Kuhl Votes to Prevent Student Loan Crisis

Press Release

Kuhl Votes To Prevent Student Loan Crisis

U.S. Representative Randy Kuhl (R, C-Hammondsport) today voted in favor of bipartisan legislation to ensure students have access to low-cost federal student loans. H.R. 5715, the Ensuring Continued Access to Student Loan Act, is a federally guaranteed student loan program that will provide uninterrupted access to low-cost loans for millions of students and families.

"Over the past several weeks and months, many private student lenders have announced that they will stop issuing federal loans because problems in the credit markets have made it too difficult to obtain the necessary funds to finance the college loans," said Rep. Kuhl. "This legislation is a first step to preventing a student loan crisis before it occurs by not allowing students to be denied the necessary loans they need to pay for their education."

H.R. 5715 restores investor confidence by giving the Secretary of Education the authority to purchase student loans from lenders for one year. The bill also provides flexibility for parents through a new, optional grace period that permits parents to defer PLUS loan payments until after their children graduate. In addition, it also increases the unsubsidized Stafford loan limits, allowing students to receive more federal funds without any additional cost to the taxpayer or increasing federal spending.

Under current law, dependent undergraduate students can borrow $3,500 in federal loans during their first years of college, $4,500 during their second year; and $5,500 in loans during their final two years. Dependent undergraduate students can currently borrow up to $23,000 in total federal student loans and independent undergraduate students can borrow up to $46,000 in total loans. H.R. 5715 would increase the annual loan limits on federal unsubsidized student loans by $2,000 and increase the aggregate loan limits to $31,000 for dependents and $57,500 for independent undergraduate students.

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