Sen. Elizabeth Warren wants to help college students drowning in debt by putting them in the same boat as the big banks.
“We do this for the banks because we believe that this is going to help the economy, right, help us on shaky recovery. Same thing is true for our students,” Warren said in an exclusive interview on The Last Word with Lawrence O’Donnell on Wednesday. “The big banks have got an army of lobbyists out there, they’ve got an army of lawyers to fight for them. Our students have just their voices and they call on us to do the right thing and that’s what we need to do.”
The new Democratic senator from Massachusetts introduced her first bill Wednesday, the Bank on Students Loan Fairness Act, offering students temporary relief from the burden of high interest rates on loans.
“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 during a speech on the Senate floor, her second one so far.
Stupidly subsidizing TBTF banks is bad policy. The student loan bubble will surely not be helped by further debt expansion.
More, here.