CBA Statement on Congressional Budget Agreement

Arlington, VA—April 29, 2009.   The Consumer Bankers Association today commented on the announcement of a conference agreement on the FY 2010 budget resolution.  The agreement includes provisions that could lead to fundamental changes to the federal student loan programs through the fast-track legislative procedure known as budget reconciliation.  The resolution assumes enactment of a proposal similar to that put forward by the President in February ending new student loan guarantees in the Federal Family Education Loan program as of June 30, 2010.  Under that proposal, all new student loans would be made under the Direct Loan program using funds borrowed by the Department of the Treasury.  The resolution also specifically calls for careful deliberation and the continuation of private sector participation in the lending process.

CBA director of government relations Marcia Z. Sullivan issued the following statement:  “In recent weeks, Senator Kent Conrad and many others have opposed using the fast-track reconciliation process to make major changes in domestic programs such as student lending.  CBA and its members agree.  We are pleased that the final budget resolution calls for a major role for the private sector in the student loan programs.  But the use of reconciliation to consider the changes in student aid proposed by the President could preclude proper deliberation on the President’s proposal or alternatives to it.  That doesn’t have to happen.  For the sake of students, parents, schools and taxpayers, we urge Congress not to take that path but to work with the private sector and develop a student-centric alternative to the administration’s plan.”

The Consumer Bankers Association is the recognized voice on retail banking issues in the nation’s capital. Founded in 1919, CBA provides leadership, education, research and federal representation on retail banking issues. For more information, please contact Marybeth Leongini, 703.276.3887 or mleongini@cbanet.org or visit www.cbanet.org.