(May 12, 2008) After Senate Majority Leader Harry Reid fast-tracked student loan legislation, bypassing the Senate Health, Education, Labor and Pensions (HELP) Committee, the Senate unanimously approved legislation that will strengthen the federal government’s loan program and increase the amount certain students can borrow. Similar legislation, which passed the House on April 17 by a 383-27 vote, is designed to keep the credit crisis from affecting students’ ability to pay for college.
The House is expected to approve the Senate-modified version of this package. When this legislation reaches President Bush, he is expected to sign it. The Bush Administration had been advocating for legislation of this nature when they determined there were limits to what could be done administratively. The quick passage of this legislation will allow members and staff to continue negotiating the conference on the Higher Education Act reauthorization, for which a short-term extension is needed.
Congress and the administration believe that this legislation will put the necessary infrastructure in place to guarantee that students have access to loans once peak loan season begins.