Providing for Consideration of H.R. 5715, Ensuring Continued Access to Student Loans Act of 2008

Floor Speech

Ms. CASTOR. Madam Speaker, by direction of the Committee on Rules, I call up House Resolution 1107 and ask for its immediate consideration.

The Clerk read the resolution, as follows:

H. Res. 1107

Resolved, That at any time after the adoption of this resolution the Speaker may, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the State of the Union for consideration of the bill (H.R. 5715) to ensure continued availability of access to the Federal student loan program for students and families. The first reading of the bill shall be dispensed with. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. General debate shall be confined to the bill and shall not exceed one hour equally divided and contrilled by the chairman and ranking minority member of the Committee on Education and Labor. After general debate the bill shall be considered for amendment under the five-minute rule. The amendment printed in part A of the report of the Committee on Rules accompanying this resolution shall be considered as adopted in the House and in the Committee of the Whole. The bill, as amended, shall be considered as the original bill for the purpose of further amendment under the five-minute rule and shall be considered as read. All points of order against provisions in the bill, as amended, are waived. Notwithstanding clause 11 of rule XVIII, no further amendment to the bill, as amended, shall be in order except those printed in part B of the report of the Committee on Rules. Each further amendment may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole. All points of order against such further amendments are waived except those arising under clause 9 or 10 of rule XXI. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill, as amended, to the House with such further amendments as may have been adopted. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.

Sec. 2. During consideration in the House of H.R. 5715 pursuant to this resolution, notwithstanding the operation of the previous question, the Chair may postpone further consideration of the bill to such time as may be designated by the Speaker.

The SPEAKER pro tempore. The gentlewoman from Florida is recognized for 1 hour.

Ms. CASTOR. For the purpose of debate only, I yield the customary 30 minutes to the gentleman from Florida, my colleague from the Rules Committee, Mr. Diaz-Balart. All time yielded during consideration of the rule is for debate only.

I yield myself such time as I may consume. I also ask unanimous consent that Members be given 5 legislative days in which to revise and extend their remarks on House Resolution 1107.

The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from Florida?

There was no objection.

Ms. CASTOR. Madam Speaker, House Resolution 1107 provides for consideration of H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008, under a structured rule.

The rule provides 1 hour of general debate controlled by the Committee on Education and Labor. The rule makes in order four amendments in the Rules Committee report, each of which is debatable for 10 minutes. The rule also provides one motion to recommit, with or without instructions.

Madam Speaker, I rise in strong support of H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008, and the underlying rule. Under this act, the Congress will ensure that low-interest student loans remain available for college students and their families even in the face of the credit crunch. In doing so, the Congress will build on the new commitment to college and university students and their hardworking families that this new Democratic majority has provided.

See, our action today comes on the heels of the historic College Cost Reduction and Access Act that was signed into law a few months ago that saves college students an average of $4,400 on student loan interest. We increased the Pell Grant, and we now will forgive student loans for students that commit to a 10-year career in public service.

This single largest investment in college financial assistance since the GI Bill in 1944 comes at no new cost to taxpayers. The new Congress promised to make college more affordable for all Americans, and we have delivered on that promise.

Our next step today is to ensure that families can continue to access the loans they need to pay for college. See, in today's economy, a college education is as important as a high school diploma was a generation ago. And with college costs growing by nearly 40 percent over the last 5 years, students are graduating from college with more debt than ever before. It is estimated that 200,000 students do not go to college every year because they simply cannot afford the costs. Well, our efforts today will restore the American dream for those families.

We know that many families across this great country are facing severe financial strains. The economic downturn, the cost of housing, the cost of health care, gas prices have hit our families especially hard. Middle class families are especially being squeezed in this unfortunate Bush economy.

In addition to these basic needs, the rising cost of a college education has left many families very concerned that a college education may not be within reach for their children. A recent press report noted that 70 percent of parents said that they are very concerned about how they're going to be able to afford the cost of a college education for their kids.

Families now are forced to pull from many different sources to pay for college and to simply make ends meet. They're drawing on their savings account, Federal loans, private loans, and the equity in their homes all at the same time to send their kids to college. And despite all of their hard work and the fact that they've set money aside, they're still unable to come up with the cost of tuition because these costs are rising. The costs of sending their child away to school or just down the street to the community college is simply out of reach for so many so they turn to the loans.

In 2007, families borrowed almost $60 billion in Federal student loans. Now, in this credit crunch, banks are tightening their loan requirements and raising rates. We want to make sure that families have access to the low-interest loans, that they remain available for these hardworking families so their kids can attend college.

Madam Speaker, this bill has a number of very significant improvements under our Federal college loan program. The best deal going in college loans these days is the Stafford loan. We are going to increase the annual loan limit for the Stafford loan by $2,000 for undergraduates and graduate students. These loans are the most affordable and available to students with the best interest rates.

Currently, there's a cap on the amount that a student can receive, so our legislation today will raise that cap. It increases the total loan limit, as well, over the course of a student's college education from $31,000 for dependent undergraduates to $57,500 for independent graduate students.

The other significant loan available to families these days is the Parent PLUS loan. The Parent PLUS loan, the primary benefit for the PLUS loan for parents is that they can borrow Federally guaranteed low-interest loans, not tied to the students, but that's a loan for the parents. The parents can borrow the total cost of undergraduate education including tuition, room and board, supplies, lab expenses, and travel, and other aids. It's a non-need-based loan. Well, we're going to give parents a little more flexibility under our actions today to pay off their PLUS loans.

Currently, those loans become due 60 days after the bill is sent to them. We're going to give them a little extra time and allow the student to complete their college education before that loan becomes due. We're going to help struggling homeowners pay for college because right now, it is not clear under the law that parents that are struggling with pending foreclosure or difficulty in paying their housing costs can also access the great PLUS loans to help their kids get through college. So we're going to allow for that today.

We're also going to give the Department of Education additional tools so that these, the cost of college and the access to student loans, remain available for America's hardworking families.

I would like to thank Chairman George Miller of the Education and Labor Committee here in the House for his leadership on making sure that families continue to have access for student loans but for also being a champion for American families, colleges, and our entire educational system which is in better hands now that the Democrats are in charge here in the House.

Madam Speaker, I reserve the balance of my time.

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