Banks Get Great Deals, Students Get Ripped Off: Warren Wonders What's Wrong with This Picture
Sensibly arguing that "we shouldn’t be profiting from our students who are drowning in debt," Sen. Elizabeth Warren in her first bill has suggested students get loans at the same discount rate as big banks, rather than at a proposed rate that's nine times greater. Subsidized student loans are set to double in July to almost 7% - thus giving the government $36 billion in revenue. That compares with banks' cozy discount rate of 0.75%. Let the teeth-gnashing begin.