Representative John Kline (R-MN), Ranking Member on the House Education and Labor Committee, and Senator Mike Enzi (R-WY), Ranking Member on the Senate Health, Education, Labor and Pensions Committee, announced today they are introducing bipartisan legislation to extend the
Ensuring Continued Access to Student Loans Act (ECASLA). This effort, like the original legislation, would maintain stability in the student loan market, providing students and colleges with confidence in the uninterrupted availability of federal student loans in the face of an ongoing global credit crunch. It also would help those schools opting to remain in the student loan program of their choice.
In response to the global credit crisis, Congress acted in 2008 to increase liquidity and stability in the student loan markets, which allowed providers to continue issuing billions in federal student loans throughout the economic downturn. ECASLA authorizes the Department of Education to serve as a backstop for the Federal Family Education Loan (FFEL) program by purchasing or committing to purchase student loans. The law guarantees that such purchases will result in no additional cost to taxpayers.
“At a time when our nation was suffering from a crisis of confidence, Congress acted in a bipartisan manner to ensure our nation’s students and their families would not be denied access to an affordable education,” said Representative Kline. “Today, the damage to our economy demands we continue to take commonsense steps to ensure our nation’s student loan lenders have the confidence and capital to continue providing loans to those who are themselves struggling to pay for their education. I am grateful to work with my colleagues on both sides of the aisle and both sides of the Capitol to move this effort forward.”
“Students must have access to student loans and Congress can make sure that happens by passing this bill,” said Senator Enzi. “Serious problems persist in the financial markets and many private and non-profit lenders are considering leaving the program when the current extension expires on July 1st of next year. The potential consequences could be catastrophic for America’s college students and many of them might not be able to get student loans for the 2010-2011 academic year. The solution is simple – extend ECASLA for another year.”
“I believe everyone should have the opportunity to continue their education without costs creating a barrier,” said Congressman Brett Guthrie (KY-2), Ranking Member on the U.S. House Subcommittee on Higher Education. “In the current economic climate, extending this legislation gives students, their parents, and colleges and universities access to trusted, low costs ways to finance higher education. It also offers a stable foundation and assurances that federal student loans will remain available.”
NOTE: Current cosponsors of the ECASLA extension (H.R. 4103) include:
Rep. Bill Cassidy (LA-06)
Rep. Brett Guthrie (KY-02)
Rep. Pete Hoekstra (MI-02)
Rep. John Kline (MN-02)
Rep. Howard P. “Buck” McKeon (CA-25)
Rep. Phil Roe (TN-01)
Rep. Cathy McMorris Rodgers (WA-05)
Rep. Mark Souder (IN-03)
Rep. Glen “GT” Thompson (PA-05)
Rep. Joe Wilson (SC-02)
Sen. Lamar Alexander (TN)
Sen. Richard Burr (NC)
Sen. Tom Coburn (OK)
Sen. Mike Enzi (WY)
Sen. Judd Gregg (NH)
Sen. Orrin Hatch (UT)
Sen. Johnny Isakson (GA)
Sen. Lisa Murkowski (AK)
Sen. Ben Nelson (NE)
Sen. Pat Roberts (KS)
# # #
