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Politics

: The Gavel

Education and Labor Hearing on Credit Market and Student Loans

By Jesse Lee

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The Education and Labor Committee held a hearing this morning on plans that should be put in place to ensure students continue to have uninterrupted access to federal student loans in the unlikely event that stress in the nation?s credit markets leads a significant number of lenders to substantially reduce their activity in the federally guaranteed student loan programs. In recent weeks, credit market turmoil has caused difficulties for some lenders in securing the capital needed to finance their lending activity. Thus far, these difficulties have not affected students? ability to secure federal loans to finance their college education, but in February Chairman George Miller called on Secretary of Education Margaret Spellings to have such contingency plans in place.

Read Chairman Miller and Sen. Kennedy’s letter to Secretary Spellings on credit market stress and federal student loan programs >>

Read the Committee release on the hearing >>

Chairman Miller: “The purpose of this hearing is to provide information to the Committee and to students, their families and the schools about our ability to assure them that student loans will continue to be made available to them and the development of contingency plans in the unlikely event that some lenders are unable to continue lending in this market.”

Full post as published by The Gavel on March 14, 2008 (boomark / email).