A bill filed by Massachusetts Senator Elizabeth Warren to dramatically cut the interest rate on college student loans is gaining support.
Warren’s bill, which is the first she has authored as a Senator, has been endorsed by more than two dozen colleges and universities in Massachusetts, as well as several national progressive political groups. It would link the interest rate on federal student loans to the rate the Federal Reserve charges to loan money to banks. That would effectively lower the student loan interest rate from 6.8 percent to .75 percent.
Congressional inaction caused student loan rates to double on July 1st. Congress may vote on a retroactive rollback of the rates after the Fourth of July recess.
