“Every single day, this country invests in big banks by lending them money at near-zero rates,” Senator Elizabeth Warren (D-Mass) told The Huffington Post. “We should make the same kind of investment lending money to students, who are trying to get an education.”
Senator Warren introduced her first bill on Wednesday, one that would require the government to offer college students the same low-interest rates on loans as the Federal Reserve offers to big banks.
It sounds so reasonable that it’s almost hard to believe we would need a law requiring such, but we do. And there is urgency here: July 1, student loan rates are set to double, from 3.4% to 6.8%. Senator Warren’s bill, if passed, will substantially reduce student loan interest rate to .075%.
The average college student who graduated in 2011 owes more than $26,000 in student loans, according to the Project on Student Debt. This places a large financial burden on graduates stepping out into the world, and lessens their chances of being able to invest into the economy.
“Such heavy responsibilities will hold graduates back for years to come. Instead of kicking students when they are down, we should end the student debt crisis,” said Robert L. Borosage, co-director of the Campaign for America’s Future (CAF).
Warren created the Progressive Change Campaign through which students can become involved in seeing the bill through.
“This is about their lives and if they are active in this fight, we can make this change,” Warren said.
The legislation, called the Bank On Student Loan Fairness Act, will mandate that the Federal Reserve work to provide funds for the Department of Education to affix the same rates it allow to big banks for a period of one year, while Congress works on a long-term solution.
Senator Warren explains the bill; here is the video:
Once again, Senator Elizabeth Warren proves that her first concern is with the American people, the everyday citizen. She is steadfastly delivering on the promises she made and the hope she created in her Democratic Convention Speech.