By a vote of 388 to 21, the House accepted the Senate’s amendments to the Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715). The bill is now on its way to the president’s desk where it is expected to be signed into law next week. The bill is the culmination of whirlwind legislative action taken by members of the House and Senate over the last three weeks, and both sides of the aisle were exuberant about the bipartisan nature and speed at which the bill moved.
The bill makes significant changes to federal student aid programs, including several that seek to provide liquidity in the federal student loan market. On April 30, Today’s News provided a comprehensive summary of H.R. 5715 and the Senate’s amendments.
"Our legislation guarantees that low cost college loans will continue to be available with government help, no matter what happens in the private loan market, and it increases the amount of grant aid to students to ease their burden of college debt," said Senate Education Committee Chairman Edward Kennedy (D-MA) in a statement released yesterday.
"I commend Congress for their quick action," said NASFAA President & CEO Dr. Phil Day. "This legislation will help stabilize what has become a volatile student loan market.
"But our work is not complete," he added. "Congress should continue to explore additional mechanisms to provide rapid and direct liquidity in the market should it be needed. This is best achieved by allowing the Federal Financing Bank and the Federal Home Loan Banks emergency authority to provide student lenders access to additional capital."
Ranking member of the House education committee Howard "Buck" McKeon (R-CA) also praised the bill, calling it a "good first step," but said more should be done.
"We need a market-based solution for a market-based problem," said McKeon on the House floor before final passage. McKeon advocated additional legislation that would allow the Federal Financing Bank to be used if any disruptions in FFELP loans occur.
Additional Media Coverage
By Justin Draeger
NASFAA Assistant Director for Communications
Posted 05/02/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
