Yesterday, Sen. Elizabeth Warren proposed a bill that would curtail excessive student loan costs by reducing interest rates.
Of the 20 million students who attend America’s institutions of higher education each year, about 12 million–60%–borrow money to cover the cost.. Why are students required to incur this expense? The answer is quite simple. The cost of higher education in this country keeps escalating. The Department of Education (DOE) has a nifty calculator that generates lists of the least and most costly institutions. According the DOE’s calculations, Connecticut College wins the exorbitant cost contest, coming in at $43,990. Across the nation, students are being saddled with college expenses that create an average of $26,000 in student loans. So, how do we address this problem to lessen the blow?
Yesterday, Massachusetts Democrat Sen. Elizabeth Warren proposed a bill that would curtail excessive student loan costs by reducing interest rates to match what the federal reserve offers big banks. It turns out banks pay .75 percent and come July, students will have to pay a rate of 6.8 percent. Why should banks get a lower interest rate than our nation’s students?