07-R238

2007 -- H 6369

Enacted 05/09/07

H O U S E R E S O L U T I O N

RESPECTFULLY REQUESTING THE UNITED STATES CONGRESS TO ELIMINATE THE PROPOSED $19 BILLION DOLLAR BUDGET CUT TO THE 2008 FEDERAL EDUCATION BUDGET

Introduced By: Representatives Pacheco, Fox, Handy, Ajello, and Segal

Date Introduced: May 03, 2007

     WHEREAS, The U.S. Department of Education administers the Federal Family

Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program; and

     WHEREAS, Colleges and universities generally participate in either the FFELP or Direct

Loan Program, but can participate in both; and

     WHEREAS, Under the Direct Loan Program, the funds for student loans come directly

from the federal government. Funds for student loans issued under FFELP will come from a

bank, credit union, or other private lending source that participates in the program; and

     WHEREAS, The competition between these two programs has produced a greater

emphasis on borrower satisfaction, resulting in better service for both students and educational

institutions; and

     WHEREAS, President Bush's proposed 2008 Education Budget contains a large increase

in the Pell grant program, and the Senate Committee on Health, Education, Labor and Pensions

(HELP) is considering cuts in the interest rates charged to undergraduate-student borrowers of

subsidized loans; and

     WHEREAS, Both of these budgetary actions have been proposed in an attempt to make

college more affordable to more students, a commendable action; and

     WHEREAS, Unfortunately, negative corresponding cuts of $19 billion dollars that will

affect the FFELP are also included in President Bush's budget, and an additional proposal being

advanced in Congress could push even more students and educational institutions towards the

Direct Loan Program as opposed to the FFELP: and

     WHEREAS, The current symmetry between the various college-financing programs and

measures has proven to be beneficial to students. Additional funding for higher education is

essential, but needs to be balanced in order to assure the best interests of a diversity of student

populations are met; now, therefore be it

     RESOLVED, That this House of Representatives of the State of Rhode Island and

Providence Plantations hereby respectfully requests the United States Congress to eliminate the

$19 billion cut to education proposed in President Bush's 2008 education budget; and be it further

     RESOLVED, That the Secretary of State be and he hereby is authorized and directed to

transmit duly certified copies of this resolution to the Rhode Island Congressional Delegation, the

United States Department of Education, and the Rhode Island Board of Governors for Higher

Education.

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LC02821

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