A letter to Education Secretary Margaret Spellings, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke from Tom Ridge, the first Department of Homeland Security Secretary and former Governor of Pennsylvania, urges action to be taken to provide capital in the student loan market.

Ridge recommends that the Treasury and Federal Reserve consider providing capital at reasonable costs, purchasing securities backed by student loans, or purchasing student loans directly.

"Bold action is needed to revive the auction rate markets that provide the financial foundation for the program and ensure that there are sufficient sources of capital to meet the needs of students and families," Ridge writes.

He also notes that the students and families most likely to feel the brunt of the economic fallout from a disruption in the availability of student loans will be "those who can least afford it."

"Disadvantaged students do not have additional financial resources to replace the loss of loan access," Ridge writes.

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