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?”

 

Read the article at The Boston Herald →