NEW YORK (MainStreet)Senator Elizabeth Warren (D-Mass.) is gathering support for her bill to lower federal student loan interest rates to the level of the fed funds rate, but so far there hasn't been any movement on the one-year time frame.
A House bill that is a companion to The Bank on Students Loan Fairness Act, which drops the rate on federally subsidized Stafford loans from the Department of Education, has been introduced by Rep. John Tierney (D-Mass). Warren's bill already has a co-sponsor in the Senate by Jeff Merkley (D-OR).
"Right now, a big bank can get a loan through the Federal Reserve discount window at a rate of about 0.75%," she said Thursday in an email blast to supporters. "Those are the same big banks that destroyed millions of jobs and nearly broke our economy. That isn't right. And that's why I introduced legislation to give students the same deal we give to the big banks. This was my very first bill in the U.S. Senate, and I'm going to fight for its passage."
Tierney engaged this issue with a May 14 op-ed in the Lowell Sun. Kevin McDermott, Tierney's Washington, D.C. based legislative assistant could not be reached for comment.