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House Proceeding 03-30-09 on Mar 30th, 2009 :: 2:35:15 to 2:40:35
Total video length: 2 hours 42 minutes Stream Tools: Stream Overview | Edit Time

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Howard P. Buck McKeon

2:34:55 to 2:35:15( Edit History Discussion )

Howard P. Buck McKeon: vote yes on h.r. 1777. i thank you, mr. speaker, and i'd reserve the balance of my time. the speaker pro tempore: the gentleman from texas, mr. hinojosa, reserves the balance of his time. the gentleman from kentucky, mr. guthrie, is recognized. speaker. i rise in support of this legislation, and i yield to the gentleman from california as much time as he may consume.

Howard P. Buck McKeon

2:35:15 to 2:40:35( Edit History Discussion )
Speech By: Howard P. Buck McKeon

Howard P. Buck McKeon

2:35:16 to 2:35:36( Edit History Discussion )

Howard P. Buck McKeon: the speaker pro tempore: the gentleman from california, mr. mckeon, is recognized for as much time as he may consume. mr. mckeon: thank you, mr. speaker. i rise in support ofhis legislation, and i thank ranking member guthrie for yielding the time. last august president bush signed into law the first comprehensive renewal of the federal higher education programs in a decade. that legislation was a product

Howard P. Buck McKeon

2:35:37 to 2:36:00( Edit History Discussion )

Howard P. Buck McKeon: of years of effort by both republicans and democrats. it was and is a good product. but as implementation of the lahas gone forward, it has become clear that minor technical changes are needed to have a smooth transition process. we're making those changes today. as we address those minor changes, we need to address

Howard P. Buck McKeon

2:36:01 to 2:36:22( Edit History Discussion )

Howard P. Buck McKeon: quickly to correct two challenges. the first is a byproduct of the credit -- of the global credit crisis. student loan borrowers, like many americans in this struggling economy, can sometimes fall behind on their bills. the higher education act helps borrowers before they fall

Howard P. Buck McKeon

2:36:23 to 2:36:44( Edit History Discussion )

Howard P. Buck McKeon: behind through loan deferments, forebareans and income-based rebasement. and for those borrowers who have defaulted, it provides a process for loan rehabilitation. student loan borrowers who have defaulted can rebuild their credit and get their loan back in good standing by making nine on-time payments . at the end of the process the

Howard P. Buck McKeon

2:36:45 to 2:37:05( Edit History Discussion )

Howard P. Buck McKeon: loan is sold to a lendernd a borrower's credit is wiped clean. unfortunately, the global credit crunch has provided many student loan lenders from being able to repurchase these rehabilitated loans. and when these loans aren't purchased, the borrower's credit isn't restored. with this legislation, we're incorporating rehabilitated loans into the emergency

Howard P. Buck McKeon

2:37:06 to 2:37:26( Edit History Discussion )

Howard P. Buck McKeon: student loan liquidity measures enacted last year. it's a simple fix that will give credit -- that will get credit flowing and help borrowers who are doing their best to get their credit back in good standing and make good on the loans they owe. these borrowers have done the right thing by getting themselves back on track. they should not be denied an

Howard P. Buck McKeon

2:37:27 to 2:37:47( Edit History Discussion )

Howard P. Buck McKeon: opportunity to clean up their credit simply because of the current economic situation. the second change we're making is just as urgent and truth be told it's one that could have been avoided. i'm speaking not of a byproduct of a short-circuited credit market but of the product of

Howard P. Buck McKeon

2:37:48 to 2:38:08( Edit History Discussion )

Howard P. Buck McKeon: short-sighted policy. 2 1/2 years ago the majority run billions from the federal student loan program in order to make good on a campaign promise of higher pell grant funding and lower student loan rates. these were lawedible goals, to be sure, but those of us who have been here for a long time know that a good sound byte

Howard P. Buck McKeon

2:38:09 to 2:38:29( Edit History Discussion )

Howard P. Buck McKeon: doesn't always make good for -- make for good policy. such as the case here. in order to pay for these particular campaign promises, at least temporarily, the majority replaced a functioning lending system for parents of clgkedge students with an un-- college students with an auction scheme. at the time we warned that an auction would undercut loan

Howard P. Buck McKeon

2:38:30 to 2:38:50( Edit History Discussion )

Howard P. Buck McKeon: accessibility for parents. we warned that the u.s. department of education was ill-equipped to implement such a complex and convoluted system. we warned that lenders were unlikely to participate in such a system and if they did only a few were likely to bid giving them near monopoly control of

Howard P. Buck McKeon

2:38:51 to 2:39:11( Edit History Discussion )

Howard P. Buck McKeon: the market. i wish it weren't the case, but unfortunately our worse predictions are coming true. several large lenders are choosing not to participate in this troubled initiative. the national association of student financial aid administrators has weighed in with serious concerns. financial aid administrators

Howard P. Buck McKeon

2:39:12 to 2:39:34( Edit History Discussion )

Howard P. Buck McKeon: will be assembling financial aid packages for the coming academic year, and one warns that current economic conditions could cause the pilot program to harm parent borrowers. if the department were to move forward the few willing participants would be a virtual monopoly. and with so few participants, they may not be able to handle all of the loan volume

Howard P. Buck McKeon

2:39:35 to 2:39:55( Edit History Discussion )

Howard P. Buck McKeon: necessary to ensure that all americans who are eligible for loans actually receive them. we cannot allow this to happen, and so we're postponing the auction for one year in order to ensure that parents will not fall victim to the short-sided policy that was enacted just 2 1/2 years ago. i support this legislation because the changes are

Howard P. Buck McKeon

2:39:56 to 2:40:17( Edit History Discussion )

Howard P. Buck McKeon: necessary, but i hope this will serve as a lesson in going forward. undercutting a successful long-standing student loan program in order to achieve political goals was not a good idea in 2006 and it's not a good idea today. i reserve the balance of my time. the speaker pro tempore: the gentleman from california

Howard P. Buck McKeon

2:40:18 to 2:40:35( Edit History Discussion )

Howard P. Buck McKeon: yields back the balance of his time. the gentleman from kentucky reserves the balance of his time. the gentleman from texas is recognized. mr. hinojosa: mr. speaker, i'd like to ask the gentleman from kentucky, do you have any further speakers? mr. guthrie: mr. speaker, i do

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