Mike Enzi: “I rise to speak about the Student Loan Accountability and Disclosure Reform Act which I, along with Senators Alexander…”

“I rise to speak about the Student Loan Accountability and Disclosure Reform Act which I, along with Senators Alexander, Burr, Isakson, Allard and Murkowski, am introducing today. In this era of rising college costs, it is more important than ever to make sure that the colleges, lenders and guaranty agencies that provide loans to help students pay for college operate in a fair, accountable and transparent manner. In fiscal year 2007, the Federal Government, through the Federal Family Education Loan, FFEL, and Direct Loan programs is expected to back and provide $65.9 billion in new loans to students and their parents for attendance at over 6,000 schools. The FFEL program accounts for about 79 percent of new student loan volume. There are approximately 3,200 FFEL lenders. Thirty-five State and private, nonprofit guaranty agencies back the FFEL loans. Overall, the programs are expected to provide financing to 14.3 million students and their families this year. These students and their families are depending upon us to protect them from those individuals who are using the financial loan programs to benefit themselves to the detriment of students. The focus of this bill is to make colleges, lenders and guaranty agencies accountable, by prohibiting lenders and guaranty agencies from offering inducements, and colleges from accepting them, and by requiring disclosures to students, their families and the public.”