Senate Proceeding on Oct 28th, 2009 :: 5:26:00 to 5:42:40
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5:25:56 to 5:26:18( Edit History Discussion )

Lamar Alexander: going to say where's the reform? this is a lot worse than it was before. mr. alexander: i senator from arizona. all this got started because the senator from rhode island complained that the democratic leader had cut off debate 32 times, and my response was that

5:26:00 to 5:42:40( Edit History Discussion )
Speech By: Lamar Alexander

5:26:19 to 5:26:39( Edit History Discussion )

Lamar Alexander: was nothing to brag about. that that's what the senate is for, that is why the founders created it. i appreciate the senator from arizona pointing out that in the case of unemployment compensation, we all want to extend the benefits. we think we may have a way to do that in a way that creates more jobs rather than taxes on jobs.

5:26:40 to 5:27:00( Edit History Discussion )

Lamar Alexander: and in the case of health care, yes, we want to go slow enough to be abl read the bill, know wt it costs. because we want to make sure that if we pass a health care bill that we're not the congress of higher premiums, higher taxes, medicare cuts, and adding to the debt.

5:27:01 to 5:27:21( Edit History Discussion )

Lamar Alexander: and i think the american people want to make sure that we do that as well. so, i'm grateful we have a united states senate. we're always a little more grateful for those rules when we're in the minority because they protect our rights and represent the people who elect us and who ask us to offer amendments. but the american people have been served very well by a united states senate that has

5:27:22 to 5:27:42( Edit History Discussion )

Lamar Alexander: different rules and procedures. now, mr. president, i'd like to say a word about a subject which has nothing to do with health care, nothing to do with climate change, which is the other subject that hearings on today, but is a subject that will affect millions of families in america, and that's the question of going

5:27:43 to 5:28:04( Edit History Discussion )

Lamar Alexander: toollege and student loans. all of us can imagine the anxious moments in our family lives -- and there are a number of them -- when a baby is born, when the daughter goes out on her first date, when someone is sick, when a child goes off to college.

5:28:05 to 5:28:26( Edit History Discussion )

Lamar Alexander: but there's -- one of the most anxious moments comes just after the first of every year when in millions of homes across america students and their parents wait to see if they have been admitted to college college. and the next anxiety comes when they turn to the various options they have to see whether they

5:28:27 to 5:28:47( Edit History Discussion )

Lamar Alexander: can afford to go to that college. now, fortunately in america, we have the best system of higher education. we not only have the best colleges, we have almost all the best colleges. we hav 6,000 autonomous institutions of one kind or another, public, private, religious, secular, profit, for-profit, among which students

5:28:48 to 5:29:09( Edit History Discussion )

Lamar Alexander: may choose. and s.e.c., even though prices have been going -- and second, even though prices have been going up, we bend over backwards in this country to try to make it possible for the largest number of americans to attend college. 77% of americans who attend college -- nearly 20 million -- have a federal grant or a

5:29:10 to 5:29:32( Edit History Discussion )

Lamar Alexander: federal loan to help them do that. so just after january -- and i want to paint this picture -- in homes across america, we have millions of students, millions of families who are waiting for their college admissions and then will turn to the question of: can i get some help paying theills?

5:29:33 to 5:29:55( Edit History Discussion )

Lamar Alexander: specifically, we have 14 million, if next year is anything like last year and the year before, 14 million of those students who will be going to college on 35 campuses, who will be borrowing $60 billion through what we call the traditional student loan program. now we have two types of loan programs.

5:29:56 to 5:30:16( Edit History Discussion )

Lamar Alexander: we couple of thousand lenders, profit and nonprofit across the country. for example, we have an organization called ed south in tennessee that's and it offers a variety of student loan options to tennessee students.

5:30:17 to 5:30:37( Edit History Discussion )

Lamar Alexander: it's got five regional outreach counseling, career planning, college admission guidance, financial lit ascy. it makes -- literacy. it makes 433 presentations through guidance visits and presentations. it worked with 12,000 tennessee students to improve understanding of college admissions.

5:30:38 to 5:31:00( Edit History Discussion )

Lamar Alexander: they sent out 1.5 million brochures. and the various different lending not for profit, are usualfully communities easy for these 14 million students to get to. now, there -- another group of students, about

5:31:01 to 5:31:21( Edit History Discussion )

Lamar Alexander: to go another route to get their student loan called direct lending. they borrow from the government. this was set up when i was secretary of education in the early 1990's. it was traditional student loan program, which is through your local bank or local nonprofit was really

5:31:22 to 5:31:42( Edit History Discussion )

Lamar Alexander: and what was best for students. an students have voted over the years and colleges have voted over the years with their practices. for example, in tennessee there -- the university of tennessee -- most -- most tennessee campuses and most tennessee students choose the traditional student loan program.

5:31:43 to 5:32:05( Edit History Discussion )

Lamar Alexander: the university of tennessee, where i was once president at knoxville, there are 30,000 students, 11,000 have a loan. they get that through the traditional loan program, not the government direct loan program. mariville college, my hometown,

5:32:06 to 5:32:26( Edit History Discussion )

Lamar Alexander: where my parents went, 824 of 1,100 students have a federal loan and they get that through the traditional loan program, carson newman, jefferson city, where i will go on friday to inaugurate a new president, 12,000 students, 1,259 have a federal loan. i could go through each

5:32:27 to 5:32:47( Edit History Discussion )

Lamar Alexander: institution in our state, but you can see the number of milies any change in student loan program and if you add to that the anxiety that comes with receiving your college admission an worrying about whether you can pay the bill. you can see the problem that causes. well, the reason that came to the floor today is, mr. president, for those 14 million

5:32:48 to 5:33:08( Edit History Discussion )

Lamar Alexander: students, more or less, who in january and in february and march would be expected to turn to the traditional student loan program, we're going to have -- we're about to have a 14 million car pileup on the interstate highways of american education because of actions taken by the

5:33:09 to 5:33:29( Edit History Discussion )

Lamar Alexander: united states department of education. because the secretary of education, a man i greatly admire, has sent a letter to the various schools -- the 3,500 or so campuses that now use the traditional loan program, and he said, you better switch -- you better switch over to the

5:33:30 to 5:33:50( Edit History Discussion )

Lamar Alexander: government-run program and -- and you need to do it because you may not be able to continue to offer the traditional loans. mr. president, that's a big mistake. and -- and i want to.out the reasons why. the first is the switch. even according to a "new york times" article -- and i'd like

5:33:51 to 5:34:12( Edit History Discussion )

Lamar Alexander: unanimous consent to include in the record the secretary's letter to the 37 campuses and a "new york times" article describing it. the presiding ofcer: without objection, s mr. alexander: the secretary's assistant says it takes three or four months for colleges to switch their computers around so instead of offering students and their families aid through the traditional loan program, they

5:34:13 to 5:34:33( Edit History Discussion )

Lamar Alexander: offer it through the government direct-loan program. so there's going to be a lot of confusion in the months of january, february, march, and april. there's not time to switch. second, the secretary's gotten a little ahead of himself here. we know that the president has proposed a washington takeover of the student loan program. well, mr. president, this

5:34:34 to 5:34:55( Edit History Discussion )

Lamar Alexander: washington takeover requires congressnal approval. we have more than one branch of government in this town. and i know the house of representatives has passed the president's request, but we have one more -- we have a united states senate to deal with and it has not approved the president's r it doesn't. because it's a bad idea. so i hope the president -- i hope the secretary will write

5:34:56 to 5:35:16( Edit History Discussion )

Lamar Alexander: another letter and he'll say, i've changed my mind given the lateness of the situation in the year. we're almost to november. and the fact that it takes almost three to four months for any college to make a changeover. and because most students will begin to receive their college admissions in january and

5:35:17 to 5:35:37( Edit History Discussion )

Lamar Alexander: february, et cetera, i hope -- i hope the secretary going to take a little different approach. i'm going to work recognizing that the congress has to approve this proposal as well. and, first, we're going to extend the law that was passed a couple of years ago which provides emergency financing to backup all of the traditional

5:35:38 to 5:35:58( Edit History Discussion )

Lamar Alexander: student loans that are made. that's worked out very well. the institutions participating pay large fees to the federal government an students have gotten their loans. we could extend that another year. it doesn expire until june. second, the secretary might say, i'm going to work with congres to make some changes in the existing student loan program to

5:35:59 to 5:36:19( Edit History Discussion )

Lamar Alexander: make it rig. and we can talk about ways to do at. and, third, i would hope he would say, i'm going to work with congress to set up a transition time that's appropriate for want to move from at it additional student loan -- from the traditional student loan program to the government-run studen now, mr. president, when the

5:36:20 to 5:36:40( Edit History Discussion )

Lamar Alexander: time comes for us to debate and act on whether there should be a washington takeover of student loans, i'm going to say, no, there shouldn't i've got a little history here. i think the american people have had enough washington takeovers, banks, insurance companies, of general motors, farm ponds.

5:36:41 to 5:37:03( Edit History Discussion )

Lamar Alexander: the president could argue, well, i inherited a lot of that. but this washington takeover is truly voluntary. nobody is asking the secretary of education to become the banker of the year. i'd rather he become the secretary of theear, and i think he could do that. i think he's an outstanding secretary. one of the best appointees --

5:37:04 to 5:37:24( Edit History Discussion )

Lamar Alexander: maybe the best appointee of the new president. the presiding officer is from illinois. he knows arty i would like to spend t setting higher standards and rewarding teachers instead of making 20 million student loans every year. i want it to be the educator of

5:37:25 to 5:37:46( Edit History Discussion )

Lamar Alexander: the year, not the banker of the year. and down deep maybe he wishes as well. the administration has told us -- this is what they've told us about this takeover: starting next year the nearly 20 million students who want government-backed loans should all line up at offices designated by the united states

5:37:47 to 5:38:07( Edit History Discussion )

Lamar Alexander: department of education. this will -- the argument goes, save taxpayers $8 billion in subsidies that now go to greedy banks in gleeful anticipation, members of congress, that's us, have already spent th the $87 billion for more pell grants, community college improvements and other new programs.

5:38:08 to 5:38:29( Edit History Discussion )

Lamar Alexander: sounds very good. banks are punished, students are helped, most important of all congressmen look real good. well, here's what they haven't ld you, your friendly government, for all of this, will overcharge you, students, and use the profit to pay for the new programs that make the congressmen look good.

5:38:30 to 5:38:50( Edit History Discussion )

Lamar Alexander: yes, the student loan, those of you who borrow it, t 20 million, the education department is going to borrow the money at 2.8% from the treasury, loan it to the student at 6.8%, and spend the difference on administrative costs and new governmen programs. that means the student will spend a few more months or years working t pay off the student

5:38:51 to 5:39:11( Edit History Discussion )

Lamar Alexander: loan in order to help pay for someone else's education and to help the reelection. there are a few other things when we get into this debate that the government ought to tell you. the 7 billion savings is a lie, according to one report, the

5:39:12 to 5:39:33( Edit History Discussion )

Lamar Alexander: savings are closer to $47 billion. if we use the same cost scoring analysis that the c.b.o. required when we passed the trouble assets relief pro tarp. and the savings, i think, are less than that since government assumes it can make 19 million loans each year for what it costs to make four million loans. finally the government needs to disclose to these 20 miion

5:39:34 to 5:39:54( Edit History Discussion )

Lamar Alexander: students who are thinking about going to college next year, that a student loan will become as enjoyable as wait fog your drivers license, there are banks that compete for government-backed student loans on 47 campuses. i mentioned the kind of services they provide.

5:39:55 to 5:40:16( Edit History Discussion )

Lamar Alexander: that's all about to chaifnlg there will only be one student loan banker under this proposal, the u.s. secretary of education. i wouldn't have wanted that job when i was in that job, and i can't imagine any education secretary wanting that job. there will be no competion to make it easier for you to get your loan. imagine 20 million students and families trying to call a

5:40:17 to 5:40:37( Edit History Discussion )

Lamar Alexander: federal call center to make their arrangements t go to college. it is true that during the last 20 years subsidies the government paid to lenders to make student loans were excessive. congress took steps to correct that two years ago. but if there are still 87 billion or 4 billion in real

5:40:38 to 5:40:59( Edit History Discussion )

Lamar Alexander: -- 47 billion in rea savings, then the subsidies are too high and we shu lower them to give them to students, not to pay por more government programs an run up the federal debt in the press. seven-8 of the students who apply for a loan using student loans have an average loan of $25,000, assuming a 10-year

5:41:00 to 5:41:21( Edit History Discussion )

Lamar Alexander: payment at 6.8%, which is what we charge, the students would pay roughly $9,400 in interest, but we could use the savings to reduce the interest to 1.5% down to 1.3% and the students would have aavings of $2,200. if this washington takeover goes

5:41:22 to 5:41:42( Edit History Discussion )

Lamar Alexander: through, every one of the 19 million student loans made in 2010 should carry this warning label, beware, your federal government is overcharging so your congressman can take credit for starting a new government program. enjoy the extra hours you work to pay unquote. so, mr. president, i see my

5:41:43 to 5:42:04( Edit History Discussion )

Lamar Alexander: colleague from south dakota on the floor and my colleague nebraska, so i will conclude. the problem we -- the secretary of education should change his mind, withdraw his letter an work with congress to extend the temporary law and -- and -- and improve the student loan program

5:42:05 to 5:42:26( Edit History Discussion )

Lamar Alexander: that needs to be and reassure students that they don't have to be anxious about standing in standing in line in thank y floor. the presiding officer: the senator from wisconsin. a senator: thank you, mr.

5:42:27 to 5:42:40( Edit History Discussion )

Lamar Alexander: president. 2002, then senator biden at the time chaired a series of senate foreign relations committee hearings on senate policy toward