| |||||||||
May 21, 2008Statement from U.S. Secretary of Education and U.S. Secretary of the Treasury on Student Loans |
||||||||||||||||||||||||||||
|
From Education Newsfeed: As part of its continued commitment to make sure students have access to federal student loans in the coming academic year, the Administration today announced a four-part plan designed to improve the functioning of the student loan marketplace and provide liquidity and stability in the near term to ensure that all qualified students have access to federally insured loans for the coming school year. The plan includes a loan purchase commitment under which the Department agrees to purchase new federal loans originated for the 2008-2009 academic year, as well as a facility for providing short-term liquidity to lenders lacking access to affordable capital due to disruptions in credit markets. In addition, the plan includes a commitment to continue working with the lending community to explore ways to reengage capital markets; a strengthened lender-of-last-resort program to help insure students against shifting market forces; and increased Direct Loan capacity should it be needed to serve as an extra cushion for students. These efforts further the Administration's commitment to develop solutions that provide liquidity for student loans while supporting the current Federal Family Education Loan (FFEL) Program as a successful public/private partnership at no increased cost to taxpayers. "Over the past several months, I have worked closely with Secretary Paulson and others in the Administration to closely monitor events in the federal student loan market and actively engage the student loan community on our mutual goal of ensuring continued access to federal student loans for students and families," said Secretary Spellings. "I am confident that the Department of Education has designed a program that will facilitate the origination of new FFEL loans for the upcoming school year," said Secretary Paulson.
|
| |||||||||||||||||||||||||||
