July 18, 2007
EFC Statement on GAO Review of Nonprofit Student Loan Providers
The Education Finance Council (EFC), an association of nonprofit and state-based student loan providers that participate in the Federal Family Education Loan Program (FFELP), today responded to the announcement by House Education and Labor Committee Chairman George Miller (D-CA) that he has requested a Government Accountability Office (GAO) review of the tax-exempt status of nonprofit student lenders.
“Chairman Miller is absolutely correct in his assessment that nonprofit student loan providers are bound by a public purpose mission and that they play a unique and critical role in the federal student loan program,” said Alexa Marrero, a spokesperson for EFC. “We hope this inquiry can bring greater attention to how EFC’s member organizations are working to fulfill that mission by making college more affordable, and that the differences between the federal student loan program and non-federal, alternative loans not be obscured. EFC has been in contact with Chairman Miller’s staff and will continue our ongoing efforts to work with the committee on these and other issues critical to students’ ability to pay for college.”
The Higher Education Act (HEA) includes strict parameters related to providers of student loans under the FFELP, both nonprofit and for-profit. In addition, EFC members are subject to oversight, not only under the laws and regulations of the U.S. Department of Education and the Internal Revenue Service, but also to all consumer protection laws and, in the majority of instances, by state legislatures as well.
EFC has welcomed Congressional focus on issues related to student loans and college access and affordability. Its members have been champions of efforts to make college more affordable through an increased federal investment in higher education and a strong federal student loan program. In addition, they offer critical borrower benefit programs, financial literacy education, and college outreach and planning initiatives to help students achieve their higher education goals. Read more here and here.
EFC Statement on GAO Review of Nonprofit Student Loan Providers
The Education Finance Council (EFC), an association of nonprofit and state-based student loan providers that participate in the Federal Family Education Loan Program (FFELP), today responded to the announcement by House Education and Labor Committee Chairman George Miller (D-CA) that he has requested a Government Accountability Office (GAO) review of the tax-exempt status of nonprofit student lenders.
“Chairman Miller is absolutely correct in his assessment that nonprofit student loan providers are bound by a public purpose mission and that they play a unique and critical role in the federal student loan program,” said Alexa Marrero, a spokesperson for EFC. “We hope this inquiry can bring greater attention to how EFC’s member organizations are working to fulfill that mission by making college more affordable, and that the differences between the federal student loan program and non-federal, alternative loans not be obscured. EFC has been in contact with Chairman Miller’s staff and will continue our ongoing efforts to work with the committee on these and other issues critical to students’ ability to pay for college.”
The Higher Education Act (HEA) includes strict parameters related to providers of student loans under the FFELP, both nonprofit and for-profit. In addition, EFC members are subject to oversight, not only under the laws and regulations of the U.S. Department of Education and the Internal Revenue Service, but also to all consumer protection laws and, in the majority of instances, by state legislatures as well.
EFC has welcomed Congressional focus on issues related to student loans and college access and affordability. Its members have been champions of efforts to make college more affordable through an increased federal investment in higher education and a strong federal student loan program. In addition, they offer critical borrower benefit programs, financial literacy education, and college outreach and planning initiatives to help students achieve their higher education goals. Read more here and here.
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