Capito Votes to Protect Student Loan Access Amidst Credit Crunch

Press Release

Capito Votes to Protect Student Loan Access Amidst Credit Crunch

Bipartisan Legislation Will Help Protect Student Loan Availability

Rep. Shelley Moore Capito (R-WV) voted today to support legislation that would ensure the continued availability of student loans amidst growing concerns that the credit crunch could restrict student access to financial assistance.

"As the credit crunch continues to impact the overall financial environment, we must ensure that West Virginia students don't face restricted access to student loans and financial assistance," said Capito. "By expanding loan availability, providing flexibility and injecting liquidity into the student loan market we can make sure that our students have the resources to pursue their education goals. With this legislation, we can prevent a student loan crisis before it occurs - without an increase in spending."

The Ensuring Continued Access to Student Loan Act would authorize the Department of Education to purchase student loans and urge federal financial institutions to do the same, thus providing stability to the overall student loan market. It would also provide payment flexibility for parents and expand Stafford loan limits.

Capito recently wrote to Federal Reserve Chairman Ben Bernanke to express her concerns and encourage action to protect the availability of student loan credit.

In a joint letter with House colleagues she wrote: "turmoil in the broader capital markets has caused severe liquidity problems for student lenders…we believe that the Federal Reserve system should work to provide liquidity to all types of student loan originators in order to restore a smooth functioning of this market sector and to avoid negative economic outcomes."

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