Thursday, May 9, 2013

Sen. Warren: Students Should Get Same Discount Loan Rate As Big Banks

The federal student loan interest rate is set to double by July 1 from 3.4% to 6.8%. Sen. Elizabeth Warren (D-MA) introduced her Bank on Students Loan Fairness Act to reduce the rate students pay on federally subsidized loans for one year while giving Congress a chance to resolve rising student debt. Warren decried the fact that "...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." She called on the Federal Reserve to give students a loan, through the Department of Education, at the same discount 0.75% interest rate that a big bank would get. Watch Warren deliver her statement:

You can also read the transcript of Warren's speech.

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