WASHINGTON -- President Bush signed two bills to help students obtain college financing and veterans keep their homes.
President Bush has signed a bill that will help bolster the student loan market by providing the Education Department, Treasury and the Office of Management and Budget renewed temporary powers to use federal funds to ensure that students have continued access to education loans.
The bill, H.R. 6889, extends the authority of the Secretary of Education to carry out provisions of the Ensuring Continued Access to Student Loans Act of 2008 through June 30, 2010.
It's one of several steps that the administration is taking to support the student loan market, according to a joint statement issued by Treasury Secretary Henry Paulson and Education Department Secretary Margaret Spellings.
"Continuing constraints in our capital markets have posed challenges for students and student lenders throughout the last year. We recognize that education is the foundation of a strong American workforce and we must not let challenges in our capital markets hinder our students' opportunities," Paulson and Spellings said in the joint statement.
Paulson and Spellings promised more federal action in a growing market for student lending.
Current federal student lending is exceeding last year's pace. Almost $51 billion of federally guaranteed loans have been originated for the current school year, up from approximately $45 billion for the same period last year.
President Bush also signed an omnibus veterans' benefit bill that includes a provision on refinancing aimed at helping veterans get out of subprime mortgage loans.
The Veterans' Benefits Improvement Act of 2008 allows veterans to refinance 100 percent of the appraised value of their home with a loan limit of $729,000, depending on location. Previously vets could only obtain a refinance of 90% of the value of the home and the refinancing limit was capped at $144,000.
"This will help us to help veterans who might have gotten some of the subprime products," Judy Caden, director of loan guaranty service for the Veterans' Administration, said in a telephone interview.
This bill was signed into law on Oct. 10.
--burdenlisa@yahoo.com
