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Panel 8
Question and Answer Session

MR. ANDRADE: I have just one issue that you raised in that regard, Leesa. That was in connection between the default period and the rehab period. And when those limits were put in, the default period was six months and the rehab period was 12 months.

So why wouldn't we be looking at a change to go from nine months to 18 months, when it takes a borrower that amount of time? The concern I have is that if a loan is truly rehab, wouldn't the longer period of time be better to demonstrate the borrower's good faith?

MS. SORENSEN: I believe just like although you could extend that to a longer period of time, by doing so borrowers who have admittedly made a mistake and defaulted on their student loans, would be kept from gaining additional aid to go back to school and better themselves, and the reason we believe nine months might be a better time frame is because it returns those loans to repayment and actually then allows those students, especially the ones who wish to seek additional higher education, it allows them to return more quickly to school and to better themselves.

MR. BRYANT: Thank you all very much.

MR. ANDRADE: That concludes this. Thank you.
(Applause.)

MR. ANDRADE: You didn't get paid to be up here as we did. We do thank you. This is, again, part of a long process, part of the dialogue that we've been having with the community and we will continue to have.

We thank everyone for sharing their ideas with us and once we have everything finalized, we will have this hearing record available on our web for public viewing. So, once again, thank you and have a safe trip home.

(The public hearing concluded at 4:30 p.m.)

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