Senate Proceeding on Apr 23rd, 2009 :: 7:53:00 to 7:55:05
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7:50:05 to 8:01:55( Edit History Discussion )
Speech By: Lamar Alexander

7:52:48 to 7:53:09( Edit History Discussion )

Lamar Alexander: let me be specific in what i say. secretary of education in 1991 and 1992 when we created something called the direct loan program. we have a student loan program. most people who go to college are familiar with it. at our 6,000 different institutions, from the university of new hampshire to nashville auto diesel college to

7:53:10 to 7:53:31( Edit History Discussion )

Lamar Alexander: harvard to san francisco state have a federal grant or and when you get a student -- when you get a student loan, you take it to the institution of your we have 2,000 lenders who help provide all those different kinds of loans. they give counseling. they give rates. they sometimes give deductions.

7:53:32 to 7:53:52( Edit History Discussion )

Lamar Alexander: in other words, they service the loans. and the government guarantees almost all the loans. we set up a separate program which we call direct lending and that was, you could come straight to the government to get your loan. in other words, we created government bank, run by the department of education. and we said to the students and

7:53:53 to 7:54:13( Edit History Discussion )

Lamar Alexander: to the institutions, you make the choice. you may either have a private student government through your local bank or institution, or you may come to the u.s. department of education to get your loan. well, we've hadore than 15 years of experience with that now and what have thetudents and institutions said?

7:54:14 to 7:54:35( Edit History Discussion )

Lamar Alexander: three out of four say we like the regular student loan program, we like the choice, we like the private lender. si like the idea of going to a bank to get a loan, because that's what banks do. if you want a car, you go to a car deemplet that may be changing. now we may be goi to the department of treasury to get a

7:54:36 to 7:54:56( Edit History Discussion )

Lamar Alexander: carks thcar, the way the country is going. but if you want a loan, you go to the bank. so for 15 years we've market tested this and so we have that. so the situation we have now is that we have 12 million students at 4,400 getting $52 billion in loans by their choice from banks instead

7:54:57 to 7:55:18( Edit History Discussion )

Lamar Alexander: of from the government. a fourth get it from the government. it's been that way for a long time. what the president's proposal wants t choices away from the students and say, line up outside u.s. department of education to get your student loan, all 15 million you. there will be 4,400 institutions and 12 million students who may not like that. second point: is a national bank