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***MEDIA ADVISORY*** TOMORROW: Subcommittee to Conduct Oversight of Federal Student Loan Program
WASHINGTON, D.C.,
October 24, 2011
On Tuesday, October 25 at 10:00 a.m., the Subcommittee on Higher Education and Workforce Training, chaired by Rep. Virginia Foxx (R-NC), will hold a hearing entitled, “Government-Run Student Loans: Ensuring the Direct Loan Program is Accountable to Students and Taxpayers.” The hearing will take place in room 2175 of the Rayburn House Office Building.
In early 2010, the Democrat-led Congress approved a federal takeover of the student loan industry to help pay for President Obama’s health care law. As a result, the Federal Family Education Loan program, which has leveraged hundreds of billions of dollars in private sector capital since 1965 to help Americans pay for college, was replaced with 100 percent Direct Lending, in which the government originates and oversees every single federal higher education loan in the country. The transition to the Direct Loan program has presented several challenges. Beneficial services such as debt counseling, debt prevention programs, and other helpful initiatives for students and financial aid administrators have declined. Schools and students have also expressed growing dissatisfaction with the department’s customer service, including processing delays, frequent website glitches, and lack of adequate security measures. Additionally, institutions have criticized the department’s handling and distribution of important student data. Tuesday’s subcommittee hearing will provide members an opportunity to examine whether the Department of Education’s implementation of the Direct Loan Program is adequately serving students, schools, and taxpayers. For more information about this hearing, visit www.republicans-edlabor.house.gov/hearings.
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WITNESS LIST
Mr. James Runcie |
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