According to at least one U.S. Senator, Elizabeth Warren
, the biggest banks in the country — the ones that wrecked our economy and cost millions of Americans their jobs — pay next to nothing on the debt they owe the government, while students pay nine times as much. And she argues that isn’t right.
So she introduced the Bank on Students Loan Fairness Act to let students take advantage of the same low rates offered to banks for one year while Congress finds a fair, long-term solution on student loan interest rates.
The interest rate on federal subsidized Stafford student loans is set to increase from 3.4% to 6.8% on July 1st. If Congress doesn't act soon, millions of college students will see their student loan payments jump.
Some argue that it’s too expensive to keep government loans at low interest rates, but the federal government makes low interest loans all the time — just not to everyone. Big banks can borrow money through the Federal Reserve discount window at a rate of about 0.75%.
A petition started on MoveOn’s site says:
Wall Street banks—the ones that wrecked our economy—should not be getting a better interest rate on their government loans than young people trying to go to college.
“Unlike the big banks,” U.S. Senator Elizabeth Warren says, “students don’t have armies of lobbyists and lawyers. But they do have us. Let’s do what’s right and bank on students.”
More than 375,000 MoveOn members have signed on in support of Senator
Elizabeth Warren’s first bill—the Bank on Students Loan Fairness Act. Houston Weekly Magazine
received no funding for this awareness piece. To join them click here