Elizabeth Warren introduces bill
to stave off financial ruin for many
Sen. Elizabeth Warren from Massachusetts presents her new bill to the Senate on May 8.
DO YOU BELIEVE in those psychic connections one sees all over late-night television and on the Internet?
Well, how’s this for a coincidence.
Unbeknownst to me just five days before I wrote about the crisis in student loan debt, and pilloried Congress for not doing anything about it, one of the newest members of the U.S. Senate with the same name as me (last name not first name) was actually doing something about the problem. U.S. Sen. Elizabeth Warren announced on May 8 that her first bill introduced would be the Bank on Student Loans Fairness Act.
Watch a video of her presentation to the Senate below the fold.
“The student debt problem in this country is a quiet but growing crisis,” said the Senator from Massachusetts who thoroughly trounced Republican Scott Brown last November.
“Today’s graduates collectively carry more than $1 trillion in debt – more than all the outstanding credit card debt in the whole country.”
Warning that a massive hike in the interest rate students pay on loans was pending, Warren called for immediate action
“Doubling the interest rate on new student loans will just increase the pressure on our young people,” she said.
She warned that interest rates on student loans are set to double on July 1, “but so far, this Congress has done nothing, nothing to address this problem.”
Introducing a bill that is likely to draw howls of protests from across the aisle,
Do the math! Sen. Elizabeth Warren’s
U.S. Senate home page.
Sen. Warren – who should have been the head of the Consumer Financial Protection Bureau that she helped create – said she wanted students to get a better deal.
“… that is why I’m introducing legislation today to give students the same deal that we give to the big banks.”
Her Bank on Students Loan Fairness Act would allow students who are eligible for federally subsidize d Stafford loans to borrow at the same ratethat big banks get through the Federal Reserve discount window.
That rate is currently south of 0.75 percent!
In her statement to the Senate she added:
“For one year, the Federal Reserve would make funds available to the Department of Education to make loans to students at the same low rate offered to the big banks.
“This will give students relief from high interest rates while giving Congress time to find a long term solution.”
Don’t hold your breath Sen. Warren.
“The Bank on Students Loan Fairness Act is my first standalone bill in the United States Senate. I’m introducing this bill because our students are facing a crisis. We cannot stand by and simply watch.”
Thank goodness somebody who matters cares about the intolerable and growing burden faced by students throughout America.
“[The] act is a first step toward helping young people who are drowning in debt.”
Oh my gosh. We used the same word.
I swear I was not aware of this until someone, Rob Jacobs of Real Food Daily
whom I met on the Pasadena CICLE bike ride on Monday night, drew it to my attention.
Grab your computer or iPhone. Send a letter to the United States Senate today. Demand that it take urgent action on Elizabeth Warren’s bill.
Today could not be soon enough.
Thanks to Rob Jacobs for the tip off.