US Sen­ator Eliz­a­beth Warren and Rep­re­sen­ta­tive John Tierney ral­lied North­eastern Uni­ver­sity stu­dents Monday to speak out against a looming interest rate hike on stu­dent loans.

If Con­gress fails to act by July 1, the rate on fed­er­ally sub­si­dized Stafford loans, need-​​based funds for under­grad­u­ates, would double from 3.4 to 6.8 percent.

With debate over stu­dent loan leg­is­la­tion in Con­gress heating up, Warren and Tierney urged stu­dents to put pres­sure on their rep­re­sen­ta­tives to sup­port bills that would halt the increase. They high­lighted their own Bank on Stu­dents Loan Fair­ness Act, which Warren recently intro­duced in the Senate and Tierney cospon­sored in the House.

The bill would allow col­lege stu­dents who take out new Stafford loans to pay an interest rate of 0.75 per­cent. That is the same rate banks pay to the Fed­eral Reserve for short-​​term loans.

Right now, the US gov­ern­ment is out there investing in large finan­cial insti­tu­tions, offering them money every single night [for] three quar­ters of 1 per­cent, and yet our stu­dents, if the gov­ern­ment doesn’t do some­thing, will be paying nine times that much,” Warren said to an audi­ence of about 70 stu­dents and staff at the North­eastern Vis­itor Center.

Read the article at The Boston Globe →