Date: 2008-04-17
Speaker: GEORGE MILLER (democrat)
Chamber: H
State: California

Madam Chairman. I yield myself such time as I may consume. Madam Chairman. Members of the House. today we continue the consideration of H.R. 5715. the Ensuring Continued Access to Student Loans Act of 2008. This is legislation that was reported from the Committee on Education and Labor with unanimous bipartisan support. Once again today. I want to thank my colleagues on the committee on both sides of the aisle and the staff on both sides of the committee for working in a manner which allowed us to report this bill in very short order to the House for its consideration. and on working with the Department of Education. the Secretary of Education. Margaret Spellings. for her cooperation in helping us with this legislation so that we can assure the parents. families. and students of this country that there will be no interruption in their access to student loans. As the lending season starts to progress now. as students are getting their letters of acceptance. thinking about the next semesters of education and next years education. as that lending season comes into its fullness. we want to make sure that there is no disruption. We are concerned about a disruption because of the general disruption that is taking place in the Nations credit markets. and spcifically. concern about whether or not there will be a spillover onto the student loan markets so that students will have difficulty finding those loans. We have worked with the Department of Education. we have worked with the administration. we have worked with the Republican members of the committee and our own caucus to devise a system of relief that is available to the Secretary and to the administration in the event that that should happen. And really what were. doing is three things: One. were making sure that the existing law and the existing program for such an emergency. the Lender of Last Resort program. is functioning. that agreements are reached between the Secretary of Education and the Secretary of Treasury. and weve been told by the Secretary of Education that she has informed the members of the committee that that has been done. that the Secretary meet with the guarantee agencies that might stand in the stead of those lenders that cannot make those loans to make sure that there is a smooth transition between them and the universities and colleges. and that that program is in place. Also. that schools are aware that they can apply to qualify for the Direct Lending program. Many colleges and universities use that today. They may want to consider that so. again. there is smooth transition should the private lending market not be able to come forward with the student loans. they could direct their students to either of those two programs. And. finally. to try and help the private sector credit markets for student loans. as this bill does. to give standby authority to the Secretary to purchase underway. First. it will allow students those government loans from the tradi- to receive additional financing that tional lenders in the student loan field will help them stay in school if they so that we might develop some liquid- are denied private. nonfederal loans. ity in that market so that they can Second. the bill clarifies aspects of the then take the money they receive from Lender of Last Resort program. easing the Secretary and make a new tranche participation for students and schools of student loans. If she purchases those and ensuring funds will be available loans. that money could only be used should they become necessary. Third. to provide a new set of student loans the bill ensures that lenders have the for the students for the coming year. authority to provide PLUS loans to And we also raised the loan limit for struggling parents who are facing difstudents. for undergraduates. because ficulties -with their home mortgage. we understand that the private student And. fourth. the bill grants new flexiloan market is in very rough shape. bility for parents with a new optional and there are some students who use grace period .that permits parents to private loans to fill a small gap be- defer PLUS loan payments until after tween the total cost of their education the children graduate. and what they were able to borrow. We Finally. the bill authorizes the Dethink by raising the limit. we will be partment of Education to invest in or able to help most of those students in agree to the future purchase of outthat situation. standing loans which could free up capSo this is an important piece of legis- ital and allow lenders to make new lation. Its legislation that we look to loans in the upcoming school year. be acted upon in the Senate in a very I want to thank the chairman for timely fashion and then to be sent to moving very rapidly on this situation. the President. we believe. for his signa- Thats not our modus operandi around ture. And then we will have completed here. generally we wait until were in a series of standby authorities and a the middle of a crisis to fix this. I hope series of processes that we should be that Im wrong in thinking that there able to assure families and students may be a crisis coming. but I think it that there will be no major interrup- is very appropriate to take these position in the student lending for the re- tive steps to ease or prevent a problem mainder of this year and next year. that could arise very shortly. With that. I will reserve the balance I again thank the chairman for his of my time. efforts. He has not been well this week.