Elizabeth Warren's plan to lower interest on student loans is pretty awesome

Elizabeth Warren’s plan to lower interest on student loans is pretty awesome

May 8, 2013

Elizabeth Warren is the best, she’s just the freaking best– and I am not one who is frequently enamored with politicians. It’s pretty much just her and Bernie Sanders.

My girl threw down today, suggesting that perhaps– just perhaps– it would be nice to give student loans the same kind of breaks we give banks on their loans from the Federal Reserve. Because starting this summer, interest on student loans will be going up to 6.8%… while banks will continue to enjoy a comfy 0.75% interest rate.

“Right now, a big bank can get a loan through the Federal Reserve discount window at a rate of about .75 percent,” Warren said. “But this summer a student who is trying to get a loan to go to college will pay almost 7 percent. 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.”

“If the Federal Reserve can float trillions of dollars to large financial institutions at low interest rates to grow the economy, surely they can float the Department of Education the money to fund our students, keep us competitive, and grow our middle class.”

Good lord, she is a bad ass. Check out her whole speech below:


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