Secretary Spellings Discusses the Availability of Federal Student Loans

“Ensuring the Availability of Federal Student Loans” was the topic of debate for House members during the Education and Labor Committee’s interrogation of Secretary of Department of Education Margaret Spellings.

Secretary Spellings assured the Committee that Federal student aid will continue to be provided for students in need. Her testimony stated that many of the problems associated with lenders not providing enough money for students was the result of the problems our economy faces as a whole.

Spellings remained optimistic about the future of loan distribution. The Secretary explained that the Department of Education was monitoring the regression in loan lender participation, was working to “engage” students, families, and institutions in understanding their options concerning loans, and was prepared to confront a “crisis” in loan distribution.

Spellings noted that, “Times of economic uncertainty are all the more reason that Americans will look to higher education to acquire new skills and knowledge.” Although many members of Congress were critical of the current lack of money available to college students, Spellings was confident that students and families will be able to withstand the hard times and finance their educations.