Rep. Johnson Supports Student Loan Opportunities

Press Release

In response to the nation's economic downturn, Congressman Hank Johnson today voted to protect college students and their families from the credit crunch that could negatively impact federally guaranteed student loans. H.R. 5715, "Ensuring Continued Access to Student Loans Act of 2008" is intended to help students access federal loans, raise select loan limits, and give borrowers more flexible repayment terms. According to Rep. Johnson, this vote is in keeping with Congress' College Cost Reduction Act, which provided the largest investment in higher education since the GI Bill.

"Access to education is as important to our national security as military readiness," said Rep. Johnson, a member of the House Armed Services Committee and father of two. "Many families are having an extremely difficult time financially and we do not want to impose the added burden of being denied financial aid due to credit issues such as late mortgage payments."

H.R. 5715 would temporarily classify home mortgage delinquencies up to 180 days as an extenuating circumstance allowing parents to be eligible for loans. It also authorizes the Secretary of Education to intervene as a "lender of last resort" and advance federal funds when lenders cannot make new loans.

Congressman Johnson said he further supports provisions in the bill which increase annual loan limits and the option to defer loan repayment up to six months after the student graduates. H.R. 5715 would increase the annual loan limits on federal unsubsidized student loans by $2,000 for all students and increase the total loan limit over the course of a student's education to $31,000 for dependent undergraduates and $57,500 for independent undergraduates.

The bill passed 383-27.

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