Date: 2008-05-01
Speaker: GEORGE MILLER (democrat)
Chamber: H
State: California

Mr. Speaker. I rise in strong support of H.R. 5715. the Ensuring Continued Access to Student Loans Act of 2008. as amended by the Senate. Earlier this month the House acted swiftly to pass this bipartisan legislation to ensure that students and families will be able to continue to access Federal loans they need to pay for college. regardless of what happens in the Nations credit markets. Over the past few weeks. the President has also voiced his support for this legislation. I am glad that the President has recognized the importance of this legislation. and am very pleased that with todays vote. we will have an opportunity to send to him this bill for his signature. The bill we are considering today now includes some of the amendments added by the Senate to strengthen the purpose of the legislation. I want to thank Senator KENNEDY and Senator ENZI for all of their support for this legislation and all of their efforts to get it through the Senate on a timely basis. Because todays vote is timely. the sooner we get this legislation to the Presidents desk. the sooner it can be implemented by -the Departnlent of Education.. This week. many incoming freshmen will be reviewing their financial aid packages and making decisions on where they plan to attend college this fall. For many of these students. their families are already worried about paying bills in todays economy. They shouldnt also have to worry about whether Federal aid they depend on to pay for college will actually be there this fall when they need it. Over the past few months. we have been closely monitoring what has been happening in the financial markets. and we have heard from stakeholders across the political and economic spectrum: The Department of Education. college financial aid officers. lenders. financial analysts. and students. Not surprising. we have heard varying predictions. Some believe that the lenders will continue to face trouble accessing capital for loans. and others believe that the markets will ease up. Fortunately so far. the credit crunch has not prevented any student parent from getting the Federal loans for which they are eligible. But we believe that it is only prudent to prepare for the possibility that the ongoing stress in the Nations financial markets could jeopardize access to student loans. In addition to the provisions already passed overwhelmingly by the House earlier this month. the legislation before us today includes additional measures approved by the Senate amendments. This amended legislation assures that loans made through the lenderoflastresort program are made with similar terms and conditions as other FFELP loans. It makes the Secretarys authority to designate entire institutions as a lenderoflastresort program temporary. It ensures that guaranty agencies and lenders operating under the lenderoflastresort program are sub-. ject to the same rules regarding inducements and conflicts of interest that other FFELP lenders are subject to. It safeguards the lenderoflastresort program from abuses by requiring guaranty agencies and lenders acting as lenders of last resort to report on loans made throughthe program. It protects taxpayers by requiring reporting on the cost of the lenderoflastresort program as compared to the current loan program. Finally. the amended legislation reduces lowincome students reliance on Federal student loans by directing all loans generated by this legislation into the Academic Competitiveness and SMART grants. I believe that these additions will enhance this bill by providing further protection for parent borrowers. boosting aid to lowincome students. increasing accountability in the lenderoflastresort program. Now more than ever. families deserve every assurance that we are doing all that we can to make sure that .they will continue to be able to finance their childrens education. I am confident that our efforts. coupled with proper planning in the Department of Education. will help ensure that students are able to get the financial assistance they need to attend college this fall. I would like to thank Mr. MCKEON. our committees senior Republican. Mr. HINOJOSA. the subcommittee Chair. Mr. KELLER. the senior Republican on the subcommittee. and all of their staff and all my colleagues on both sides of the- aisle for their commitment to acting promptly on behalf of Americas students and families. Again. thank you to Senator KENNEDY and Senator ENZI for their support. I urge my colleagues to join us in swiftly passing this legislation. I reserve the balance of my time.