To: The United States House of Representatives and The United States Senate
Give students the same interest rates on loans as the big banks
Wall Street banks – the ones that wrecked our economy – should not be getting a better interest rate on their government loans than young people trying to go to college.
Why is this important?
The interest rate on federal subsidized Stafford student loans is set to increase from 3.4% to 6.8% on July 1st. If Congress doesn't act soon, millions of college students will see their student loan payments jump.
Some argue that it's too expensive to keep government loans at low interest rates, but the federal government makes low interest loans all the time – just not to everyone. Big banks can borrow money through the Federal Reserve discount window at a rate of about 0.75%.
The biggest banks in the country – the ones that wrecked our economy and cost millions of Americans their jobs – pay next to nothing on their debt, while students pay nine times as much. That isn't right.
The Bank on Students Loan Fairness Act lets students take advantage of the same low rates offered to banks for one year while Congress finds a fair, long-term solution on student loan interest rates.
Unlike the big banks, students don't have armies of lobbyists and lawyers. But they do have us. Let's do what's right and bank on students.