Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman reported that the Senate has approved a measure that would protect federal student loans from the current distress in financial markets.

The legislation would extend provisions that authorize the U.S. Secretary of Education to purchase student loans from lenders participating in the federal student loan program.  The measure would help ensure that lenders continue to have access to capital to make new student loans, and that students continue to have access to student loans for the next academic school year.  The Secretary would only be authorized to purchase loans from lenders in the federal guaranteed loan program that would come at no cost to the federal government.

            "During these very uncertain times, students and families need to know that the student loan program is stable and will still be available when they start making decisions about how they are going to pay for college next year," Bingaman said.

            The measure is only the most recent education initiative passed by this Congress.  Earlier this summer, Congress passed the Higher Education Opportunity Act to make college more affordable and accessible, and passed the largest student aid increase in 50 years last summer.

            This legislation passed the House earlier this week and will now to go the president for his signature.