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Bank of America Gets Virtually Free Money, Why Not Students of America?

For years now, I’ve been asking myself how the federal government justifies charging students nearly 7 percent for loans when banks can get federal funds virtually interest-free (the Fed discount window rate is currently 0.75%).

Finally, my grumbling at cocktail parties and in line at the grocery store can end, because Senator Elizabeth Warren (D-MA) has raised this issue in a much more important venue: on the floor of the U.S. Senate. She’s announced that her first piece of legislation would allow students with Stafford loans to pay the same rate as the banks for a year starting July 1st. 

Watch the video here: