Begich Co-Sponsors Bill to Allow Students to Borrow at Same Rate as Big Banks
Highlights Need for Fairness in Borrowing Practices in the Begich Minute
With student loan rates scheduled to double on July 1 of this year, U.S. Sen. Mark Begich used this week’s Begich Minute to highlight the need for fairness in student loan borrowing practices.
Student loan debt poses similar economic risks that failing banks do. Borrowing rates on federally subsidized loans are currently scheduled to double from 3.4 percent to 6.8 percent. With tuition costs growing, it is more important than ever to make financing a higher education affordable for all Americans.
Begich co-sponsored legislation this week that would allow students take advantage of the same low interest rates offered to banks through the Federal Reserve discount window. The bill would let students borrow at .75 percent on federally subsidized Stafford loans for one year - almost nine times less than the scheduled rate increase. This one-year fix would give students the short-term relief they need and allow Congress time to develop a long-term plan to address interest rates.
The Bank on Student Loans Fairness Act was recently introduced by Sen. Elizabeth Warren (D-MA). Click here for a fact sheet on the bill.