May 10th, 2013
01:44 PM ET

Senator wants deep discounts on student loans

Sen. Elizabeth Warren, D-Massachusetts, introduced a bill that would take the interest rate for student loans from 3.4% to less than 1%.

"If the American taxpayer is gonna invest in those big financial institutions by giving them a great deal on their interest rate, let's invest in those students by giving them the same deal," Warren told CNN's Jake Tapper.

Critics say it's not quite the same - student loans are riskier than short-term, bank-to-bank lending. Warrens says loans for big banks are no-risk because they're still "too big to fail."

"Let's make at least a level playing field on those investments," she said.

soundoff (9 Responses)
  1. skin tear prevention

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    May 19, 2013 at 5:40 pm |
  2. curtissmith003

    Hello:

    How about putting a cap on how much a student can borrow for a given degree/major? Not like the system now which is based off of total amount allowed to be borrowed over the lifetime of a student. I mean not lending money to students for schools that charge an outrageous amount for their services. If students cannot get loans for over-priced degrees, it will force schools to lower tuition rates (like the for-profits).

    Curtis
    http://www.thewildsmithberrys.com

    May 13, 2013 at 8:01 pm |