Secretary Duncan, I thank you for your testimony here today.  Education is undoubtedly one of the most important factors to the future success of America.  It quite literally has the power to transform our nation by enlightening both children and adults, shattering societal barriers, ending the cycle of poverty, laying the foundation for innovative ideas, and making our country economically competitive in an increasingly globalized environment. 

I am very pleased to see President Obama’s investment in early childhood education, which has a proven track record in preparing our children for future educational challenges through proper socialization and early cognitive development.  I am also encouraged by the Administration’s commitment to program innovation throughout our public schools, as well as increased access to an affordable college education.  All of these components will play a key role in strengthening our education system throughout America.

I am particularly pleased to see President Obama placing an emphasis on college access and affordability through enhancements to programs like Pell Grants.  However, one area of concern I am hearing from my constituents is the Administration’s proposal to eliminate the Federal Family Education Loan (FFEL) program and make a complete shift to direct government lending.  While I respect and support the need to achieve greater savings in our budget, I am interested in determining the potential impacts this policy change may have on the country:

1. How many lenders currently participate in the FFEL program throughout the country?  

2. Has the government undertaken an analysis to determine how many jobs would be lost through FFEL elimination and what the economic impact of those job losses would be? 

3. Are there additional services offered through FFEL that, if eliminated, could have a negative impact on the student population?

4. Would the increased direct loan volume have an effect on treasury rates?  If so, could this potentially reduce the projected cost savings of this proposal?