WASHINGTON, D.C.—America's Student Loan Providers today urged Congress to quickly pass legislation to address the recent revelations involving certain lender practices and to restore the public's trust in federal student loans, Kevin Bruns, ASLP executive director said. The coalition, which represents the nation’s leading lenders, guaranty agencies and secondary market organizations that provide federally guaranteed student loans, released the following statement:
“For more than 40 years, the student loan community has helped families achieve the kinds of dreams made possible by the best higher education system in the world. The federal guaranteed loan program uniquely provides borrowers the freedom to choose among lenders that compete to offer loans with the best rates, fees and service. This competition makes college more affordable by producing the lowest-cost student loans available anywhere.
“Nevertheless, some of the practices recently reported are inexcusable and have deeply embarrassed the student loan community. Regrettably, these revelations have shaken the confidence of students and parents just as many of them are evaluating financial aid packages and making final college selections. The timing could not be worse.
“For that reason and others, it's imperative that Congress act quickly to pass legislation that contains important and needed reforms that will help restore transparency to the financial aid process. We're hopeful that the Congress can come together behind a workable bill that helps students and parents."
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America’s Student Loan Providers represents 87 of the nation’s leading private, nonprofit and state-based education and financial organizations that provide guaranteed student loans through the Federal Family Education Loan Program. By leveraging private financial markets and competing for the right to lend to students, ASLP members offer low-cost loans to millions of students and superior levels of service to most of the approximately 5,000 postsecondary institutions that participate in the FFEL program. More information is available at www.aslp.us or call 202.721.1190.