U.S. Sen. Elizabeth Warren and U.S. Rep. John Tierney (D-Salem) yesterday touted their bill to prevent the federal student loan interest rate from doubling next month and let students, for one year, pay the lower rate major banks do — though experts say the proposal would have no effect on the economy or the soaring cost of higher education.
At a Northeastern University forum, Warren and Tierney said students deserve the same .75 percent rate big banks enjoy and warned if Congress fails to act, the federal student loan rate will jump from 3.4 percent to 6.8 percent.
“Our students, come July 1, will be paying nine times” what large banks do, giving the government another $51 billion in revenues, Warren said. “It is a bad idea economically, and it is a bad idea morally. … Who can start a small business if you’ve got this crushing student loan debt?”