“One of the top issues facing Montana families is making education more affordable,” said Rehberg, a member of the House Labor, Health and Human Services, and Education Appropriations Subcommittee.  “Continuing to provide students with access to loans which help them fund their way through college is a big step in the right direction.  The weakening economy has taken its toll on the ability of lenders to make future loans available.  But today we found a reasonable solution to ensure Montana students don’t suffer.”

The Ensuring Continued Access to Student Loans Act would allow undergraduates who are dependent of their parents to borrow up to $31,000 in federal loans from the federally backed Federal Family Education Loan (FFEL) program, up from a current limit of $23,000.  The bill also requires the Government Accountability Office (GAO) to conduct a study to determine if raising these loan limits will affect the cost of tuition and fees.  

Additionally, the legislation provides temporary measures which would allow the Department of Education to buy up existing loans at no net cost to taxpayers in order to give private lenders more cash to issue new loans and would allow the Department of Education to act as a lender of last resort if more private lenders drop out of the program.

“It’s critical we provide a timely and effective fix to continue these loans until private lenders can get back on their feet,” said Rehberg.  “A good education leads to a smart, skilled workforce and helps create jobs.  That’s why we can’t take it for granted.”