Subscribe

Students as Important as Big Banks, Elizabeth Warren Says in Bill Introduction

Tracy Bloom
Assistant Editor
Tracy Bloom left broadcast news to study at USC\'s Annenberg School for Communication and Journalism. There she eventually became deputy editor of Neon Tommy, the most-trafficked online-only college website in…
Tracy Bloom

Sen. Elizabeth Warren, D-Mass., proposed her first piece of stand-alone legislation Wednesday, the Bank on Students Loan Fairness Act. The bill is aimed at giving students who take out federally subsidized loans the same interest rate the big banks get when they borrow from the government.

Currently, student loan interest rates are 3.4 percent, but they are set to double July 1 to 6.8 percent unless Congress takes action. Meantime, the big banks responsible for plunging the economy into a recession a few short years ago pay just 0.75 percent.

“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,” Warren said on the Senate floor in introducing the measure. “That isn’t right.”

She continued, “It doesn’t reflect our values. We shouldn’t be profiting from our students who are drowning in debt while we’re giving great deals to big banks. We should be investing in our young people so they can get good jobs and grow this economy, so let’s give them the same great deal the banks get.”

According to Warren, college graduates in this country collectively carry more than $1 trillion in debt. To put that figure in perspective, that’s even more than the entire combined outstanding credit card debt in the U.S.

“Unlike the big banks, students don’t have armies of lobbyists and lawyers,” she concluded. “They have only their voices. And they call on us to do what is right.”

(h/t Americablog)

— Posted by Tracy Bloom.

Advertisement

Now you can personalize your Truthdig experience. To bookmark your favorite articles, please create a user profile.

Personalize your Truthdig experience. Choose authors to follow, bookmark your favorite articles and more.
Your Truthdig, your way. Access your favorite authors, articles and more.
or
or

A password will be e-mailed to you.

Statements and opinions expressed in articles and comments are those of the authors, not Truthdig. Truthdig takes no responsibility for such statements or opinions.