“In other words, the federal government’s going to charge interest rates nine times higher than the rates they charge the biggest banks—the same banks that destroyed millions of jobs and nearly broke the economy,” Senator Warren said in the bill’s introduction.
It’s a bill that calls attention to the wild disparity between how Wall Street is treated and how the rest of us are, and Senator Warren’s proposal is wild enough—0.75% for student loans!—to wake up the politicians who want to keep the status quo.
Here’s the thing: Even if the bill doesn’t pass, by playing such a strong hand right at the outset Elizabeth Warren has already changed the discussion that’s sure to ensue when student loan rates jump to 6.8% on July 1st. After Elizabeth Warren’s call today, 6.8% seems totally unacceptable. That is how to lead. Go strong from the outset.
The bill, called the Bank on Students Loan Fairness Act, aims to get the Fed to lend to students for one year at the discount window rate to fund Stafford loans.
“If those rates are good enough for banks, they’re good enough for students.”
Here’s the video of her introducing the bill: