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Wednesday, October 26, 2016

More Than 250,000 Sign Petition Supporting Elizabeth Warren’s Bill To Charge Students The Same Loan Rates As Banks

A petition from Senator Elizabeth Warren supporting her bill that would charge students the same rate for loans as banks already has more than 250,000 signatures.

Warren appeared on MSNBC’s The Last Word with Lawrence O’Donnell last week to discuss her proposal that goes further than keeping student loan rates from doubling to 6.8 percent on July 1. Her first bill as a senator would cuts rates to as low as .75 percent, which is the rate big banks currently pay the Federal Reserve for overnight loans.

She pointed to a recent report from the Federal Reserve that said student loan debt is threatening our recovery.

“We the taxpayers make an investment in our financial institutions,” Senator Warren said. “Can’t we make the same investment in students who are trying to get an education?”

The federal government makes 36 cents on every dollar it lends to students.

“The students are a profit center for the government right now, the kids out there struggling to get an education — but not those big financial institutions,” Warren said. “C’mon.”

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Copyright 2013 The National Memo
  • Go Liz! Expose the dimwits that don’t hesitate to give economic breaks to individuals and corporations that are already making a bundle, while proposing to raise the taxes of those who can ill afford to pay more. What we should be doing, as a society and as a country that is falling behind the rest of the industrialized world in the area of education, is to make access to higher education – free – to exceptional students regardless of ethnicity, gender, or social class. The future of our country depends on the ability of our young to succeed and face the challenges of the 21st centuries, erecting barriers to make it more difficult to get the education they need is the last thing we should do.

  • JDavidS

    This just makes sense… well to any intelligent person, ergo not to the Tea Clowns or idiots like Paul Ryan. To have college grads start their working life owing vast amounts of money puts a tremendous drag on the economy. Among other things, upon graduation, it kills their discretionary spending resulting in a loss of taxes, forces them to delay or even decide against starting a family, with disastrous results for the future economy. Also, some capable students will forego getting an education here, opting instead to go overseas. I know of a number of friends’ kids who have gone this route and then chosen to settle in that particular country, resulting in a brain-drain from the U.S., to the benefit, in taxes among other things, to their adopted country.

    • RobertCHastings

      As has been pointed out elsewhere, this could also help with another issue, that of an impending doctor shortage. With money for the education of doctors at the cost level she suggests many more students may be encouraged to pursue medicine and many more smart HS grads may be encouraged to pursue technical careers and jobs that our current workforce simply is incapable of filling. Our most important commodity and resource is the young people who will inherit the future; if they can inherit the future with a burden-free college loan, we will all benefit.

      • JDavidS

        Well put, Robert.

  • mah101

    A major issue for us domestically is access to education. It is one of the significant aspects of the loss of economic mobility in this country. Playing into that issue is the fact that states have been DRAMATICALLY cutting their funds for higher education, resulting in massive tuition increases for students and the increasing inability to go to college for many. Now, to add insult to injury, the US Government wants to increase the interest rate on student loans – currently the only way in which many can access college and already one of the greatest sources of debt in this country.

    This seems, on its face, stupid.

    How about a counter proposal. Make college tuition indexed to income for all who meet the entrance qualifications. We want to succeed and compete in this country? Then give the tools for that success and competition to the people who can drive us forward.

    Cut the oil subsidies and tax breaks for overseas production and use that money to subsidize education. Our strength is not our corporations. Our greatest asset as a nation are our people.

    • RobertCHastings

      Absotively, posilutely 100% on the button. What happened to the idea to take college loans out of the hands of the bank and make it a direct government transaction, eliminating the middle-man and thus drastically reducing the associated costs of college loans? However, you just can’t beat the rate she is proposing, unless it is loaned out interest-free. While this would circumvent the precious “free market” of the Republicans, Elizabeth Warren and other smart people realize just howbig areturn on investment this would reap the goveernment. Just read an article about James J. Heckman, 2000 Nobelist in Economics,reiterating much of what Obama has said about public investment in education. Warren is definitely onthe right track, and it is very heartening.

  • RobertCHastings

    Once again, if she doesn’t run for President, we should draft her. While Obama has done as much as anyone could have expected in the face of conservative opposition, I think Elizabeth Warren has the chutzpah to really kick some ass. Perhaps she would do better to remain as a senator, so that folks around the country can see, clearly, what our elected legislators should be doing. By herself, she is going to make McConnell cry in public like Boehner, and cause Rubio to speak in tongues.

    • plc97477

      She would be more powerful on the banking committee. I too feel she would make a fantastic pres or vice but she would not be as powerful as she is on the banking committee.

      • RobertCHastings

        For any number of reasons, I really hate to agree with you. She has become an excellent legislator and an asset to the Senate, a major player already on the big stage, an impact player like LeBron James. I wonder if she plays basketball.



  • ralphkr

    Unfortunately, it shall be extremely difficult to get a program such as this through Congress because today’s Conservatives live in mortal fear of an educated populace because educated people are more likely to listen to reason rather than to the efficient fear-mongering sans-facts Conservative propaganda machine broadcasting from their alternate universe. I notice that the Republicans are strongest in the states with the least educated populace and with the highest percentage on welfare which certainly puts the lie to the Conservative claim that the Democrats buy votes with welfare giveaways. Today’s Conservative seems to feel that the only people deserving of education are those who can afford to pay for it with cash on the barrel head, i.e. the top 10% while the bottom 70% should settle for hoping to someday qualify for a job as Walmart greeter.

  • TrevorLyman

    I understand the intention here is good but this is arguing that two wrongs make a right. If her point is simply to expose the unfair loans the banks receive that’s great, but more “free money” is not going to help our nations problems. There is a college debt bubble brewing already and this is not going to help things.

  • Tayjen

    This woman is going to get herself assassinated. She seems like the only person with any common sense in a position of influence.