[Congressional Record (Bound Edition), Volume 156 (2010), Part 5]
[Senate]
[Pages 6496-6497]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            HIGHER EDUCATION

  Mr. SPECTER. Mr. President, as I have expressed to Senator Harkin and 
to Secretary Duncan, I am concerned that the Student Aid and Fiscal 
Responsibility Act, SAFRA, may not adequately provide for the 
replacement of the early college awareness, default prevention, 
financial literacy, and school support services that are provided by 
State guaranty agencies in some States. The citizens of my State rely 
upon the Pennsylvania Higher Education Assistance Agency, PHEAA, to 
provide these services. Over the years, PHEAA has funded these services 
with the earnings they have retained from their role as a State 
guaranty agency, lender, and servicer. It is my understanding that some 
of these earnings will no longer be available to PHEAA or to other 
similar agencies across the country.
  Would Senator Harkin agree that some of the services provided by 
these agencies are vital and should, to the extent possible, be 
continued?

[[Page 6497]]


  Mr. HARKIN. I am pleased that this bill provides significant support 
to continue outreach and default aversion activities through the 
College Access Challenge Grant Program funded at $750 million, more 
than double the amount we have provided for these grants in years past. 
However, I agree that these activities are very important and we could 
do more to assist students.
  Mr. SCHUMER. Mr. President, as Senator Gillibrand and I have 
expressed to Senator Harkin, we share Senator Specter's concerns. The 
citizens of our State rely upon the New York State Higher Education 
Services Corporation, HESC, to provide similar services, which have 
also been funded with the earnings HESC has retained from their role as 
a State guaranty agency.
  Mrs. GILLIBRAND. Mr. President, I ask does Senator Harkin agree that 
the Secretary of Education has the authority to contract for these 
types of services?
  Mr. HARKIN. I do.
  Mrs. GILLIBRAND. And, Mr. President, I ask if Senator Schumer would 
also agree that in our State and many other States these agencies 
provide valuable services to students and families?
  Mr. SCHUMER. Yes, I do. That is why Senator Gillibrand, Senator 
Specter, and I believe it would be beneficial for the Secretary of 
Education to use this authority for State guaranty agencies that 
provide valuable services.

                          ____________________