Although it won't affect UF students, some college students in Florida who worry about securing federal student loans may be able to rest easy for at least another year.
A bill that extends by a year the federal government's protection of banks that handle federal student loans is awaiting President George W. Bush's signature. The purpose of the bill is to ensure that college students can obtain federal loans regardless of the state of the national economy.
The legislation would not affect UF students because the university uses the Federal Direct Loan Program instead of lenders, said Karen Fooks, director of UF Student Financial Affairs. UF opted out of using lenders in 1993, Fooks said.
The Florida State University and the University of Central Florida, however, are among the universities that use federal lenders and will be affected by the new legislation.
The new measure was approved by the U.S. House of Representatives on Monday and by the Senate on Wednesday, according to the House's Committee on Education and Labor's Web site.
The bill extends for another year the authority of Secretary of Education Margaret Spellings to purchase student loans. According to the committee's Web site, this allows the government to provide lenders with a steady flow of money so they won't have to turn eligible students away.
The secretary's authority to bail out suffering lenders was originally granted to the Secretary of Education through the Ensuring Continued Access to Student Loans Act, which was signed into law in May.
So far, no students have reported problems accessing federal student aid, according to the committee's Web site.
The legislation is a preventative measure to ensure that qualified students are able to receive federal aid for college.
Texas Congressman Ruben Hinojosa emphasized the importance of maintaining sufficient federal student loan money during discussion of the bill Monday before the House of Representatives' vote, according to the Library of Congress' Web Site.
Hinojosa is chairman of the House Subcommittee on Higher Education, Lifelong Learning, and Competitiveness and cosponsored the bill.
"It would be a tragedy for a student to decide to forego or postpone college because of a fear of not being able to get a federal student loan," he said during House discussions of the bill.
Florida Sen. Bill Nelson said in a statement that the legislation is important because it ensures there is enough financial aid available for students who need help paying for college.
Fooks said regardless of credit market conditions, UF students should not have any problems obtaining loan money because UF works directly with the government.
Between 16,000 and 17,000 UF students pay for their education using direct federal loans, she said.
