Ensuring Continued Access to Student Loans Act of 2008

Floor Speech

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Mr. COURTNEY. Madam Chairman, I want to commend Chairman Miller for getting out ahead of the student lending issue before it becomes a full-fledged crisis. In March, the Education and Labor Committee heard testimony from the Secretary of Education, Margaret Spellings, and we urged her to take steps then to ensure student lending contingency plans were in place in the event of further troubles. Frankly, I was disappointed to learn that she and her team were only ``monitoring the situation.''

It is imperative that students have uninterrupted access to student loans in the event that the mortgage crisis and credit crunch further ripple through the economy. Just yesterday, Citibank's student lending division announced it was going to stop lending at many higher education institutions, though they wouldn't name which ones. This is troubling news since Citibank is the second largest originator of federal student loans.

I met with the Connecticut Commissioner of Higher Education and the Director of Financial Aid at the University of Connecticut last month and let me tell you--they are taking this issue seriously. Financial Aid offices across the state are communicating to students and families to finalize their education financing now. I have also personally taken part in getting the word out to my constituents as well.

Thankfully, Connecticut students also have backup from the state's own loan agency, the Connecticut Higher Education Supplemental Loan Authority, with $31 million to lend.

Right now, we don't know how deep the effects will be, but it is prudent that students and their parents are given some relief now. This bill will steer borrowers away from costlier private loans and give parents more time to pay off PLUS loans. And it is crucial that Secretary Spellings has the authority now to advance federal funds if necessary.

The federal government rushed in to bail out Bear Stearns. It is only right that we make sure that the federal government is ready to assist millions of students and families if the need arises.

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