Elizabeth Warren: Give students the same deal as big banks [WITH EDIT]

[MannyGoldstein]

This discussion thread was locked as off-topic by MannyGoldstein (a host of the Elizabeth Warren group).

Last edited Wed May 8, 2013, 06:03 PM - Edit history (2)

EDIT: I am a nitwit. Unbelievably, I missed that this story had already been posted in the EW group. So go kick, rec, or damn that one.

(Now I have the distinct privilege of locking my own post...)

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Elizabeth Warren: Give students the same deal as big banks

Sen. Elizabeth Warren introduced her first standalone piece of legislation Wednesday, calling for the government to give student borrowers the same deal it gives big banks when they need a loan.

The measure would allow students who are eligible for federally subsidized Stafford loans to borrow at the same rate that banks get from the Federal Reserve when they need a short-term infusion of cash from the central bank’s discount window.

“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 (D-Mass.) said on the floor of the Senate Wednesday.

...

Patrick Sims, a director in policy research at Hamilton Place Strategies, argued a short-term loan from the discount window during a time of crisis is not at all comparable to a long-term student loan.

EDIT: I am a nitwit. Unbelievably, I missed that this story had already been posted in the EW group. So go kick, rec, or damn that one.

(Now I have the distinct privilege of locking my own post...)