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Warren’s proposal: Offer college students the same interest rates as banks

TheDemSocialist

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Sen. Elizabeth Warren (D-MA) introduced a bill on Wednesday that would give college students the same interest rates on their federal student loans as banks do when borrowing from the Federal Reserve.

“If the Federal Reserve can float trillions of dollars to large financial institutions at low interest rates to grow the economy, surely they can float the Department of Education the money to fund our students, keep us competitive, and grow our middle class,” Warren said.
According to The Hill,[FONT=georgia, palatino linotype, palatino, times new roman, times, serif] the Students Loan Fairness Act would call for the Fed to “float the money” to the department for one year, giving Congress enough time to enact a long-term agreement on student loan rates.[/FONT]

“Right now, a big bank can get a loan through the Federal Reserve discount window at a rate of about .75 percent,” Warren said. “But this summer a student who is trying to get a loan to go to college will pay almost 7 percent. In other words, the federal government is going to charge students interest rates that are nine times higher than the rates for the biggest banks–the same banks that destroyed millions of jobs and nearly broke this economy. That isn’t right.”


Read more and video @:
Warren’s proposal: Offer college students the same interest rates as banks | The Raw Story


[FONT=georgia, palatino linotype, palatino, times new roman, times, serif]Will any other congress man or woman please follow Senator Warren with common sense, morality, and here understanding of fairness? I hope so but i doubt anyone else comes forward.
[/FONT]I love this woman!
 
Read more and video @: [/FONT][/COLOR]Warren’s proposal: Offer college students the same interest rates as banks | The Raw Story

[FONT=georgia, palatino linotype, palatino, times new roman, times, serif]Will any other congress man or woman please follow Senator Warren with common sense, morality, and here understanding of fairness? I hope so but i doubt anyone else comes forward.
[/FONT]I love this woman!

While I don't think it's right to charge them the same rate as the discount window, I do think that access to the window ought to mean that student loans should have lower interest rates than 7% in this particular interest-rate environment. There should be some sort of formula for determining those rates depending on the rate of inflation with various other indices thrown into the pot. I think the rates ought to be adjustable every three years depending on that index.
 
By god I love Elizabeth Warren. While I can agree with Maggie in a sense that rates could be adjusted based on other factors, it's actually nice to have someone in congress that campaigned on ideas and is actually sticking to it..... unlike some people...
 
By god I love Elizabeth Warren. While I can agree with Maggie in a sense that rates could be adjusted based on other factors, it's actually nice to have someone in congress that campaigned on ideas and is actually sticking to it..... unlike some people...
Correction needed *most people*.
 
By god I love Elizabeth Warren. While I can agree with Maggie in a sense that rates could be adjusted based on other factors, it's actually nice to have someone in congress that campaigned on ideas and is actually sticking to it..... unlike some people...

Let me add, "it's actually nice to have someone in the senate not bought out by industry, and is actually trying to get things done for her constituents." She's such a breath of fresh air, I feel like I'm on a mountain top in Switzerland eating a York Peppermint Patty. :2razz:
 
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By god I love Elizabeth Warren. While I can agree with Maggie in a sense that rates could be adjusted based on other factors, it's actually nice to have someone in congress that campaigned on ideas and is actually sticking to it..... unlike some people...

Same here. Warren gets it. She knows how to frame an issue. And that's 90% of winning a political battle. That's why the rightwingers hate her so much. She is the future of progressive Democrats in this country.
 
I generally hate Eliabeth Warren's policies, but this one I can live with. 6.8 and 7.9% are far too high. I'd be fine with keeping it at the same level of a car or house (between 3-5%). Although, the loans are federal and the feds set the rates. They actually went up under Obama.
 
Wow, you called her a "collectivist". That's sassy!

I love how the tea party pretends their bizarre labels constitute arguments.

its very easy, when you say the community has claim to another persons property..your a collectivist.

when you believe rights come from the group, and there are no individuals...your a collectivist..her and obama
 
i'd prefer that everyone enjoy the right to a college education, similar to the current secondary educational model.
 
The comments on that video just make me sad for people
 
its very easy, when you say the community has claim to another persons property..your a collectivist.

when you believe rights come from the group, and there are no individuals...your a collectivist..her and obama

Since nobody said this, one wonders why you fixated on this vapid meme. Oh, I forgot, you can't say anything on the merits of conservatism's failed policies, so you have to do this.
 
Read more and video @: [/FONT][/COLOR]Warren’s proposal: Offer college students the same interest rates as banks | The Raw Story


[FONT=georgia, palatino linotype, palatino, times new roman, times, serif]Will any other congress man or woman please follow Senator Warren with common sense, morality, and here understanding of fairness? I hope so but i doubt anyone else comes forward.
[/FONT]I love this woman!

While I think this proposal is a short term improvement for students, I think in the long run its just going to lead to higher college costs. College will simply raise their tuition, like they always do, to capture the difference. So in essence a higher principle with a lower interest rate will lead itself to be the exact same amount in student debt.

The original major goal of the federal loan and grant programs that began in earnest around 1970 was to increase the ability of lower income students of obtaining degrees. Yet government data suggest that the proportion of recent graduates coming from the bottom 25 percent of the income distribution is lower today than in 1970. The Law of Unintended Consequences is at work: well-intended programs are benefiting persons other than those they were designed to help.

College Loans Are Part of the Problem Not the Solution - Room for Debate - NYTimes.com
 
Since nobody said this, one wonders why you fixated on this vapid meme. Oh, I forgot, you can't say anything on the merits of conservatism's failed policies, so you have to do this.

And you can't say anything on the merits of liberalism's failed policies either, so you resort to talking about memes. Typical.
 
Since nobody said this, one wonders why you fixated on this vapid meme. Oh, I forgot, you can't say anything on the merits of conservatism's failed policies, so you have to do this.

my point has nothing to do with conservatism, it has to do with republican government, and the people who would destroy it with their collectivism.
 
And you can't say anything on the merits of liberalism's failed policies either, so you resort to talking about memes. Typical.

Sure I can and do all the time. You splashing around at this point.

For instance, Warren's policy of making student loans more affordable results in more productivity and higher revenues, as workers get educated for jobs they are good at, rather than having to settle for lesser jobs because they lack the education.

See it's easy. Now you try to actually put together a conservative argument against student loan availability. Lots of luck.
 
is it right the banks are getting cheap money and making billions in profits at the same time? hell no!!!

btw, 7% is too high. 5% sounds better. young people are at higher risk of defaulting on their loans.
 
Sure I can and do all the time. You splashing around at this point.

For instance, Warren's policy of making student loans more affordable results in more productivity and higher revenues, as workers get educated for jobs they are good at, rather than having to settle for lesser jobs because they lack the education.

See it's easy. Now you try to actually put together a conservative argument against student loan availability. Lots of luck.

Your assumption is that it would make it more affordable. That is quite false, as colleges will just raise their tuition to capture the difference, as they have done ever since the student loan program was put into place. Thus, this is really just welfare to the colleges' coffers (which are already quite full I might add) with higher tuition being the result placed on students.
 
Your assumption is that it would make it more affordable. That is quite false, as colleges will just raise their tuition to capture the difference, as they have done ever since the student loan program was put into place. Thus, this is really just welfare to the colleges' coffers (which are already quite full I might add) with higher tuition being the result placed on students.

Yes, yes, that tired meme. It has no basis in any study, it's just a rightwing talking point. When you find a study to support this bizarre claim, give us a call. Maybe you can explain for instance why colleges would increase tuition for payment made from loans, as opposed out of a rich daddy's bank account, as if the cash is different or something.

Meantime, even if true, all it would mean in any case is that colleges that accept students who have loans should face more rigorous regulation (as in fact they already do). Problem solved.

But of course you don't want to solve the problem. You only want the rich to get an education.

NEXT RIGHTWING MEME!
 
To my knowledge the schools that accept federal loans do not have their tuition regulated by them. The fact is that tuition has been increasing drastically compared to inflation and salary increases. Part of the problem may be due to increased access to federal financing opportunities.
 
Yes, yes, that tired meme. It has no basis in any study, it's just a rightwing talking point. When you find a study to support this bizarre claim, give us a call. Maybe you can explain for instance why colleges would increase tuition for payment made from loans, as opposed out of a rich daddy's bank account, as if the cash is different or something.

Meantime, even if true, all it would mean in any case is that colleges that accept students who have loans should face more rigorous regulation (as in fact they already do). Problem solved.

But of course you don't want to solve the problem. You only want the rich to get an education.

NEXT RIGHTWING MEME!

The main lesson from this first refinement is that aid targeted to low income students (such as the Pell grant and subsidized Stafford loans) kink the demand curve, while universal (or near universal) aid (such as unsubsidized Stafford loans and the education tax credits) shift the entire demand curve. These programs therefore have very different implications when it comes to their impact on tuition. For policy makers, the key point is that financial aid that is restricted to low income students is much less likely to be captured by colleges, and will therefore be more likely to succeed in making college more affordable and therefore accessible (for low income students). In contrast, universally available programs
are more likely to simply fuel tuition increases and therefore more likely to fail to make college more affordable.

http://centerforcollegeaffordability.org/uploads/Introducing_Bennett_Hypothesis_2.pdf

Where did I say I only want the rich to get an education? That is nonsense. What I want to see rather, is college costs restructured rather then throwing more money at the problem.
There is simply no reason for me to pay $700 for a 70 year old "professor" to read off wikipedia and show us movies because it is a "required Gen Ed." This was the case several times in my studies, and unfortunately that is several thousand dollars which I will never get back. If you really want to make college more affordable, get rid of teacher tenure.

Anyways, the second faulty assumption you are making is that this will lead to a more productive, trained workforce.

It should lead to one, but it won't if it just means we get more useless English and Art History majors instead of engineers. But, of course, that is a discussion for another time and place.
 
To my knowledge the schools that accept federal loans do not have their tuition regulated by them. The fact is that tuition has been increasing drastically compared to inflation and salary increases. Part of the problem may be due to increased access to federal financing opportunities.

Well, it's a bit tricker than this. Specific federal loans require certain qualifications from the educational institutions (like graduation rates). The point is, the regulatory system is there. If the problem is more loans equal higher tuition, as conservative claim, then the solution is to regulate tuition increases or the institutions have to forgo the loans.

Since almost all students get some loan support, it would be suicide for a college to reject that deal.
 
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