PRINTER'S NO. 3640
No. 653 Session of 2008
INTRODUCED BY ADOLPH, BUXTON, DALLY, FRANKEL, MAJOR, MANN,
ROEBUCK, STAIRS, CIVERA, KILLION, MICOZZIE, KENNEY, ARGALL,
BAKER, BEAR, BOYD, CALTAGIRONE, DeLUCA, DENLINGER, GEIST,
GEORGE, HENNESSEY, HERSHEY, HESS, JOSEPHS, W. KELLER, KORTZ,
LONGIETTI, MARKOSEK, McCALL, MELIO, MILLARD, R. MILLER,
MILNE, MOUL, MUNDY, MUSTIO, NAILOR, M. O'BRIEN, PAYNE,
PEIFER, PICKETT, PYLE, REICHLEY, ROSS, RUBLEY, SANTONI,
SAYLOR, SCAVELLO, SOLOBAY, STERN, R. STEVENSON, SURRA,
J. TAYLOR, VEREB, VULAKOVICH, WALKO, WATSON, J. WHITE,
YOUNGBLOOD, YUDICHAK, McILHATTAN AND MOYER, MAY 2, 2008
REFERRED TO COMMITTEE ON EDUCATION, MAY 2, 2008
A RESOLUTION
1 Encouraging members of the Congress of the United States to take
2 immediate action with respect to the current student lending
3 crisis affecting the ability of Pennsylvania students
4 enrolled in institutions of higher education to obtain the
5 necessary student aid to further their education.
6 WHEREAS, There is a student loan funding crisis that began
7 with the recent sub-prime mortgage meltdown and subsequent
8 turmoil in the capital markets; and
9 WHEREAS, These far-reaching economic problems have now given
10 rise to a new bond market crisis, which is further compounding
11 the funding problem for many lenders; and
12 WHEREAS, As a result, student loan providers throughout the
13 nation are exiting the $50 billion Federal Family Education Loan
14 Program (FFELP), while others are being forced to curtail their
15 activity, seriously jeopardizing the funding plans of millions
1 of American students; and
2 WHEREAS, Eighty percent of today's college students depend on
3 FFELP to help them pay for school; and
4 WHEREAS, Without access to sufficient funding, millions of
5 students will not be able to pay for their college education;
6 and
7 WHEREAS, The result could be devastating for students and
8 families, with additional consequences for the higher education
9 community and the Commonwealth of Pennsylvania's economy; and
10 WHEREAS, The Pennsylvania Higher Education Assistance Agency
11 (PHEAA) has experienced "failed auctions" in the troubled bond
12 market for the first time in its history, substantially
13 increasing its cost of borrowing and putting its ability to fund
14 additional student loans at risk; and
15 WHEREAS, The focus is first and foremost to protect the
16 interests of families residing in this Commonwealth, but
17 everyone must understand that this is a national problem that
18 requires a national solution; and
19 WHEREAS, Without decisive Federal intervention, the resulting
20 financial stress placed on students and families could be
21 disastrous; therefore be it
22 RESOLVED, That the General Assembly of the Commonwealth of
23 Pennsylvania call for immediate action from the United States
24 Secretary of the Treasury, the United States Secretary of
25 Education, the chairman of the Federal Reserve Board and the
26 president of the Federal Home Loan Bank of Pittsburgh to use all
27 means and authorities available to them to provide needed short-
28 term and long-term financial assistance to assure the
29 availability of student loans to students and families of this
30 Commonwealth; and be it further
20080H0653R3640 - 2 -
1 RESOLVED, That copies of this resolution be transmitted to
2 the United States Secretary of the Treasury, the United States
3 Secretary of Education, the chairman of the Federal Reserve
4 Board and the president of the Federal Home Loan Bank of
5 Pittsburgh and the presiding officer of each house of Congress
6 and to each member of Congress from Pennsylvania.
D2L82DMS/20080H0653R3640 - 3 -