Ensuring Continued Access to Student Loans Act of 2008

Madam Chairman, I yield myself such time as I may consume.

Today we are continuing the debate on H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008. This bill is a first step to prevent a crisis before it happens in the student loan program, and its consideration has come not a minute too soon. Peak lending season begins in July, and we cannot, we must not, wait until a student is denied a loan to put mechanisms in place to deal with the turmoil in the student loan market.

To date, 60 lenders have suspended their participation in all or part of the FFEL program. This includes 10 nonprofit State loan agencies affecting students in Pennsylvania, Texas, Colorado, Iowa, Indiana, Massachusetts, Michigan, Missouri, New Hampshire and Minnesota. These are not minor players exiting the program. Nine out of the top 10 consolidation lenders have stopped offering these loans, while 20 out of the top 100 originators have stopped making Stafford and PLUS loans. These 60 lenders account for 13 percent of the total Stafford and PLUS loan volume and 76 percent of total consolidation loan volume.

In fiscal year 2006, these lenders originated more than $6.5 billion in Stafford and PLUS loans to more than 800,000 students and parents, and more than $55 billion in consolidation loans to more than 1.8 million borrowers.

The bill before us includes necessary reforms to ensure the Department of Education can respond if students have access problems as lending season gets underway. First, it will allow students to receive additional financing that will help them stay in school if they are denied private, nonfederal loans. Second, the bill clarifies aspects of the Lender of Last Resort program, easing participation for students and schools and ensuring funds will be available should they become necessary. Third, the bill ensures that lenders have the authority to provide PLUS loans to struggling parents who are facing difficulties with their home mortgage. And, fourth, the bill grants new flexibility for parents with a new optional grace period that permits parents to defer PLUS loan payments until after the children graduate.

Finally, the bill authorizes the Department of Education to invest in or agree to the future purchase of outstanding loans which could free up capital and allow lenders to make new loans in the upcoming school year.

I want to thank the chairman for moving very rapidly on this situation. That's not our modus operandi around here; generally we wait until we're in the middle of a crisis to fix this. I hope that I'm wrong in thinking that there may be a crisis coming, but I think it is very appropriate to take these positive steps to ease or prevent a problem that could arise very shortly.

I again thank the chairman for his efforts. He has not been well this week, but you wouldn't notice it. He shows up at every meeting, and he has worked very hard. I hope he takes some time over the weekend to get some rest and gets feeling better for next week.

I strongly support this bill, and I encourage my colleagues to vote for it.

Madam Chairman, I reserve the balance of my time.

Madam Chairman, I am happy to yield 3 minutes at this time to the gentleman from Pennsylvania, ranking member on our Subcommittee for Healthy Families, Mr. Platts.

Madam Chairman, I am happy to yield 3 minutes to the gentleman from Connecticut (Mr. Shays).

Madam Chairman, I yield myself the balance of my time.

Our economy is struggling, families are dealing with a higher cost of living, rising fuel costs, a struggling mortgage market, and the threat of higher taxes. The cost of a college education continues to rise, only now students and families are wondering whether they'll be able to get the loans they need to pay their tuition bills.

Like most challenges to our economy, there's no easy answer to the difficulties in our student loan programs. We will need a combination of actions, maybe some legislatively, others through regulation, that will increase liquidity and restore confidence among investors and consumers.

This bill is a first step and one that deserves bipartisan support. It signals our commitment to a strong Federal family education loan program and should help ease the minds of students and families, and it does these things without a single cost to the taxpayer.

I want to again thank Chairman Miller for his leadership and bipartisan cooperation on this legislation. I would also like to recognize Representatives Ruben Hinojosa and Ric Keller, the chairman and senior Republican on the Higher Education Subcommittee, for their role in making this legislation a reality.

The staff deserves special recognition for their efforts to bring this bill to the floor so quickly. On my staff I would like to thank Amy Jones along with Susan Ross and Sally Stroup; on Chairman Miller's staff, Gaby Gomez, Julie Radocchia, and Jeff Appel.

Madam Chairman, this bill is a positive first step. It's good for students and families, it's good for taxpayers, and it's good for our economy. I urge my colleagues to vote ``yes.''

Madam Chairman, I yield back the balance of my time.

Madam Chairman, I claim time in opposition, but I will not be opposing the amendment.

Madam Chairman, I yield myself such time as I may consume.

I want to thank Chairman Miller for his work on this amendment. Like the underlying bill, this amendment was developed on a bipartisan basis to respond to some of the very specific challenges facing our student loan program. Although many of the challenges in this amendment are technical in nature, they will help to perfect the bill and ensure it has the impact we intend.

For instance, the purpose of this bill has never been to force a shift from the FFEL program to the Direct Loan program. That's why the amendment clarifies that if the Secretary of Education does purchase outstanding

loans, she can keep those loans with their existing servicing arrangements. This will ensure a seamless transition for students while having the intended effect of freeing up capital to make new loans.

The amendment also ensures the bill will have no cost to taxpayers. From the outset Chairman Miller and I agreed that it was important to move a bill that made meaningful reforms without driving up spending. H.R. 5715 does exactly that.

With regard to the Lender of Last Resort program, the amendment clarifies some of the steps that must be taken in order to designate school-wide participation in this program. These reforms will be enhanced even further by the amendment that will be offered shortly by Representative Petri.

I appreciate Chairman Miller's willingness to include language proposed by Representative Platts that adds greater clarity and flexibility within the Secretary's ability to purchase loans. Although it was always our intent that this new, temporary authority would include the concept of a ``forward purchase agreement,'' this amendment makes it explicit that the Secretary can enter into agreements to purchase loans in the future. The amendment also clarifies that lenders must reinvest the proceeds from the sale of loans to the Secretary back into making new loans to students.

Once again, I want to thank Chairman Miller for his work on this amendment and on the bill as a whole.

Madam Chairman, I yield back the balance of my time.

I thank the gentleman for yielding.

Madam Chairman, I rise in support of this commonsense amendment.

The Lender of Last Resort program was never intended to serve as a bailout for our student loan system as a whole. Rather, it was developed as a backstop for individual students on a case-by-case basis to be able to access a student loan if they encountered some rare circumstance in which they could not borrow through the standard channels.

I, for one, hope that the broad-based Lender of Last Resort authority in this bill will never be used. After all, the goal of this legislation is to prevent such a crisis within the loan program before it occurs. But I appreciate the steps being taken to ensure that if the Lender of Last Resort program ever needs to be deployed on a larger scale, we will have the infrastructure and processes in place to allow it.

However, because the program was simply never intended to be used on a school-wide basis, we should ensure that in implementing this authority, we are not unintentionally subverting current regulations. We also want to ensure that a guaranty agency is not unnecessarily punished for stepping in as a lender if needed. That is why this amendment requests that the Secretary review the regulations with the Lender of Last Resort program in mind. This program should be implemented in a manner that will be effective, efficient, and in the best interest of students.

I want to thank Representative Petri for offering this amendment, which requires the Secretary to ensure that regulations are updated to reflect the new responsibilities that would be given to guaranty agencies operating as a lender of last resort for entire schools rather than individual students.

This amendment is consistent with our longstanding support for greater sunshine, transparency and consumer protections.

I support this amendment, and I urge its passage.

Madam Chairman, I thank the gentleman for yielding and for his longstanding commitment to addressing the rising costs of college.

This amendment gets to the heart of the concern that many of us have harbored for a long time. It takes a hard look at whether or not an increase in Federal aid will lead to an increase in college tuition. Everyone recognizes that Federal student aid is a good investment. Pell Grants, together with campus-based aid programs, Federal student loans and other higher education benefits help make a college education accessible to every American student.

With enactment of the Higher Education Act in 1965, these financial aid programs truly did make college more affordable. But beginning in the eighties and in the decades since, college tuition has skyrocketed. Despite our best efforts to keep pace by investing in student aid, college is becoming less affordable for many families. Tuition goes up, so we increase financial aid. But when we increase financial aid, tuition goes up. It's a vicious cycle. And we are losing ground.

Unfortunately, this pattern has even led some of us to question whether an investment in financial aid is a wise one. After all, if we're driving tuition increases by, for instance, increasing loan limits, we may be doing more harm than good.

I think there's agreement that this bill will help borrowers by increasing unsubsidized borrowing limits. Particularly for borrowers who are unable to access higher-cost credit-based private loans, this additional Federal loan availability may be the difference between enrolling or not. But as we increase that type of financial aid, we need to very seriously review the consequences of that action. That's why this amendment calls on the Government Accountability Office to determine how the increase in borrowing limits impacts tuition.

I thank Representative Castle along with Representative Welch for their leadership on this issue. It's a good amendment. It improves the bill. I urge a ``yes'' vote.

I claim the time in opposition, although I am not opposed, Madam Chairman.

I rise in support of the gentlelady's amendment, and I yield myself such time as I may consume.

The purpose of this bill is to address the unique challenges facing students and families in this time of economic

uncertainty. That is why the bill takes steps to ensure parents are not automatically denied a PLUS loan simply because they're struggling with the same mortgage troubles facing so many other families in the country.

This amendment is consistent with the spirit of our bill because it recognizes that families also may be grappling with medical bills. And as the chairman explained, sometimes you are hit with a bill, and that shows up as a liability which would put you out of reach of getting another loan, and, in fact, you may not have that liability. And until that is clarified, you are held in abeyance. And students can't wait.

So this is a very important amendment that the gentlelady has presented. I thank Representative Castor for her amendment. It makes the bill better.

I yield back the balance of my time.

Madam Speaker, by direction of the Committee on Rules, I call up House Resolution 1107 and ask for its immediate consideration.

For the purpose of debate only, I yield the customary 30 minutes to the gentleman from Florida, my colleague from the Rules Committee, Mr. Diaz-Balart. All time yielded during consideration of the rule is for debate only.

I yield myself such time as I may consume. I also ask unanimous consent that Members be given 5 legislative days in which to revise and extend their remarks on House Resolution 1107.

Madam Speaker, House Resolution 1107 provides for consideration of H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008, under a structured rule.

The rule provides 1 hour of general debate controlled by the Committee on Education and Labor. The rule makes in order four amendments in the Rules Committee report, each of which is debatable for 10 minutes. The rule also provides one motion to recommit, with or without instructions.

Madam Speaker, I rise in strong support of H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008, and the underlying rule. Under this act, the Congress will ensure that low-interest student loans remain available for college students and their families even in the face of the credit crunch. In doing so, the Congress will build on the new commitment to college and university students and their hardworking families that this new Democratic majority has provided.

See, our action today comes on the heels of the historic College Cost Reduction and Access Act that was signed into law a few months ago that saves college students an average of $4,400 on student loan interest. We increased the Pell Grant, and we now will forgive student loans for students that commit to a 10-year career in public service.

This single largest investment in college financial assistance since the GI Bill in 1944 comes at no new cost to taxpayers. The new Congress promised to make college more affordable for all Americans, and we have delivered on that promise.

Our next step today is to ensure that families can continue to access the loans they need to pay for college. See, in today's economy, a college education is as important as a high school diploma was a generation ago. And with college costs growing by nearly 40 percent over the last 5 years, students are graduating from college with more debt than ever before. It is estimated that 200,000 students do not go to college every year because they simply cannot afford the costs. Well, our efforts today will restore the American dream for those families.

We know that many families across this great country are facing severe financial strains. The economic downturn, the cost of housing, the cost of health care, gas prices have hit our families especially hard. Middle class families are especially being squeezed in this unfortunate Bush economy.

In addition to these basic needs, the rising cost of a college education has left many families very concerned that a college education may not be within reach for their children. A recent press report noted that 70 percent of parents said that they are very concerned about how they're going to be able to afford the cost of a college education for their kids.

Families now are forced to pull from many different sources to pay for college and to simply make ends meet. They're drawing on their savings account, Federal loans, private loans, and the equity in their homes all at the same time to send their kids to college. And despite all of their hard work and the fact that they've set money aside, they're still unable to come up with the cost of tuition because these costs are rising. The costs of sending their child away to school or just down the street to the community college is simply out of reach for so many so they turn to the loans.

In 2007, families borrowed almost $60 billion in Federal student loans. Now, in this credit crunch, banks are tightening their loan requirements and raising rates. We want to make sure that families have access to the low-interest loans, that they remain available for these hardworking families so their kids can attend college.

Madam Speaker, this bill has a number of very significant improvements under our Federal college loan program. The best deal going in college loans these days is the Stafford loan. We are going to increase the annual loan limit for the Stafford loan by $2,000 for undergraduates and graduate students. These loans are the most affordable and available to students with the best interest rates.

Currently, there's a cap on the amount that a student can receive, so our legislation today will raise that cap. It increases the total loan limit, as well, over the course of a student's college education from $31,000 for dependent undergraduates to $57,500 for independent graduate students.

The other significant loan available to families these days is the Parent PLUS loan. The Parent PLUS loan, the primary benefit for the PLUS loan for parents is that they can borrow Federally guaranteed low- interest loans, not tied to the students, but that's a loan for the parents. The parents can borrow the total cost of undergraduate education including tuition, room and board, supplies, lab expenses, and travel, and other aids. It's a non-need-based loan. Well, we're going to give parents a little more flexibility under our actions today to pay off their PLUS loans.

Currently, those loans become due 60 days after the bill is sent to them. We're going to give them a little extra time and allow the student to complete their college education before that loan becomes due. We're going to help struggling homeowners pay for college because right now, it is not clear under the law that parents that are struggling with pending foreclosure or difficulty in paying their housing costs can also access the great PLUS loans to help their kids get through college. So we're going to allow for that today.

We're also going to give the Department of Education additional tools so that these, the cost of college and the access to student loans, remain available for America's hardworking families.

I would like to thank Chairman George Miller of the Education and Labor Committee here in the House for his leadership on making sure that families continue to have access for student loans but for also being a champion for American families, colleges, and our entire educational system which is in better hands now that the Democrats are in charge here in the House.

Madam Speaker, I reserve the balance of my time.

Madam Speaker, I yield 3 minutes to the gentleman from Vermont (Mr. Welch).

Madam Speaker, I yield 3 minutes to the gentleman from California (Mr. George Miller), the chairman of the Education and Labor Committee.

I yield the gentleman an additional 2 minutes.

Madam Speaker, today the Congress will build on the new commitment to college and university students and their hardworking families that this new Democratic majority in the Congress has provided. Our efforts to ensure continued access to low-cost student loans for families comes on the heels of the historic College Cost Reduction and Access Act that was signed into law a few months ago that will save college students an average of $4,400 on student loan interest, will increase the Pell Grant, and will forgive loans for those who provide 10 years of public service to their community.

This is the single largest investment in college financial assistance since the

GI Bill in 1944 and comes at no new cost to taxpayers. The new Congress promised to make college more affordable for all Americans, and we have delivered on that promise.

Our next step today is to ensure that families can continue to access the loans they need to pay for college. And let me provide you with one example from my hometown in Tampa, Florida: a student at the University of South Florida, a large public university of over 40,000 students. This student is a communications major and is one semester away from graduation. But she has reached her loan limit. She can't access that Stafford Loan that provides the lowest interest rate available out there. She is the first in her family to ever attend college. She only lacks 11 credit hours to graduate, and she plans to graduate this summer, but she has been forced to apply for a higher interest rate, private loan, to cover the expenses of her summer tuition. Well, this legislation is ready-made for her and thousands of other students across America and their families. It gives them that extra-added flexibility to be able to put the money to good use and graduate on time rather than end up paying higher loans and interest rates.

You see, Madam Speaker, we're not just Members of Congress. We are also parents ourselves. And we are also concerned about the increasing cost of college, especially given the fact that college costs have been increasing more rapidly than available grant and financial aid, Federal loans, and families' ability to pay. Well, our efforts today will restore the American Dream for many families. And we know and appreciate that many families are facing extreme financial strains. The economic downturn, the cost of housing, the cost of health care, gas prices have hit our families hard. Families are really being squeezed in this unfortunate Bush economy.

But there is a reason to hope because we will continue to fight for a new direction for our country, a direction that values access to education, values better jobs, and values an opportunity for all Americans.

With that, Madam Speaker, I urge a ``yes'' vote on the previous question and on the rule.

Mr. McKeon. Madam Speaker, this rule will allow consideration of a bill that takes a critical first step in addressing disturbances in the student loan financial markets brought on by broader market turmoil.

We've all read the headlines and spoken with our constituents about this difficult economy. Our economic confidence has been shaken, and people are nervous. But what may be overlooked is that students and families thinking about how to pay for college are in a particular bind.

It's hard enough to pay for college when tuition regularly rises at two or three times the rate of inflation and textbooks can run close to $1,000 each year. Add to that the idea that lenders are scaling back on student loans, and it's easy to see why Americans are nervous about paying for college.

Like most challenges to our economy, there's no easy answer to the difficulties in our student loan programs. We will need a combination of actions--maybe some legislatively, others through regulation--that will increase liquidity and restore confidence among investors and consumers.

This bill is a first step, and one that deserves bipartisan support. It signals our commitment to a strong Federal Family Education Loan program, and should help ease the minds of students and families. And it does these things without a cost to the taxpayer.

Madam Speaker, I am disappointed that the bill is not being brought up under an open rule. H.R. 5715 was developed on a bipartisan basis, and is stronger because of it. The idea that members will not be permitted to collaborate on this effort to protect college students and their families is disappointing, if not surprising given the track record of the 110th Congress.

I will oppose this rule because it limits the full participation of all members. But I will strongly support the underlying measure, H.R. 5715, when it is brought to the floor and I urge all my colleagues to join me in telling students and families that we are committed to college access.

Madam Speaker, I yield back the balance of my time, and I move the previous question on the resolution.

Madam Chairman, I yield myself such time as I may consume.

Madam Chairman, Members of the House, today we continue the consideration of H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008. This is legislation that was reported from the Committee on Education and Labor with unanimous bipartisan support. Once again today, I want to thank my colleagues on the committee on both sides of the aisle and the staff on both sides of the committee for working in a manner which allowed us to report this bill in very short order to the House for its consideration, and on working with the Department of Education, the Secretary of Education, Margaret Spellings, for her cooperation in helping us with this legislation so that we can assure the parents, families, and students of this country that there will be no interruption in their access to student loans.

As the lending season starts to progress now, as students are getting their letters of acceptance, thinking about the next semesters of education and next year's education, as that lending season comes into its fullness, we want to make sure that there is no disruption.

We are concerned about a disruption because of the general disruption that is taking place in the Nation's credit markets, and specifically, concern about whether or not there will be a spillover onto the student loan markets so that students will have difficulty finding those loans.

We have worked with the Department of Education, we have worked with the administration, we have worked with the Republican members of the committee and our own caucus to devise a system of relief that is available to the Secretary and to the administration in the event that that should happen. And really what we're doing is three things: One, we're making sure that the existing law and the existing program for such an emergency, the Lender of Last Resort program, is functioning, that agreements are reached between the Secretary of Education and the Secretary of Treasury, and we've been told by the Secretary of Education that she has informed the members of the committee that that has been done, that the Secretary meet with the guarantee agencies that might stand in the stead of those lenders that cannot make those loans to make sure that there is a smooth transition between them and the universities and colleges, and that that program is in place.

Also, that schools are aware that they can apply to qualify for the Direct Lending program. Many colleges and universities use that today. They may want to consider that so, again, there is smooth transition should the private lending market not be able to come forward with the student loans, they could direct their students to either of those two programs.

And, finally, to try and help the private sector credit markets for student loans, as this bill does, to give standby

authority to the Secretary to purchase those government loans from the traditional lenders in the student loan field so that we might develop some liquidity in that market so that they can then take the money they receive from the Secretary and make a new tranche of student loans. If she purchases those loans, that money could only be used to provide a new set of student loans for the students for the coming year.

And we also raised the loan limit for students, for undergraduates, because we understand that the private student loan market is in very rough shape, and there are some students who use private loans to fill a small gap between the total cost of their education and what they were able to borrow. We think by raising the limit, we will be able to help most of those students in that situation.

So this is an important piece of legislation. It's legislation that we look to be acted upon in the Senate in a very timely fashion and then to be sent to the President, we believe, for his signature. And then we will have completed a series of standby authorities and a series of processes that we should be able to assure families and students that there will be no major interruption in the student lending for the remainder of this year and next year.

With that, I will reserve the balance of my time.

If I might, I have one additional speaker, but the speaker is on his way to the floor. If you want to go ahead, then we will have that speaker, and I think we will yield back our time.

Madam Chairman, I want to thank Mr. McKeon for mentioning my staff and to Julie Radocchia and also that I failed to mention her birthday yesterday when I recognized her service.

Madam Chairman, I yield back the balance of my time.

Madam Chairman, I offer an amendment.

Madam Chairman, I rise in support of the manager's amendment to H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008. The amendment was done on a bipartisan basis with the input of the senior Republican member, Mr. McKeon. The manager's amendment we are considering here today makes various technical changes to the legislation and additional substantive changes to ensure continued access to Federal student loans.

Specifically, the amendment makes the following changes: It targets loan limit increases to undergraduate students and families. It clarifies that only eligible students as defined under section 435(a) may qualify for these loans as with all other Federal student aid. It clarifies that at the discretion of the Secretary, a loan may continue to be serviced by the current lender. And in regard to school-wide Lender of Last Resort eligibility, it specifies that the Secretary of Education shall determine whether a school qualifies and provides criteria for the Secretary to consider in making the determination. It specifies that funds received by lenders from loan sales will be used to originate new loans. And it clarifies that, at the discretion of the Secretary, a loan purchased by the Secretary may continue to be serviced by the current lender.

Now more than ever, families deserve every assurance that we are doing all that we can to make sure that they will continue to be able to access the low-cost loans they need to pay for college, regardless of what happens in the credit markets. I am confident that our efforts, coupled with the proper planning by the Federal Government, will provide them with that guarantee.

I urge my colleagues to support this amendment.

Madam Chairman, I reserve the balance of my time.

Madam Chairman, I demand a recorded vote.

Madam Chairman, I claim the time in opposition to the amendment, although I do not expect to oppose the amendment.

Madam Chairman, I commend Mr. Petri for this amendment. He addresses an oversight in the legislation in making sure that the Secretary has the ability to review and revise the regulations concerning prohibited guaranty agency inducements to ensure that agencies do not engage in improper inducements. We don't think this is a problem, but we had a problem in the past in the rest of the program, and we passed on a bipartisan basis, the Student Loan Sunshine Act, and I think this amendment is an important part of keeping the integrity of that act and the continuity within the student loan program so that all participants in that program understand that we cannot condone even an appearance of improper relationships. When students and families are borrowing money and making sacrifices for that money, we want to make sure that they get the best deal available and they get the best facts available to them.

I thank the gentleman for offering the amendment.

Madam Chairman, I yield back the balance of my time.

Madam Chairman, I rise to claim the time in opposition, although I do not expect to oppose the amendment.

Madam Chairman, Members of the House, this is an important amendment.

This committee, on a bipartisan basis, has struggled with trying to get a good handle, if you will, an understandable handle on the cost of education and the reasons for the increases in the cost of education, as we watched the cost spiral up in higher education much faster than the general inflation index. And it is a rising concern in families. As their budgets compete with fuel, food and mortgage payments, this obviously becomes a very serious matter.

Congressman McKeon and Congressman Castle have been on this watch

for many years in this committee trying to help us come to grips with this problem and trying to carry on a positive conversation with the universities and colleges so that we can better define those costs that they control, the costs that they don't control, and certainly the actions of the States in their support for the public institutions. I think this amendment is very helpful.

Congressman Welch has spoken to me about this during our deliberations of the higher education bill and of the college loan reduction bill that we passed last year.

This is an issue that continues to nag at us. I think providing some good guidance to GAO, with their expertise, we have an opportunity to really take a good look at a cross-section of institutions, what is properly driving the increases in cost and what maybe is improperly driving the increase in cost, and those things that can possibly be brought under control and be reduced by cooperative actions between the institutions, the States, and the Federal Government.

So I strongly support this amendment, and I want to thank Congressman Castle and Congressman Welch for offering this amendment.

I yield back the balance of my time.

Will the gentlewoman yield?

I just want to thank the gentlewoman from Florida for introducing this amendment. She had talked to me about this early on, and it was an oversight. But she has raised the issue that for families that have engaged in serious medical encounters, the question of what the real bill is becomes a matter of serious negotiations that can take over a period of time.

You get your bill. It says you owe $65,000. And then it says, but the real cost was $45,000, and somebody will pay $20,000, and you owe whatever is in between. And then you find out that is really not true, that was the initial billing, and you back over a period of months. Those negotiations, because of an unexpected serious medical encounter within a family, should not bar, in these times, those individuals from being able to access student loans. It doesn't mean they've lost their incomes. It doesn't mean any of that at that point.

I think it is a very important addition to this legislation as we are trying to weave together a support system for families that must rely on loans for the education of their children.

I want to thank you very much for offering this amendment.

Madam Chairman, I move that the committee do now rise.

Madam Speaker, I want to thank the chairwoman of the Rules Committee, Ms. Slaughter, for yielding me the customary 30 minutes.

I yield myself as much time as I may consume.

(Mr. HASTINGS of Washington asked and was given permission to revise and extend his remarks.)

Madam Speaker, on September 28, 2006, the Republicans were in the majority and the Democrats were in the minority. I was managing a rule on the floor similar to what we are considering here today to allow specific bills to be considered under suspensions under the rule on a day that suspensions are not permitted under House rules like today.

During debate on that day in September 2006, the then-ranking member of the Rules Committee, Ms. Slaughter, stated, ``It isn't just what the Congress has done with its time that is so disappointing. It is also what the Congress has not done, all of the challenges it has not addressed.''

Madam Speaker, the same can be absolutely said today about the Democrat control of the House of Representatives. Earlier this year, House Democrats approved a budget that included a tax hike of $683 billion, the largest in American history. Americans cannot afford the Democrat plans to cut the child tax credit in half, to reinstate the marriage penalty, and raise taxes on every single taxpayer. Instead of record-breaking tax increases, this Congress should work to make those tax cuts permanent.

I'm also dismayed that the Democrat-controlled House of Representatives has not acted to extend the State and local sales tax deduction to States that don't have State income tax. That tax expired on January 1 of this year. The State and local sales tax deduction is important for those States that don't have a State income tax, such as my home State of Washington. Extending this deduction is a matter of fairness that Congress must act to renew as soon as possible.

The Democrat-controlled House of Representatives have also failed to act to give our intelligence community the tools they need to protect our country from new terrorist threats by modernizing the seventies-era FISA laws. For over 74 days now, America has been hobbled in the vital work to monitor terrorist communications and detect new plots despite the fact that the Senate has approved a bipartisan plan and sent it over to the House. House Democrat leaders have refused to allow the House to vote on the Senate plan and have refused to go to conference with the Senate.

Madam Speaker, why, I ask, why is an issue of this magnitude being placed on the back burner by Democrat leaders, despite repeated attempts by Republicans to allow the House to vote on this bipartisan plan?

Madam Speaker, the Democrat-controlled House has also failed to address perhaps the most pressing issue on the minds of Americans today, rising gas prices.

Democrat leaders may not like to hear it, but since they took control of Congress in January of 2007, the cost of a gallon of gas has gone up by over 50 percent. In fact, the cost of gas has gone up by more in 16 months than it had gone up in the prior 6 years.

Instead, they have spent hours giving speeches trying to blame the President and anyone but themselves for the fact that Congress has done nothing to address rising gas prices. But, Madam Speaker, facts are stubborn things.

And the facts are that gas prices have gone up over a dollar a gallon on the Democrat Congress' watch. The facts are that Democrat leaders promised the American people in 2006 that if they were to control Congress that they had a ``commonsense plan'' to ``lower the price at the pump.''

It's been 16 months of this Democrat Congress, and the promise is nowhere to be seen. This Congress has put forward no plan, has taken no action, and passed no bills to lower gas prices. They promised relief at the pump to lower gas prices, and they've done nothing.

Madam Speaker, at this time I would like to insert into the Record an article by Investor's Business Daily posted April 29, 2008, and it states, ``This Congress is possibly the most irresponsible in modern history. This is especially true when it comes to America's dysfunctional energy policy.''

[From Investor's Business Daily, Apr. 29, 2008]

Congress Vs. You

Energy: President Bush let the Democrat-led Congress have

it with both barrels Tuesday, lambasting lawmakers for

fiddling while the energy crisis burns. It was a well-

deserved takedown of do-nothing lawmakers.

We've said it before, but we'll say it again: This Congress

is possibly the most irresponsible in modern history. This is

especially true when it comes to America's dysfunctional

energy policy.

The media won't call either the House or the Senate on its

failures, for one very obvious reason: They mostly share an

ideology with the Democrats that keeps them from

understanding how free markets and supply and demand really

work. Sad, but true.

So we were happy to hear the president do the job, calling

out Congress for its inaction and ignorance in his wide-

ranging press conference Tuesday.

``Many Americans are understandably anxious about issues

affecting their pocketbook, from gas and food prices to

mortgage and tuition bills,'' Bush said. ``They're looking to

their elected leaders in Congress for action. Unfortunately,

on many of these issues, all they're getting is delay.''

Best of all, Bush didn't let the issue sit with just

generalities. He reeled off a bill of particulars of

congressional energy inaction, including:

Failing to allow drilling in ANWR. We have, as Bush noted,

estimated capacity of a million barrels of oil a day from

this source alone--enough for 27 million gallons of gas and

diesel. But Congress won't touch it, fearful of the clout of

the environmental lobby. As a result, you pay at the pump so

your representative can raise campaign cash.

Refusing to build new refineries. The U.S. hasn't built one

since 1976, yet sanctions at least 15 unique ``boutique''

fuel blends around the nation. So even the slightest problem

at a refinery causes enormous supply problems and price

spikes. Congress has done nothing about this.

Turning its back on nuclear power. It's safe and, with

advances in nuclear reprocessing technology, waste problems

have been minimized. Still, we have just 104 nuclear plants--

the same as a decade ago--producing just 19% of our total

energy. (Many European nations produce 40% or more of their

power with nuclear.) Granted, nuclear power plants are

expensive--about $3 billion each. But they produce energy at

$1.72/kilowatt-hour vs. $2.37 for coal and $6.35 for natural

gas.

Raising taxes on energy producers. This is where a basic

understanding of economics would help: Higher taxes and

needless regulation lead to less production of a commodity.

So by proposing ``windfall'' and other taxes on energy

companies plus tough new rules, Congress makes our energy

situation worse.

These are just a few of Congress' sins of omission--all

while India, China, Eastern Europe and the Middle East add

more than a million barrels of new demand each and every

year. New Energy Department forecasts see world oil demand

growing 40% by 2030, including a 28% increase in the U.S.

Americans who are worried about the direction of their

country, including runaway energy and food prices, should

keep in mind the upcoming election isn't just about choosing

a new president. We'll also pick a new Congress.

The current Congress, led on the House side by a speaker

who promised a ``common sense plan'' to cut energy prices two

years ago, has shown itself to be incompetent and

irresponsible. It doesn't deserve re-election.

Madam Speaker, we all know that we must work together, Democrats, Republicans, the House, the Senate and the President, to solve America's pain at the pump. Until this happens, however, we should not deny good ideas from being considered.

Therefore, I will be urging my colleagues to defeat the previous question so that I can amend the rule to make in order any bill that would ``have the effect of lowering the national average price per gallon of regular unleaded gas.'' Let's defeat the previous question and show America that Congress is serious about addressing the rising cost at the pump.

With that, I reserve my time.

At this time, Madam Speaker, I yield myself the balance of the time.

Madam Speaker, Americans don't want a debate on the problems causing gas prices to dramatically increase. They want a debate on solutions.

Therefore, as I stated a moment ago, I will be asking my colleagues to vote ``no'' on the previous question so that Members can offer solutions that have the effect of lowering the national average price per gallon of regular unleaded gas.

As I mentioned, 2 years ago, then-minority leader, now-Speaker Pelosi promised Americans a Democrat plan to lower gas prices at the pump. They have controlled Congress for 16 months, but we still have not seen this plan. Meanwhile, the cost of gasoline is setting record highs. The time is now for the House to debate ideas and solutions for lowering gas prices, and it is time for the Democrats to reveal their plan that they promised 2 years ago.

So, Madam Speaker, by defeating the previous question, I will move to amend the rule to allow any bill to be offered and considered under suspensions of the rule that would have the effect of lowering the national average price per gallon of regular unleaded gas.

Madam Speaker, I ask unanimous consent to have the text of the amendment and extraneous material inserted in the Record prior to the vote on the previous question.

Madam Speaker, I urge my colleagues to defeat the previous question so that we can have this debate, so that we can consider these vitally important issues that America's families, workers, truckers, small businesses, and our entire economy face with these rising prices of gasoline.

With that, I yield back the balance of my time.

Mr. President, with each passing day, families are confronted with growing challenges stemming from our lagging economy. We have had a surge of bad news, and there is almost certainly more to come. People have done everything right. They have worked hard all their lives. They have been good citizens and they cared for their communities. Many have served in the military. They have bought homes in which to raise their families and have dutifully paid the mortgage every month.

But now they are seeing everything they have worked for, everything they have saved for and sacrificed for placed at risk. Families are stretched to the limit by stagnant wages and soaring prices. They have seen the value of their homes and retirement savings plunge. They wonder if they can afford to put gas in the tank in order to get to work.

Now there is a danger that their children will be the next victims of the economic crisis.

What started as a crisis in the housing market has spread to the banks and beyond. We must draw a line there and not let the crisis in the credit markets become a crisis for students struggling to pay for college and access to the American dream.

If we allow that to happen, we not only limit the horizon for a new generation of Americans, but we will damage the long-term economic health of America as well. More than ever, a college degree is the key to the door of opportunity for individual students. Sending more of our students to college is key to our international competitiveness in the global economy.

Yet students are facing new obstacles as they pay for their education. The credit crisis in the mortgage market has rippled throughout the lending industry and has begun to affect student loans.

The full scope of the problem isn't clear yet, but we cannot afford to wait for a full-blown crisis before we act. Students are applying now for loans to cover the fall term. I am very pleased the Senate acted earlier today to ensure that the loans they need will be available, and I look forward to prompt action by the House.

Already, almost 50 lenders have completely dropped out of the Federal program. Together, they make up almost 14 percent of the Federal student loan market. We need to make sure we have done everything we can to protect students in case that downturn continues.

The first line of defense for students and families is the Direct Loan Program. It is insulated from the turbulence of the credit markets because the Federal Government provides the capital directly to students, without having to pay a bank or other middleman. I have urged colleges across the country to sign up to participate in this program to protect them from any problems in the credit markets.

We need to take additional steps to shore up the alternative federally subsidized loan program--the FFEL program--in the short term as an additional backstop against unacceptable disruptions in the financial aid process later this year.

The legislation the Senate passed today will protect students from the problems in the credit markets by ensuring they will be able to access federally subsidized loans.

First, Mr. President, it ensures that private lenders will continue to participate in the federally subsidized program by giving the Secretary of Education the authority to buy outstanding Federal loans in order to provide lenders with the capital needed to make new loans to students for the upcoming school year.

Second, as a backup for students who still have trouble obtaining a loan, the bill facilitates students' access to ``lender of last resort'' loans. These loans are provided to students through existing State-operated guaranty agencies, using capital advanced by the Secretary of Education.

Third, the bill assists students who rely on higher cost, non- federally guaranteed loans by making additional low-cost Federal options available to them and their families.

The bill raises Federal loan limits for undergraduate students by $2,000. This legislation also makes it easier for parents to take out low-cost federally subsidized loans on behalf of their children through the PLUS loan program. The bill ensures that parents affected by

the current mortgage crisis can still obtain these loans, and it allows parents to delay repayment on these loans until after their child graduates from school. This is very important--the fact that it would delay repayment until after graduation. That is a major assistance to families.

We are increasing the amount that will be available at the lower rates to college students, and we are extending the period of time that will help the families in terms of the repayment schedule.

Finally, this bill helps students decrease student loan debt levels by expanding access to an existing grant program, the Academic Competitiveness Grants. Under this bill, an additional 100,000 students can receive up to $4,000 more a year in grant aid.

We need to get these safety nets in place now before we are hit with a problem that is beyond our control. College affordability should not be determined by the quarterly profits or losses of the banks.

The student aid system is not about banks' bottom lines. As the cost of college has tripled over the past 20 years, the Federal student aid system of grants and loans has made the dream of college a reality for millions of students who could not otherwise afford it.

In 1993, less than half of all graduates had to take out college loans, but in 2004 nearly two-thirds had to borrow to finance their education. This chart reflects that. This chart reflects the students taking out the loans in 1993. Here it reflects those who took out loans for 2004. Years ago, when we passed the student loan program--back in 1965--these were effectively all grant programs; about 80 percent are grants, and only 20 percent are loans. We have seen this dramatic shift over the period of recent years now to the loan program. That has all kinds of implications in terms of indebtedness to students. Too often many of the students are now working one or two jobs, and they are also trying to pay off their debts in the future years. This has a very important adverse impact in terms of students and their ability to pursue careers, the careers that are lower paying, but so critical to our society, such as teaching, public health or social work.

In the 2004-2005 school year in Massachusetts, 86 percent of students relied on Federal student loans. The average debt of these students was over $18,000. So the best way to help students and families afford college is to increase the grant aid. More aid up front means fewer loans and less debt on graduation day. That is why Congress acted last year on our promise to raise the maximum Pell grant to $5,400 by 2012, an increase of $1,350 under the level at which it stagnated under this Administration. As a result, students eligible for the maximum Pell grant will have to borrow $6,000 less in loans over the course of their college career.

That is a very important relief to those families. The legislation we enacted last year also made Federal loans less costly for students by cutting the interest rates in half for undergraduates. In addition, we helped students manage debt by capping monthly loan payments at 15 percent of their income. If they go into public service, their loans would be completely forgiven as long as they stay in public service for a period of years. All of these benefits would be meaningless if students cannot obtain the loans they need to pay for college.

So I thank my Senate colleagues for supporting this legislation, and I urge our colleagues in the House of Representatives, and the President, to act quickly so our Nation's college students don't become the next victims of our slumping economy. Together we can ensure that the students get the assistance they need to go to school so their dreams don't turn into nightmares, caused by the volatilities of our credit markets.

Mr. President, I am very grateful to my colleague and friend, Senator Enzi, the ranking Republican member, and the members of our Education Committee for their help and assistance during this period of time. We have had hearings on this legislation. We also had field hearings on this subject matter and gained a good deal of information. We have worked very closely with the Administration, with Secretary Spellings. We are grateful to her for her involvement and help and assistance. We worked very closely with the House, with both Chairman Miller and Mr. McKeon, the ranking minority member as well.

In the Senate, we have followed a longstanding tradition of trying to work and find common ground in education policy to benefit students. I think we have done a good job on that over a period of years.

This legislation, which is basically the stopgap legislation meant to deal with the challenges we are facing in the credit markets and that students will face in the credit markets, will respond to that need. We are on alert for any additional changes that are going to be necessary as we move along.

We are going to be monitoring this very closely in the days and weeks ahead, and we welcome ideas and suggestions and recommendations from students and from parents, as well as from all others, about how we can best ensure that we will be able to make sure that the a college education is going to be available to the young people in this country.