Warren Wants Student Loan Interest Rate Tied To Fed Discount

Law360, New York (May 8, 2013, 1:38 PM EDT) -- Sen. Elizabeth Warren, D-Mass., introduced legislation Wednesday that would temporarily allow students to pay the same interest rate on federal student loans that banks do when they draw from the Federal Reserve's discount window.

Warren's Bank on Students Loan Fairness Act comes as rates on federal Stafford student loans are set to double to nearly 7 percent this summer and Congress has taken no action to prevent that from happening. Meanwhile, banks are able to take out loans from the Fed's discount window at a 0.75...
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