Date: 2008-02-07
Speaker: GEORGE MILLER (democrat)
Chamber: H
State: California

My colleague. the gentleman from I1I rise in strong support of this amend- linois. seeks to restore some balance ment. and I thank the gentleman for with respect to the dischargeability of offering it. We now see -that. almost like the certain student loans. This is an excelsubprime home mortgages. that these lent measure for the following reasons: private student loans have been offered one. it ensures that predatory forprofto a great number of people who its it lenders cannot take advantage of a questionable about whether or not they current provision. in bankruptcy law can pay it back. And we now see these intended to protect nonprofit instituprivate lenders retreating from this tions -that make educational loans. market because they know theyve now and. second. the amendment instills made loans that theyre not going to be some moderation with respect to the able to sell off to others. Theyve made dischargeability of certain educational questionable loans. loans made by private sector lenders These loans look more and more like which under current bankruptcy law consumer loans because theres no re- can be nondischargeable no matter how quirement that the people who take long ago the loan was made. out these loans in the direct marketing So for those reasons. I urge my colto students. a student signs up. gets a leagues to support this amendment. loan. they dont have to pay their tui- Mr. DAVIS of Illinois. Madam Chairtion. they dont have to pay their man. I yield myself the balance of our books. they dont have to pay their time. dormitory fees. Theyre consumer For many of these students who seloans. They can buy beer and pizza. cure loans without the protection of they can buy flat screened TVs. and bankruptcy. its like receiving a life they ought to be treated like those sentence with no appeal. That is to consumer loans. Thats why this "say. they get a loan that is supposed to amendment is supported by the Amer- help them get a college degree. an eduican Association of Community Col- cation so that they can pay the loan leges. the Association of State Colleges off. Unfortunately. many of them are and Universities. the Association of stuck on $70.000. $80.000. $90.000. $100.000 Jesuit Colleges and Universities. the that theyre never able to pay. And so Consumer Federation of America. the they struggle along for the rest of their Consumers Union. the United States lives trying to pay off a loan that was Students Association. the U.S. Public supposed to have secured for them a Interest Groups. because they all rec- level of financial ability. ognize that this is far different than I would urge that we pass this the public loans that families and stu- amendment to give those hundreds and dents take out where theres arrange- thousands of students throughout the ments to work out and help those stu- country the simple protection of bankdents if they get into trouble. Thats ruptcy that is provided for individuals not the case with the private loans. with any other consumer loan. Let the marketplace work. They are Madam Chairman. I yield back the now charging these students 18 and 20 balance of my time.