Mr. Speaker, I would like to thank the chairman and the ranking member for their leadership on this issue. Mr. Speaker, not one of us would be here if it wasn't for the ability to afford a college education, and although we are talking…
Mr. Speaker, I would like to thank the chairman and the ranking member for their leadership on this issue.
Mr. Speaker, not one of us would be here if it wasn't for the ability to afford a college education, and although we are talking about cleaning up a mess, it is quite clear we should also remember what is happening here. For a long time, there was no oversight or
any accountability in administration, and people from industry were actually in the responsibility, and their response was to govern and oversee industry they came from. So what did they do? They cut out the middleman. There is no need for a lobbyist, because the industry is the government in this case.
What is most ironic in this situation on the student loan situation is industry was getting taxpayer subsidies to run a business in which the very students that were also dependent on their parents were also paying the bill. They were paying on the front end and on the back end. And it was a total rip-off of the American taxpayers. And it is on a subject, college education, that is so essential, because we know, today, in the new economy, you earn what you learn.
What we are taking is people's ability to achieve the American Dream, which is so essential, a college education, that ticket to the American Dream. And rather than see what was an honorable profession, something important that could be done with good business practices, it has turned into a scandal that has affected both the schools and the administrators of those schools, public officials responsible for it, and the lenders in that industry. It was affecting everybody.
Now, I hope, and from conversations with the chairman, we can rest assured this is just the first step in changing the rules of the game so industry and those in the lending industry understand and those in the regulatory side of it that there is a new way we are going to do business. And there is a new code of conduct for both the public officials and those in the lending industry, because we must fundamentally remember, a college education is a ticket to the American Dream, in a society and economy where you earn what you learn.
I do want to recognize the Attorney General of New York for leading this effort, for Congress in a bipartisan fashion stepping up to the plate and taking the first step with this sunshine act.
But we are not done in cleaning up the mess as it relates to the college loan industry. This is only the first step to doing that, to cleaning up this mess, because it relates to other areas. We saw it today when the individual responsible for the oil and gas leasing and royalty payment industry because of congressional oversight is now stepping down because it is clear taxpayers were not given their fair shake.
We are doing the right job, and I commend both parties in the committee for holding these oversight hearings and producing this legislation and hope that we continue, as we did in the Six in '06, we voted, first of all, to cut the interest rates on student loans; we take this sunshine act, we come back with the higher education bill. We come with the FASA reform. We constantly make sure that we are reforming higher education and the access to higher education, so we serve the people who are doing right, working hard, paying taxes and raising their kids with the right sense of values to do right. This is an industry that needs a whole top-to-bottom cleaning and washing.
Thank you for your leadership, Mr. Chairman.
Mr. Speaker, for the past 6 years, the public has had to watch as scandal after scandal fell on deaf Republican ears.
How times have changed.
Today, Democrats are demanding accountability and ending business as usual.
We've put the spotlight on the rampant corruption in the Bush administration and the scandals that used to be shoved under the rug are now being exposed.
And the new Democratic Congress is getting results for the American people.
The latest corruption scandal involves lenders, schools and public officials and has undermined a vital student loan program that millions of students depend on.
On Monday the New York Times reported that over 4 years ago a researcher at the Education Department tried to warn his supervisors that student lending companies were improperly collecting hundreds of millions in overpayments.
Big companies were getting millions from the very taxpayers who were getting the bill on the other side. So what did the Bush administration do?
Nothing.
Top officials at the Department of Education's Student Aid Office made millions when they sold stock they held in lending companies.
What did the Department do when confronted with this obvious conflict of interest?
Nothing.
It wasn't until the media and this Congress began in oversight demanding accountability that these officials were put on leave. And yesterday, the head of Federal Student Aid abruptly announced her resignation.
Additionally, the Attorney General of New York uncovered a number of improper relationships between lenders and schools, where colleges received payments in exchange for steering loan volume to particular lenders.
It is time to clean up this mess and bring transparency to the system.
The legislation before us will do just that and help ensure this sort of scandal never occurs again.
Madam Speaker, students and families have been the victims of corporate greed, bribery and corruption in the Bush administration.
Now, it's time to put an end to these scandals and pass real reform.
I urge all of my colleagues to support this legislation.