Wednesday, April 23, 2008

Authority to purchase federal family education loans

This is straight from today's White House Press Breifing:

... recent credit market conditions have raised concerns in the student loan market among parents and some college students, and so the administration has been taking steps to prepare for the approaching student loan peak season of applications in July and August. Today Secretary Spellings, Secretary Paulson and Director Jim Nussle sent a letter to members of Congress urging prompt action to get the Department of Education authority to purchase federal family education loans to better ensure the availability for the upcoming academic year.

The House recently passed a bill to provide this authority, and we urge the Senate to act promptly on the bill. Implementing this authority will take time, so it is imperative to move this legislation without delay if this authority is to be used in the upcoming school year. We do not want to see any students unable to attend universities this year because of the credit crunch, and that's why we are taking appropriate steps now to confront that challenge should it arise.

Larry Warder of Department of Education has been quoted saying:
"This has to be ready by July." ... in time for the peak time this year for student loans.