SHARE

Student Loan Interest at 0.75 Percent?

Student Loan Interest at 0.75 Percent?
May 9, 2013

WASHINGTON -- As the days tick down until the rates on subsidized student loans will double to 6.8 percent on June 1, Senator Elizabeth Warren, a Massachusetts Democrat, proposed a bill that would set the interest rate for federally subsidized student loans at the same rate as the Federal Reserve's discount rate to banks -- currently 0.75 percent. The rate would be good for one year, to give Congress time to come up with a long-term fix. The loans would be funded by the Federal Reserve.

Congressional Republicans and President Obama have called for a market-based interest rate based on the government's cost to borrow, but the interest rate from those solutions would be a few percentage points higher than Warren's proposed 0.75 percent.

 

 

Please review our commenting policy here.

Most

  • Viewed
  • Commented
  • Past:
  • Day
  • Week
  • Month
  • Year
Loading results...
Back to Top