Right now, if Congress doesn’t do something rates on Federal Stafford student loans are set to double July 1st going from 3.4% to 6.8%. In other words, we are going to penalize college kids for getting an education and add to the huge mound of debt they already face, not for buying stuff they don’t need with a credit card but for doing something that benefits them AND the country—getting a college education. At the same time that we are doubling interest rates on student loans, we are allowing big banks to borrow money from the Federal government for just 0.75%. In other words, if you want borrow money from Uncle Sam to get an education, you will pay nine times more for the loan than the big money bankers have to pay for money to fund risky investments they want to make that might go bad and tube the economy. That’s WRONG, very WRONG.Senator Elizabeth Warren (D, Mass) has introduced a bill to remedy this gross inequity. She proposes to let college students borrow at the same rate as the big banks (.75% instead of 6.8%). That’s a good idea but I have a better one. Let’s let college students borrow money for their college education from Uncle Sam for FREE—0% interest. Let’s reward young Americans for getting an education, not punish them.
Watch Senator Warren explain her bill here or below
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