Senator Clinton Heralds Fix To Student Crisis

It's a good day for American students and their families, who will no longer have to worry that they won't be able to finance their college education. I'm pleased that the House and Senate passed legislation similar to a proposal I made on the campaign trail, to address the student loan crisis, and that the Bush Administration implemented the measure in a timely fashion. This measure improves access to student loans by allowing the Department of Education to purchase loans from lenders. This legislation will help ensure that America's economic crisis does not stand in the way of students seeking a college education.

Since early last year, I have been calling for action to address the subprime mortgage crisis. Instead of listening, President Bush stood by as the subprime crisis spiraled into a larger housing and credit crisis that is driving our economy downward. This year, the economic crisis threatened to claim another victim: student loans. I'm very pleased that instead of ignoring the problem and hoping it would go away, this time, the President listened, and is now implementing a commonsense solution, passed by Congress.

I'm also pleased that the Direct Student Loan program has doubled in size since last year, and that the Department of Education is taking action to ensure that it has the capacity to administer those loans effectively. I called for the Department of Education to enact a temporary, fast-track alternative to expedite new applications to the Direct Loan program. The Direct Loan program is a cost effective, simple alternative to private loans that has proven to be a real lifesaver during this time of turmoil in the financial markets.

As thousands of students prepare to start their college education for the next school year, Wednesday's announcement by the Department of Education sends a strong message that the students loans they need will be there when they need them. Congress sent that message with the passage of the Ensuring Continued Access to Student Loans Act of 2008, and I am pleased that the President signed the bill into law and that the Administration acted on the authority it was given.