Unless Congress acts by July 1, 2013 student loan rates will double from 3.4% to 6.8%. Meanwhile banks borrow money from the US Government at only .75%. Senator Elizabeth Warren of Massachusetts has filed a bill to give students the same loan rate as banks for a year. Why should taxpayers be supporting banks – a private interest over a public interest – helping students to complete college.
In a Huffington Post article entitled Elizabeth Warren: Student Loans Should Have Same Rate Big Banks Get and in an article by Joan McCarter on Daily Kos entitled Elizabeth Warren: Students should get the same loan rate as big banks a video is included of Warren’s statement before the US Senate:
“Some people say that we can’t afford to help our kids through school by keeping student loan interest rates low,” said Senator Warren. “But right now, as I speak, the federal government offers far lower interest rates on loans, every single day–they just don’t do it for everyone. Right now, a big bank can get a loan through the Federal Reserve discount window at a rate of about 0.75%. But this summer a student who is trying to get a loan to go to college will pay almost 7%. In other words, the federal government is going to charge students interest rates that are nine times higher than the rates for the biggest banks–the same banks that destroyed millions of jobs and nearly broke this economy. That isn’t right. And that is why I’m introducing legislation today to give students the same deal that we give to the big banks.”
“Big banks get a great deal when they borrow money from the Fed,” Senator Warren continued. “In effect, the American taxpayer is investing in those banks. We should make the same kind of investment in our young people who are trying to get an education. Lend them the money and make them to pay it back, but give our kids a break on the interest they pay. Let’s Bank on Students… Unlike the big banks, students don’t have armies of lobbyists and lawyers. They have only their voices. And they call on us to do what is right.”
Daily Kos, joined by the Center for American Progress goes a step beyond just reporting the story and posting the video by including a link to urge people help push this legislation by urging their Senators to co-sponsor this legislation. Click on this link to tell the Senate to give students the same low interest rates the big banks get
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