House Committee on Education and Labor
U.S. House of Representatives

Dear Colleague:

Today, the House of Representatives is slated to consider H.R. 4137, the College Opportunity and Affordability Act, on the floor. The legislation is the product of extensive, bipartisan deliberation over many Congresses.  One example of the bipartisan spirit of the bill is Section 454, a provision asking for an independent audit of the Direct Loan (DL) program and greater disclosure of the program’s impact on the national debt.  In fact, the provision was unanimously adopted by the Committee on Education and Labor during mark up of H.R. 4137.

Section 454 is important because the Direct Loan program is not currently subject to routine audits that examine all of the issues found in this section.  Further, the government finances the Direct Loan program by borrowing, so it contributes directly to the national debt.  Transparency is critical if Congress is going to get a handle on evaluating student lending programs and make the best decisions for college access and affordability.

Unfortunately, an amendment, Petri #8, is being offered which would gut Section 454.  While it adds another audit of the Federal Family Education Loan (FFEL) program, it also weakens the independent audit of the Direct Loan program.  In addition, it eliminates the portion requiring disclosure of the program’s impact on national debt.  This is no way to effectively manage a program, and such an alteration hinders Congress’ very ability to understand the costs of the student lending programs.

Improving transparency in the Direct Loan program will help Congress improve the entire federal student aid system.  Both the Direct Loan and Federal Family Education Loan programs should be held up to the light of day so taxpayers know what they are getting out of their dollars.  If that is to happen, Section 454 must be preserved and transparency saved.

Please vote “NO” on the Petri #8 Amendment.

Yours Truly,

/s/                                                   

Howard P. “Buck” McKeon (R-CA)                        
Senior Republican Member                              
Education and Labor Committee

/s/

Tom Price (R-GA)
Republican Member
Education and Labor Committee