News & Politics

Elizabeth Warren Pushes Bill to Reduce Student Loan Interest Rates

The lawmaker's bill would prevent the rise of student loan rates to 6.8 percent.

Photo Credit: TWP/Wikimedia Commons

Senator Elizabeth Warren (D-MA) has introduced her first bill: an effort to reduce student loan interest rates. The progressive lawmaker wants students to pay the same interest rates that big banks do. The effort comes after Warren campaigned heavily on the issue of student loans.

On July 1, interest rates for student loans are set to jump from 3.4 percent to 6.8 percent. Warren wants to reduce the rate to .75 percent for a year. A .75 interest rate is the same rate that banks pay to the federal reserve.

“In effect, the American taxpayer is investing in those banks. We should make the same kind of investment in our young people who are trying to get an education,” she said in a Senate floor speech.

The liberal group Campaign for America’s Future is getting behind the bill, and is encouraging people to contact their senators to push them to co-sponsor the bill. “She’s standing up for students. It’s time to stand with her,” the group states.

 

Alex Kane is former World editor at AlterNet. His work has appeared in Mondoweiss, Salon, VICE, the Los Angeles Review of Books and more. Follow him on Twitter @alexbkane.