crisis May Make 
College Loans More Costly: Some Firms Stop Lending to Students. USA 
Today said, Credit Woes May Hinder College-Bound.
  Mr. Chairman, with this bill, we are acting to prevent a crisis 
before it develops. As these headlines demonstrate, the anxieties among 
students and families are very real. This bill is far from a complete 
solution. But it contains modest, yet meaningful, steps to restore 
investor confidence, begin to address liquidity shortages, and most 
importantly, provide assistance to student and parent borrowers.
  The challenges in the student loan market are multifaceted. Last 
year, federal support for the loan program was slashed, forcing loan 
providers to scale back on benefits and reevaluate their future 
participation in the program. This year, disruptions in the capital 
markets have reduced liquidity and shaken investor and consumer 
confidence.
  With enactment of the College Cost Reduction and Access Act last 
fall, we cut some $18 billion from the program over 5 years. Although 
we were able to reinvest some of those funds in Pell Grants, which I 
strongly support, it appears now that we may have done more harm along 
with that good. That's because we cut so deeply into the student loan 
program that many lenders have opted to stop offering federal loans 
altogether.
  On the issue of liquidity, what we require is a two-pronged approach 
to reinstate the flawed capital into the program.
  First, this bill authorizes the U.S. Department of Education to act 
as a secondary market by purchasing or agreeing to purchase student 
loans so that lenders and holders can make or purchase new loans in the 
upcoming school year. Although this plan will provide only a modest 
amount of liquidity, it sends an important signal that policymakers are 
committed to the program's long-term stability. And it does so with no 
cost to the taxpayer.
  Second, to provide an even greater flow of capital into the program, 
we are taking steps to ensure other federal financing authorities are 
viewed as viable sources of liquidity. To that end, this legislation 
contains a sense of Congress, urging these authorities to exercise 
their existing authorities to inject liquidity into the marketplace.
  We're not alone in recognizing that this market-based problem 
requires a marked-based solution. Just yesterday, the chairman of the 
Senate Banking Committee held a hearing on the impact of market 
disruptions on student loan access, and he called for intervention by 
the Federal Financing Bank. I welcome these types of creative and 
complementary approaches, which will work in concert to calm the 
market.
  Taken together, the prospect of federal financial institutions and 
the U.S. Department of Education stand ready to take the necessary 
steps to invest in and commit to the future purchase of loans will 
begin to quell the market uncertainty and restore confidence among 
investors, as well as among students and families planning for the 
coming school year.
  The troubles facing our financial markets and our economy as a whole 
are daunting. But we would do a real disservice to students and 
families if we dismissed the challenges in the student loan program as 
merely a symptom of a larger problem that is outside our control. The 
fact is, we can take steps to prevent a collapse in the student loan 
market. We can do so quickly, and without a cost to taxpayers, by 
focusing on our commitment to market stability.
  I would also offer a word of caution to those who are wary of federal 
intervention: If we fail to act now, we may be forced to take on a much 
greater governmental role in the future. And surely we can all agree 
that it's better to preserve the private sector program now than to 
replace it with a federal program later.
  We made a commitment more than four decades ago that there are 
national benefits to an affordable, accessible higher education system. 
What we are doing today is restating that commitment and sending a 
signal to students and families that we continue to believe in this 
program that has opened the doors of higher education to so many 
millions of aspiring young Americans.
  Mr. Chairman, this is a good bill that deserves our support. I want 
to thank the chairman for moving so quickly on this issue.
  I reserve the balance of my time.
  Mr. GEORGE MILLER of California. I yield 3 minutes to the 
subcommittee Chair, the gentleman from Texas (Mr. Hinojosa).
  Mr. HINOJOSA. Mr. Chairman, I rise in strong support of H.R. 5715, 
the Ensuring Continued Access to Student Loans Act of 2008.
  This is urgent legislation. I would like to thank our Education and 
Labor chairman, George Miller, and our ranking member, Howard ``Buck'' 
McKeon, as well as my good friend and ranking member of the 
subcommittee, Ric Keller, for working together to expedite 
consideration of this bill.

                              {time}  1545

  Nothing is more important than reassuring students and families that 
there will be no disruption in the availability of Federal student 
loans, regardless of what happens in our financial markets. As of 
today, no student has been unable to find a lender for a Federal 
student loan. However, we are not going to wait until students and 
families are denied loans before putting safeguards in place. That is 
what we are doing here today.
  Ensuring continued access to Federal student loans is of critical 
importance. In my congressional district, 40 percent of all student aid 
comes from the Federal Family Education Loan Program, and in my State 
of Texas 66 percent of all student aid comes through this program. The 
concerns that we are hearing from our constituents are real, and we 
need to address them.
  Mr. Chairman, I include for the Record a letter dated April 7, 2008, 
from Texas State Senator Judith Zaffirini, Chair of the Higher 
Education Subcommittee, urging Congress to take action to avert any 
disruption in the Federal Family Education Loan Program.

                             Senate Higher Education Subcommittee,


                                    Austin, TX, April 7, 2008.

     Hon. Ruben Hinojosa,
     Chair, Subcommittee on Higher Education, Lifelong Learning, & 
         Competitiveness, House of Representatives, Washington, 
         DC.
       Dear Chair Hinojosa: Thank you for your leadership in 
     addressing higher education. I am writing to you in my 
     capacity as Chair of the Senate Higher Education 
     Subcommittee, Chair of the Senate Finance Higher Education 
     Subcommittee, and Vice Chair of the Senate Finance Committee 
     about issues affecting higher education in Texas and to 
     express my support for a viable Federal Family

[[Page 6205]]

     Education Loan Program (FFELP). This is in response to the 
     current turmoil in the capital markets, which appears to be 
     affecting all areas of credit, including student loans.
       The FFELP participants provide nearly two-thirds of the 
     student financial aid awarded annually to Texas's 
     postsecondary education students and parents (contrasted with 
     56 percent nationally). Last year alone, for example, the 
     Texas Guaranteed Student Loan Corporation (TG) guaranteed 
     more than $3.2 billion in FFELP loans in Texas. The Federal 
     Direct Loan Program (FDLP) accounts for approximately five 
     percent of the state's federal student loan volume.
       These FFELP providers also have supplied essential 
     resources to assist students and families obtain information 
     about postsecondary education: how to apply for college, how 
     to choose a college or university to attend, financial aid 
     availability, and how to apply for financial aid. In addition 
     to working with the Texas student financial aid community 
     through regional workshops on various postsecondary education 
     issues, FFELP providers assist the State of Texas with our 
     CLOSING THE GAPS initiative and provide grants and 
     scholarships to organizations to enhance access to college.
       In Texas more than 300 lenders, including the four private 
     non-profit higher education authorities organized under 
     Chapter 53B of the Texas Education Code, compete with one 
     another on the basis of providing the best customer service 
     to borrowers. This has produced more than a 90 percent 
     repayment rate through excellent loan servicing and generous 
     borrower benefits in a state that, unfortunately, relies 
     heavily on student debt as the primary financial vehicle to a 
     finance postsecondary education.
       The non-profit lenders and secondary markets organized 
     under the state education code have played a key role within 
     the FFELP delivery system by providing a continuous source of 
     liquidity for FFELP loan originations in Texas as well as 
     support for efforts to enroll more students in higher 
     education from underrepresented populations.
       Colleges and universities should continue to have a choice 
     of student lenders and student loan programs. The 
     alternatives to a weakened FFELP most often mentioned--the 
     FDLP and Lender of Last-Resort program--are not viable 
     options in Texas. FDLP has been rejected by Texas 
     institutions, and LLR is untested and has been used only 
     sporadically.
       I strongly urge you, as Chair of the Subcommittee on Higher 
     Education, and the Texas Congressional delegation to support 
     efforts to provide financial liquidity that will enable non-
     profit FFELP providers to continue to finance their programs 
     facilitating reliable, efficient, low-cost secondary market 
     programs that meet the needs of Texas lenders and students.
       Feel free to contact me if I can be of further assistance. 
     May God bless you.
           Very truly yours,
                                            Judith Zaffirini, PhD.

  Mr. Chairman, the challenges facing the student loan marketplace are 
not the result of lax standards or poor judgment by borrowers or 
lenders. Student loans are a solid investment. For individuals, a 
college education means higher earnings, greater career opportunities 
and a better quality of life. For financial institutions, Federal 
student loans are a sure bet. They carry a 97 percent guarantee from 
the Federal Government and default rates remain at historic loans. It 
is the lack of liquidity in the financial markets that is threatening 
the ability of lenders in the student loan program to make loans.
  H.R. 5715 focuses on two mechanisms to ensure that no student is 
denied a Federal student loan because of a lack of available lenders. 
First, the legislation clarifies that the Secretary may advance funding 
to guaranty agencies in the student loan program so that if called 
upon, they will be able to fulfill their role as lender of last resort 
as required under the Higher Education Act.
  Secondly, the legislation gives the Secretary temporary authority to 
purchase student loans, providing an avenue for liquidity so that 
lenders can make no new loans.
  The CHAIRMAN. The time of the gentleman has expired.
  Mr. HARE. I yield 30 additional seconds to the gentleman from Texas.
  Mr. HINOJOSA. The manager's amendment clarifies that loans purchased 
by the Secretary may continue to be serviced by the original lender so 
the process remains seamless for students and families. These efforts 
represent the tools at the disposal of the Education and Labor 
Committee. However, more can and should be done.
  I urge my colleagues to vote ``yes'' on H.R. 5715 so that there is no 
uncertainty for students and families about their ability to finance 
college education.
  Mr. McKEON. Mr. Chairman, I yield 2\1/2\ minutes to the ranking 
member of the Subcommittee on Higher Education, the gentleman from 
Florida (Mr. Keller).
  Mr. KELLER of Florida. Mr. Chairman, I thank the gentleman for 
yielding.
  I rise in support of the Ensuring Continued Access to Student Loans 
Act. As the ranking member of the Higher Education Subcommittee, I am 
proud to be a cosponsor of this important legislation. I want to 
especially thank Chairman Miller, Chairman Hinojosa and Ranking Member 
McKeon for their hard work in the drafting of this legislation on a 
bipartisan basis.
  The troubles that began in the subprime mortgage market have had a 
ripple effect on our economy, including all types of consumer credit. 
Unfortunately, that also includes student loans. As a result of these 
disruptions in the financial markets, students and families all across 
America are worrying about how they will pay for college this fall. 
Through no fault of their own, students may have a more difficult time 
getting the financing they need for college.
  Well, at least when it comes to Federal loans, there are things we 
can do now to prevent that from happening. Today we are taking positive 
steps to make sure that students have access to low-interest student 
loans, despite the recent turmoil in the financial markets. This bill 
was developed on a bipartisan basis to take preliminary action to shore 
up the Federal Family Education Loan Program and to offer new 
flexibility and protections to students and their families.
  There is no one-size-fits-all solution to the troubles facing our 
student loan program. I appreciate the fact that the Financial Services 
Committee is also looking at these issues and that we may be exploring 
additional action in the future that more directly addresses issues of 
liquidity.
  At this time, however, this is a good bill that will have a positive 
impact, and I urge my colleagues to vote ``yes'' and support its 
passage.
  Mr. HARE. Mr. Chairman, I yield myself 2 minutes.
  Mr. Chairman, I rise today in support of the Ensuring Continued 
Access to Student Loans Act. Many students and families in my 
congressional district fear that in our struggling economy they will 
not be able to access the financial assistance they need to go to 
school. While we have not yet seen this, we know that there exists the 
potential for a real crisis.
  I have often said in this House how frustrated I am that we wait for 
an emergency to occur before reacting, rather than working to prevent 
it in the first place. I am proud that today this body is proactively 
putting measures in place to ensure our students and lenders that they 
have the assistance that they need.
  This legislation reduces borrowers' reliance on costlier private 
college loans; encourages responsible borrowing; gives parent borrowers 
more time to pay off their Federal PLUS loans; it guarantees 
eligibility for PLUS loans for struggling homeowners who otherwise have 
good credit; and it provides the Secretary of Education additional 
tools to safeguard access to student loans.
  All these provisions are good steps forward and will keep our student 
loan industry strong, which is why I am an original cosponsor of the 
bill and was proud to support it when our committee marked it up just 
last week. However, more needs to be done. I look forward to working 
with my colleagues to continue to address our Nation's economic 
troubles.
  I commend Chairman Miller, Ranking Member McKeon and their staffs for 
putting together this legislation so that our students and lenders have 
a safety net during the time of economic insecurity. I urge all my 
colleagues to support the Ensuring Continued Access to Student Loans 
Act.
  Mr. Chairman, I reserve the balance of my time.
  Mr. McKEON. Mr. Chairman, I yield 3 minutes to the gentleman from 
Wisconsin (Mr. Petri), a senior member of the committee.

[[Page 6206]]


  Mr. PETRI. Mr. Chairman, I want to thank Chairman Miller and our 
ranking member, Buck McKeon, for working together on this important 
legislation. As has been pointed out, the bill we are considering today 
will put in place additional measures to ensure continued access to 
Federal student loans.
  During committee consideration I expressed concern with one provision 
in the bill that would permit an entire institution rather than the 
individual the authority to participate in the lender of last resort 
program. I urged the committee to consider clarifying the trigger 
mechanism for school eligibility in order to avoid a situation in which 
a guaranty agency is in essence the lender of first resort. I am 
pleased that the chairman included language in the manager's amendment 
that will be offered that requires the Secretary of Education, not the 
guaranty agency, to determine whether a school qualifies for 
institution-wide designation.
  Furthermore, the manager's amendment requires institutions to 
demonstrate that a minimum number of students or percentage of students 
have been rejected by eligible lenders before receiving this 
designation.
  These are two important changes, so I again thank Chairman Miller for 
including them in the manager's amendment and appreciate Ranking Member 
McKeon's assistance on this issue.
  While the focus of the bill we are considering today is making sure 
contingency plans are in place should turmoil in the credit markets 
affect the availability of Federal student loans and the Federal Family 
Education Loan Program, we do have another Federal student loan program 
that is immune to effects of the credit market, and that is the Direct 
Loan Program.
  Just this year, over 100 schools have applied to participate in the 
Direct Loan Program. Penn State University stated that it is moving to 
the Direct Loan Program because it will ``enable students to continue 
their education without worrying about whether and where their Federal 
student loans come from.''
  Currently, the Direct Loan Program accounts for about 20 percent of 
the student loan market. However, the Secretary of Education has stated 
on multiple occasions that the Direct Loan Program could easily double 
the amount of new loans it makes to students.
  It is just commonsense that in times of market turmoil, instead of 
relying on untested fall-back measures in the FFEL Program, 
universities should also consider the Direct Loan Program.
  I will conclude by emphasizing that to date, no student or college 
has reported problems accessing Federal student loans. Currently, the 
disruption is best described as forcing some students to switch 
lenders. The message from Congress to students and families should be 
that they should not panic and should continue to pursue Federal 
student aid in the upcoming school year. There are measures in place, 
and in this bill we are strengthening those measures, to ensure that 
students will always have access to Federal student loans.
  Mr. HARE. Mr. Chairman, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Altmire), a member of the House Education and Labor 
Committee.
  Mr. ALTMIRE. Mr. Chairman, I rise in support of this legislation 
which I joined with Chairman Miller in introducing to ensure that the 
nationwide credit crisis does not prevent students from attending 
college. Recent decisions to suspend the issuing of student loans by 
the Pennsylvania Higher Education Assistance Agency and other lenders 
demonstrates the need for this legislation.
  This bill takes several proactive steps to make certain that students 
are able to access the financial aid they need to pay for college. It 
gives the Department of Education the temporary authority to purchase 
loans from lenders in the Federal Family Education Loan Program. This 
will provide additional liquidity to the market so that lenders can 
continue to make student loans. Furthermore, the bill increases Federal 
loan limits for students by $2,000 a year, which will reduce students' 
dependence on more expensive private loans.
  I thank Chairman Miller for his leadership on this issue, and urge 
all of my colleagues to support this critical legislation.
  Mr. McKEON. Mr. Chairman, I yield 1\1/2\ minutes to a member of our 
leadership team, the gentlewoman from Texas (Ms. Granger).
  Ms. GRANGER. Mr. Chairman, I rise today in support of the Ensuring 
Student Access to Student Loans Act of 2008. This bill is designed to 
increase investor confidence in the marketplace by authorizing the 
Secretary of Education to purchase student loans. This will free up 
liquidity for new loans and show lenders that student loans are a safe 
and secure investment.
  We are facing uncertain economic times. This bill will help ensure 
that loans will continue to be available to students. Every student 
should have the opportunity to attend college. But, unfortunately, the 
cost of college is increasing, which has become a barrier for students 
and families. This bill increases the loan limit for Stafford Loans in 
order to allow students to receive more Federal funding. Making more 
aid available to students will make college more accessible and 
affordable to students and families.
  But it is not just the cost of college that is a challenge. The free 
application for Federal student aid form, or FAFSA, as it is known, is 
complicated and cumbersome for students and families to complete. The 
FAFSA form is so complicated that it has deterred many students and 
families from applying for aid.
  As we consider this bill and other higher education bills we should 
work to simplify the FAFSA form to help ensure that students and 
families have access to the financial aid that they need in order to 
attend college.
  I urge my colleagues to support H.R. 5715.
  Mr. HARE. Mr. Chairman, I yield 4 minutes to the gentleman from 
Illinois (Mr. Emanuel), the chairman of our caucus.

                              {time}  1600

  Mr. EMANUEL. Mr. Chairman, let me just say to the simplification of 
the student loan form--actually, it happened to be my first bill--which 
is to take the 106 questions, 8 pages long, down to commonsense 
English, cut it in half, and the good news is that, in fact, the Higher 
Ed Reauthorization Act will then, in short order--I have all the 
confidence in Chairman Miller--be on the floor this month to pass.
  This, like that act, is a second step that we take to make sure that 
we put a protective wall around the student loan market.
  What we see today in the mortgage industry, what we see today 
happening in other parts of the marketplace, should not happen to those 
students and those families who are trying to send their kids to 
college.
  We live in an era where you earn what you learn. A college education 
is a ticket to the middle class life and to greater economic security 
and greater economic opportunity. What has happened in the subprime 
market and what has happened in our marketplace in the financial sector 
should not migrate into the student loan industry.
  This legislation ensures that it will not. It has two messages, one 
to parents and students, that says in this time of uncertainty, know 
that your government is there to ensure that you get a student loan 
coming up this fall.
  It's also a message to the executive branch: Do not wait for a 
crisis. Do not act like you do not have this authority. You have this 
authority. The Congress, in a bipartisan vote, will make sure you know 
in no uncertain terms to have the authority to prevent any chaos, any 
disruption to the student loan marketplace.
  This legislation, like the reauthorization of the higher ed bill, 
will build on the facts that we have extended this year and increase 
Pell Grants for the first time, pass the largest increase of student 
loans since the GI Bill in 1944. This Congressman knows that when 
middle class families look at their kids, look at the cost of college 
that has gone up by $7,500, knows that kids

[[Page 6207]]

today, when they graduate, graduate with an average debt burden of 
$18,000 when they get their diploma.
  This Congress makes sure that middle class families don't fall 
farther behind making sure their kids have a better and more 
opportunistic future than they had. A college education is the key to 
that future, and I am proud that we are taking this action speedily 
before there is any crisis in the student loan industry.
  Mr. GEORGE MILLER of California. I thank the gentleman.
  I want to thank all my colleagues who participated in the debate this 
evening. We will have some time for additional debate tomorrow, but I 
was also remiss in not thanking Amy Jones of Congressman McKeon's staff 
for all of her hard work on this bill, and the individuals on my staff, 
Denise Forte, Gaby Gomez, Julie Radocchia, Jeff Appel, Stephanie Moore, 
Brian Kennedy, Joe Novotny, Lamont Ivey, and Margaret Young for all 
their assistance in bringing this bill to the floor.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise today in support of 
H.R. 5715, ``Ensuring Continued Access to Student Loans Act of 2008'', 
introduced by Representative George Miller of California. I want to 
thank the Committee on Education and Labor for its efforts in this 
important area.
  Every generation sets out to improve upon the previous generation. We 
teach our children that if they focus, are responsible, and work hard 
they can be anything. Yet we have provided a false truth for the 
majority of our children. Rising tuitions in higher education even at 
our community colleges are keeping a lot of our youth from attending 
college. For those that are able to attend, they are burdened by 
extensive loans just to buy books, attend class, and maintain housing.
  Families are sending their children to school, trying to qualify for 
parent loans and wondering how they are going to make the payments when 
they are struggling to pay their mortgage and facing their own issues 
with possible unemployment.
  In my home state of Texas, families are struggling to assist children 
with their education while they face an unemployment rate of 4.3 
percent across the state. As of the end of last year, Texas was ranked 
as having the 20th highest unemployment rate (out of the 50 states). 
And we are not alone as states grabble with unemployment and a falling 
housing market.
  H.R. 5715, Ensuring Continued Access to Student Loans Act, provides 
much needed support to our families in a time when they most need it by 
specifically addressing the needs of parents, students, and even 
lenders. The Student loans Act would: Increase unsubsidized loan limits 
for students--This bill will increase unsubsidized loan limits by 
$2,000 for each year of undergraduate and graduate school. It also 
increases the aggregate loan limits to $31,000 for dependent 
undergraduates and $57,500 for independent undergraduate students.
  Delayed repayment of parent PLUS loans--Currently PLUS loan 
borrowers--parents--go into repayment 60 days after disbursement of the 
loan. This bill would give families an option of not entering repayment 
for up to 6-months after a student leaves school.
  PLUS loan eligibility for struggling home-owners--Under current law, 
parents with an adverse credit history are ineligible to receive a 
parent PLUS loan, except under extenuating circumstances. In light of 
the current housing market, the bill temporarily qualifies up to 180 
day delinquency on home mortgages as an extenuating circumstance, 
therefore making it more possible for parents struggling with the 
current housing market to secure loans for their children.
  Lender of Last Resort flexibility--The bill makes clear in statute 
that the Secretary of Education has the mandatory authority to advance 
Federal funds to Guaranty Agencies in the case that they do not have 
sufficient capital. Further, the bill allows a Guaranty Agency to 
designate a school (rather than an individual student) as a ``lender of 
last resort school,'' in accordance with guidelines set by the 
Secretary.
  Authority for the Secretary of Education to purchase FFEL loan 
assets--The bill gives the Secretary the temporary authority, upon a 
determination that there is inadequate availability to meet demand for 
loans, to purchase loans from FFEL lenders. Such purchases could only 
be made in the case they are revenue-neutral or beneficial to the 
Federal Government.
  Federal Institutions' participation--The bill includes a Sense of the 
Congress that the Federal Financial Institutions and entities 
(including the Federal Financing Bank, the Federal Home Loan Banks, and 
the Federal Reserve) should consider using, in consultation with the 
Secretaries of Education and the Treasury, available authorities, if 
needed, to assist in ensuring continued student loan access.


                               Conclusion

  I urge my colleagues to vote for H.R. 5715, Ensuring Continued Access 
to Student Loans Act. Let's support education by allowing for greater 
flexibility, eligibility, and participation for students and their 
families
  Mr. GEORGE MILLER of California. Mr. Chairman, I move that the 
Committee do now rise.
  The CHAIRMAN. The question is on the motion to rise.
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.


                             Recorded Vote

  Mr. FOSSELLA. Mr. Chairman, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 395, 
noes 1, not voting 40, as follows:

                             [Roll No. 200]

                               AYES--395

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Alexander
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Bachmann
     Baird
     Baldwin
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Bean
     Becerra
     Berkley
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blackburn
     Blumenauer
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Bordallo
     Boren
     Boswell
     Boucher
     Boustany
     Boyd (FL)
     Boyda (KS)
     Brady (TX)
     Braley (IA)
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Butterfield
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Carter
     Castle
     Castor
     Chabot
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Cohen
     Cole (OK)
     Conaway
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crenshaw
     Crowley
     Cubin
     Cuellar
     Culberson
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (KY)
     Davis, David
     Davis, Lincoln
     Davis, Tom
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dingell
     Doggett
     Donnelly
     Doolittle
     Doyle
     Drake
     Dreier
     Duncan
     Edwards
     Ehlers
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Everett
     Fallin
     Farr
     Ferguson
     Filner
     Flake
     Forbes
     Fortenberry
     Fossella
     Foster
     Foxx
     Frank (MA)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gingrey
     Gohmert
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hall (TX)
     Hare
     Hastings (FL)
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hobson
     Hodes
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Hunter
     Inglis (SC)
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Jordan
     Kagen
     Kanjorski
     Kaptur
     Keller
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Klein (FL)
     Kline (MN)
     Knollenberg
     Kucinich
     Kuhl (NY)
     LaHood
     Lamborn
     Lampson
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Latta
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Lungren, Daniel E.
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Manzullo
     Marchant
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul (TX)
     McCollum (MN)
     McCotter
     McDermott
     McGovern
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     McNerney
     McNulty
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Musgrave
     Myrick
     Nadler
     Napolitano
     Neal (MA)
     Neugebauer
     Norton
     Nunes
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pearce
     Pence
     Perlmutter
     Peterson (MN)
     Petri
     Pitts
     Poe
     Pomeroy
     Porter
     Price (GA)
     Price (NC)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Rangel
     Regula
     Rehberg
     Reichert
     Reyes
     Reynolds
     Richardson
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)

[[Page 6208]]


     Rohrabacher
     Ros-Lehtinen
     Roskam
     Ross
     Rothman
     Roybal-Allard
     Royce
     Ruppersberger
     Ryan (OH)
     Ryan (WI)
     Salazar
     Sali
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schmidt
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shays
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Shuster
     Sires
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Speier
     Stearns
     Stupak
     Sutton
     Tancredo
     Tanner
     Tauscher
     Taylor
     Terry
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Tiahrt
     Tiberi
     Towns
     Tsongas
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walberg
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Waxman
     Welch (VT)
     Weller
     Westmoreland
     Wexler
     Whitfield (KY)
     Wilson (OH)
     Wilson (SC)
     Wittman (VA)
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (AK)

                                NOES--1

       
     Stark
       

                             NOT VOTING--40

     Bachus
     Berman
     Berry
     Bishop (UT)
     Brady (PA)
     Brown, Corrine
     Christensen
     Conyers
     Davis (IL)
     Dicks
     Faleomavaega
     Fattah
     Feeney
     Fortuno
     Franks (AZ)
     Harman
     Hulshof
     Linder
     Mack
     Markey
     McCrery
     Meek (FL)
     Peterson (PA)
     Pickering
     Platts
     Rahall
     Renzi
     Rush
     Sestak
     Simpson
     Slaughter
     Spratt
     Sullivan
     Tierney
     Watt
     Weiner
     Weldon (FL)
     Wilson (NM)
     Wynn
     Young (FL)

                              {time}  1628

  Messrs. MARIO DIAZ-BALART of Florida, ROTHMAN, BARTLETT of Maryland 
and HOLT changed their vote from ``no'' to ``aye.''
  So the motion to rise was agreed to.
  The result of the vote was announced as above recorded.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mrs. 
Jones of Ohio) having assumed the chair, Mr. Jackson of Illinois, 
Chairman of the Committee of the Whole House on the state of the Union, 
reported that that Committee, having had under consideration the bill 
(H.R. 5715) to ensure continued availability of access to the Federal 
student loan program for students and families, had come to no 
resolution thereon.

                          ____________________