White House Signals Tempered Support For House Student Loan Bill
The Bush administration gave mild support to a House student loan bill that was debated yesterday and is scheduled for debate by the full House today. The Ensuring Continued Access to Student Loans Act (HR 5715), a bill introduced by House education committee chairmen George Miller (D-CA), seeks to eliminate the possibility of disruptions in federal student loans this coming academic year. Miller's bill would make several changes to these loan programs and create additional backstops to provide liquidity in the federal student loan marketplace. The bill was approved unanimously by the House education committee last week and is scheduled for debate on the House floor today.
The administration's Statement of Administrative Policy (SAP) signals support for the flexibility that would be given to the Education Secretary to ensure a continued supply of federal loans, including provisions allowing the Department to determine designation guidelines in the lender of last (LLR) resort program. While the administration supports institution-wide LLR certifications, the SAP suggests that such a designation be permitted temporarily.
The SAP also raised some concerns about increasing federal loan limits because it could adversely affect institutional eligibility for some schools that are barely meeting the 90-10 rule, which requires that no more than 90 percent of an institution's funding can come from Title IV funds.
"The Administration looks forward to working with Congress to achieve a comprehensive response that strengthens existing programs and provides the Secretary with the necessary authority and flexibility needed to respond to the unfolding situation," the report stated.
By Justin Draeger NASFAA Assistant Director for Communications
Posted 04/17/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
