By Jueseppi B.
No, that’s not a typo. Students will be paying 900 percent more than the biggest banks on Wall Street to borrow money.
Here’s what Sen. Elizabeth Warren had to say about that:
“As a country, every time we advance money to the big banks at low interest rates, we invest in those banks. We should be making at least that same kind of investment in our students.”
She’s right — and she just introduced her first bill to the Senate to fix this absurdity.
Back up Sen. Elizabeth Warren — become a citizen co-sponsor of her bill to give students the same ultra-low interest rates as big banks.
Sen. Warren Introduces the Bank on Students Loan Fairness Act
Published on May 8, 2013
Senator Warren Introduces the Bank on Students Loan Fairness Act, her first piece of stand-alone legislation, on May 8, 2013. The bill would would students who are eligible for federally subsidized Stafford loans to borrow at the same rate the big banks get through the Federal Reserve discount window. The full text of Sen. Warren’s remarks may be found here:http://1.usa.gov/143CUcs
On July 1st, the interest rate on new federal student loans is set to double from 3.4% to 6.8%. That rate is nine times higher than the rate at which the government loans money to the big banks.
That just doesn’t make sense. The federal government is profiting off loans to our young people while giving a far better deal to the same Wall Street banks that crashed our economy and destroyed millions of jobs.
That’s why I’ve introduced the Bank on Students Loan Fairness Act as my first bill in the Senate: To allow students to borrow money at the same rate as the biggest banks.
College students carry more than $1 trillion in student loan debt, more than all the credit card debt in the country.
That’s a crushing burden on our kids and a crushing burden on our economy. Today’s graduates aren’t just delaying buying a home and starting a family — they’re moving back home with mom and dad and struggling to create some economic security.
The big banks that crashed our economy receive loans from the federal government at a rate of only 0.75% — that’s right, three-quarters of ONE percent. If Congress doesn’t act by July 1, our students will pay nine times more than big banks. Our students are the engine of our economic future, and they deserve at least the same deal as Wall Street.
Students don’t get the same Too Big to Fail guarantee as the big banks. But even though some students can’t pay their loans, overall the government is making 36 cents on every dollar we put into the student loan program. Next year, student loans are expected to bring in $34 billion.
Why should the big banks get a nearly-free ride while people trying to get an education pay nine times more? It isn’t right.
Senator Elizabeth Warren
P.S. Loan rates double in less than two months. We can’t afford to wait — sign on today.
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