Political battle over student loans heating up

Sen. Elizabeth Warren (D-Mass.) wasted no time going to bat for college students last week, introducing a bill –– her first as Senator –– that would let students take out federal student loans at the same dirt cheap interest rates as big banks. 

While commercial and personal borrowers are currently enjoying historically low interest-rates on loans, and big banks are able to obtain loans at less than one percent interest, student borrowers have had to fight against lawmakers looking to raise interest rates on federally subsidized student loans.

WASHINGTON — Congressional inaction could end up costing college students an extra $5,000 on their new loans. The rate for subsidized Stafford loans is set to increase from 3.4 percent to 6.8 percent on July 1, just as millions of new college students start signing up for fall courses. The difference between the two rates adds up to $6 billion. Just a year ago, lawmakers faced a similar deadline and dodged the rate increase amid the heated presidential campaign between President Barack Obama and Republican challenger Mitt Romney.

WASHINGTON — Congressional inaction could end up costing college students an extra $5,000 on their new loans. The rate for subsidized Stafford loans is set to increase from 3.4 percent to 6.8 percent on July 1, just as millions of new college students start signing up for fall courses. The difference between the two rates adds up to $6 billion. Just a year ago, lawmakers faced a similar deadline and dodged the rate increase amid the heated presidential campaign between President Barack Obama and Republican challenger Mitt Romney.