Washington, DC (May 07, 2008) – Today, Congressman Rubén Hinojosa (D-TX) attended a White House signing ceremony for the Ensuring Continued Access to Student Loans Act (H.R. 5715). At the ceremony, the President signed into law this timely bipartisan bill, which the Congressman helped author, that ensures the tumultuous credit markets does not prevent families from accessing the financial aid they need to pay for college.
“Today is an important day for families across America worried about how they will pay for college this fall. This law sends a clear message: We will do everything we can to reassure students that the turbulent U.S. economy will not impact their dreams of a higher education,” said Hinojosa, Chairman of the House Subcommittee on Higher Education. “By signing this bill into law, we are putting safeguards in place so that no student ever forgoes a college degree because of an inability to secure a federal student loan. We have taken important steps toward restoring confidence for all stakeholders in the higher education community.”
In recent months, the crisis in the nation’s credit markets has made it difficult for some lenders that participate in the federally guaranteed student loan program to secure the capital needed to finance their student lending activity. As a result, some lenders have announced plans to scale back their lending activities; although others have announced plans to increase their share of loans. To date, no students or parents have run into problems in getting the federal student aid they are eligible to receive.
The bill provides new protections, in addition to those already under current law, to make certain that families continue to have timely, uninterrupted access to federal college loans in case the credit markets lead to a significant number of lenders in the federally guaranteed student loan programs to reduce their lending activity. The bill carries no new cost for taxpayers.
This legislation is supported by student groups, including the U.S. PIRGs Higher Education Project and the United States Students Association. To see their letter of support, click here.
For a fact sheet on this legislation, click here.
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