WASHINGTON, DC- Today, Senator Edward M. Kennedy, Chairman of the Health,
Education, Labor and Pensions Committee, released the following statement in response
to the announcements by Citibank and Chase to not provide student loans to community
colleges or proprietary schools.
“The Citibank and Chase announcements highlight the need for Congress to take action
to ensure that a student’s access to college loans is not driven by the quarterly earnings of
banks. The Direct Loan program provides a stable and efficient way for all students -
regardless of the institution they attend - to receive federally guaranteed student loans.
I’ve urged institutions to explore this option. But Congress also should enact legislation
ensuring that the problems in the credit markets caused by the mortgage crisis do not
cause a dramatic shift in the availability of loans offered through private lenders. I have
introduced legislation to do just that and I am pleased that Chairman Miller has moved
that legislation in the House this week. I look forward to swift action in the Senate."
**Text of letter sent to the American Council on Education and summary of legislation
included below
