The Bush administration will take a series of steps to support the student loan market through the continued constraints of the capital markets, according to a joint statement released today by U.S. Department of Education Secretary Margaret Spellings and Treasury Secretary Henry Paulson.
The statement did not include details, but said the Department of Education and the Treasury are working on an expedited basis and will make further announcements in the coming weeks.
"Over the next few months, schools and lenders will be making decisions for the 2009-10 school year," the statement reads. "Using our newly extended authorities, the administration is moving aggressively to support the continued availability of funding for federal student loans in the next school year with the goal of restoring the government guaranteed student loan market to normal operations."
NASFAA President and CEO Dr. Phil Day said the actions of Spellings and Paulson are welcomed, but expressed concern about the availability of loans in the upcoming spring 2009 semester. Student loan leaders have expressed serious concerns about some lenders' ability to continue making loans to students in the end of the 2008-09 academic year. This threatens to disrupt access to loans for some students.
"I commend the Secretaries of the Education Department and Treasury for recognizing the seriousness of this situation and the need to act quickly and decisively," Day said. "However, it is also important for the Bush administration to support the student loan market at the end of the 2008-09 academic year so students will have access loans this spring. We urge the administration and leaders in Congress to take any action necessary to ensure students' access to loans is not disrupted in the end of the 2008-09 academic year."
Media Coverage
By Haley Chitty
NASFAA Associate Director of Communications
Posted 10/10/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
