| 00:00:00 |
Unidentified Speaker, -
ABOUT TWO HOURS. [INAUDIBLE
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| 00:00:09 |
Unidentified Speaker, -
CONVERSATIONS] >> THE COMMITTEE WILL COME TO ORDER. LET ME BEGIN BY THANKING ALL OF OUR WITNESSES HERE THIS MORNING, I APPRECIATE VERY MUCH YOUR ATTENDANCE....
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| 00:00:41 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
BRIEF CONCERT LIKE TO MAKE. WE WILL KEEP THE RECORD OPEN FOR STEVENSON INCLUDING THOSE BY THE WITNESSES AS WELL AN ADDITIONAL SUPPORTING DATA MATERIAL...
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| 00:11:24 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
PROBLEMS IN THE STUDENT LOAN MARKET I BELIEVE WE MUST EXAMINE BOTH FEDERAL AND PRIVATE LENDING THERE ARE TWO MAIN PROBLEM AREAS WITH FEDERAL EDUCATION...
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| 00:14:22 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
IS A HUGE DEMAND FOR PRIVATE LOANS AND THE NUMBER IS STAGGERING. 10 YEARS AGO IT WAS ABOUT 1.57
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| 00:14:32 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
MILLION IN 2006 TO HUNDRED $17 MILLION IN PRIVATE LOANS, AS AN AMOUNT OF MONEY. AND WE HAVE TO MAKE SURE THAT THESE FUNDS ARE AVAILABLE. THAT GOES TO...
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| 00:15:16 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
TO REITERATE A NUMBER OF COLLEAGUES HAVE
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| 00:15:18 |
Unidentified Speaker, -
SAID, THIS CREDIT CRISIS AND THE FORECLOSURE CHALLENGE WE HAVE HAD IS HAVE A RIPPLE OF BLACKS ACROSS THE COUNTRY. NOW WE ARE DEALING WITH
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| 00:15:28 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
IN
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| 00:15:30 |
Casey, Bob - U.S. Senator, [D] Pennsylvania
THE CONTEXT OF STUDENT LOANS. AS HARD TO COMPREHEND THAT IT COULD GET TO THIS POINT, BUT WE'RE GRATEFUL FOR THE HEARING AND THE THING FOR THE TESTIMONY...
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| 00:16:04 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
LOOKING AT SIGNIFICANT SHORTFALLS AND EDUCATION FUNDING WHICH COULD LEAD TO THE RISE IN TUITION WHERE STATE UNIVERSITIES. SO IT'S VERY TIMELY AND I
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| 00:16:13 |
Martinez, Mel - General Chair
APPRECIATE YOU HOLDING THIS HEARING IN THE RECORD TO HEARING FROM THIS EXCELLENT PANEL. >> LET ME INTRODUCE OUR GOOD PANEL. WE THINK OF FOR BEING HERE....
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| 00:16:39 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
VICE PRESIDENT AS PART OF THE ACQUISITION OF NELLIE MAE OR HE SERVED AS EXECUTIVE VICE PRESIDENT OF FINANCE FOR 2001 TO 2005. COURT IS A PORTFOLIO MANAGER...
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| 00:20:24 |
Unidentified Speaker, -
KEEP REMARKS TO FIVE, SEVEN MINUTES. I WON'T PING THE GAVEL ON YOU. YOU'RE FULL
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| 00:20:29 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
STATEMENTS, AND SUPPORTING DATA TO HAVE A FULL APPRECIATION OF WHAT YOU SURE THIS MORNING I PROMISE WILL BE INCLUDED IN THE RECORD. >> GOOD MORNING,...
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| 00:21:02 |
Remondi, John - Chief Financial Officer
COST. OFTEN HOWEVER THE AMOUNTS AVAILABLE UNDER THIS PROGRAM ARE NOT ENOUGH. INCREASINGLY CROWDED BAY STORE PRIVATE STUDENT LOANS HAVE HELPED FAMILIES...
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| 00:27:20 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
THE AMERICAN FORM AND 650 MEMBER INSTITUTIONS OF PS OF THE EYE.
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| 00:27:24 |
Deutsch, Thomas "Tom" - Executive Director
MOORS INCLUDE NOT ONLY FIRMS ORIGINALLY AND SECURITIZE MOST OF THE SIGNAL LOANS MADE IN AMERICA, BUT ALSO THE INSTITUTIONAL INVESTORS SUCH AS PENSION...
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| 00:33:16 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
APPRECIATE THIS. TRINITY IS OF COURSE PROUD TO
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| 00:33:22 |
McGuire, Patricia A. - President
BE A PART OF GREECE AND MARTHA AND SUCH PIONEERING WOMEN AS SPEAKER PELOSI AND I JUST PROMOTED. OKAY, SPEAKER PELOSI AND FORMER CONNECTICUT CONGRESSWOMAN...
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| 00:46:58 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
POPULAR WEB SITE FOR STUDENT FINANCIAL INFORMATION AND ADVISING TOOLS.
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| 00:47:02 |
Kantrowitz, Mark - Publisher
WE'RE THE LARGEST FREE SCHOLARSHIP MATCHING SERVICE. CONTAGION FROM THE SUBPRIME MORTGAGES CREDIT CRISIS HAS AFFECTED THE EDUCATION LOAN MARKETPLACE...
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| 00:53:05 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
ON IS THAT YOU LOOK AT IT AGAIN THE BACKDROP OF WHICH YOU ARE ALL FAMILIAR WITH OBVIOUSLY CREDIT CRUNCH AND LIQUIDITY CRISIS AFFECTING CAPITAL MARKETS...
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| 00:54:46 |
Remondi, John - Chief Financial Officer
GRADUATION RATES. IT IS AN INVESTMENT IN THEIR EDUCATION AND BY OBTAINING THE DEGREE, THEY GET ACCESS TO BETTER PAY AND JOBS AND HIGHER LEVELS OF EMPLOYMENT...
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| 00:57:22 |
Deutsch, Thomas "Tom" - Executive Director
OF THE SYSTEM AND STUDENTS DON'T HAVE ACCESS TO THAT CAPITAL, THE ULTIMATE QUESTION IS WILL THEY BE ABLE TO AFFORD THEIR EDUCATION AND I THINK AS MR....
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| 00:58:16 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
WHEN PEOPLE BEGIN TO APPLY FOR THIS BUT YOU COULD HAVE THE PROBLEM REALLY PEAK THIS SUMMER AT SOME POINT AND I KNOW THERE ARE THOSE WHO ADVOCATE. THE...
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| 00:59:21 |
Deutsch, Thomas "Tom" - Executive Director
WOULD BE SPECULATION FOR ME TO MAKE ANY TIME A PERCENTAGE TARGETS BUT I THINK IT WILL GROW, CONTINUE TO GROW SUBSTANTIALLY. >> MARKET, DO HAVE AN IDEA?...
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| 00:59:38 |
Deutsch, Thomas "Tom" - Executive Director
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| 00:59:40 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
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| 00:59:41 |
Deutsch, Thomas "Tom" - Executive Director
CAME FROM THE TOP 100 EDUCATIONAL UNDER SPIRITED BEYOND THE TOP 100
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| 00:59:56 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
DOESN'T REALLY MATTER AND THE DIFFERENCE BETWEEN A 13% FIGURE THAT I'VE BEEN GIVING IN THE 16 PERCENT FIGURE THAT JACK MENTIONED IS THE SCHOOL SLENDER...
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| 01:00:13 |
Kantrowitz, Mark - Publisher
IS LIKELY TO DISAPPEAR. WE STILL HAVE AN ADMITTED THERE NOT BEING ABLE TO MAKE THE LOANS BUT THERE WILL BE ABLE TO. >> I'VE LISTENED TO EVERYTHING ...
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| 01:00:43 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
AND PRIVATE. >> THE 90 BILLION IS SOMETHING AT 45 BILLION TO RISK POTENTIALLY. >> YES. >> LET'S GO
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| 01:00:53 |
Kantrowitz, Mark - Publisher
BACK TO THE OTHER QUESTION. >> WILL WE LOSE STUDENTS? ABSOLUTELY AND THE KIND OF STUDENTS WE HAVE AT TRINITY ARE THE KIND OF STUDENTS WHO ARE MORE...
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| 01:01:02 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
HAVE TO STOP COLLEGE. WHEN WE LOOK AT OUR ATTRITION RATES EVERY SEMESTER,
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| 01:01:07 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
THE SINGLE GREATEST REASON WHY STUDENTS HAVE TO STOP OUT FROM A COLLEGE
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| 01:01:12 |
Kantrowitz, Mark - Publisher
EDUCATION IS FINANCIAL FOR THE LOW INCOME STUDENTS
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| 01:01:14 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
WE SERVE. AND IF
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| 01:01:16 |
McGuire, Patricia A. - President
THERE IS ANY INTERRUPTION OF THEIR ABILITY TO BORROW, THE WAY THEY ARE BORROWING RIGHT NOW IT COULD BE DEVASTATING. I DO WANT TO COMMENT, THIS IS THE...
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| 01:03:31 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
THEY FFP CAN AND SHOULD DO DIRECT PURCHASING IN WHICH CASE THE BANK CANNOT INJECT ONE OF 15 MILLION IN THE KENNEDY UNDER EXISTING REGULATIONS OR STATUTES...
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| 01:04:24 |
Remondi, John - Chief Financial Officer
THIS UPCOMING ACADEMIC YEAR NEED TO BE PROCESSED TO THE INFRASTRUCTURE THAT EXIST TODAY BECAUSE WE'RE AT APRIL 15th AND THE PEAK LENDING SEASON BEGINS...
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| 01:06:02 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
FOR ITS FAILURE AND THAT SCHOOL HAS CLOSED. WEAVING A LOT OF STUDENTS WHO HAVE BARRED FROM
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| 01:06:09 |
Kantrowitz, Mark - Publisher
PRIVATES TO LOANS WITH NO EDUCATION AND HIGH DEBT. >> ANY COMMENTS ON THIS? THANK YOU. SENATOR SHELBY. >> MR. DEUTSCH, IT APPEARS THAT INVESTORS ARE...
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| 01:06:38 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
WHAT ARE THEY DOING? >> WHAT'S HAPPENING IS THE SUPPLY OF CAPITAL AND TOTAL
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| 01:06:44 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
HAS SHRUNK SO AS NOT NECESSARILY SAY FOR EXAMPLE FELT A STUDENT LOANS THAT THEY ASCRIBE ANY HIGHER CREDIT RISK TO THEM THAN OTHER CRADDOCK PRODUCTS...
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| 01:06:55 |
Deutsch, Thomas "Tom" - Executive Director
SIMPLY MUCH MORE, MUCH LESS SUPPLY OF CAPITAL OUT ON
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| 01:06:59 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
THE MARKET AND OBVIOUSLY
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| 01:07:00 |
Deutsch, Thomas "Tom" - Executive Director
A LOT OF DEMAND BY THE DIFFERENT ISSUERS AND OTHER STUDENT LOANS, CREDIT CARDS, AUTOMOBILES. >> DO SECURITIZED OF DISSIDENT LOANS LIKE TO DO A LOT...
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| 01:07:28 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
SECURITIES IN THAT STRUCTURE AND SO FORTH DEFAULTING. CAN YOU GET INTO
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| 01:07:33 |
Deutsch, Thomas "Tom" - Executive Director
THAT? >> I THINK IN THE STUDENT LOAN BACKSPACE
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| 01:07:35 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
THERE IS ESPECIALLY IN THE MOSQUITO BACKED ASSET BACKED SECURITIES, A VERY LITTLE. >> WHAT YOU MEAN BY THAT FOR THE RECORD? >> IF YOU EVER TAKE A FELP...
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| 01:07:54 |
Deutsch, Thomas "Tom" - Executive Director
ON THE UNDERLYING STUDENT LOAN AND THE FEDERAL GOVERNMENT STEP IN THE. >> YOU HAVE A GUARANTEE? >> EXACTLY SONYA PACKAGE GOES INTO
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| 01:08:02 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
SECURITIZATION THE UNDERLYING CREDIT RISK OF THOSE
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| 01:08:06 |
Deutsch, Thomas "Tom" - Executive Director
COLLATERAL STUDENT LOANS AND EFFECTIVELY IS VERY MINIMAL. SO IT IS SURPRISING AND IS WHEN YOU LOOK AT THE STUDENT LOAN ASSET BACKED SECURITIES MARKET...
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| 01:08:20 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
CREDIT RISK TO THE
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| 01:08:21 |
Deutsch, Thomas "Tom" - Executive Director
UNDERLYING COLLATERAL BUT JUST SIMPLY THEIR ABILITY TO DEMAND HIGHER SPREADS BECAUSE THEY'RE SO MUCH DEMAND FOR CAPITAL IN THE MARKET RIGHT NOW PUTS...
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| 01:08:53 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
RIGHT NOW WITH ANY TYPE OF ASSET GIVE AN OUTSTANDING THESE ARE QUALITY SECURITIES? >> BUT THE STUDENT LOAN ASSET BACKED SECURITIES TRIPLE A RATING, VERY...
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| 01:09:08 |
Deutsch, Thomas "Tom" - Executive Director
FOR THE RECORD? YOU ARE THE CHIEF FINANCIAL OFFICER AT FANNIE MAE, SALLIE MAE, EXCUSE ME, AND YOU GO TO THE MARKET, HAVE TO HAVE MONEY. JUST BRIEFLY...
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| 01:09:20 |
Deutsch, Thomas "Tom" - Executive Director
DO THAT? >> WE RELY PRINCIPALLY ON A SECURITIZATION SO REBUTTAL LOANS INTO SECURITIES AND THEN SELL PRINCIPALLY
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| 01:09:27 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
IN THE TERM ASSETS BACK TO MARKET. WE HAVE NEVER RELIED ON ANY SIGNIFICANT DEGREE IN THE AUCTION RATE SECURITIES MARKET. IT MIGHT EXPAND ON MY COLLEAGUE'S...
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| 01:09:43 |
Remondi, John - Chief Financial Officer
LOTS OF REASONS. CERTAINLY THERE HAS BEEN A TIGHTENING OF A SUPPLY OF CAPITAL TO INVEST IN SOME OF THAT IS NOT THAT CASH IS AVAILABLE, IS JUST NOT AVAILABLE...
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| 01:10:21 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
OUR UNDERLYING ASSETS SERVER BLADE
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| 01:10:23 |
Remondi, John - Chief Financial Officer
IS ALSO THE ASSETS AND LIABILITIES WITH INTEREST RATES AND GENERAL. >> WOULD THAT BE ABOVE TREASURY? >> ABOVE TREASURY WOULD BE ABOUT 260 BASIS
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| 01:10:34 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
POINTS. >> OKAY. SO YOU'RE
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| 01:10:37 |
Remondi, John - Chief Financial Officer
PAYING MORE, GET A BETTER RETURN, AND VERY FEW DEFAULTS, RIGHT? >> THAT'S RIGHT. INVESTORS ARE NOT CONCERNED ABOUT THE QUALITY, THEIR CONCERN ABOUT THE...
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| 01:10:49 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
IN THE
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| 01:10:51 |
Remondi, John - Chief Financial Officer
ASSET ITSELF. >>
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| 01:10:54 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
MS. FLANAGAN, AND MS. MCGUIRE, THE OFFICIOUS IN FEDERAL WINNING, IN YOUR TESTIMONY YOU STATED CURRENT LESSON
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| 01:11:03 |
Remondi, John - Chief Financial Officer
OF EVEREST ADDRESS POTENTIAL LIQUIDITY PROBLEMS INCLUDE PROVIDING MODEST INCREASES IN THE FEDERAL STUDENT LOAN PROGRAM. IF THERE ARE NO WINNERS SUPPLY...
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| 01:11:17 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
GO OUT PRIVATE LENDING MARKET AND SKIP SUBSIDIZE FEDERAL LOANS ALTOGETHER. THE YOU BELIEVE THAT THE FEDERAL FAMILY EDUCATION LOANS PROVIDED BY PRIVATE...
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| 01:11:59 |
Flanagan, Sarah - Vice President
TAKE STEPS TO ENSURE THAT THESE LENDERS ARE AVAILABLE TO ADMINISTER THIS PROGRAM? >> YES. >> DO YOU AGREE WITH THAT, PRESIDENT MCGWIRE? >> YES, ABSOLUTELY....
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| 01:12:15 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
THAT. THANK YOU, MR. CHAIRMAN. >> THANK YOU VERY MUCH SPIRITED I WANT TO PICK UP ON A POINT SENATOR SHELBY IT IS AN IMPORTANT POINT AND ONE CHECK
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| 01:12:25 |
Flanagan, Sarah - Vice President
TO EMPHASIZE AS WELL. THE FED
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| 01:12:28 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
GOVERNOR KEVIN WALLS SHARES THE POINT SENATOR
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| 01:12:31 |
McGuire, Patricia A. - President
SHELBY WAS MAKING AND THAT YOU MAY JACK AS WELL AS I JUST WANTED TO QUOTE HIM, HE SPOKE YESTERDAY AND A
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| 01:12:38 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
SPEECH IN YORK SAYING CREDIT QUALITY CONCERNS ALONE TO NOT APPEAR IN A NOW SUFFICIENTLY WIDESPREAD TO INDUCE THEM UP THE PROBLEMS WITNESSED IN FINANCIAL...
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| 01:13:49 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
IN THE MARKET RAISES A COUPLE QUESTIONS ARE A COUPLE OF COMMENTS. THIS WOULD NOT RESULT FROM THE CHANGES WE MADE LAST YEAR IN HIGHER EDUCATION LEGISLATION...
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| 01:14:33 |
Remondi, John - Chief Financial Officer
AGREE? >> GENERALLY YES. >> THANK YOU. THE OTHER ISSUE AND THIS WILL REVEAL THE INNER IS RATHER THAN KNOWLEDGE OF THE SYSTEMS, THE FEDERAL RESERVE HAS...
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| 01:14:54 |
Remondi, John - Chief Financial Officer
WHY THAT
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| 01:14:55 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
IS HAPPENING CRACKS CONNECT THE INTEREST RATE ON FEDERAL STUDENT LOANS IS FIXED AND SET BY CONGRESS FOR THE LIFE OF A LONER SO AS RATES COME DOWN. >>...
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| 01:15:27 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
ACTION THE INDEX FOR MUCH ARE BURNED BUSES BASE HAS BEEN FALLING FOR THE SPREAD THAT WE PAY AS A CREDIT RISK, ON TOP OF THAT HAS BEEN RISING. IT IS GENERALLY...
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| 01:16:33 |
Remondi, John - Chief Financial Officer
PAID TO FINANCE A SECURITIZATION MARKETS IN THE PAST. BUT CERTAINLY AS A NUMBER, BUT IS OPEN TWO NEGOTIATION. >> I WOULD SAY THAT IN THIS CRITICAL...
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| 01:17:07 |
Deutsch, Thomas "Tom" - Executive Director
AND SHOULD BE ESTABLISHED. >> ONE BENEFIT IS AND IT WOULD SET THE COST OF CAPITAL COMPETITIVELY SO LET THE LENDER IS SPENT COMMERCIAL PAPER RATE PLUS...
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| 01:17:36 |
Kantrowitz, Mark - Publisher
SAYS ONE ARE FIVE BARS PASS UP LESS EXPENSIVE CAR ROLLED STALLONE'S GONNA TO BOTHER FILE TO QUALIFY FOR BOTH PRESIDENT, IF YOU HAVE DONE IT% OF YOUR...
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| 01:17:50 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
MATTER GOING TO THE HIGHER PRICE AUCTION OF THE BOX IS SOMETHING WRONG WITH COUNSELING FINANCES WE ADVISE OF SOMETHING THE WITH THE MARKETING. >> TO...
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| 01:18:18 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
ANOTHER RECORD, 48 PERCENT THAT
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| 01:18:22 |
Flanagan, Sarah - Vice President
WILL SURPRISE, 40 PERCENT OF UNDERGRADUATES ARE FIRST-GENERATION COLLEGE MEANING NEITHER PARENTS GET A BETTER DEGREE. A LOT OF THOSE FAMILIES CAUSTICALLY...
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| 01:19:12 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
DONE? >> FIRST OF ALL, LET ME SAY THIS STATISTIC MAY BE TRUE FOR SOME NATIONAL CORPORATION AND NOT TO FOR TRINITY. WE HAVE A VERY SMALL NUMBER OF STUDENTS...
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| 01:19:34 |
McGuire, Patricia A. - President
THESE PACKAGES HAVE SOMETHING DIFFERENT ELEMENTS TO THEM. IT IS TRUE HOWEVER, THAT FAMILIES OFTEN BECOME NOT FINANCIALLY AS WELL VERSED AS A ALL WISH...
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| 01:20:59 |
Flanagan, Sarah - Vice President
FINANCIAL AID OFFICE AT THE COLLEGE AND THE FINANCIAL AID OFFICE SOMETIMES DON'T EVEN KNOW THE STUDENTS HAVE GOT LEASING'S UNTIL THE BONDS AND MAKING...
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| 01:21:36 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
SO THIS DEMAND IS GOING TO ATTACK, THEY'RE NOW LOOKING AT THE FEDERAL AND PRIVATE EDUCATION LOANS BECAUSE THE HOUSE IS NO LONGER THE ATM. THAT'S SOMETHING...
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| 01:22:12 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
THEIR TUITION WITH A CREDIT CARD. WHEN YOU'RE TALKING ABOUT RATES ON CREDIT CARDS, BEGINNING IN SOME CASES 25%. RATES OF INTEREST AND BECAUSE THEY DON'T...
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| 01:22:58 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
IS A GROWING ONE. THE CORRELATION NOT THIS IS A FINANCIAL MATTER THIS IS PRETTY BUT THE IDEA ON THE STUDENT LOAN PLUS PROGRAM THE TO DISQUALIFIED...
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| 01:24:01 |
Corker, Bob - U.S. Senator, [R] Tennessee
LEGISLATIVE MUSCLE IS VERY CLUMSY AND I THINK MOSTLY IT MISSES THE MARK AS WELL AS, AT A BANK WE HAVE COME CLOSE TO FOCUSING ON THE ISSUE OF LIQUIDITY...
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| 01:25:27 |
Corker, Bob - U.S. Senator, [R] Tennessee
UP, TALK TO MADE ABOUT THE LIABILITIES OF FUEL FROM THE TAXPAYERS AND. >> ONE POINT TO MAKE CLEAR, IF YOU TALK ABOUT THE REDUCTION IN THE SAME YEAR...
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| 01:25:54 |
Remondi, John - Chief Financial Officer
MY GUESS IS ALSO ASSIGNED A KUTZ AND NOT TAKEN PLACE FELT LIVING ABROAD WILL TODAY AND SO THE SITUATION WILL NOT BE AS EXTREME. AS IN ANYTHING IS NOT...
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| 01:26:34 |
Corker, Bob - U.S. Senator, [R] Tennessee
ANAVAR WERE TO DEFAULT THE PAYMENT WILL BE COMING TO A LENDER
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| 01:26:38 |
Remondi, John - Chief Financial Officer
IN ANY CASE REGARDLESS OF THE FUNDING SOURCE FROM THE DEPARTMENT OF EDUCATION AND I GUARANTEE IS UP TO 97% TWO PRINCIPAL INTEREST SO WE'RE SUGGESTING...
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| 01:27:29 |
Corker, Bob - U.S. Senator, [R] Tennessee
LOOK AT THEM WITH THE FEDERAL GOVERNMENT AS SUPPORT FOR THIS PROGRAM AND WILL HASTEN THE RETURN TO THE ASSET BACKED TO SUGAR MARKET
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| 01:27:38 |
Remondi, John - Chief Financial Officer
CHEMICAL WAS ANOTHER SOLUTION OFFERED THAT TALKED ABOUT BEING ABLE TO ACCESS THE FATTAH WINDOW, THAT WOULD ADD ENOUGH PIECES IS VERY UNDER THIS SCENARIO,...
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| 01:28:12 |
Remondi, John - Chief Financial Officer
PAST WHEN OFTEN HOLD THE ASSETS AND A PORTFOLIO IN INVENTORY IF YOU WILL BEFORE THE WOULD FIND A BUYER TO MATCH OFF AGAINST THE SELLER. RIGHT NOW WE'RE...
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| 01:29:08 |
Deutsch, Thomas "Tom" - Executive Director
NOT ONLY THE FELT PROGRAM BUT ALSO THE PRIVATE SUIT ON PROGRAM AND I THINK THAT'S ONE DISTINCTION BETWEEN HOW THE FSB CAN PLAN INTERCO ROLE IN TERMS...
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| 01:29:50 |
Corker, Bob - U.S. Senator, [R] Tennessee
OF PROVIDING LIQUIDITY WOULD PROVIDE A FRESH BELIEVE INSTITUTIONAL INVESTORS THE FELL BACK SECURITIES, THEY CAN PUT THAT CAPITAL TO WORK IN A PRIVATE...
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| 01:30:08 |
Deutsch, Thomas "Tom" - Executive Director
DOWN SPREAD. >> MR. CHAIRMAN, IT IS VERY SELDOM THAT PEOPLE ARE ABLE TO COME FOR US WITH A VERY SIMPLE SOLUTION HAVE BEEN A PRETTY COMPLICATED PROBLEM...
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| 01:30:31 |
Corker, Bob - U.S. Senator, [R] Tennessee
THIS ISSUE WITH THEIR BRAIN FOR A. AND LOOK FORWARD TO SEEING WHAT YOU'RE SAYS BUT IT SOUNDS LIKE WITHOUT US IF YOU WILL TAKING ALONG ACTION THAT ENDS...
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| 01:31:07 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
TALK ABOUT, THE CREDIT CRISIS WOULD HAVE WEATHERED ALL LESS. AT ONE OF THE WITNESSES AGREE WITH THAT. I DON'T THINK THEY RAISE THE ISSUE. BUT TO MY...
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| 01:32:14 |
Brown, Sherrod - U.S. Senator, [D] Ohio
NEWLY ORIGINATED LOANS AND LOANS FROM FELT LENDERS. WHY NOT JUST BY THE LOANS? >> THE GOOD, THEY'RE NOT FULLY GUARANTEED SO THAT UNDER THE FEDERAL FINANCING...
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| 01:32:44 |
Remondi, John - Chief Financial Officer
PROPOSALS WITH SO THEY CAN FINANCE AGAINST THE PEACE OF THE LOAN ITSELF. THE LENDERS OF RETAIN THE RISK SHARING OR THE 3% TO REST. >> THE TREASURY...
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| 01:33:17 |
Brown, Sherrod - U.S. Senator, [D] Ohio
HEARD A NUMBER OF SUGGESTIONS ON HOW TO ADDRESS THE CREDIT CRUNCH WITH AND WITHOUT
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| 01:33:21 |
Remondi, John - Chief Financial Officer
LEGISLATIVE CHANGE. THIS ONE OFF AND REMEMBERS THAT I HAVEN'T HEARD, I DON'T THINK I'VE HEARD BY MY STAFF. CAN THEY SWITCHED TO DIRECT
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| 01:33:32 |
Brown, Sherrod - U.S. Senator, [D] Ohio
LENDING? >> ONE FOR THE FEDERAL LOANS AND THEY'RE SAYING A LOT MORE SCHOOLS GOING THROUGH THE ACIDIFICATION PROCESS AND ARE A COUPLE OF FACTORS THAT YOU...
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| 01:33:56 |
Flanagan, Sarah - Vice President
GO TO $40 BILLION IN THE CERTAINLY IS AN ACTION THAT MANY COLLEGES ARE DOING. ONE OF THE PROVINCE OF THIS ON ECOLOGIST IS THIS IS ABSOLUTE CRUNCH TIME...
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| 01:35:04 |
Brown, Sherrod - U.S. Senator, [D] Ohio
SOME TIME. ONE OF THE THINGS THAT WOULD BE WONDERFUL WAS OF THE SECRETARY TO THE CAVERNOUS ) INOUYE AND SAY THE WAYS TO MAKE THE CERTIFICATION FASTER,...
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| 01:35:25 |
Flanagan, Sarah - Vice President
TRAINED. THEY'RE ABSOLUTELY APPROPRIATE DUE DILIGENCE THINGS BUT IT IS AN OPTION. >> SENATOR BROWN, I ASK MY FINANCIAL AID DIRECTOR THIS QUESTION THE...
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| 01:35:51 |
McGuire, Patricia A. - President
HANDS ON DECK IF YOU WILL, THIS IS THE TIME WHEN THE FINANCIAL AID OFFICES ARE TRYING TO GET THE PACKAGES OUT THE DOOR. THERE'S A LAG TIME WITH THE APPROVAL...
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| 01:36:51 |
Brown, Sherrod - U.S. Senator, [D] Ohio
SCHOOLS -- MORE LIKELY TO BE PRIVATE TO ASSIST WITH THIS? >> WITH A DIRECT LENDING? >> SWITCHING TO DIRECT LENDING, FIBRE SIX HAVE THE BUREAUCRATIC PROBLEMS...
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| 01:37:19 |
Flanagan, Sarah - Vice President
SOME ASSISTANCE IN KILBRIDE. >>
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| 01:37:21 |
Brown, Sherrod - U.S. Senator, [D] Ohio
IF YOU HAVE A DOZEN SCHOOLS IN OHIO THAT WANT TO SWITCH FROM FELT TO DIRECT LENDING, BUT SOME OUTSIDE
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| 01:37:30 |
Flanagan, Sarah - Vice President
FORCE OR SOME CORPORATE AND AMONG THEM MADE THEIR JOB EASIER? >> I THINK THEY COULD. >> AND OF THEIR REGULATORY INHIBITION. I'M A FAN OF CONSORT TO LEFFERTS...
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| 01:37:42 |
Brown, Sherrod - U.S. Senator, [D] Ohio
DO THAT. UNFORTUNATELY AND DON'T THINK D.C. IS THE PLAZA WILL STARTED. IF OHIO DOESN'T OWN LIKE TO KNOW. >> I HAVE NEVER HEARD THAT WORD. AS IN CONSORTIUMS,...
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| 01:37:56 |
Flanagan, Sarah - Vice President
THIRD PRINCIPLE OF
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| 01:37:58 |
McGuire, Patricia A. - President
LATIN. WE HAVE SEEN CONTINUED IN, MR. CHAIRMAN, WE'RE SEEING HIGHER INTEREST RATES AND PRIVATE LOANS AND A GOING TO CONTINUE TO LIKE WE SEE
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| 01:38:13 |
Brown, Sherrod - U.S. Senator, [D] Ohio
THEM GOING UP AND CREDIT MARKETS AS MOST OF US BELIEVE ARE DRIVING THE PRICE HIGHER AND HIGHER WHY NOT CREATE AND DIRECT, THIS IS FOR ANYBODY ON THE...
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| 01:38:52 |
Kantrowitz, Mark - Publisher
ALTERNATIVE ORIGINATOR. THEY HAVE YET TO DUET. >> ANYBODY ELSE? >> I THINK IT'S IMPORTANT FOR SOME REASON A SCHOOLS A PERCENT HAVE CHOSEN TO PARTICIPATE...
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| 01:39:16 |
Brown, Sherrod - U.S. Senator, [D] Ohio
HAVE HEARD HERE TODAY. WE ARE TRYING
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| 01:39:19 |
Remondi, John - Chief Financial Officer
TO PRESENT A SOLUTION THAT IT JUST AS THE PROBLEM WITH THIS IMMEDIATE TIME FRAME, THE SUMMER'S ECONOMIC LANDING SUSAN. >> I THINK THIS IS NOT MEANT TO...
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| 01:39:48 |
Remondi, John - Chief Financial Officer
REPRESENTING 1 PERCENT OF STUDENTS? >> IS PROBABLY 80 PERCENT OF STUDENTS, 80% OF LOANS AND AID IN THE FELT SECTOR. DIRECT LENDING TO WAS 18% LAST...
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| 01:40:06 |
Brown, Sherrod - U.S. Senator, [D] Ohio
HEARING YOU SAY CONSORTIUM, THERE'S A REGULATORY FRAMEWORK WHICH WOULD ALLOW THE. IT IS
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| 01:40:12 |
Remondi, John - Chief Financial Officer
A GOOD POINT SENATOR BROWN HAS RAISED. WE ALLOW THEM RELATIVELY SMALL POPULATIONS AND TIGHT BUDGETS THE IDEA AND THEY CAN FORM
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| 01:40:20 |
Brown, Sherrod - U.S. Senator, [D] Ohio
A CONSORTIUM OF AND APPLY IT AS A CONSORTIUM THROUGH DIRECT LOAN PROGRAM
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| 01:40:24 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
AND I THINK I'M GLAD TO KNOW IT EXISTS. AND IS A FINE TO HEAR THE DEPARTMENT OF THE STUFF ON IN THIS OR WHAT THEY NOT DOING? >> THE ALTERNATIVE ORIGIN...
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| 01:40:55 |
Kantrowitz, Mark - Publisher
FOR HAVING THIS HEARING. I SHARE THE CONCERN ABOUT ALL STUDENTS HAVING ACCESS TO THE POSSIBILITY OF A LOAN BUT PARTICULARLY LOW-INCOME STUDENTS BECAUSE...
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| 01:41:14 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
JERSEY. WHO LARGE CLAIMS ONE SERVES FIRST GENERATION FAMILIES FOR WHICH IT IS A PORTAL TO EDUCATIONAL OPPORTUNITY PERIOD AND WHO HAVE TOLD ME THAT THEY...
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| 01:42:38 |
Remondi, John - Chief Financial Officer
AM I. I HAVE WON AND LOST WILL TRY TO FIGURE OUT WHAT TWO DO THEM AT. >> IT IS
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| 01:42:45 |
Deutsch, Thomas "Tom" - Executive Director
SCARY. I THINK THE FOLKS WERE
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| 01:42:47 |
Flanagan, Sarah - Vice President
SCRAMBLING AND NOT THE PARENTS AND STUDENTS, THE KELLI ISCHEMIC, SUMMING UP OF THE LENDER LESS, SCREAMING TO GET NEW PEOPLE. SO FAR THEY HAVE BEEN SUCCESSFUL...
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| 01:42:59 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
SCRAMBLE ON BEHALF OF THE PARENTS AND STUDENTS AND AS A TWO HAVE ANY CONCERNS IS A CROCK AND OTHER FINANCIAL
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| 01:43:05 |
Flanagan, Sarah - Vice President
AID OFFICE AND THE COLLEGES WILL DO THE WORK OF FINDING THE LENDERS. AND NOT TRY TO DISCOUNT THE FACT THAT WE COULD PLACE A REAL FINANCING PROBLEM, THAT'S...
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| 01:43:55 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
AS FAR AS UNDER AVAILABILITY
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| 01:43:57 |
Kantrowitz, Mark - Publisher
AND MORE CONCERNED ABOUT WAS WENT HAPPENING YEAR FROM NOW IF THERE IS NO LINE OF THE CAPITAL MARKETS AND NO GOVERNMENT INTERVENTION. >> LOLI'S TO THIS,...
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| 01:44:34 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
IS DOUBLE. WHAT IS THE DIFFERENCE BETWEEN THE UNIVERSE THAT IS NEEDED AND THE UNIVERSE AND EXISTS? A. >> THAT WOULD LEAVE ABOUT 60 PERCENT OF THE BORROWING...
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| 01:44:52 |
Flanagan, Sarah - Vice President
FELT AT ABOUT, 70 BILLION IS A
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| 01:44:55 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
FEDERAL LOAN PROGRAM 20 BILLION IS UNDER DIRECT LENDING, AND YOU HAVE 9 BILLION ALTOGETHER WHICH INCLUDES
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| 01:45:02 |
Flanagan, Sarah - Vice President
A PRIVATE LOAN VOLUME YOU HAVE A $50 BILLION GAP AND THERE IS OF LIQUIDITY OUT THERE. BUT I JUST DON'T KNOW HOW MUCH. >> TENEMENT, TO WANT TO MAKE A...
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| 01:45:33 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
IS A LIMITED TO HOW MUCH PEOPLE
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| 01:45:36 |
Remondi, John - Chief Financial Officer
WILL LEAD TO SELLING MAY SO WE CAN TURN AROUND AND LANDED AT A LOSS, NOT MANY PEOPLE ARE IN THAT BUSINESS. AND I THINK EVERY LENDER WILL HAVE TO ASK...
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| 01:46:28 |
Deutsch, Thomas "Tom" - Executive Director
OF THOSE LENDERS ASSEMBLY CAN'T ORIGINATE ANY NEW LOANS. I THINK THE QUESTION OF CAN THE GOVERNMENT GO FROM 20% OF THE MARKET SHARE TO 40 PERCENT OF THE...
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| 01:48:06 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
CREDIT SCORES TO QUALIFY FOR THE 620 TO 650. THERE'S ALSO SOME CONCERN AND THEIR LENDING LOANS WOULD TO LURE GRADUATION RATES. BUT OFTEN TEND TO BE COLLEGES...
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| 01:48:56 |
Remondi, John - Chief Financial Officer
MAKE SURE THAT WHEN WE ARE LENDING TO STUDENTS WE UNDERSTAND THE POTENTIAL GRADUATION RATES ARE IN THAT WE'RE INVESTING WITH THEM TO PURSUE THIS HIGHER...
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| 01:49:28 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
HAVE BEEN DENIED BEFORE? >> YES, OUR SENSE OF TIME THIS
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| 01:49:34 |
Remondi, John - Chief Financial Officer
YEAR. >> SENATOR, THERE'S A FOOTNOTE IN MY FORMAL TESTIMONY ABOUT GRADUATION RATES AND SINCE YOU RATED I ADMITTED EARLIER TO THIS ISSUE OF
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| 01:49:43 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
TIMING CREDIT STANDARDS, AND THINK IS VERY IMPORTANT TO POINT OUT THAT THE VERY STUDENTS WHO NEED EXACTLY THIS KIND OF FEDERAL FINANCIAL AID
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| 01:49:52 |
Remondi, John - Chief Financial Officer
SUPPORT ANY BILL LOANS BOTH THE FEDERAL
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| 01:49:56 |
McGuire, Patricia A. - President
GUARANTEED AND EVEN THE PRIVATE LOANS. ARE THOSE WHO TIMES MAY LOOK DIFFERENT FROM GOOD CREDIT RISK AND AS PART OF WHAT IS OF STACKED OF THIS WHOLE...
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| 01:51:48 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
THE DIFFERENCE BETWEEN THE TOP OF A PROPER
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| 01:51:51 |
McGuire, Patricia A. - President
LENDING REQUIREMENTS
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| 01:51:52 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
TO ENSURE THERE IS SAFETY AND SOUNDNESS BUT THERE'S AN OPPORTUNITY TO MOVE AN IMPRESSION THAT ALL THEY WANT TO SEEM SO WE WILL BE LOOKING AT. >> LET...
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| 01:52:24 |
Dodd, Christopher "Chris" J. - U.S. Senator, [D] Connecticut
IN EXACTLY THE POINT PRESIDENT MCGWIRE HAS RAISED, THE IDEA WE WOULD DENY A YOUNG PERSON THE OPPORTUNITY TO GET THAT LOAN BASED ON THE AS OUR PERFORMANCE...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.